Teva Pharmaceutical Industries Limited (TEVA): Business Model Canvas [11-2024 Updated]

Teva Pharmaceutical Industries Limited (TEVA) stands out in the global healthcare landscape with a robust business model that emphasizes innovation and affordability. By leveraging strategic partnerships and a diverse product portfolio, Teva is committed to enhancing patient outcomes through its extensive range of generic and specialty pharmaceuticals. In this blog post, we will explore the intricacies of Teva's Business Model Canvas, highlighting its key partnerships, activities, resources, and more, to understand how this industry leader navigates the complex pharmaceutical environment.

Teva Pharmaceutical Industries Limited (TEVA) - Business Model: Key Partnerships

Collaborations with Royalty Pharma for funding development

Teva Pharmaceutical Industries Limited entered into a funding agreement with Royalty Pharma on November 9, 2023. Under this agreement, Royalty Pharma will provide Teva with up to $100 million to support the ongoing development costs for olanzapine LAI (TEV-749). There is an option to increase this amount to $125 million, which expired in the second quarter of 2024. In exchange, Teva is obligated to pay milestone payments corresponding to the amount funded, spread over five years, along with royalties upon commercialization of the product.

Exclusive agreements with Sanofi for co-development and commercialization

On October 3, 2023, Teva signed an exclusive collaboration agreement with Sanofi to co-develop and commercialize Teva’s duvakitug (anti-TL1A, TEV-574) asset, aimed at treating ulcerative colitis and Crohn’s disease. For this partnership, Teva received an upfront payment of $500 million in Q4 2023. Additionally, Teva may earn up to $1 billion in development and launch milestones. The companies will equally share development costs and net profits in major markets.

Partnerships with MODAG for neurodegenerative disorder treatments

Teva has an exclusive global license agreement with MODAG GmbH, initiated in October 2021, to develop and commercialize emrusolmin (TEV-286), targeting multiple system atrophy and Parkinson’s disease. Teva made an upfront payment of $10 million and is potentially liable for up to $30 million in future development milestone payments, alongside royalties.

Licensing agreements with mAbxience for biosimilar development

In April 2024, Teva entered a licensing agreement with mAbxience for a biosimilar candidate targeting multiple oncology indications. Teva paid $20 million in upfront and milestone payments, with potential future payments amounting to $320 million based on development and commercialization milestones.

Strategic collaboration with Alvotech for biosimilar candidates

Teva’s strategic collaboration with Alvotech, established in August 2020, focuses on the exclusive commercialization of biosimilar products in the U.S. Teva has made cumulative payments of $78 million in upfront and milestone payments. In 2024, additional milestone payments of $27 million in Q2 and $19 million in Q3 were recorded. The collaboration may involve further payments totaling approximately $380 million for future milestones.

Partnership	Upfront Payment	Potential Future Payments	Purpose
Royalty Pharma	N/A	$100 million (up to $125 million)	Funding development for olanzapine LAI
Sanofi	$500 million	$1 billion	Co-development of duvakitug
MODAG	$10 million	$30 million	Development of emrusolmin
mAbxience	$20 million	$320 million	Development of oncology biosimilars
Alvotech	$78 million	$380 million	Commercialization of biosimilars in the U.S.

Teva Pharmaceutical Industries Limited (TEVA) - Business Model: Key Activities

Research and development of generic and innovative pharmaceuticals

Teva's R&D expenses in the first nine months of 2024 amounted to $751 million, marking a 3% increase compared to the same period in 2023. R&D expenses represented 6.1% of total revenues during this period.

Clinical trials for new drug candidates and biosimilars

Teva is actively engaged in clinical trials for various drug candidates, including innovative products in immunology and neuroscience. The company reported a total of $240 million spent on R&D for the third quarter of 2024, a decrease of 5% from the previous year.

Manufacturing and quality control of pharmaceutical products

Teva operates multiple manufacturing facilities with a focus on maintaining high-quality standards. The gross profit margin in the third quarter of 2024 was 49.6%, up from 48.1% in the same quarter of 2023, largely due to a favorable product mix.

Marketing and distribution across global markets

Teva's marketing and sales expenses reached $1,891 million in the first nine months of 2024, reflecting a 10% increase from the previous year. The company reported revenues of $2,225 million from its U.S. operations in the third quarter of 2024, which was a 17% increase compared to the same quarter in 2023.

Regulatory compliance and patent litigation management

In the third quarter of 2024, Teva incurred expenses of $450 million related to legal settlements and contingencies, compared to $314 million in the same quarter of 2023. This includes costs associated with ongoing patent litigation and regulatory compliance efforts.

Key Activity	Financial Data	Remarks
R&D Expenses	$751 million (9M 2024)	Increased by 3% YoY
Clinical Trials	$240 million (Q3 2024)	Decreased by 5% YoY
Gross Profit Margin	49.6% (Q3 2024)	Improved from 48.1% YoY
Marketing and Sales Expenses	$1,891 million (9M 2024)	Increased by 10% YoY
Legal Settlements	$450 million (Q3 2024)	Increased from $314 million YoY

Teva Pharmaceutical Industries Limited (TEVA) - Business Model: Key Resources

Extensive patent portfolio and product rights

Teva Pharmaceutical Industries has a significant portfolio of over 6,000 patents globally, which includes both active patents and pending applications. This extensive patent portfolio allows Teva to maintain competitive advantages in various therapeutic areas, particularly in generics and specialty medications.

The company holds rights to a wide range of products, contributing to its revenues from various segments, including $12.3 billion in net revenues for the nine months ended September 30, 2024, compared to $11.4 billion in the same period in 2023 .

Manufacturing facilities and supply chain networks

Teva operates more than 40 manufacturing facilities across the globe, strategically located to optimize production and distribution. These facilities are crucial for the production of both generic and branded pharmaceuticals, supporting the company's extensive product portfolio.

The company has a robust supply chain network that ensures efficient distribution of its products. As of September 30, 2024, Teva reported total inventories of $3.96 billion, which includes finished products, raw materials, and products in process .

Skilled workforce of approximately 37,000 employees

Teva employs around 37,000 people worldwide, providing a diverse skill set essential for its operations in research, development, manufacturing, and marketing. The workforce includes scientists, researchers, and skilled technicians who contribute to the company’s innovation and production capabilities.

Strong financial backing and cash reserves

As of September 30, 2024, Teva reported cash and cash equivalents of $3.32 billion . The company's total assets were valued at $41.76 billion, while total liabilities stood at $21.58 billion, indicating a solid financial position to support ongoing operations and R&D investments .

Teva also has access to various financing options, including senior notes and sustainability-linked senior notes totaling approximately $16.13 billion as of September 30, 2024 .

R&D capabilities across various therapeutic areas

Teva invests significantly in research and development, with R&D expenses amounting to $240 million in the third quarter of 2024 . The company focuses on several therapeutic areas including neurology, oncology, and immunology, which are critical for its pipeline of innovative products.

Teva's R&D efforts are supported by collaborations and licensing agreements, such as a recent partnership with Sanofi, which included an upfront payment of $500 million for the co-development of a novel therapy.

Key Resources	Details
Patent Portfolio	Over 6,000 patents globally
Manufacturing Facilities	More than 40 facilities worldwide
Workforce	Approximately 37,000 employees
Cash Reserves	Cash and cash equivalents: $3.32 billion
Total Assets	$41.76 billion
Total Liabilities	$21.58 billion
R&D Expenses	$240 million (Q3 2024)

Teva Pharmaceutical Industries Limited (TEVA) - Business Model: Value Propositions

Wide range of generic and specialty pharmaceuticals

Teva Pharmaceutical Industries Limited offers a diverse portfolio of over 3,500 products, including both generic and specialty pharmaceuticals. In the first nine months of 2024, Teva generated $12,315 million in revenues, with $6,060 million from the United States segment alone, reflecting a 17% increase in generic product revenues compared to the same period in 2023.

Commitment to affordable healthcare through generics

Teva is committed to providing affordable healthcare solutions through its extensive generic product offerings. In Q3 2024, generic products accounted for $2,225 million in revenues, a 17% increase compared to Q3 2023. Teva's generic product revenues in the U.S. segment rose by 30% to $1,094 million, driven by generic versions of high-demand medications such as lenalidomide capsules.

Strong pipeline of innovative therapies for chronic conditions

Teva's robust pipeline includes innovative therapies targeting chronic conditions. The company has invested $751 million in R&D during the first nine months of 2024, representing 6.1% of total revenues. Teva's collaborations, such as the $500 million partnership with Sanofi for the anti-TL1A therapy, highlight its focus on innovation.

Enhanced patient outcomes through quality medications

Teva's focus on quality has resulted in a gross profit margin of 48.3% in the first nine months of 2024, up from 45.9% in the same period in 2023. The company emphasizes the importance of quality in its medications to improve patient outcomes across various therapeutic areas, particularly in neurology and immunology.

Global reach with localized market strategies

Teva operates in over 60 countries, employing localized strategies to meet the specific needs of diverse markets. In Q3 2024, Teva's revenues from Europe reached $1,265 million, a 10% increase compared to Q3 2023. This global presence allows Teva to adapt to regional healthcare demands and regulatory requirements, enhancing its competitive advantage.

Revenue Streams	Q3 2024 (U.S. $ in millions)	Q3 2023 (U.S. $ in millions)	Percentage Change
Generic Products	2,225	1,896	17%
Specialty Pharmaceuticals	1,265	1,146	10%
International Markets	613	591	4%
Other Activities	229	217	6%

As of September 30, 2024, Teva's total assets were approximately $42,095 million, with a total equity of $6,383 million. The company's strategic focus on innovation and affordability positions it well in the competitive pharmaceutical landscape, catering to a wide range of patient needs globally.

Teva Pharmaceutical Industries Limited (TEVA) - Business Model: Customer Relationships

Direct engagement with healthcare professionals and pharmacies

Teva engages directly with healthcare professionals and pharmacies through various channels. In the third quarter of 2024, Teva's revenues in the United States segment were reported at $6,060 million, with significant contributions from generic products, which accounted for $2,924 million. This engagement is critical for promoting their products and ensuring that healthcare providers are informed about the latest offerings and clinical data.

Patient support programs for medication adherence

Teva implements patient support programs aimed at enhancing medication adherence. In 2024, the company focused on programs associated with key products like AUSTEDO, which generated $1,124 million in revenue for the first nine months. Such programs are designed to provide patients with resources, education, and support to help them manage their treatment effectively.

Partnerships with healthcare providers for education and outreach

Teva has established partnerships with various healthcare providers to facilitate education and outreach efforts. In 2024, Teva entered into a collaboration with Sanofi for the co-development of a novel anti-TL1A therapy, resulting in an upfront payment of $500 million. This partnership aims to enhance product knowledge and improve patient outcomes through joint educational initiatives.

Regular feedback loops for product improvement

Teva maintains regular feedback loops with healthcare professionals and patients to gather insights for product improvement. In the third quarter of 2024, the company reported $450 million in legal settlements related to product claims, highlighting the importance of addressing concerns raised by stakeholders. Feedback mechanisms enable Teva to adapt its offerings to meet the needs of its customer base effectively.

Strong presence in the healthcare community through conferences and seminars

Teva actively participates in conferences and seminars to strengthen its presence in the healthcare community. The company's engagement at these events facilitates direct interaction with healthcare professionals, allowing for the dissemination of valuable information regarding their products and therapeutic areas. In 2024, Teva reported an increase in its market share for AJOVY to 29.1% in the U.S., reflecting the impact of these outreach efforts.

Type of Engagement	Details	Financial Impact (Q3 2024)
Direct Engagement	Healthcare professionals and pharmacies	$6,060 million (total US revenues)
Patient Support Programs	Medication adherence initiatives	$1,124 million (AUSTEDO revenue)
Partnerships	Collaboration with Sanofi	$500 million (upfront payment)
Feedback Loops	Insights for product improvement	$450 million (legal settlements)
Healthcare Presence	Conferences and seminars	29.1% market share for AJOVY

Teva Pharmaceutical Industries Limited (TEVA) - Business Model: Channels

Direct sales force targeting hospitals and pharmacies

Teva utilizes a specialized direct sales force that focuses on engaging hospitals and pharmacies. In the third quarter of 2024, Teva's revenues from the United States segment amounted to $2,225 million, with significant contributions from direct sales to healthcare providers.

Distribution agreements with pharmaceutical wholesalers

Teva has established distribution agreements with major pharmaceutical wholesalers. For instance, in the U.S. market, Teva's Anda division, which is a distribution business, reported revenues of $380 million in the third quarter of 2024, marking a 3% increase from $367 million in the same period of 2023.

Online platforms for healthcare professionals

Teva has developed online platforms that cater to healthcare professionals, enhancing accessibility to product information and ordering processes. These platforms are integral to Teva's strategy, particularly as digital interactions continue to grow in importance within the pharmaceutical industry.

Partnerships with healthcare systems for integrated care models

Teva actively partners with healthcare systems to implement integrated care models. This approach not only improves patient outcomes but also aligns with Teva's strategic goals. For example, through collaborations, Teva engages in shared responsibility for patient management and medication adherence programs.

Participation in industry trade shows and exhibitions

Teva participates in various industry trade shows and exhibitions, which serve as critical channels for brand visibility and networking. These events facilitate direct engagement with healthcare professionals and stakeholders, helping Teva showcase its product portfolio and innovations.

Channel Type	Details	Recent Financial Impact
Direct Sales Force	Engages hospitals and pharmacies directly	$2,225 million (Q3 2024 revenue from U.S. segment)
Distribution Agreements	Partnerships with wholesalers	$380 million (Anda revenue Q3 2024)
Online Platforms	Digital access for healthcare professionals	Significant increase in user engagement metrics
Healthcare Partnerships	Integrated care models	Contributes to improved patient outcomes
Trade Shows	Industry visibility and networking	Enhanced brand recognition and stakeholder engagement

Teva Pharmaceutical Industries Limited (TEVA) - Business Model: Customer Segments

Hospitals and healthcare institutions

Teva Pharmaceutical Industries Limited (TEVA) supplies a wide range of products to hospitals and healthcare institutions, including both generic and specialty pharmaceuticals. In the third quarter of 2024, Teva's revenues from the United States segment reached $2,225 million, with a significant portion attributed to sales to hospitals. The company has established strong relationships with healthcare providers, facilitating access to essential medications and therapies.

Retail pharmacies and drugstore chains

Teva's products are also widely available through retail pharmacies and drugstore chains. The company's strong presence in the generic drug market allows it to provide cost-effective solutions for pharmacies, which in turn serve consumers looking for affordable medications. In the first nine months of 2024, Teva's revenues from generic products in the U.S. segment increased by 30%, contributing significantly to its overall performance.

Patients requiring chronic disease management

Teva focuses on patients requiring chronic disease management, particularly in areas such as neurology and respiratory diseases. The company offers specialized medications like AUSTEDO for tardive dyskinesia and AJOVY for migraine prevention. In the third quarter of 2024, AUSTEDO generated revenues of $435 million, reflecting a 28% increase compared to the previous year. This highlights Teva’s commitment to addressing the needs of patients with chronic conditions through innovative therapies.

Healthcare providers and physicians

Healthcare providers and physicians are crucial customer segments for Teva, as they prescribe the company's medications. Teva invests in marketing and educational programs to ensure that healthcare professionals are well-informed about its product offerings. In 2024, the company allocated approximately $626 million toward selling and marketing expenses, emphasizing its focus on building relationships with healthcare professionals.

Global markets across North America, Europe, and emerging economies

Teva operates in various global markets, including North America, Europe, and emerging economies. In the third quarter of 2024, revenues from the Europe segment amounted to $1,265 million, while International Markets generated $613 million. This diversified presence allows Teva to tap into different healthcare systems and regulatory environments, catering to a wide range of customer segments worldwide.

Customer Segment	Key Products	Revenue (Q3 2024, $ millions)	Growth Rate
Hospitals and healthcare institutions	Generic and specialty pharmaceuticals	2,225	17%
Retail pharmacies and drugstore chains	Generic drugs	1,094	30%
Patients requiring chronic disease management	AUSTEDO, AJOVY	435 (AUSTEDO)	28%
Healthcare providers and physicians	Marketing and educational programs	626 (S&M expenses)	10%
Global markets	All product lines	1,265 (Europe)	10%

Teva Pharmaceutical Industries Limited (TEVA) - Business Model: Cost Structure

Significant R&D expenditures for drug development

In the first nine months of 2024, Teva Pharmaceutical Industries Limited reported research and development (R&D) expenses of $751 million, which marked an increase of 3% compared to $726 million in the same period of 2023. R&D expenses represented 6.1% of total revenues, slightly down from 6.4% in the prior year.

Period	R&D Expenses (in millions)	Percentage of Revenues
9 Months 2024	$751	6.1%
9 Months 2023	$726	6.4%

Manufacturing and operational costs for production facilities

Teva's manufacturing costs are significant, with total cost of sales amounting to $6,372 million for the first nine months of 2024, compared to $6,159 million in the same period of 2023. This includes ongoing operational costs related to their manufacturing facilities.

Period	Cost of Sales (in millions)
9 Months 2024	$6,372
9 Months 2023	$6,159

Marketing and sales expenses for product promotion

Selling and marketing (S&M) expenses reached $1,891 million in the first nine months of 2024, representing a 10% increase from $1,726 million in the same period of 2023. S&M costs accounted for 15.4% of total revenues.

Period	S&M Expenses (in millions)	Percentage of Revenues
9 Months 2024	$1,891	15.4%
9 Months 2023	$1,726	15.2%

Legal costs associated with patent litigation and compliance

Teva incurred legal settlements and loss contingencies amounting to $638 million in the first nine months of 2024, compared to $1,009 million in the same period of 2023. These costs are primarily related to patent litigation and compliance issues.

Period	Legal Costs (in millions)
9 Months 2024	$638
9 Months 2023	$1,009

Administrative costs related to corporate governance

General and administrative (G&A) expenses for the first nine months of 2024 were $859 million, reflecting a slight decrease of 1% compared to $870 million in the same period of 2023.

Period	G&A Expenses (in millions)
9 Months 2024	$859
9 Months 2023	$870

Teva Pharmaceutical Industries Limited (TEVA) - Business Model: Revenue Streams

Sales of generic pharmaceuticals across various markets

Teva Pharmaceutical Industries Limited generated significant revenue from its sales of generic pharmaceuticals. In the first nine months of 2024, revenues from generic products amounted to $2,924 million, reflecting an increase of 18% compared to $2,471 million in the same period of 2023. In the third quarter of 2024 alone, generic product sales reached $1,094 million, up 30% from $839 million in the third quarter of 2023.

Sales from specialty and innovative drugs

Teva also derives revenue from specialty and innovative drugs. In the first nine months of 2024, the specialty drug AUSTEDO contributed $1,124 million to revenues, marking a growth of 38% compared to $817 million in the first nine months of 2023. Other specialty products, including AJOVY and COPAXONE, generated $144 million and $179 million respectively during the same period.

Licensing fees from partnerships and collaborations

Teva's business model includes revenue from licensing agreements. In the first nine months of 2024, licensing arrangements accounted for $121 million in revenue, which includes payments from collaborations and partnerships. This represents an increase from $134 million in the previous year.

Milestone payments from development agreements

Teva receives milestone payments from development agreements with partners. For example, the company entered a collaboration with Sanofi that included an upfront payment of $500 million and potential milestone payments of up to $1 billion. Additionally, Teva recorded $18 million in milestone payments related to its product TEV-’749.

Revenue from contract manufacturing services

Teva also engages in contract manufacturing services, contributing to its revenue streams. In the first nine months of 2024, revenues from other activities, including contract manufacturing, amounted to $703 million, reflecting a growth of 3% compared to $681 million in the same period of 2023.

Revenue Source	2024 (9 months)	2023 (9 months)	Percentage Change
Generic Pharmaceuticals	$2,924 million	$2,471 million	+18%
AUSTEDO (Specialty Drug)	$1,124 million	$817 million	+38%
Licensing Fees	$121 million	$134 million	-10%
Milestone Payments	$18 million	N/A	N/A
Contract Manufacturing Services	$703 million	$681 million	+3%

Updated on 16 Nov 2024

Resources:

1. Teva Pharmaceutical Industries Limited (TEVA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Teva Pharmaceutical Industries Limited (TEVA)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Teva Pharmaceutical Industries Limited (TEVA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.