Teva Pharmaceutical Industries Limited (TEVA): A Bull Case Theory 

We came across a bullish thesis on Teva Pharmaceutical Industries Limited on Kontra Investments’s Substack by Kontra. In this article, we will summarize the bulls’ thesis on TEVA. Teva Pharmaceutical Industries Limited’s share was trading at $33.07 as of January 28th. TEVA’s trailing and forward P/E were 27.45 and 11.70 respectively according to Yahoo Finance.

Teva Pharmaceutical Industries Limited develops, manufactures, markets, and distributes generic and other medicines, and biopharmaceutical products in the United States, Europe, Israel, and internationally. TEVA is rapidly reshaping its identity, shifting from a debt-burdened generics manufacturer into a company with a credible innovative pipeline, and the centerpiece of this transformation is Duvakitug (TEV-’574). Presented at the Jefferies London Healthcare Conference, the drug’s Phase 2b success in ulcerative colitis and Crohn’s disease has positioned it as a potential valuation catalyst rather than another incremental entrant in immunology.

Unlike standard anti-TNF biologics that primarily reduce inflammation, Duvakitug’s anti-TL1a mechanism also targets fibrosis, addressing both disease progression and the structural damage that leads to surgery in IBD patients. Teva is now preparing for Phase 3 in H2 2025 while expanding the program into two new Phase 2 indications, which—based on TL1a biology and competitor activity—likely include systemic sclerosis and either atopic dermatitis or asthma.

These additions broaden the drug’s strategic reach, though they enter markets with varying competitive intensity. Systemic sclerosis offers scientific alignment and high pricing power in an orphan setting, while AD or asthma represents a crowded therapeutic landscape dominated by Dupixent, where success depends on outperforming in non-responders.

Despite the sizable total addressable markets, Teva’s true upside is constrained by being second to Merck’s tulisokibart, the 50/50 profit-sharing deal with Sanofi, and the challenge of securing an FDA-approved anti-fibrosis label claim—essential for meaningful differentiation. Even so, Duvakitug provides a substantial call option on the stock, especially given the market’s minimal attribution of value to Teva’s pipeline. If the drug advances cleanly into Phase 3 and gains traction in the new indications, the company could see significant upside, with shares plausibly reaching $29–31 over the next year.

Previously we covered a bullish thesis on Teva Pharmaceutical Industries Limited (TEVA) by Kontra in May 2025, which highlighted the company’s shift from generics to innovation, driven by strong growth from Austedo, Ajovy, and Uzedy, and operational improvements under CEO Francis. The stock has appreciated 95.79% since coverage. The thesis still stands, with Kontra now emphasizing Duvakitug’s potential as a valuation catalyst through Phase 3 and new indications.

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Disclosure: None.