TEVA PHARMACEUTICAL INDUSTRIES LTDTEVA
TEVA PHARMACEUTICAL INDUSTRIES LTD Segments Disclosure
NOTE 19 – Segments:
Teva operates its business and reports its financial results in three segments:
(a) |
United States segment. |
(b) |
Europe segment, which includes the European Union, the United Kingdom and certain other European countries. |
(c) |
International Markets segment, which includes all countries other than the United States and countries included in the Europe segment. |
In
out-licensing
platform offering a portfolio of products to other pharmaceutical companies through its affiliate Medis. Teva’s Chief Executive Officer (“CEO”), who is the chief operating decision maker (“CODM”), reviews financial information prepared on a consolidated basis, accompanied by disaggregated information about revenues and contributed profit by the three identified reportable segments, namely United States, Europe and International Markets, to make decisions about resources to be allocated to the segments and assess their performance.
The key areas of focus by CODM for allocation of resources are revenues from each reportable segment, as well as operating expenses (cost of sales, R&D expenses, S&M expenses, G&A expenses, and other expenses (income)). While CODM analyzes these categories, the area of focus is period over period fluxes and variances to determine the right allocation of resources is attributed to each segment in order to ensure profitability is maximized.
budget-to-actual
Segment profit is comprised of revenues for the segment less cost of sales, R&D expenses, S&M expenses, G&A expenses and other expenses (income) related to the segment. Segment profit does not include amortization and certain other items.
Teva manages its assets on a company basis, not by segments, as many of its assets are shared or commingled. Teva’s CODM does not regularly review asset information by reportable segment and, therefore, Teva does not report asset information by reportable segment.
Teva’s CEO may review its strategy and organizational structure from time to time. Based on such review, in May 2023 Teva launched its new Pivot to Growth strategy. Any additional changes in strategy may lead to a reevaluation of the Company’s segments and goodwill allocation to reporting units, as well as fair value attributable to its reporting units. See note 7.
In conjunction with a shift in executive management responsibilities and in alignment with Teva’s Pivot to Growth strategy, Teva decided that Canada is no longer included as part of Teva’s North America segment as of January 1, 2024. From that date Canada is reported as part of the Company’s International Markets segment and Teva’s North America segment has been renamed the United States segment. Teva aligned its internal financial and segment reporting and its reporting units in accordance with this change effective January 1, 2024. Prior period amounts for the year ended December 31, 2023 have been recast to conform to the reporting structure.
On December 31, 2024, Teva classified its API business (including its R&D, manufacturing and commercial activities) as held for sale. The intention to divest is in alignment with Teva’s Pivot to Growth strategy. On November 5, 2025, Teva announced that exclusive discussions with a selected buyer on the sale have terminated. Teva has initiated a renewed sales process, maintaining its strategic intention to divest its API business. However, there can be no assurance regarding the ultimate timing or structure of a potential divestiture or whether a divestiture will be agreed or completed at all. See note 2.
To align with Teva’s Pivot to Growth strategy, commencing January 1, 2026, Anda will no longer be reported under Teva’s United States segment. This shift will allow the United States segment to continue to manage its entire product portfolio in the region, while strengthening focus on its biopharmaceutical business, growth engines and innovation. As a result, from that date, Anda will be reported as part of the Company’s Other Activities. Teva will align its internal financial and segment reporting in coordination with this shift effective January 1, 2026.
a. |
Segment information: |
Year ended December 31, |
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2025 |
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United States |
Europe |
International Markets |
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(U.S. $ in millions) |
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| Revenues |
$ | 9,186 | $ | 5,040 | $ | 2,162 | ||||||
| Cost of sales |
3,568 | 2,293 | 1,116 | |||||||||
| R&D expenses |
633 | 247 | 103 | |||||||||
| S&M expenses |
1,172 | 902 | 475 | |||||||||
| G&A expenses |
458 | 295 | 147 | |||||||||
| Other |
§ | 1 | (14 | ) | ||||||||
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| Segment profit |
$ | 3,356 | $ | 1,303 | $ | 336 | ||||||
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Represents an amount less than $0.5 million. |
Year ended December 31, |
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2024 |
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United States |
Europe |
International Markets |
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(U.S. $ in millions) |
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| Revenues |
$ | 8,034 | $ | 5,103 | $ | 2,463 | ||||||
| Cost of sales |
3,646 | 2,197 | 1,229 | |||||||||
| R&D expenses |
633 | 229 | 112 | |||||||||
| S&M expenses |
1,049 | 826 | 534 | |||||||||
| G&A expenses |
410 | 272 | 150 | |||||||||
| Other |
§ | 3 | (2 | ) | ||||||||
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| Segment profit |
$ | 2,296 | $ | 1,575 | $ | 440 | ||||||
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§ |
Represents an amount less than $0.5 million. |
Year ended December 31, |
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2023 |
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United States |
Europe |
International Markets |
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(U.S. $ in millions) |
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| Revenues |
$ | 7,731 | $ | 4,837 | $ | 2,351 | ||||||
| Cost of sales |
3,421 | 2,111 | 1,191 | |||||||||
| R&D expenses |
604 | 220 | 104 | |||||||||
| S&M expenses |
938 | 767 | 487 | |||||||||
| G&A expenses |
378 | 263 | 142 | |||||||||
| Other loss (income) |
(5 | ) | (2 | ) | (39 | ) | ||||||
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| Segment profit |
$ | 2,394 | $ | 1,478 | $ | 465 | ||||||
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Year ended December 31, |
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2025 |
2024 |
2023 |
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(U.S. $ in millions) |
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| United States profit |
$ | 3,356 | $ | 2,296 | $ | 2,394 | ||||||
| Europe profit |
1,303 | 1,575 | 1,478 | |||||||||
| International Markets profit |
336 | 440 | 465 | |||||||||
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| Total reportable segments profit |
4,995 | 4,311 | 4,338 | |||||||||
| Profit (loss) of other activities |
(90 | ) | 18 | 24 | ||||||||
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| Amounts not allocated to segments: |
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| Amortization |
581 | 588 | 616 | |||||||||
| Other assets impairments, restructuring and other items |
1,050 | 1,388 | 718 | |||||||||
| Goodwill impairment |
— | 1,280 | 700 | |||||||||
| Intangible asset impairments |
259 | 251 | 350 | |||||||||
| Legal settlements and loss contingencies |
473 | 761 | 1,043 | |||||||||
| Other unallocated amounts |
384 | 364 | 502 | |||||||||
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| Consolidated operating income (loss) |
2,157 | (303 | ) | 433 | ||||||||
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| Financial expenses, net |
934 | 981 | 1,057 | |||||||||
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| Consolidated income (loss) before income taxes |
$ | 1,223 | $ | (1,284 | ) | $ | (624 | ) | ||||
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b. |
Segment revenues by major products and activities: |
The following tables present revenues by major products and activities for each segment for the year ended December 31, 2025, 2024 and 2023:
United States segment:
Year ended December 31, |
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2025 |
2024 |
2023 |
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(U.S. $ in millions) |
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| Generic products (including biosimilars) |
$ | 3,657 | $ | 3,599 | $ | 3,138 | ||||||
| AJOVY |
295 | 207 | 211 | |||||||||
| AUSTEDO |
2,217 | 1,642 | 1,225 | |||||||||
| BENDEKA and TREANDA |
147 | 168 | 237 | |||||||||
| COPAXONE |
255 | 242 | 297 | |||||||||
| UZEDY |
191 | 117 | 23 | |||||||||
| Anda |
1,496 | 1,536 | 1,577 | |||||||||
| Other* |
929 | 523 | 1,025 | |||||||||
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| Total |
$ | 9,186 | $ | 8,034 | $ | 7,731 | ||||||
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| * | Other revenues in 2025 were mainly comprised of development milestone payments of $500 million received in the fourth quarter of 2025, in connection with the initiation of Phase 3 studies for duvakitug (anti-TL1A) (see note 2 ). Other revenues in 2024 include the sale of certain product rights. Other revenues in 2023 were mainly comprised of a $500 million upfront payment received in the fourth quarter of 2023, in connection with the collaboration on Teva’s duvakitug (anti-TL1A) asset. |
Europe segment:
Year ended December 31, |
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2025 |
2024 |
2023 |
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(U.S. $ in millions) |
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| Generic products (including OTC and biosimilars) |
$ | 4,044 | $ | 3,926 | $ | 3,664 | ||||||
| AJOVY |
270 | 216 | 160 | |||||||||
| COPAXONE |
181 | 213 | 231 | |||||||||
| Respiratory products |
227 | 244 | 265 | |||||||||
| Other* |
319 | 504 | 516 | |||||||||
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| Total |
$ | 5,040 | $ | 5,103 | $ | 4,837 | ||||||
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| * | Other revenues in 2025, 2024 and 2023 include the sale of certain product rights. |
International Markets segment:
Year ended December 31, |
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2025 |
2024 |
2023 |
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(U.S. $ in millions) |
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| Generic products (including OTC and biosimilars) |
$ | 1,721 | $ | 1,937 | $ | 1,932 | ||||||
| AJOVY |
108 | 84 | 63 | |||||||||
| AUSTEDO |
43 | 46 | 15 | |||||||||
| COPAXONE |
32 | 48 | 63 | |||||||||
| Other* |
259 | 349 | 278 | |||||||||
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| Total |
$ | 2,162 | $ | 2,463 | $ | 2,351 | ||||||
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| * | Other revenues in 2025 and 2024 include the sale of certain product rights. |
Revenues are attributable to countries based on sales to third parties in such countries. Revenues within the United States constituted 53% for the year ended December 31, 2025 and 49% of Teva’s consolidated revenues for both the years ended December 31, 2024 and 2023. Revenues within the Company’s country of domicile (Israel) constituted 2% of Teva’s consolidated revenues for each of the years ended December 31, 2025, 2024 and 2023.
c. |
Supplemental data—major customers: |
The following table represents the percentage of consolidated third party net sales to Teva’s major customers during the years ended December 31, 2025, 2024 and 2023.
Percentage of Third Party Net Sales |
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2025 |
2024 |
2023 |
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| McKesson Corporation |
13 | % | 12 | % | 9 | % | ||||||
| AmerisourceBergen Corporation |
11 | % | 9 | % | 9 | % | ||||||
Most of Teva’s revenues from these customers were in the United States segment.
d. |
Property, plant and equipment—by geographical location were as follows: |
December 31, |
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2025 |
2024 |
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(U.S. $ in millions) |
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| Israel |
$ | 1,033 | $ | 1,066 | ||||
| Germany |
704 | 1,262 | ||||||
| United States |
529 | 561 | ||||||
| Croatia |
312 | 277 | ||||||
| Czech Republic |
199 | 206 | ||||||
| Hungary |
86 | 83 | ||||||
| Ireland |
244 | 261 | ||||||
| Other |
973 | 865 | ||||||
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| Total property, plant and equipment |
$ | 4,080 | $ | 4,581 | ||||
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About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.