Teva's 3 Key Branded Drugs Grew Sales 33% Last Quarter. Is This Turnaround Stock a Buy Right Now?

Teva Pharmaceuticals is executing a successful turnaround strategy, shifting from generics to higher-margin branded therapies. Its three key drugs (Austedo, Ajovy, Uzedy) grew sales 33% year-over-year to $1.1 billion in Q3, while gross margins improved to 55.5%. The company has paid down $12 billion in debt since 2019 and received investment-grade ratings. However, overall Q3 revenue declined 2% due to generic drug competition, and the company faces headwinds from commoditized generics. Despite recent gains, the stock trades at less than 21x forward earnings.