Teva Pharmaceutical Industries (NYSE: TEVA) is undergoing a significant transformation, moving away from its legacy as a generic-drug maker burdened by debt and opioid-related legal issues. In the last quarter, branded drugs accounted for over 50% of sales, with treatments like Austedo and Ajovy driving impressive revenue growth. The company has also reduced its debt by over $5 billion, allowing it to focus on expanding its branded portfolio.

The market is responding positively, with Teva’s stock more than doubling over the past year. Analysts highlight the potential of Teva’s drug pipeline, which could introduce several new blockbuster treatments between 2026 and 2030, potentially adding $7 billion to annual sales. The company’s recent acquisition of Emalex Biosciences further enhances its growth prospects, particularly with the late-stage Tourette’s treatment ecopipam.

With a reasonable valuation at 13 times forward earnings and expectations for 30% earnings growth by 2027, Teva presents a compelling long-term investment opportunity in the healthcare sector.

Source: fool.com