Teva posts Q2 2026 GAAP loss on Emalex charge, raises innovative brand outlook

Teva Pharmaceutical Industries reported second quarter 2026 results on July 29, 2026, showing a net loss attributable to Teva of $576 million and a loss per share of $0.49, compared to net income of $282 million and earnings per share of $0.24 in the second quarter of 2025.¹ The company said the change was mainly due to the change in operating loss as well as higher income taxes, primarily due to the acquisition of Emalex and its primary asset, ecopipam (EBS-101).¹ Of the loss, $726 million of expenses are attributable to Emalex ($724 million of IPR&D and $2 million of operating expenses), or a loss of $0.61 per share.¹

On the pipeline, Teva said the acquisition of Emalex Biosciences and its primary asset, ecopipam (EBS-101), a first-in-class therapy for Tourette syndrome, cost approximately $700 million in cash, and a New Drug Application for ecopipam was submitted to the U.S. FDA in June 2026.¹ Separately, in May 2026 the European Medicines Agency accepted Teva's Marketing Authorization Application for olanzapine LAI for schizophrenia in adults, and the drug is on track for a U.S. launch in the fourth quarter of 2026, subject to regulatory approval.¹

For TEV-'408, an anti-IL-15 antibody, Teva reported encouraging Phase 1b results in vitiligo, with initiation of a Phase 2 study expected in the fourth quarter of 2026.¹ For duvakitug, developed with Sanofi, the company announced plans to start studies in two additional indications, hidradenitis suppurativa and fibrostenotic Crohn's Disease, while recruitment remains on track for Phase 3 studies in ulcerative colitis and Crohn's disease.¹

On guidance, Teva said it is raising its 2026 revenue outlook for AUSTEDO, AJOVY and UZEDY, now expecting combined 2026 revenue of about $3.7 billion, reflecting roughly 17% year-over-year growth at the midpoint.¹ Overall 2026 revenue guidance stands at $16.5 billion to $16.85 billion, with non-GAAP diluted EPS of $1.91 to $2.11, including a $0.66 per share impact from Emalex-related expenses.¹ The company also reported free cash flow of $622 million for the quarter, with full-year free cash flow guidance of $2.0 billion to $2.4 billion.¹