TEVA PHARMACEUTICAL INDUSTRIES LTD, 10-K filed on 2/5/2025
Annual Report
v3.25.0.1
Cover Page - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Jun. 30, 2024
Cover [Abstract]    
Document Type 10-K  
Amendment Flag false  
Document Fiscal Year Focus 2024  
Document Transition Report false  
Document Period End Date Dec. 31, 2024  
Document Fiscal Period Focus FY  
Document Annual Report true  
Entity Registrant Name TEVA PHARMACEUTICAL INDUSTRIES LIMITED  
Entity Central Index Key 0000818686  
Current Fiscal Year End Date --12-31  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Common Stock, Shares Outstanding 1,133,838,689  
Title of 12(b) Security American Depositary Shares, each representing one Ordinary Share  
Trading Symbol TEVA  
Security Exchange Name NYSE  
Entity File Number 001-16174  
Entity Incorporation, State or Country Code L3  
Entity Tax Identification Number 00-0000000  
Entity Address, Address Line One 124 Dvora HaNevi’a St.  
Entity Address, City or Town Tel Aviv  
Entity Address, Postal Zip Code 6944020  
Entity Address, Country IL  
City Area Code +972 (3)  
Local Phone Number 914-8213  
Entity Filer Category Large Accelerated Filer  
Smaller Reporting Company false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Well-known Seasoned Issuer Yes  
Entity Voluntary Filers No  
Entity Public Float   $ 18,320
ICFR Auditor Attestation Flag true  
Auditor Name Kesselman & Kesselman  
Auditor Firm ID 1309  
Auditor Location Israel  
Document Financial Statement Error Correction [Flag] true  
Document Financial Statement Restatement Recovery Analysis [Flag] true  
v3.25.0.1
Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 3,300 $ 3,226
Accounts receivables, net of allowance for credit losses of $78 million and $95 million as of December 31, 2024 and December 31, 2023, respectively 3,059 3,408
Inventories 3,007 4,021
Prepaid expenses 1,006 1,255
Other current assets 409 504
Assets held for sale 1,771 70
Total current assets 12,552 12,485
Deferred income taxes 1,799 1,812
Other non-current assets 462 470
Property, plant and equipment, net 4,581 5,750
Operating lease right-of-use assets 367 397
Identifiable intangible assets, net 4,418 5,387
Goodwill [1] 15,147 17,177
Total assets 39,326 43,479
Current liabilities:    
Short-term debt 1,781 1,672
Sales reserves and allowances 3,678 3,535
Accounts payables 2,203 2,602
Employee-related obligations 624 611
Accrued expenses 2,792 2,771
Other current liabilities 1,020 1,044
Liabilities held for sale 698 13
Total current liabilities 12,796 12,247
Long-term liabilities:    
Deferred income taxes 483 606
Other taxes and long-term liabilities 4,028 4,019
Senior notes and loans 16,002 18,161
Operating lease liabilities 296 320
Total long-term liabilities 20,809 23,106
Commitments and contingencies, see note 12
Total liabilities 33,606 35,353
Redeemable non-controlling interests 340 0
Teva shareholders' equity:    
Ordinary shares of NIS 0.10 par value per share; December 31, 2024 and December 31, 2023: authorized 2,495 million shares; issued 1,240 million shares and 1,227 million shares, respectively 58 57
Additional paid-in capital 27,764 27,807
Accumulated deficit (15,173) (13,534)
Accumulated other comprehensive loss (3,148) (2,697)
Treasury shares as of December 31, 2024 and December 31, 2023: 107 million and 106 million ordinary shares, respectively (4,128) (4,128)
Stockholders' equity attributable to Teva shareholders 5,373 7,506
Non-controlling interests 7 620
Total equity 5,380 8,126
Total liabilities, redeemable non-controlling interests and equity $ 39,326 $ 43,479
[1] Cumulative goodwill impairment as of December 31, 2024, December 31, 2023 and December 31, 2022 was approximately $29.55 billion, $28.3 billion and $27.6 billion, respectively.
v3.25.0.1
Consolidated Balance Sheets (Parenthetical)
shares in Millions, $ in Millions
Dec. 31, 2024
USD ($)
shares
Dec. 31, 2024
₪ / shares
Dec. 31, 2023
USD ($)
shares
Dec. 31, 2023
₪ / shares
Allowance for credit losses | $ $ 78   $ 95  
Common stock, par or stated value per share | ₪ / shares   ₪ 0.1   ₪ 0.1
Ordinary shares, authorized 2,495   2,495  
Ordinary shares, issued 1,240   1,227  
Treasury shares 107   106  
v3.25.0.1
Consolidated Statements of Income (Loss) - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Net revenues $ 16,544 $ 15,846 $ 14,925
Cost of sales 8,481 8,200 7,952
Gross profit 8,064 7,645 6,973
Research and development expenses, net 998 953 838
Selling and marketing expenses 2,541 2,336 2,265
General and administrative expenses 1,161 1,162 1,180
Intangible assets impairments 251 350 355
Goodwill impairment 1,280 700 2,045
Other asset impairments, restructuring and other items 1,388 718 512
Legal settlements and loss contingencies 761 1,043 2,082
Other loss (income) (14) (49) (107)
Operating income (loss) (303) 433 (2,197)
Financial expenses – net 981 1,057 966
Income (loss) before income taxes (1,284) (624) (3,163)
Income taxes (benefit) 676 (7) (643)
Share in (profits) losses of associated companies – net (1) (2) (21)
Net income (loss) (1,959) (615) (2,499)
Net income (loss) attributable to non-controlling interests (320) (56) (53)
Net income (loss) attributable to Teva $ (1,639) $ (559) $ (2,446)
Earnings (loss) per share attributable to ordinary shareholders:      
Basic $ (1.45) $ (0.5) $ (2.2)
Diluted $ (1.45) $ (0.5) $ (2.2)
Weighted average number of shares (in millions):      
Basic 1,131 1,119 1,110
Diluted 1,131 1,119 1,110
v3.25.0.1
Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Net income (loss) $ (1,959) $ (615) $ (2,499)
Other comprehensive income (loss), net of tax:      
Currency translation adjustment (530) 80 (356)
Unrealized gain (loss) on derivative financial instruments, net 28 29 29
Unrealized gain (loss) on defined benefit plans, net (6) (18) 57
Total other comprehensive income (loss) (508) 91 (270)
Total comprehensive income (loss) (2,467) (524) (2,769)
Comprehensive income (loss) attributable to non-controlling interests (381) (106) (169)
Comprehensive income (loss) attributable to Teva $ (2,086) $ (418) $ (2,600)
v3.25.0.1
Consolidated Statements of Changes in Equity - USD ($)
shares in Millions, $ in Millions
Total
Ordinary Shares [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
AOCI Attributable to Parent [Member]
Treasury Shares [Member]
Total Teva Shareholders' Equity [Member]
Non-controlling Interests [Member]
Beginning balance at Dec. 31, 2021 $ 11,244 $ 57 $ 27,561 $ (10,529) $ (2,683) $ (4,128) $ 10,278 $ 966
Beginning balance, shares at Dec. 31, 2021   1,209            
Net Income (loss) (2,499)     (2,446)     (2,446) (53)
Other comprehensive income (loss) (270)       (154)   (154) (116)
Issuance of Shares, value 1   1       1  
Issuance of Shares, shares   8            
Stock-based compensation expense 124   124       124  
Transactions with non-controlling interests (2)             (2)
Ending balance at Dec. 31, 2022 8,598 $ 57 27,688 (12,975) (2,838) (4,128) 7,804 794
Ending balance, shares at Dec. 31, 2022   1,217            
Net Income (loss) (615)     (559)     (559) (56)
Other comprehensive income (loss) 91       141   141 (50)
Issuance of Shares, shares   10            
Stock-based compensation expense 121   121       121  
Dividend to non-controlling interests (68)             (68)
Ending balance at Dec. 31, 2023 8,126 $ 57 27,807 (13,534) (2,697) (4,128) 7,506 620
Ending balance, shares at Dec. 31, 2023   1,227            
Net Income (loss) (1,959)     (1,639)     (1,639) (320)
Other comprehensive income (loss) (508)       (447)   (447) (61)
Issuance of Shares, value 1 $ 1         1  
Issuance of Shares, shares   13            
Stock-based compensation expense 123   123       123  
Dividend to non-controlling interests (18)             (18)
Proceeds from exercise of options 19   19       19  
Purchase of shares from non-controlling interests (64)   (45)   (3)   (48) (16)
Reclassification to redeemable non-controlling interests (340)   (142)       (142) (198)
Ending balance at Dec. 31, 2024 $ 5,380 $ 58 $ 27,764 $ (15,173) $ (3,148) $ (4,128) $ 5,373 $ 7
Ending balance, shares at Dec. 31, 2024   1,240            
v3.25.0.1
Consolidated Statements of Changes in Equity (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Maximum [Member] | Ordinary Shares [Member]      
Exercise of options by employees and vested RSUs $ 0.5 $ 0.5 $ 0.5
v3.25.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Operating activities:      
Net income (loss) $ (1,959) $ (615) $ (2,499)
Adjustments to reconcile net income (loss) to net cash provided by operations:      
Impairment of goodwill 1,280 700 2,045
Impairment of long-lived assets and assets held for sale 1,275 378 402
Depreciation and amortization 1,059 1,153 1,308
Net change in operating assets and liabilities (435) (72) 1,355
Deferred income taxes — net and uncertain tax positions (634) (317) (1,064)
Stock-based compensation 123 121 124
Net loss (gain) from sale of business and long-lived assets (22) (41) 10
Other items 560 61 (91)
Net cash provided by (used in) operating activities 1,247 1,368 1,590
Investing activities:      
Beneficial interest collected in exchange for securitized trade receivables 1,291 1,477 1,140
Purchases of property, plant and equipment and intangible assets (498) (526) (548)
Proceeds from sale of business and long lived assets 43 68 68
Purchases of investments and other assets (71) (46) (1)
Proceeds from sale of investments 40 0 4
Acquisitions of businesses, net of cash acquired (15) 0 (7)
Other investing activities 2 (5) 0
Net cash provided by (used in) investing activities 792 968 656
Financing activities:      
Repayment of senior notes and loans and other long term liabilities (1,641) (4,152) (1,369)
Proceeds from senior notes, net of issuance costs 0 2,451 0
Proceeds from short term debt 0 700 0
Repayment of short term debt 0 (700) 0
Purchase of shares from non-controlling interests (64) 0 0
Dividends paid to non-controlling interests (78) 0 0
Other financing activities (8) (212) (118)
Net cash provided by (used in) financing activities (1,791) (1,913) (1,487)
Translation adjustment on cash and cash equivalents (174) (30) (123)
Net change in cash, cash equivalents and restricted cash 74 393 636
Balance of cash, cash equivalents and restricted cash at beginning of year 3,227 2,834 2,198
Balance of cash, cash equivalents and restricted cash at end of year 3,300 3,227 2,834
Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheets:      
Cash and cash equivalents 3,300 3,226 2,801
Restricted cash included in other current assets 0 1 33
Total cash, cash equivalents and restricted cash shown in the statement of cash flows 3,300 3,227 2,834
Non-cash financing and investing activities:      
Beneficial interest obtained in exchange for securitized trade receivables 1,286 1,446 1,189
Dividend declared to non-controlling interests 0 67 0
Cash paid during the year for:      
Interest 1,004 1,078 948
Income taxes, net of refunds 471 298 543
Net change in operating assets and liabilities:      
Other current assets (1,104) (1,525) (828)
Trade payables, accrued expenses, employee-related obligations and other liabilities 258 1,588 2,012
Trade receivables net of sales reserves and allowances 245 12 334
Inventories 166 (147) (163)
Net Change In Items Comprising Supplemental Disclosure Of Cash Flow Information $ (435) $ (72) $ 1,355
v3.25.0.1
Consolidated Statements of Cash Flows (Parenthetical) - USD ($)
$ in Millions
 1 Months Ended 12 Months Ended
Jun. 30, 2023
Dec. 31, 2024
Litigation Settlement, Amount Awarded to Other Party $ 4,250 $ 495
v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Pay vs Performance Disclosure      
Net Income (Loss) $ (1,639) $ (559) $ (2,446)
v3.25.0.1
Insider Trading Arrangements
 12 Months Ended
Dec. 31, 2024
shares
David R. McAvoy, EVP, Chief Legal Officer [Member]  
Trading Arrangements, by Individual  
Name Richard D. Francis
Title President and CEO
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 15, 2024
Expiration Date March 6, 2025
Aggregate Available 279,109
Eli Kalif, EVP, Chief Financial Officer [Member]  
Trading Arrangements, by Individual  
Name Richard Daniell, EVP
Title Head of European Commercial
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 19, 2024
Expiration Date March 7, 2025
Aggregate Available 287,741
Dr. Eric Hughes, EVP, Global RD and Chief Medical Officer [Member]  
Trading Arrangements, by Individual  
Name Dr. Eric Hughes, EVP
Title Global R&D and Chief Medical Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 15, 2024
Expiration Date August 4, 2025
Aggregate Available 100,893
Richard Daniell, EVP, Head of European Commercial [Member]  
Trading Arrangements, by Individual  
Name Eli Kalif, EVP
Title Chief Financial Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 29, 2024
Expiration Date June 13, 2025
Aggregate Available 111,525
Richard D. Francis, President and CEO [Member]  
Trading Arrangements, by Individual  
Name David R. McAvoy, EVP
Title Chief Legal Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 15, 2024
Expiration Date March 6, 2025
Aggregate Available 16,741
v3.25.0.1
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
Cybersecurity Risk Management Program Overview
As cybersecurity threats rapidly evolve in sophistication and become more prevalent, especially with the increasing use of artificial intelligence (“AI”) technology, we have implemented a cybersecurity risk management program as part of our oversight, evaluation and mitigation of enterprise-level risks. Our cybersecurity risk management program leverages a combination of processes, technologies and personnel with expertise in cybersecurity to comply with applicable regulations and detect and respond to cyber-attacks, data breaches, security incidents, and compromises of personal information, as well as to regularly and promptly inform management and our Board of Directors of any significant cybersecurity risks and developments.
Our cybersecurity risk management program is led by our global Chief Information Security Officer (“CISO”), who is directly responsible for establishing cybersecurity strategies and structures and managing ongoing cybersecurity risk management activities through our information security office, which is responsible for the
day-to-day
identification, monitoring and management of cybersecurity risks. Our CISO reports directly to our global Chief Information Officer (“CIO”). Our CISO has significant experience in managing cybersecurity risks at major global companies in the pharmaceutical and defense industries. Our CISO regularly meets with the CIO to provide updates on cybersecurity matters. Our CIO updates our executive management on a regular basis to share cybersecurity related matters and discuss strategies to proactively manage cybersecurity threats. Our CISO and CIO brief our Audit Committee on our cybersecurity and risk management programs.
Our information security office is supported by a team consisting of personnel with experience and expertise in cybersecurity risk management strategies, execution and operations, with domain expertise in cloud services security, infrastructure and operational technology security, cybersecurity incident response, and tactical governance risk compliance.
Our CISO and CIO are also members of our information and security governance group, led by our CIO, which is comprised of executive and senior leadership from a variety of functions, including information security, corporate security, legal, finance, human resources, internal audit and compliance, as well as members of Teva’s global situation room (“GSR”). Additionally, our CISO, CIO and other members of our information security office may, from time to time, consult and coordinate with other Teva departments and members of management to manage cybersecurity risks, promote cybersecurity awareness and implement cybersecurity incident responses.
In addition, management has worked, and expects to continue to work, with third-party service providers, as appropriate, to assess, identify and manage cybersecurity risks. Management also conducts periodic and
on-demand
assessments of our cybersecurity risk management program with expert service providers to ensure it complies with and meets current ISO 27001 standards. As part of its cybersecurity program, Teva conducts periodic tabletop exercises to assess its cybersecurity incident response process.
As part of its overall risk oversight function, our Audit Committee, which is comprised entirely of independent directors, oversees cybersecurity risks in connection with overseeing our overall enterprise risk management system. Management, including our CISO and CIO, provide updates on our cybersecurity risk management program and cybersecurity matters to the Audit Committee, and also reports to the Board of Directors as necessary. These updates and reports include updates on Teva’s cybersecurity risks and threats, the status of projects intended to strengthen its information security systems, assessments of the information security program (including remediation, mitigation, and management of identified vulnerabilities), and the emerging threat landscape.
As part of our cybersecurity risk management program, we maintain industry standard procedures and policies, which are reviewed and revised periodically, and certified to comply with ISO 27001 standards, to both
proactively assess, identify and manage potential cybersecurity risks and respond to any actual cybersecurity threats and incidents. Such procedures and policies include: actively monitoring our information technology systems to ensure compliance with applicable legal and regulatory requirements; engaging third-party consultants and other service providers to monitor and, as appropriate, respond to cybersecurity risks; requiring our service providers and our business partners who connect directly to our information technology systems to comply with our cybersecurity standards and due diligence processes and be subject to our
non-disclosure
and other confidentiality agreements that include cybersecurity-related terms; providing and analyzing specialized industry sector intelligence on cybersecurity threats; regularly testing our cybersecurity systems and disaster preparedness, including our
back-up
information technology systems; developing and updating incident response plans to address potential cybersecurity threats; and maintaining and training our personnel on cybersecurity incident reporting procedures. Teva engages with key vendors, industry participants, and intelligence and law enforcement communities as part of its continuing efforts to obtain current threat intelligence, collaborate on security enhancements, and evaluate and improve the effectiveness of its information security program.
Cyber Threats and Incident Response
In the ordinary course of our business, we collect and store confidential data, including intellectual property, proprietary business information and personally identifiable information (including of our employees, customers,
 
suppliers and business partners). We rely extensively on information technology systems, including some systems that are managed by third-party service providers, to securely process, store and transmit such confidential data in order to conduct our business. These systems include programs and processes relating to internal and external communications, ordering and managing materials from suppliers, collecting, processing and storing data produced by our clinical trials and other research and development initiatives, converting materials to finished products, shipping products to customers, processing transactions, processing payments to employees and vendors, calculating sales receivables, generating our financial results for each reporting period, summarizing and reporting results of operations, and complying with information technology security compliance and other regulatory, legal or tax requirements. In addition, as cybersecurity attacks may become increasingly complex as they are enhanced or facilitated by the emergence of new technologies such as AI used to identify and target new vulnerabilities in our information technology systems or those of our customers, third-party vendors and other business partners, we are taking measures to manage these risks by utilizing new tools and capabilities, including AI.
We have not been materially impacted by risks from cybersecurity threats and as of the date of this Annual Report on Form
10-K,
we are not aware of any cybersecurity risks that are reasonably likely to materially affect our business. However, there can be no assurance that Teva will not be materially affected by such risks in the future. Our systems and networks have been, and are expected to continue to be, the target of increasingly advanced and evolving cyber-attacks and cybersecurity incidents in the future may adversely impact our business, financial condition and results of operations, and we are continuing to actively monitor such threats. For more information, see “Item 1A, Risk Factors—Risks related to our general business and operations—Significant disruptions of our information technology systems could adversely affect our business” and “Item 1A, Risk Factors—Risks related to our general business and operations—A data security breach could adversely affect our business and reputation.”
In the event that we experience a cybersecurity incident, we have a cybersecurity incident response playbook that sets forth the applicable processes, roles, engagements, escalations and notifications to be executed in order to promptly respond to such threats. Depending on its nature and scale, a cybersecurity threat may be managed within our information security office, escalated to our CISO and CIO, or escalated to our management, and Audit Committee and Board of Directors, as appropriate. In certain instances, our GSR may be initiated and will collectively manage Teva’s response to a crisis on a corporate level. The GSR is comprised of members from our various business units and regions, including senior leadership from a variety of functions, such as information security, legal, finance, human resources, communications and compliance.
 
We carry insurance that provides protection against the potential losses arising from a cybersecurity incident. However, there is no assurance that our insurance coverage will cover or be sufficient to cover all losses or claims that may result from a cybersecurity incident.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Text Block] We have not been materially impacted by risks from cybersecurity threats and as of the date of this Annual Report on Form
10-K,
we are not aware of any cybersecurity risks that are reasonably likely to materially affect our business. However, there can be no assurance that Teva will not be materially affected by such risks in the future. Our systems and networks have been, and are expected to continue to be, the target of increasingly advanced and evolving cyber-attacks and cybersecurity incidents in the future may adversely impact our business, financial condition and results of operations, and we are continuing to actively monitor such threats. For more information, see “Item 1A, Risk Factors—Risks related to our general business and operations—Significant disruptions of our information technology systems could adversely affect our business” and “Item 1A, Risk Factors—Risks related to our general business and operations—A data security breach could adversely affect our business and reputation.”
Cybersecurity Risk Role of Management [Text Block] As part of its overall risk oversight function, our Audit Committee, which is comprised entirely of independent directors, oversees cybersecurity risks in connection with overseeing our overall enterprise risk management system.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Management, including our CISO and CIO, provide updates on our cybersecurity risk management program and cybersecurity matters to the Audit Committee, and also reports to the Board of Directors as necessary. These updates and reports include updates on Teva’s cybersecurity risks and threats, the status of projects intended to strengthen its information security systems, assessments of the information security program (including remediation, mitigation, and management of identified vulnerabilities), and the emerging threat landscape.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our cybersecurity risk management program is led by our global Chief Information Security Officer (“CISO”), who is directly responsible for establishing cybersecurity strategies and structures and managing ongoing cybersecurity risk management activities through our information security office, which is responsible for the
day-to-day
identification, monitoring and management of cybersecurity risks.
v3.25.0.1
Significant Accounting Policies
 12 Months Ended
Dec. 31, 2024
Significant Accounting Policies
NOTE 1 — Significant accounting policies:
 
a.
General:
Operations
Teva Pharmaceutical Industries Limited (the “Parent Company”), headquartered in Israel, together with its subsidiaries and associated companies (the “Company,” “Teva” or the “Group”), is engaged in the development, manufacturing, marketing and distribution of generics, innovative medicines and biopharmaceuticals. The majority of the Group’s revenues are in the United States and Europe.
Basis of presentation and use of estimates
The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”).
In preparing the Company’s consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets, liabilities, equity and disclosure of contingent liabilities and assets at the dates of the financial statements and the reported amounts of revenues and expenses during the reported years. Actual results could differ from those estimates.
In preparing the Company’s consolidated financial statements, management also considered the economic implications of inflation expectations on its critical and significant accounting estimates. Government actions taken to address macroeconomic developments, as well as their economic impact on Teva’s third-party manufacturers and suppliers, customers and markets, could also impact such estimates and may change in future periods. As applicable to these consolidated financial statements, the most significant estimates and assumptions relate to: determining the valuation and recoverability of IPR&D assets, marketed product rights, contingent consideration and goodwill, assessing sales reserves and allowances in the United States, uncertain tax positions, valuation allowances and contingencies. Some of these estimates could be impacted by higher costs and the ability to pass on such higher costs to customers, which is highly uncertain.
As of the date of these consolidated financial statements, sustained conflict between Russia and Ukraine and disruption in the region is ongoing. Russia and Ukraine markets are included in Teva’s International Markets segment results. Teva has no manufacturing or R&D facilities in these markets. Other than its impact on the goodwill impairment charge in its International Markets reporting unit recorded in the second quarter of 2023, the impact of the Russia-Ukraine conflict on Teva’s results of operations and financial condition continues to be immaterial.
In October 2023, Israel was attacked by a terrorist organization and entered a state of war on several fronts. As of the date of these consolidated financial statements, sustained conflict in the region is ongoing. Israel is included in Teva’s International Markets segment results. Teva’s global headquarters and several manufacturing and R&D facilities are located in Israel. Currently, such activities in Israel remain largely unaffected. Teva continues to maintain contingency plans with backup production locations for key products. During the years ended December 31, 2024 and 2023, the impact of this war on Teva’s results of operations and financial condition was immaterial, but such impact may increase, which could be material, as a result of the continuation, escalation or expansion of such war.
Certain amounts in the consolidated financial statements and associated notes may not add up due to rounding. All percentages have been calculated using unrounded amounts.
 
Functional currency
A major part of the Group’s operations is carried out by the Company in the United States, Israel and certain other countries. The functional currency of these entities is the U.S. dollar (“dollar” or “$”).
The functional currency of certain subsidiaries and associated companies is their local currency. The financial statements of those companies are included in the consolidated financial statements, translated into U.S. dollars. Assets and liabilities are translated at
year-end
exchange rates, while revenues and expenses are translated at monthly average exchange rates during the year. Differences resulting from translation are presented as other comprehensive income (loss) in the consolidated statements of comprehensive income (loss).
In the event of a divestiture of a foreign subsidiary, the related foreign currency translation results net of related income taxes are reversed from equity to income. Foreign currency exchange gains and losses are included in net income (loss).
Principles of consolidation
The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries, joint ventures and variable interest entities (“VIEs”) for which the Company is considered the primary beneficiary. For those consolidated entities where Teva owns less than 100%, the outside shareholders’ interests are shown as non-controlling interests
in equity. Investments in affiliates over which the Company has significant influence but not a controlling interest, are carried on the equity basis.
For VIEs, the Company performs an analysis to determine whether the variable interests give a controlling financial interest in a VIE. The Company periodically reassesses whether it controls its VIEs.
Intercompany transactions and balances are eliminated on consolidation; profits from intercompany sales, not yet realized outside the Group, are also eliminated.
 
b.
New accounting pronouncements
Recently adopted accounting pronouncements
In November 2023, the FASB issued ASU
2023-07
“Segment Reporting: Improvements to Reportable Segment Disclosures”. This guidance expands public entities’ segment disclosures primarily by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. The amendments are required to be applied retrospectively to all prior periods presented in an entity’s financial statements. The Company adopted the new accounting standard for the fiscal year 2024. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements related disclosures.
Recently issued accounting pronouncements, not yet adopted
In November 2024, the FASB issued ASU 2024-03 “Income Statement: Reporting Comprehensive Income— Expense Disaggregation Disclosures,” which requires more detailed information about specified categories of expenses (purchases of inventory, employee compensation, depreciation, amortization, and depletion) included in certain expense captions presented on the face of the income statement, as well as disclosures about selling expenses. This ASU is effective for fiscal years beginning after December 15, 2026 and for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The
 
amendments may be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this ASU or (2) retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements disclosures.
In December 2023, the FASB issued ASU
2023-09
“Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. This guidance is intended to enhance the transparency and decision-usefulness of income tax disclosures. The amendments in ASU
2023-09
address investor requests for enhanced income tax information primarily through changes to disclosure regarding rate reconciliation and income taxes paid both in the U.S. and in foreign jurisdictions. ASU
2023-09
is effective for fiscal years beginning after December 15, 2024 on a prospective basis, with the option to apply the standard retrospectively. Early adoption is permitted. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements disclosures.
In October 2023, the FASB issued ASU
2023-06
“Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative,” which incorporates certain SEC disclosure requirements into the FASB Accounting Standards Codification (“Codification”). The amendments in the ASU are expected to clarify or improve disclosure and presentation requirements of a variety of Codification topics, allow investors to more easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the Codification with the SEC’s regulations. The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation
S-X
or Regulation
S-K
becomes effective, with early adoption prohibited. The amendments in this ASU should be applied prospectively. The Company does not expect ASU
2023-06
will have a material impact to its consolidated financial statements.
 
c.
Acquisitions:
Teva’s consolidated financial statements include the operations of acquired businesses from the date of the acquisition’s consummation. Acquired businesses are accounted for using the acquisition method of accounting, which requires, among other things, that most assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date and that the fair value of acquired IPR&D be recorded on the balance sheet. Transaction costs are expensed as incurred. Any excess of the consideration transferred over the assigned values of the net assets acquired is recorded as goodwill. When Teva acquires net assets that do not constitute a business, as defined under U.S. GAAP, no goodwill is recognized and acquired IPR&D is expensed unless it has an alternative future use.
Contingent consideration incurred in a business combination is included as part of the acquisition price and recorded at a probability weighted assessment of its fair value as of the acquisition date. The fair value of the contingent consideration is
re-measured
at each reporting period, with any adjustments in fair value recognized in earnings under other asset impairments, restructuring and other items.
 
d.
Collaborative arrangements:
The Company enters into collaborative arrangements, typically with other pharmaceutical or biotechnology companies, to develop and commercialize drug candidates or intellectual property. These arrangements typically involve two (or more) parties who are active participants in the collaboration and are exposed to significant risks and rewards dependent on the commercial success of the activities. These collaborations usually involve various activities by one or more parties, including research and development, marketing and selling and distribution. Often, these collaborations require upfront, milestone and royalty or profit share payments, contingent upon the occurrence of certain future events linked to the success of the asset in development.
 
The Company recognizes revenue generated and costs incurred on sales to third parties as it relates to collaborative agreements on a gross or net basis. When the Company is the principal on sales transactions with third parties, the Company recognizes sales, cost of sales and selling, general and administrative expenses on a gross basis. Profit sharing amounts it pays to its collaborative partners are recorded within cost of sales. When the collaborative partner is the principal on sales transactions with third parties, the Company records profit sharing amounts received from its collaborative partners on a net basis.
Research and development costs the Company incurs related to collaborations are recorded within Research and development expenses. Cost reimbursements to the collaborative partner or payments received from the collaborative partner to share these costs pursuant to the terms of the collaboration agreements are recorded as increases or decreases to Research and development expenses.
In addition, the terms of the collaboration agreements may require the Company to make payments based upon the achievement of certain developmental, regulatory approval or commercial milestones. Upfront and milestone payments payable by the Company to collaborative partners prior to regulatory approval are expensed as incurred and included in Research and development expenses. Payments due to collaborative partners upon or subsequent to regulatory approval are capitalized and amortized to Cost of sales over the estimated useful life of the corresponding intangible asset, provided that future cash flows support the amounts capitalized. Sales-based milestones payable by the Company to collaborative partners are accrued and capitalized, subject to cumulative amortization
catch-up,
when determined to be probable of being achieved by the Company. The amortization
catch-up
is calculated either from the time of the first regulatory approval for indications that were unapproved at the time the collaboration was formed, or from the time of the formation of the collaboration for approved products. The related intangible asset that is recognized is amortized to Cost of sales over its remaining useful life, subject to impairment testing.
 
e.
Equity investments:
The Company measures equity investments at fair value with changes in fair value recognized in net income. The Company accounts for equity investments that do not have a readily determinable fair value as cost method investments under the measurement alternative to the extent such investments are not subject to consolidation or the equity method. Under the measurement alternative, these financial instruments are carried at cost, less any impairment (assessed quarterly for triggering events), adjusted for changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. In addition, income is recognized when dividends are received only to the extent they are distributed from net accumulated earnings of the investee. Otherwise, such distributions are considered returns of investment and are recorded as a reduction of the cost of the investment.
 
f.
Fair value measurement:
The Company measures and discloses the fair value of financial assets and liabilities. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The accounting standard establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below:
Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.
 
 
Level 2: Observable inputs that are based on inputs not quoted on active markets, but corroborated by market data.
Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.
In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and considers counterparty credit risk in its assessment of fair value.
 
g.
Investment in debt securities:
Investment in securities consists of debt securities classified as
available-for-sale
and recorded at fair value. The fair value of quoted securities is based on their current market value. When debt securities do not have an active market, fair value is determined using a valuation model. This model is based on reference to other instruments with similar characteristics, a discounted cash flow analysis or other pricing models making use of market inputs and relying as little as possible on entity-specific inputs.
Unrealized gains and losses for
available-for-sale
securities are excluded from earnings and reported net of the related tax effect in the accumulated other comprehensive income component of shareholders’ equity. The Current Expected Credit Loss (CECL) methodology requires the Company to estimate lifetime expected credit losses for all
available-for-sale
debt securities in an unrealized loss position. When estimating a security’s probability of default and the recovery rate, the Company assesses the security’s credit indicators, including credit ratings. If the assessment indicates that an expected credit loss exists, the Company determines the portion of the unrealized loss attributable to credit deterioration and records an allowance for the expected credit loss through the Consolidated Statements of Income. Unrealized gains and any portion of a security’s unrealized loss attributable to
non-credit
losses are recorded in the Consolidated Statements of Comprehensive Income, net of tax.
 
h.
Cash and cash equivalents:
All highly liquid investments, which include short-term bank deposits and money market instruments, that are not restricted as to withdrawal or use, and investment in short-term debentures, the period to maturity of which did not exceed three months at the time of investment, are considered to be cash equivalents.
 
i.
Restricted cash:
Restricted cash represents amounts which are legally restricted to withdrawal or usage and is presented in the Consolidated Balance Sheet under other current assets.
 
j.
Accounts Receivables:
Accounts receivable have been reduced by an allowance for credit losses. The Company maintains the allowance for estimated losses resulting from the inability of the Company’s customers to make required payments. The allowance represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable considering current market conditions and supportable forecasts when appropriate. The estimate is a result of the Company’s ongoing evaluation of collectability, customer creditworthiness, historical levels of credit losses, and future expectations.
Write-off
activity and recoveries for the periods presented were not material.
 
k.
Concentration of credit risks:
Most of Teva’s cash and cash equivalents, along with investment in securities, on December 31, 2024 were deposited with European, U.S. and Israeli banks and financial institutions and were comprised mainly of money market funds investments and cash deposits.
The U.S. market constituted approximately 49% of Teva’s consolidated revenues in 2024. The exposure of credit risks relating to other trade receivables outside the U.S. is limited, due to the relatively large number of group customers and their wide geographic distribution. Teva performs ongoing credit evaluations of its customers for the purpose of determining the appropriate allowance for doubtful accounts and generally does not require collateral and from time to time the Company may choose to purchase trade credit insurance.
 
l.
Inventories:
Inventories are valued at the lower of cost or net realizable value. Cost of raw and packaging materials, purchased products, manufactured finished products, products in process and capitalized production costs are determined predominantly on a standard cost basis, approximating actual costs. Other methods which are utilized for determining the value of inventories are moving average, cost basis and the first in first out method. Teva regularly reviews its inventories for obsolescence and other impairment risks and reserves are established when necessary.
Inventories acquired in a business combination are
stepped-up
to their estimated fair value and amortized to cost of sales as that inventory is sold or written off.
 
m.
Long-lived assets:
Teva’s long-lived,
non-current
assets are comprised mainly of goodwill, identifiable intangible assets, property, plant and equipment, and operating lease
right-of-use
(“ROU”) assets. All long-lived assets are monitored for impairment indicators throughout the year. Impairment testing for goodwill and all indefinite-lived intangible assets is performed at least annually. When necessary, charges for impairments of long-lived assets, other than goodwill, are recorded for the amount by which the fair value is less than the carrying value of these assets.
Goodwill
Goodwill reflects the excess of the consideration transferred, including the fair value of any contingent consideration and any
non-controlling
interest in the acquiree, over the assigned fair values of the identifiable net assets acquired, as part of a business combination. Goodwill is not amortized, and is assigned to reporting units and tested for impairment at least on an annual basis, in the second quarter of the fiscal year.
The goodwill impairment test is performed according to the following principles:
 
  1.
An initial qualitative assessment may be performed to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount.
 
  2.
If the Company concludes it is more likely than not that the fair value of the reporting unit is less than its carrying amount, a quantitative fair value test is performed. An impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value is recognized.
An interim goodwill impairment test may be required in advance or after of the annual impairment test if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit
 
below its carrying amount. For example, a substantial decline in the Company’s market capitalization, unexpected adverse business conditions, economic factors and unanticipated competitive activities may indicate that an interim impairment test is required. In the event that the Company’s market capitalization declines below its book value, the Company considers the length and severity of the decline and the reason for the decline when assessing whether potential goodwill impairment exists.
Identifiable intangible assets
Identifiable intangible assets are comprised of definite and indefinite life intangible assets.
Definite life intangible assets primarily include acquired product rights and other rights related to products approved by the FDA or the equivalent regulatory agencies in other countries. These assets are amortized using mainly the straight-line method over their estimated period of useful life or based on economic benefit models when they better reflect the expected cash flow patterns. Amortization of acquired product rights is recorded under cost of sales, while amortization of marketing and distribution rights, if separable, is recorded under selling and marketing expenses (“S&M”).
Indefinite life intangible assets, primarily IPR&D assets, are monitored for research and development progress, clinical trial outcomes, and regulatory approvals to identify any triggering events for impairment.
IPR&D acquired in a business combination is capitalized as an indefinite life intangible asset until the related research and development efforts are either completed or abandoned. In the reporting periods where they are treated as indefinite life intangible assets, they are not amortized but rather are monitored triggering events and tested for impairment at least on an annual basis, in the second quarter of the fiscal year. Upon completion of the related research and development efforts, management determines the useful life of the intangible assets and amortizes them accordingly. In case of abandonment or a reduction in the expected realizable value of the asset, the related research and development assets are impaired.
Whenever impairment indicators are identified for definite life intangible assets, Teva reconsiders the asset’s estimated life, calculates the undiscounted value of the asset’s or asset group’s cash flows and compares such value against the asset’s or asset group’s carrying amount. If the carrying amount is greater, Teva records an impairment loss for the excess of book value over fair value based on the discounted cash flows.
For indefinite life intangible assets, Teva performs an impairment test annually in the second quarter and whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. Teva determines the fair value of the asset based on discounted cash flows and records an impairment loss if its book value exceeds fair value.
In determining the estimated fair value of identifiable intangible assets, Teva utilized a discounted cash flow model. The key assumptions within the model related to forecasting future revenue and operating income, an appropriate discount rate and an appropriate terminal value based on the nature of the long-lived asset. The Company’s updated forecasts of net cash flows for the impaired assets reflect, among others, the following: (i) for IPR&D assets, the impact of changes to the development programs, the projected development and regulatory timeframes and the risks associated with these assets; and (ii) for product rights, pricing and volume projections, as well as patent life and any significant changes to the competitive environment.
Property, plant and equipment
Property, plant and equipment are stated at cost, after deduction of the related investment grants, and depreciated using the straight-line method over the estimated useful life of the assets: buildings, mainly 40 years; machinery and equipment, mainly 20 years; and other assets, between 5 to 10 years.
 
For property, plant and equipment, whenever impairment indicators are identified, Teva reconsiders the asset’s estimated life, calculates the undiscounted value of the asset’s cash flows and compares such value against the asset’s carrying amount. If the carrying amount is greater, Teva records an impairment loss for the excess of book value over fair value.
Lease
right-of-use
(ROU) assets
See note 8 and note 1ff for further discussion.
Assets and liabilities held for sale
Assets and liabilities classified as held for sale are measured at the lower of their carrying amount or fair value, less costs to sell. Non-current assets included in assets held for sale are not subject to depreciation or amortization while classified as held for sale. These assets and liabilities are presented separately within current assets and current liabilities on the Consolidated Balance Sheets.
 
n.
Contingent consideration:
The fair value of contingent consideration liabilities acquired as part of business combination is determined at the acquisition date using unobservable inputs. These inputs include the estimated amount and timing of projected cash flows, the probability of success (achievement of the contingent event) and the risk-adjusted discount rate used to present value the probability-weighted cash flows. Subsequent to the acquisition date, at each reporting period until the contingency is resolved, the contingent consideration liability is remeasured at current fair value with changes (either expense or income) recorded in earnings under other asset impairments, restructuring and other items. Significant events that increase or decrease the probability of achieving development and regulatory milestones or that increase or decrease projected cash flows will result in corresponding increases or decreases in the fair values of the related contingent consideration obligations.
 
0.
Contingencies:
The Company is involved in various patent, product liability, commercial, government investigations, environmental claims and other legal proceedings that arise from time to time in the ordinary course of business. Except for income tax contingencies, contingent consideration, other contingent liabilities incurred or acquired in a business combination, Teva records accruals for these types of contingencies to the extent that Teva concludes their occurrence is probable and that the related liabilities are reasonably estimable. When accruing these costs, the Company will recognize an accrual in the amount within a range of loss that is the best estimate within the range. When no amount within the range is a better estimate than any other amount, the Company accrues for the minimum amount within the range. Teva records anticipated recoveries under existing insurance contracts that are probable of occurring at the gross amount that is expected to be collected, in the limit these anticipated recoveries do not exceed the loss recognized. When applicable, the Company classifies the effect that the passage of time had on the net present value of a discounted legal accrual as legal expenses. Legal costs are expensed as incurred.
The Company recognizes gain contingencies when they are realized or when all related contingencies have been resolved.
 
p.
Treasury shares:
Treasury shares are presented as a reduction of Teva shareholders’ equity and carried at their cost to Teva, under treasury shares.
 
q.
Stock-based compensation:
Teva recognizes stock-based compensation expense for equity grants under the Company’s long-term incentive plans (including stock options, restricted share units (“RSUs”) and performance share units (“PSUs”). The grant-date fair value of an award is generally recognized as compensation expense over the award’s requisite service period.
Teva uses the Black-Scholes model to compute the estimated fair value of stock option awards. Additionally, the Company uses a Monte Carlo simulation to compute the estimated fair value of performance share units that are subject to vesting based on the Company’s attainment of
pre-established
criteria that include a market condition. The fair value of the restricted share units is based on the market value of the underlying stock at the date of grant, less the present value of expected dividends not received during the vesting period, if applicable.
For performance-based restricted stock units that contain a performance condition, the Company recognizes stock-based compensation expense if and when the Company determines that it is probable the performance condition will be achieved. If the Company subsequently determines that the performance criteria are not met or are not expected to be met, any amounts previously recognized as compensation expense are reversed in the period when such determination is made.
Teva accounts for forfeitures of share-based awards, RSUs and PSUs, at the time they occur. If an employee forfeits an award due to not completing the required service period, the Company reverses any previously recognized compensation expense in the same period the forfeiture takes place.
 
r.
Deferred income taxes:
Deferred income taxes are determined utilizing the “asset and liability” method based on the estimated future tax effects of temporary differences between the financial accounting and tax basis of assets and liabilities under the applicable tax laws, and on tax rates anticipated to be in effect when the deferred income taxes are expected to be paid or realized. A valuation allowance is provided if, based upon the weight of available evidence, it is more likely than not that a portion of the deferred income tax assets will not be realized. In determining whether a valuation allowance is needed, Teva considers all available evidence, including historical information, long range forecast of future taxable income and evaluation of tax planning strategies. Amounts recorded for valuation allowance can result from a complex series of judgments about future events and can rely on estimates and assumptions. Deferred income tax liabilities and assets are classified as
non-current.
Tax has not been provided on the following items:
 
  1.
Taxes that would apply in the event of disposal of investments in subsidiaries, as it is generally the Company’s intention to hold these investments, not to realize them. The determination of the amount of related unrecognized deferred tax liability is not practicable.
 
  2.
Amounts of
tax-exempt
income generated from the Company’s current Approved Enterprises and unremitted earnings from foreign subsidiaries retained for reinvestment in the Group. See note 13f.
 
s.
Uncertain tax positions:
Teva recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefit recognized in the financial statements for a particular tax position is based on the largest benefit that is more likely than not to be realized. Teva regularly
re-evaluates
its tax positions based on developments in its tax audits, statute of limitations expirations, changes in tax laws and new information that can affect the
technical merits and change the assessment of Teva’s ability to sustain the tax benefit. In addition, the Company classifies interest and penalties recognized in the financial statements relating to uncertain tax position under the income taxes line item.
Provisions for uncertain tax positions, whereas Teva has net operating losses to offset additional income taxes that would result from the settlement of the tax position, are presented as a reduction of the deferred tax assets for such net operating loss.
 
t.
Derivatives and hedging:
The Group carries out transactions involving derivative financial instruments (mainly forward exchange contracts, currency options, cross-currency swap contracts, interest rate swap contracts and treasury locks). The transactions are designed to hedge the Company’s currency and interest rate exposures. The Company does not enter into derivative transactions for trading purposes.
Derivative instruments are recognized on the balance sheet at their fair value.
For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument as well as the offsetting gain or loss on the hedged item attributable to the hedged risk is recognized in financial expenses, net in the statements of income in the period that the changes in fair value occur.
For derivative instruments that are designated and qualify as a cash-flow hedge, the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the anticipated transaction in the same period or periods during which the hedged transaction affects earnings.
For derivative instruments that are designated as
net-investment
hedge, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income. The effective portion is determined by looking into changes in spot exchange rate. The change in fair value attributable to changes other than those due to fluctuations in the spot exchange rate are excluded from the assessment of hedge effectiveness and are recognized in the statement of income under financial expenses, net.
For derivative instruments that qualify for hedge accounting, the cash flows associated with these derivatives are reported in the consolidated statements of cash flows consistently with the classification of the cash flows from the underlying hedged items that these derivatives are hedging.
Derivative instruments that do not qualify for hedge accounting are recognized on the balance sheet at their fair value, with changes in the fair value recognized as a component of financial expenses, net in the statements of income. The cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows.
 
u.
Revenue recognition:
A contract with a customer exists only when: the parties to the contract have approved it and are committed to perform their respective obligations, the Company can identify each party’s rights regarding the distinct goods or services to be transferred (“performance obligations”), the Company can determine the transaction price for the goods or services to be transferred, the contract has commercial substance and it is probable that the Company will collect the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer.
 
Revenues are recorded in the amount of consideration to which the Company expects to be entitled in exchange for performance obligations upon transfer of control to the customer, excluding amounts collected on behalf of other third parties and sales taxes.
The amount of consideration to which Teva expects to be entitled varies as a result of rebates, chargebacks, returns and other sales reserves and allowances (“SR&A”) that the Company offers to its customers and their customers, as well as the occurrence or nonoccurrence of future events, including milestone events. A minimum amount of variable consideration is recorded by the Company concurrently with the satisfaction of performance obligations to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Estimates of variable consideration are based on historical experience and the specific terms in the individual agreements (which the Company believes approximates expected value). Rebates and chargebacks are the largest components of SR&A. If a minimum cannot be reasonably estimated, such revenue may be deferred to a future period when better information is available. For further description of SR&A components and how they are estimated, see “Variable Consideration” below.
Shipping and handling costs, after control of the product has transferred to a customer, are accounted for as a fulfillment cost and are recorded under S&M expenses.
Teva does not adjust the promised amount of consideration for the effects of a significant financing component since the Company expects, at contract inception, that the period between the time of transfer of the promised goods or services to the customer and the time the customer pays for these goods or services to be generally one year or less, based on the practical expedient. The Company’s credit terms to customers are, on average, between thirty and ninety days.
The Company generally recognizes the incremental costs of obtaining contracts as an expense since the amortization period of the assets that the Company otherwise would have recognized is one year or less. The costs are recorded under S&M expenses. Similarly, Teva does not disclose the value of unsatisfied performance obligations for contracts with original expected duration of one year or less.
Nature of revenue streams
Revenue from sales of goods, including sales to distributors is recognized when the customer obtains control of the product. This generally occurs when products are shipped once the Company has a present right to payment and legal title, and risk and rewards of ownership are obtained by the customer.
Licensing arrangements performance obligations generally include intellectual property (“IP”) rights, certain R&D and contract manufacturing services. The Company accounts for IP rights and services separately if they are distinct – i.e. if they are separately identifiable from other items in the arrangement and if the customer can benefit from them on their own or with other resources that are readily available to the customer. The consideration is allocated between IP rights and services based on their relative stand-alone selling prices.
Revenue for distinct IP rights is accounted for based on the nature of the promise to grant the license. In determining whether the Company’s promise is to provide a right to access its IP or a right to use its IP, the Company considers the nature of the IP to which the customer will have rights. IP is either functional IP which has significant standalone functionality or symbolic IP which does not have significant standalone functionality. Revenue from functional IP is recognized at the point in time when control of the distinct license is transferred to the customer. Revenue from symbolic IP is recognized over the access period to the Company’s IP.
 
Revenue from sales based milestones and royalties promised in exchange for a license of IP is recognized only when, or as, the later of subsequent sale or the performance obligation to which some or all of the sales-based royalty has been allocated, is satisfied.
Distribution revenues are derived from sales of third-party products for which the Company acts as distributor, mostly in the United States via Anda and in Israel via Salomon Levin and Elstein Ltd. (SLE). In the United States, the Company is generally the principal in these arrangements and therefore records revenue on a gross basis as it controls the promised goods before transferring these goods to the customer. In Israel, the Company is the agent in these arrangements and therefore records revenue on a net basis as it has no discretion in establishing prices for any specified goods or services, limited inventory risk and is not primarily responsible for contract fulfillment. Revenue is recognized when the customer obtains control of the products. This generally occurs when products are shipped once the Company has a present right to payment and legal title and risk and rewards of ownership are obtained by the customer.
Other revenues are primarily comprised of contract manufacturing services, sales of IP rights, sales of medical devices and other miscellaneous items. Revenue is recognized when the customer obtains control of such rights or products. This generally occurs when products are shipped, once the Company has a present right to payment and legal title and risk and rewards of ownership are obtained by the customer.
Trade receivables and contract liabilities
Trade receivables are presented net of allowance for credit losses, which include amounts billed and currently due from customers.
Contract liabilities are mainly comprised of deferred revenues (defined as obligations to provide products or services to customers when payment has been made in advance and delivery or performance has not yet occurred), which were immaterial as of December 31, 2024 and 2023.
Variable consideration
Variable consideration mainly includes SR&A, comprised of rebates (including Medicaid and other governmental program discounts), chargebacks, returns and other promotional (including shelf stock adjustments) items. Provisions for prompt payment discounts are netted against trade receivables.
The Company recognizes these provisions at the time of sale and adjusts them if the actual amounts differ from the estimated provisions. The following describes the nature of each deduction and how provisions are estimated:
Rebates
Rebates are primarily related to volume incentives and are offered to key customers to promote loyalty. These rebate programs provide that, upon the attainment of
pre-established
volumes or the attainment of revenue milestones for a specified period, the customer receives a rebate. Since rebates are contractually agreed upon, they are estimated based on the specific terms in each agreement based on historical trends and expected sales. Externally obtained inventory levels and expected sales usage by contract are evaluated in relation to estimates made for rebates payable to indirect customers and managed care agreements.
Medicaid and Other Governmental Rebates
Pharmaceutical manufacturers whose products are covered by the Medicaid program are required to provide a rebate to each state as a percentage of their average manufacturer’s price for generic products dispensed and “best price” for innovative products dispensed. Many states have also implemented supplemental rebate
 
programs that obligate manufacturers to pay rebates in excess of those required under federal law. The Company estimates these rebates based on historical trends of rebates paid, as well as on changes in wholesaler inventory levels and increases or decreases in sales.
Chargebacks
The Company has arrangements with various third parties, such as managed care organizations and drug store chains, establishing prices for certain of Teva’s products. While these arrangements are made between the Company and the customers, the customers independently select a wholesaler from which they purchase the products. Alternatively, certain wholesalers may enter into agreements with the customers, with Teva’s concurrence, which establish the pricing for certain products which the wholesalers provide. Under either arrangement, Teva will issue a credit (referred to as a “chargeback”) to the wholesaler for the difference between the invoice price to the wholesaler and the customer’s contract prices. Provisions for chargebacks involve estimates of contract prices of over 2,000 products and multiple contracts with multiple wholesalers. Provisions for chargebacks involve estimates of usage by retailers and other indirect buyers with varying contract prices for multiple wholesalers. The provision for chargebacks varies in relation to changes in product mix, pricing and the level of inventory at the wholesalers and, therefore, will not necessarily fluctuate in proportion to an increase or decrease in sales. Provisions for estimating chargebacks are calculated using historical chargeback experience and/or expected chargeback levels for new products and anticipated pricing changes. Teva considers current and expected price competition when evaluating the provision for chargebacks. Chargeback provisions are compared to externally obtained distribution channel reports for reasonableness. The Company regularly monitors the provision for chargebacks and makes adjustments when the Company believes that actual chargebacks may differ from estimated provisions.
Other Promotional Arrangements
Other promotional or incentive arrangements are periodically offered to customers, specifically related to the launch of products or other targeted promotions. Provisions are made in the period for which the Company can estimate the incentive earned by the customer, in accordance with the contractual terms. The Company regularly monitors the provision for other promotional arrangements and makes adjustments when it believes that the actual provision may differ from the estimated provisions.
Shelf Stock Adjustments
The custom in the pharmaceutical industry is generally to grant customers a shelf stock adjustment based on the customers’ existing inventory contemporaneously with decreases in the market price of the related product. The most significant of these relate to products for which an exclusive or semi-exclusive period exists. Provisions for price reductions depend on future events, including price competition, new competitive launches and the level of customer inventories at the time of the price decline. Teva regularly monitors the competitive factors that influence the pricing of its products and customer inventory levels and adjust these estimates where appropriate.
Returns
Returns primarily relate to customer returns of expired products which, the customer has the right to return up to one year following the expiration date. Such returned products are destroyed and credits and/or refunds are issued to the customer for the value of the returns. Accordingly, no returned assets are recoded in connection with those products. The returns provision is estimated by applying a historical return rate to the amounts of revenue estimated to be subject to returns. Revenue subject to returns is estimated based on the lag time from time of sale to date of return. The estimated lag time is developed by analyzing historical experience.
 
Additionally, The Company considers specific factors, such as estimated levels of inventory in the distribution channel, product dating and expiration, size and maturity of launch, entrance of new competitors, changes in formularies or packaging and any changes to customer terms, for determining the overall expected levels of returns.
Prompt Pay Discounts
Prompt pay discounts are offered to most customers to encourage timely payment. Discounts are estimated at the time of invoice based on historical discounts in relation to sales. Prompt pay discounts are almost always utilized by customers. As a result, the actual discounts do not vary significantly from the estimated amount.
 
v.
Research and development:
Research and development expenses are charged to statement of income (loss) as incurred. Participations and grants in respect of research and development expenses are recognized as a reduction of research and development expenses as the related costs are incurred, or as the related milestone is met.
Advance payments for goods or services that will be used or rendered for future research and development activities are deferred. Such amounts are recognized as an expense as the related goods are used or the services are rendered.
Research and development
in-process
acquired as part of an asset purchase, which has not reached technological feasibility and has no alternative future use, is expensed as incurred.
The Company accounts for grants received to perform research and development services in accordance with
ASC 730-20,
Research and Development Arrangements. At the inception of the grant, the Company performs an assessment as to whether the grant is a liability or a contract to perform research and development services for others. If Teva is obligated to repay the grant funds to the grantor regardless of the outcome of the research and development activities, then it is required to estimate and recognize that liability. Alternatively, if Teva is not required to repay, or if it is required to repay the grant funds only if the research and development activities are successful, then the grant agreement is accounted for as a contract to perform research and development services for others, in which case, a reduction of research and development costs is recognized when the related research and development expenses are incurred.
 
w.
Shipping and handling costs:
Shipping and handling costs to end customers, which are included in S&M expenses, were $119 million, $124 million and $118 million for the years ended December 31, 2024, 2023 and 2022, respectively.
 
x.
Advertising costs:
Advertising costs are expensed as incurred. Advertising costs for the years ended December 31, 2024, 2023 and 2022 were $259 million, $162 million and $168 million, respectively.
 
y.
Restructuring:
Restructuring provisions are recognized for the direct expenditures arising from restructuring initiatives, where the plans are sufficiently detailed and where appropriate communication to those affected has been made.
Costs for
one-time
termination benefits in which the employee is required to render service until termination in order to receive the benefits are recognized ratably over the future service period.
 
 
Contractual termination benefits are provided to employees when employment is terminated due to an event specified in the provisions of an existing plan or agreement. A liability is recorded and the expense is recognized when it is probable that employees will be entitled to the benefits and the amount is reasonably estimable.
Special termination benefits arise when the Company offers, for a short period of time, to provide certain additional benefits to employees electing voluntary termination. A liability is recorded and the expense is recognized in the period the employees irrevocably accept the offer and the amount of the termination liability is reasonably estimable.
 
z.
Segment reporting:
The Company’s business includes three reporting segments based on three geographical areas:
 
 
(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 in which Teva operates other than those in the United States and Europe segments.
Each business segment manages the entire product portfolio in its region, including generic products, innovative medicines and
over-the-counter
(“OTC”) products.
In addition to these three segments, Teva has other sources of revenues, primarily the sale of APIs to third parties, certain contract manufacturing services and an
out-licensing
platform offering a portfolio of products to other pharmaceutical companies through its affiliate Medis. See also note 19.
 
aa.
Earnings per share:
Basic earnings (loss) per share are computed by dividing net income (loss) attributable to Teva’s ordinary shareholders by the weighted average number of ordinary shares outstanding, including fully vested RSUs and PSUs during the period, net of treasury shares.
In computing diluted earnings per share, basic earnings per share are adjusted to take into account the potential dilution that could occur upon: (i) the exercise of options and
non-vested
RSUs and PSUs granted under employee stock compensation plans and convertible senior debentures, using the treasury stock method; and (ii) the conversion of the remaining convertible senior debentures using the
“if-converted”
method, by adding to net income interest expense on the debentures and amortization of issuance costs, net of tax benefits, and by adding the weighted average number of shares issuable upon assumed conversion of the debentures.
 
bb.
Securitization and factoring
Teva accounts for transfers of its trade receivable as sales when it has surrendered control over the related assets in accordance with ASC Topic 860 “Transfer and Servicing” of Financial Assets. Whether control has been relinquished requires, among other things, an evaluation of relevant legal considerations and an assessment of the nature and extent of the Company’s continuing involvement with the assets transferred. Assets obtained and liabilities incurred in connection with transfers reported as sales are initially recognized in the balance sheet at fair value. Refer to note 10f.
 
cc.
Supplier finance program
The Company has established a supplier finance program to facilitate the payment of trade payables for its operations. Under this program, participating suppliers have the option to receive early payment on their invoices
from a third-party financial institution, based on terms agreed between the supplier and the financial institution. The Company’s obligations to its suppliers under the program remain consistent with its original payment terms and are not legally modified as a result of the supplier’s participation in the program.
Amounts outstanding under the supplier finance program are recorded within trade payables on the balance sheet, as the nature of the liability has not changed. Payments made through the program are reflected in operating cash flows, consistent with the classification of other accounts payable.
 
dd.
Divestitures
The Company nets the proceeds on the divestitures of businesses and tangible assets with the carrying amount of the related assets and records gain or loss on sale within other income. Any contingent payments that are potentially due to the Company as a result of these divestitures are recorded when it is probable that a significant reversal of income will not occur, or in the case of a business, when such payments are realizable. For divestures of businesses, including divestitures of products that qualify as a business, the Company reflects the relative fair value of goodwill associated with the businesses in the determination of gain or loss on sale.
 
ee.
Debt instruments
Debt instruments are initially recognized at the fair value of the consideration received. Debt issuance costs are recorded on the consolidated balance sheet as a reduction of liability. They are subsequently recognized at amortized cost using the effective interest method. Debt may be considered extinguished when it has been modified and the terms of the new debt instruments and old debt instruments are “substantially different” (as defined in the debt modification guidance in ASC
470-50
“Debt—Modifications and Extinguishments”). The Company classifies the current portion of long term debt as
non-current
liabilities on the balance sheet when it has the intent and ability to refinance the obligation on a long-term basis, in accordance with ASC
470-50
“Debt”.
 
ff.
Leases
Teva determines if an arrangement is a lease at inception. Lease classification is governed by five criteria in ASC
842-10-25-2.
If any of these five criteria is met, Teva classifies the lease as a finance lease. Otherwise, Teva classifies the lease as an operating lease. When determining lease classification, Teva’s approach in assessing two of the mentioned criteria is: (i) generally, 75% or more of the remaining economic life of the underlying asset is a major part of the remaining economic life of that underlying asset; and (ii) generally, 90% or more of the fair value of the underlying asset comprises substantially all of the fair value of the underlying asset.
Operating leases are included in operating lease ROU assets, other current liabilities and operating lease liabilities in the consolidated balance sheet. Finance leases are included in property, plant and equipment, other current liabilities, and other long-term liabilities in the consolidated balance sheet.
ROU assets represent Teva’s right to use an underlying asset for the lease term and lease liabilities represent Teva’s obligation to make lease payments arising from the lease. Operating lease ROU and finance lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term, which may include options to extend or terminate the lease, when it is reasonably certain at the commencement date whether the Company will or will not exercise the option to renew or terminate the lease. Teva uses its incremental borrowing rate based on the information available at the commencement date to determine the present value of the lease payments.
 
For finance leases, Teva recognizes interest on the lease liability separately from amortization of the assets in the consolidated statement of income. For operating leases, lease expenses are recognized on a straight-line basis over the lease term.
Teva elected the short-term lease recognition exemption for all leases with a term shorter than 12 months. This means that for those leases, Teva does not recognize ROU assets or lease liabilities, but recognizes lease expenses over the lease term on a straight line basis. Teva also elected the practical expedient to not separate lease and
non-lease
components for all of Teva’s leases, other than leases of real estate.
Lease terms will include options to extend or terminate the lease when it is reasonably certain that Teva will either exercise or not exercise the option to renew or terminate the lease.
Teva’s lease agreements have remaining lease terms ranging from 1 year to 76 years. Some of these agreements include options to extend the leases for up to 10 years and some include options to terminate the leases immediately. Certain leases also include options to purchase the leased property.
The depreciable life of leasehold improvements is limited by the expected lease term, unless there is a transfer of title or a purchase option for the leased asset reasonably certain of exercise.
Some of Teva’s vehicle lease agreements include rental payments based on the actual usage of the vehicles and other lease agreements include rental payments adjusted periodically for inflation. Teva’s lease agreements do not contain any material residual value guarantees.
Teva rents out or subleases certain assets to third parties, which has an immaterial impact on Teva’s consolidated financial statements.
v3.25.0.1
Certain transactions
 12 Months Ended
Dec. 31, 2024
Certain transactions
NOTE 2 – Certain transactions:
The Company has entered into alliances and other arrangements with third parties to acquire rights to products it does not have, to access markets it does not operate in and to otherwise share development costs or business risks. The Company’s most significant agreements of this nature are summarized below.
mAbxience
In April 2024, Teva announced it entered into a strategic licensing agreement with mAbxience for a biosimilar candidate currently in development for the treatment of multiple oncology indications. Under the terms of the licensing agreement, mAbxience will develop and produce the biosimilar product and Teva will lead the regulatory processes and commercialization in multiple global markets, including Europe and the U.S. In September 2024, Teva and mAbxience entered into an amendment to the licensing agreement whereby, similar to the initial licensing agreement, mAbxience will lead the development and production of an
anti-PD-1
oncology biosimilar candidate and Teva will manage regulatory approvals and oversee commercialization in the designated markets.
Under the initial agreement, in the second quarter of 2024, Teva paid mAbxience upfront and milestone payments in a total amount of $20 million, which were recorded as R&D expenses. Pursuant to the amendment of the licensing agreement, in the fourth quarter of 2024, Teva paid mAbxience further upfront and milestone payments in a total amount of $15 million, which were recorded as R&D expenses in the third quarter of 2024. mAbxience may be eligible for additional future development, regulatory and commercial milestone payments, in an aggregate amount of up to $320 million.
 
Launch Therapeutics and Abingworth
On March 28, 2024, Teva and Launch Therapeutics, Inc. (“Launch Therapeutics”) entered into a clinical collaboration agreement to further accelerate the clinical research program of Teva’s DARI—Dual-Action Asthma Rescue Inhaler
(ICS-SABA;
TEV-‘248).
As part of this clinical collaboration agreement Teva also entered into a development funding agreement with funds affiliated with Abingworth LLP (“Abingworth”). Under the clinical collaboration agreement, Launch Therapeutics, a clinical development company backed by Abingworth and Carlyle, the global investment firm, will have the lead role in the operational execution and management of the planned clinical trials. Teva will retain primary responsibility for manufacturing, regulatory interactions in the U.S., and commercialization. DARI
(ICS-SABA;
TEV-’248)
is currently in Phase 3 for the treatment of asthma symptoms addressing both immediate symptoms and long-term inflammation.
Under the development funding agreement, Abingworth will provide Teva up to $150 million to fund ongoing development costs for DARI
(ICS-SABA;
TEV-‘248).
In exchange and subject to regulatory approval, Teva will pay Abingworth a milestone payment in the amount actually funded by Abingworth up to $150 million, as well as success payments based on DARI
(ICS-SABA;
TEV-‘248)
sales. During 2024, Teva recorded $42 million, as reimbursement for R&D expenses incurred in connection with this agreement.
Biolojic Design
On November 26, 2023, Teva entered into a license agreement with Biolojic Design Ltd. (“Biolojic”), pursuant to which Teva received exclusive rights to develop, manufacture and globally commercialize a BD9 multibody for the potential treatment of Atopic Dermatitis and Asthma. In exchange, Teva paid an upfront payment in an amount of $10 million in January 2024, which was recorded as an R&D expense in the fourth quarter of 2023. Biolojic may be eligible to receive additional development and commercial milestone payments of up to approximately $500 million, over the next several years, based on the achievement of certain
pre-clinical,
clinical and regulatory milestones, with the majority of the payments based on future sales achievements.
Royalty Pharma
On November 9, 2023, Teva entered into a funding agreement with Royalty Pharma plc. (“Royalty Pharma”) to further accelerate the clinical research program for Teva’s olanzapine LAI
(TEV-’749).
Under the terms of the funding agreement, Royalty Pharma will provide Teva up to $100 million to fund ongoing development costs for olanzapine LAI
(TEV-‘749),
with an option to increase the total funding amount to $125 million, which expired in the second quarter of 2024. In exchange and subject to regulatory approval, Teva will pay Royalty Pharma a milestone payment in the amount actually funded by Royalty Pharma, paid over 5 years, in addition to royalties upon commercialization. Teva will continue to lead the development and commercialization of the product globally. During 2023 and 2024, Teva recorded $100 million, as reimbursement for R&D expenses incurred in connection with this agreement, which collectively amounted to the total funding Royalty Pharma was to provide Teva. Olanzapine LAI
(TEV-’749)
is currently in Phase 3 for the treatment of schizophrenia (see also MedinCell transaction below).
Sanofi
On October 3, 2023, Teva entered into an exclusive collaboration with Sanofi to
co-develop
and
co-
commercialize Teva’s duvakitug (anti-TL1A,
TEV-’574)
 asset, a novel anti-TL1A therapy for the treatment of ulcerative colitis and Crohn’s disease, two types of inflammatory bowel disease. Under the terms of the collaboration agreement, in partial consideration of the licenses granted to Sanofi, Teva received an upfront payment of $
500 
million in the fourth quarter of 2023, recognized as revenue. Additionally, Teva may receive up
to $
1 billion in development and launch milestones. Each company will equally share the remaining development costs globally and net profits and losses in major markets, with other markets subject to a royalty arrangement, and Sanofi will lead the development of the Phase 3 program. Teva will lead commercialization of the product in Europe, Israel and specified other countries, and Sanofi will lead commercialization in North America, Japan, other parts of Asia and the rest of the world. On December 17, 2024, Teva and Sanofi announced that the Phase 2b study for duvakitug met its primary endpoints in patients with ulcerative colitis and Crohn’s disease. Sanofi and Teva plan to initiate Phase 3 development in inflammatory bowel disease, pending regulatory discussions.
MODAG
In October 2021, Teva announced a license agreement with MODAG GmbH (“Modag”) providing Teva with an exclusive global license to develop, manufacture and commercialize Modag’s lead compound, emrusolmin
(TEV-’286)
and a related compound
(TEV-’287).
Emrusolmin
(TEV-’286)
was developed for the treatment of Multiple System Atrophy (“MSA”) and Parkinson’s disease. Teva has initiated a Phase 2 clinical trial. In the fourth quarter of 2021, Teva made an upfront payment of $10 million to Modag, recorded as an R&D expense. Modag may be eligible for additional future development milestone payments, in an aggregate amount of up to $30 million, as well as future commercial milestones and royalties.
Alvotech
In August 2020, Teva entered into an agreement with biopharmaceutical company Alvotech for the exclusive commercialization in the U.S. of five biosimilar product candidates. The initial pipeline for this collaboration contained biosimilar candidates addressing multiple therapeutic areas, including proposed biosimilars to Humira
®
(adalimumab) and Stelara
®
(ustekinumab). Under the terms of the agreement, Alvotech is responsible for the development, registration and supply of the biosimilar product candidates and Teva will exclusively commercialize the products in the U.S. In July 2023, Alvotech and Teva amended their collaboration agreement, adding two new biosimilar candidates as well as line extensions of two current biosimilar candidates to their partnership.
Teva made upfront and milestone payments in an aggregate amount of $78 million in 2020, 2021 and 2023. Teva made additional milestone payments of $27 million in the second quarter of 2024 and $19 million in the third quarter of 2024. Additional development and commercial milestone payments of up to approximately $380 million, in addition to royalty and milestone payments related to the amendment of the collaboration agreement entered into in July 2023, may be payable by Teva over the next few years. Teva and Alvotech will share revenue from the commercialization of these biosimilars.
The amendment of the collaboration agreement entered into in July 2023 includes increased involvement by Teva regarding manufacturing and quality at Alvotech’s manufacturing facility. Additionally, pursuant to the amendment, on September 29, 2023, Teva purchased $40 million of subordinated convertible bonds of Alvotech. On June 26, 2024, Alvotech announced its intention to exercise its redemption rights and redeemed the convertible bonds for $44 million, including accrued interest, which were paid to Teva in July 2024.
On February 24, 2024, Alvotech and Teva announced that the FDA approved SIMLANDI (adalimumab-ryvk) injection, as an interchangeable biosimilar to Humira
®
, for the treatment of adult rheumatoid arthritis, juvenile idiopathic arthritis, adult psoriatic arthritis, adult ankylosing spondylitis, Crohn’s disease, adult ulcerative colitis, adult plaque psoriasis, adult hidradenitis suppurativa and adult uveitis. On April 17, 2024, Alvotech and Teva amended their collaboration agreement to enable the purchase by Quallent of a private label adalimumab-ryvk injection from Alvotech for the U.S. market, with Alvotech sharing profits with Teva on the private label sales. On May 20, 2024, Alvotech and Teva announced that SIMLANDI is available in the United States.
 
With respect to the proposed biosimilar to Stelara
®
, on June 12, 2023, Alvotech and Teva reached a settlement and license agreement with Johnson & Johnson, granting a licensed entry date in the U.S. no later than February 21, 2025.
On April 16, 2024, Alvotech and Teva announced that the FDA approved SELARSDI (ustekinumab-aekn) injection for subcutaneous use, as a biosimilar to Stelara
®
, for the treatment of moderate to severe plaque psoriasis and for active psoriatic arthritis in adults and pediatric patients six years and older, and on October 22, 2024, announced that the FDA approved SELARSDI in a new presentation, 130 mg/26 mL (5 mg/mL) solution in a single-dose vial for intravenous infusion, expanding its label to include treatment of adults with Crohn’s disease and ulcerative colitis.
In January 2025, Teva and Alvotech announced that the FDA had accepted for review Biologic License Applications (“BLA”) for Alvotech’s proposed biosimilars to Simponi
®
and Simponi Aria
®
(golimumab).
Takeda
In December 2016, Teva entered into a license agreement with a subsidiary of Takeda Pharmaceutical Company Ltd. (“Takeda”), for the research, development, manufacture and commercialization of ATTENUKINE
TM
technology. Teva received a $30 million upfront payment and a milestone payment of $20 million in 2017. During the second quarter of 2022, Takeda initiated its Phase 2 study of modakafusp alfa (formerly
TAK-573
or TEV ’573) and as a result paid Teva a milestone payment of $25 million, which was recognized as revenue in the second quarter of 2022. In April 2024, Takeda informed Teva of its intent to terminate the agreement with respect to such product candidate, which product rights will revert back to Teva in early 2025. Takeda continues to have rights under the license agreement with respect to other product candidates. In December 2024, Takeda informed Teva of its intent to terminate the license agreement in its entirety, and all rights to the ATTENUKINE
TM
technology will revert back to Teva in first half of 2025.
MedinCell
In November 2013, Teva entered into an agreement with MedinCell for the development and commercialization of multiple long-acting injectable (“LAI”) products. Teva leads the clinical development and regulatory process and is responsible for the commercialization of these products. The lead product is risperidone LAI (formerly known as
TV-46000).
On April 28, 2023, the FDA approved UZEDY (risperidone) extended-release injectable suspension for the treatment of schizophrenia in adults, which was launched in the U.S. in May 2023. MedinCell may be eligible for future sales-based milestones of up to $105 million with respect to UZEDY. Teva also pays MedinCell royalties on net sales.
The second selected product candidate is olanzapine LAI
(TEV-’749)
for the treatment of schizophrenia. In the third quarter of 2022, Teva decided to progress development of the product to Phase 3 and, as a result, paid a $3 million milestone payment to MedinCell, which was recognized as R&D expenses. On May 8, 2024, Teva and MedinCell announced positive Phase 3 efficacy results from a trial evaluating olanzapine LAI as a once-monthly subcutaneous long-acting injectable in adults with schizophrenia. Additional safety and efficacy results are planned in the first half of 2025. MedinCell may become eligible for further development and commercial milestones of up to $117 million, as well as royalties on sales of olanzapine LAI
(TEV-’749).
Assets and Liabilities Held For Sale:
General
Assets and liabilities held for sale as of December 31, 2024, included Teva’s API business and its Teva’s business venture in Japan. Assets held for sale as of December 31, 2023 included businesses that were expected to be sold within 2024.
 
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. However, there can be no assurance regarding the ultimate timing or structure of a potential divestiture or that a divestiture will be agreed or completed at all.
In connection with the held for sale classification of Teva’s business venture in Japan, in the first quarter of 2024, Teva recorded expenses of $577 million due to an expected loss upon sale, including $369 million of expected loss from reclassification of currency translation adjustments to the statements of income upon sale, in other assets impairments, restructuring and other items. In the second quarter of 2024, Teva recorded an additional expense of $67 million related to the expected loss from reclassification of currency translation adjustments referred to above. In the third quarter of 2024, Teva recorded a favorable adjustment of $83 million, primarily related to the change in expected loss from reclassification of currency translation adjustments referred to above. In the fourth quarter of 2024, Teva recorded expenses of $129 million due to an expected loss upon sale, including $115 million of expected loss from reclassification of currency translation adjustments to the statements of income upon sale.
 
49% of these expected losses were attributable to Teva’s non-controlling interests.
In connection with the held for sale classification of Teva’s API business, in the fourth quarter of 2024, Teva recorded expenses of $275 million due to an expected loss upon sale, including a favorable adjustment of $34 million related to the expected gain from reclassification of currency translation adjustments to the statements of income upon sale. See note 15.
Teva has elected the policy to include the currency translation adjustment related to the disposal group as part of the asset carrying amount.
The table below summarizes all of Teva’s assets and liabilities included as held for sale as of December 31, 2024 and December 31, 2023:
 
    
December 31,
     
December 31,
  
    
2024
     
2023
  
    
(U.S. $ in millions)
  
Accounts receivables
      222        —   
Inventories
    $ 647      $ 12  
Property, plant and equipment, net and others
      913        5  
Identifiable intangible assets, net
      83        —   
Goodwill
      255        30  
Other current assets
      99        23  
Other
non-current
assets
      236        —   
Expected loss on sale*
      (684 )      —   
  
 
 
     
 
 
  
Total assets of the disposal group classified as held for sale in the consolidated balance sheets
    $ 1,771      $ 70  
  
 
 
     
 
 
  
Accounts payables
      (283 )       —   
Other current liabilities
      (49 )       (13 ) 
Other
non-current
liabilities
      (85 )       —   
Expected loss on sale*
      (281 )       —   
  
 
 
     
 
 
  
Total liabilities of the disposal group classified as held for sale in the consolidated balance sheets
    $ (698 )     $ (13 ) 
  
 
 
     
 
 
  

*
Includes an expected loss from reclassification of currency translation adjustments to the consolidated statements of income (loss) upon sale.
v3.25.0.1
Revenue from contracts with customers
 12 Months Ended
Dec. 31, 2024
Revenue from contracts with customers
NOTE 3 – Revenue from contracts with customers:
Disaggregation of revenue
The following table disaggregates Teva’s revenues by major revenue streams. For additional information on disaggregation of revenues, see note 19.
In conjunction with a recent 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 have been recast to conform to the reporting structure for the current year.
 
    
Year ended December 31, 2024
  
    
United
states
     
Europe
     
International
Markets
     
Other
activities
     
Total
  
    
(U.S.$ in millions)
  
Sale of goods
      6,327        4,891        2,280        933        14,430  
Licensing arrangements
      103        35        24        11        173  
Distribution
      1,536        1        39        —         1,576  
Other*
      68        176        121        §        365  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
   $ 8,034      $ 5,103      $ 2,463      $ 944      $ 16,544  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  

*
“Other” revenues in all segments include revenues related to sales of certain product rights.
§
Represents an amount less than $0.5 million.
 
    
Year ended December 31, 2023
  
    
United
states
     
Europe
     
International
Markets
     
Other
activities
     
Total
  
    
(U.S.$ in millions)
  
Sale of goods
      5,554        4,631        2,229        565        12,979  
Licensing arrangements *
      597        51        28        5        681  
Distribution
      1,577        §        38        —         1,615  
Other**
      2        155        57        357        570  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
   $ 7,731      $ 4,837      $ 2,351      $ 926      $ 15,846  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  

*
Revenues from licensing arrangements in United states segment were mainly comprised of $500 million upfront payment received in connection with the collaboration on Teva’s anti-TL1A asset. See note 2.
**
“Other” revenues in Europe segment mainly related to the sale of certain product rights.
§
Represents an amount less than $0.5 million.
 
    
Year ended December 31, 2022
  
    
United
states
     
Europe
     
International
Markets
     
Other
activities
     
Total
  
    
(U.S.$ in millions)
  
Sale of goods
      5,383        4,455        2,257        671        12,766  
Licensing arrangements
      136        51        22        4        212  
Distribution
      1,471        1        46        —         1,519  
Other
      13        18        27        370        428  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
   $ 7,003      $ 4,525      $ 2,352      $ 1,045      $ 14,925  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
 
 
Variable consideration
Variable consideration mainly includes SR&A, comprised of rebates (including Medicaid and other governmental program discounts), chargebacks, returns and other promotional (including shelf stock adjustments) items. Provisions for prompt payment discounts are netted against trade receivables.
The Company recognizes these provisions at the time of sale and adjusts them if the actual amounts differ from the estimated provisions. For description of the nature of each deduction and how provisions are estimated see note 1.
SR&A to U.S. customers comprised approximately 69% of the Company’s total SR&A as of December 31, 2024, with the remaining balance primarily in Canada and Germany. The changes in SR&A for third-party sales for the years ended December 31, 2024 and 2023 were as follows:
 
 
 
Sales Reserves and Allowances
 
 
 
Reserves
included in
Accounts
Receivable,
net
 
 
Rebates
 
 
Medicaid and
other
governmental
allowances
 
 
Chargebacks
 
 
Returns
 
 
Other
 
 
Total
reserves
included in
Sales
Reserves
and
Allowances
 
 
Total
 
 
 
(U.S.$ in millions)
 
Balance at January 1, 2024
   $ 61       1,603       540       859       436       97     $ 3,535     $ 3,596  
Provisions related to sales made in current year period
     390       4,640       787       7,952       276       149       13,804       14,194  
Provisions related to sales made in prior periods
     —        5       22       (11 )
 
     (22 )
 
     (3 )
 
     (9 )
 
     (9 )
 
Credits and payments
     (395 )
 
     (4,531 )
 
     (781 )
 
     (7,851 )     (286 )     (126 )     (13,575 )     (13,970 )
Translation differences
     —        (43 )     (7 )     (13 )     (5 )     (9 )     (77 )     (77 )
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance at December 31, 2024
   $ 56     $ 1,674     $ 561     $ 936     $ 399     $ 108     $ 3,678     $ 3,734  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
   
Sales Reserves and Allowances
  
   
Reserves
included in
Accounts
Receivable,
net
    
Rebates
    
Medicaid and
other
governmental
allowances
    
Chargebacks
    
Returns
    
Other
    
Total
reserves
included in
Sales
Reserves
and
Allowances
    
Total
  
   
(U.S.$ in millions)
  
Balance at January 1, 2023
   $ 67     $ 1,575     $ 663     $ 991     $ 455     $ 66     $ 3,750     $ 3,817  
Provisions related to sales made in current year period
     354       4,015       654       7,579       264       109       12,621       12,975  
Provisions related to sales made in prior periods
     —        (31 )      (33 )      (54 )      17       —        (101 )      (101 ) 
Credits and payments
     (360 )      (3,974 )      (748 )      (7,662 )      (304 )      (77 )      (12,765 )      (13,125 ) 
Translation differences
     —        18       4       5       4       (1 )      30       30  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance at December 31, 2023
   $ 61     $ 1,603     $ 540     $ 859     $ 436     $ 97     $ 3,535     $ 3,596  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Allowance for credit losses
Accounts receivables are recognized net of allowance for credit losses. Allowances for credit losses were $78 million and $95 million as of December 31, 2024 and December 31, 2023, respectively.
v3.25.0.1
Inventories
 12 Months Ended
Dec. 31, 2024
Inventories
NOTE 4 —Inventories:
Inventories, net of reserves, consisted of the following:
 
    
December 31,
  
    
 2024 
     
 2023 
  
    
(U.S. $ in millions)
  
Finished products
    $ 1,783      $ 2,346  
Raw and packaging materials
      671        993  
Products in process
      353        500  
Materials in transit and payments on account
      199        183  
  
 
 
     
 
 
  
   $ 3,007      $ 4,021  
  
 
 
     
 
 
  
During the year ended December 31, 2024, the Company classified inventories in the amount of $647 million as assets held for sale. See note 2.
v3.25.0.1
Property, Plant and Equipment
 12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment
NOTE 5 —Property, plant and equipment:
Property, plant and equipment, net, consisted of the following:
 
    
December 31,
  
    
2024
     
2023
  
    
(U.S. $ in millions)
  
Machinery and equipment
    $ 3,092      $ 4,807  
Buildings
      1,968        2,488  
Computer equipment and other assets
      2,388        2,419  
Assets under construction and payments on account
      1,330        1,427  
Land
      213        246  
  
 
 
     
 
 
  
     8,991        11,387  
Less- accumulated depreciation
      (4,410 )       (5,637 ) 
  
 
 
     
 
 
  
   $ 4,581      $ 5,750  
  
 
 
     
 
 
  
Depreciation expenses were $471 million, $537 million and $576 million in the years ended December 31, 2024, 2023 and 2022, respectively. During the years ended December 31, 2024, 2023 and 2022, Teva recorded impairments of property, plant and equipment in the amount of $61 million, $28 million and $47 million, respectively. See note 15. During the year ended December 31, 2024, the Company classified property, plant and equipment in the amount of $913 million as assets held for sale. See note 2.
v3.25.0.1
Identifiable Intangible Assets
 12 Months Ended
Dec. 31, 2024
Identifiable Intangible Assets
NOTE 6—Identifiable intangible assets:
Identifiable intangible assets consisted of the following:
 
    
Gross carrying
amount net of
impairment
     
Accumulated
amortization
     
Net carrying amount
  
    
December 31,
  
    
 2024 
     
 2023 
     
 2024 
     
 2023 
     
 2024 
     
 2023 
  
    
(U.S. $ in millions)
  
Product rights
    $ 15,915      $ 17,981      $ 11,998      $ 13,274      $ 3,917      $ 4,707  
Trade names
      568        583        300        269        268        314  
In-process
research and development (IPR&D)
      233        366        —         —         233        366  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 16,716      $ 18,930      $ 12,298      $ 13,543      $ 4,418      $ 5,387  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Product rights and trade names
Product rights and trade names are assets presented at amortized cost. Product rights and trade names represent a portfolio of pharmaceutical products from various categories with a weighted average life of approximately 8 years. Amortization of intangible assets was $588 million, $616 million and $732 million in the years ended December 31, 2024, 2023 and 2022, respectively.
As of December 31, 2024, the estimated aggregate amortization of intangible assets for the years 2025 to 2029 is as follows: 2025—$491 million; 2026—$496 million; 2027—$533 million; 2028—$516 million and 2029—$448 million. These estimates do not include the impact of IPR&D that is expected to be successfully completed and reclassified to product rights.
IPR&D
Teva’s IPR&D are assets that have not yet been approved in major markets. IPR&D carries intrinsic risks that the asset might not succeed in advanced phases and may be impaired in future periods.
Intangible assets impairment
Impairments of identifiable intangible assets
were $251 million, $350 million and $355 million in the years ended December 31, 2024, 2023 and 2022, respectively. These amounts are recorded in the statement of income (loss) under intangible assets impairments.
The fair value measurement of the impaired intangible assets in 2024 is based on significant unobservable inputs in the market and thus represents a Level 3 measurement within the fair value hierarchy. The discount rate applied ranged from 8.25% to 10%. A probability of success factor of 90% was used in the fair value calculation to reflect inherent regulatory and commercial risk of IPR&D.
Impairments in 2024 consisted of:
 
  (a)
Identifiable product rights of $194 million, mainly due to updated market assumptions regarding price and volume of products mainly in the U.S.; and
 
  (b)
IPR&D assets of $57 million, mainly related to generic pipeline products resulting from development progress and changes in other key valuation indications (e.g., market size, competition assumptions, legal landscape and launch date).
 
 
Impairments in 2023 consisted of:
 
  (a)
Identifiable product rights of $
260 
million due to: (i) $
148 
million related to updated market assumptions regarding price and volume of products; and (ii) $112 million in Japan, mainly related to regulatory pricing reductions; and
 
  (b)
IPR&D assets of $90 million, mainly related to generic pipeline products resulting from development progress and changes in other key valuation indications (e.g., market size, competition assumptions, legal landscape and launch date).
Impairments in 2022 consisted of:
 
  (a)
Identifiable product rights of $310 million due to: (i) $256 million related to updated market assumptions regarding price and volume of products, and (ii) $54 million related to a change in Teva’s commercial plans regarding a certain program, as part of portfolio optimization efforts, which also included an inventory
write-off
of $108 million; and
 
  (b)
IPR&D assets of $45 million, due to generic pipeline products resulting from development progress and changes in other key valuation indications (e.g., market size, competition assumptions, legal landscape and launch date).
v3.25.0.1
Goodwill
 12 Months Ended
Dec. 31, 2024
Goodwill
NOTE 7 – Goodwill:
Changes in the carrying amount of goodwill for the years ended December 31, 2024 and 2023 were as follows:
 
                            
Other
        
    
North
America
    
United
States
    
Europe
    
International
Markets
    
Teva’s API
    
Medis
    
Total
  
    
(U.S. $ in millions)
        
Balance as of December 31, 2022 (1)
    $ 6,450     $ —        8,302     $ 1,339     $ 1,293     $ 249     $ 17,633  
Changes during the period:
               
Goodwill impairment
      —          —        (700 )      —        —        (700 ) 
Goodwill reclassified as assets held for sale
      —          —        (30 )      —        —        (30 ) 
Translation differences
      9         164       66       20       16       275  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of December 31, 2023 (1)
    $ 6,459     $ —      $ 8,466     $ 675     $ 1,313     $ 265     $ 17,177  
Goodwill allocation related to the shift of Canada to International Markets
      (6,459 )      5,813       —        646       —        —        —   
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of January 1, 2024
    $ —      $ 5,813     $ 8,466     $ 1,321     $ 1,313     $ 265     $ 17,177  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Other changes during the period:
               
Goodwill impairment
      —        —        —        —        (1,280 )     —        (1,280 )
Goodwill reclassified as assets held for sale
      —        (81 )
 
     (98 )     (50 )     —        (7 )     (236 )
Translation differences and other
      —        —        (293 )      (161 )      (33 )      (26 )      (513 ) 
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of December 31, 2024 (1)
    $ —      $ 5,732     $ 8,075     $ 1,110     $ —      $ 232     $ 15,147  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  

(1)
Cumulative goodwill impairment as of December 31, 2024, December 31, 2023 and December 31, 2022 was approximately $29.58 billion, $28.3 billion and $27.6 billion, respectively.
 
Teva operates its business through three reporting segments: United States, Europe and International Markets. Each of these business segments is a reporting unit. Additional reporting units include Teva’s production and sale of APIs to third parties (“Teva API”) and an
out-licensing
platform offering a portfolio of products to other pharmaceutical companies through its affiliate Medis. Teva’s API and Medis reporting units are included under “Other” in the table above. See note 19 for additional segment information.
Teva determines the fair value of its reporting units using the income approach. The income approach is a forward-looking approach for estimating fair value. Within the income approach, the method used is the discounted cash flow method. Teva begins with a forecast of all the expected net cash flows associated with the reporting unit, which includes the application of a terminal value, and then applies a discount rate to arrive at a net present value amount. Cash flow projections are based on Teva’s estimates of revenue growth rates and operating margins, taking into consideration industry and market conditions. The discount rate used is based on the weighted average cost of capital (“WACC”), adjusted for the relevant risk associated with country-specific and business-specific characteristics. If any of these expectations were to vary materially from Teva’s assumptions, Teva may record an impairment of goodwill allocated to these reporting units in the future.
First Quarter Developments
As further discussed in note 19, as of January 1, 2024, Canada is reported as part of Teva’s International Markets segment and not as part of Teva’s North America segment, which has been renamed as Teva’s United States segment. As a result, Teva aligned its segment reporting and its reporting units in accordance with this change, and reallocated its goodwill to the adjusted reporting units using a relative fair value allocation. In conjunction with the goodwill reallocation, Teva performed a goodwill impairment test for the balances in its adjusted United States and International Markets reporting units and concluded that the fair value of each reporting unit was in excess of its carrying value.
During the first quarter of 2024, management evaluated whether there were any developments that occurred during the quarter to determine if it was more likely than not that the fair value of any of its reporting units was below its carrying amount as of March 31, 2024. Management concluded that no triggering event had occurred and, therefore, no quantitative assessment was performed.
Second Quarter Developments
During the second quarter of 2024, Teva completed its long-range planning (“LRP”) process. The LRP is part of Teva’s internal financial planning and budgeting processes and is discussed and reviewed by Teva’s management and its board of directors.
Additionally, Teva conducted a quantitative analysis of all reporting units as part of its annual goodwill impairment test with the assistance of an independent valuation expert.
As disclosed in prior periods, the excess of the estimated fair value of Teva’s API reporting unit over its estimated carrying amount was negligible as of December 31, 2023 and March 31, 2024. The updated quantitative analysis performed in the second quarter of 2024, which was based on the aforementioned LRP process and Teva’s Pivot to Growth strategy assumptions, resulted in a recognition of a goodwill impairment charge of $400 million related to Teva’s API reporting unit.
Following the goodwill impairment charges recorded in relation to Teva’s API reporting unit, the carrying values of this reporting unit equaled its fair value as of June 30, 2024. Therefore, if business conditions or expectations were to change materially, it may be necessary to record further impairment charges to Teva’s API reporting unit in the future (see ”Third Quarter Developments” and ”Fourth Quarter Developments” below).
 
 
Teva’s United States, Europe, International Markets and Medis reporting units had fair values in excess of 10% over their book values as of June 30, 2024.
In the second quarter of 2023, Teva recorded a goodwill impairment charge of $700 million related to its International Markets reporting unit, mainly due to an increase in the discount rate due to higher risk associated with country-specific characteristics of several countries.
Third Quarter Developments
During the third quarter of 2024, management evaluated whether there were any developments that occurred during the quarter to determine if it was more likely than not that the fair value of any of its reporting units was below its carrying amount as of September 30, 2024.
As part of this evaluation, management noted a triggering event related to Teva’s API reporting unit, which resulted from updated assumptions in connection with Teva’s intention to divest its API business through a sale.
Teva performed a quantitative assessment in the third quarter of 2024, which resulted in the recording of a goodwill impairment charge of $600 million related to Teva’s API reporting unit.
Following this goodwill impairment charge, the carrying value of Teva’s API reporting unit equaled its fair value as of September 30, 2024. Therefore, if business conditions or expectations, including related to Teva’s intention to divest its API business, were to change materially, it may be necessary to record further impairment charges to Teva’s API reporting unit in the future (see ”Fourth Quarter Developments” below).
With respect to the remaining reporting units, management concluded that it was not more likely than not that the fair value of any of the reporting units was below its carrying amounts as of September 30, 2024 and, therefore, no quantitative assessment was performed.
Fourth Quarter Developments
During the fourth quarter of 2024, management evaluated whether there were any developments that occurred during the quarter to determine if it was more likely than not that the fair value of any of its reporting units was below its carrying amount as of December 31, 2024.
As part of this evaluation, management noted a triggering event related to Teva’s API reporting unit, which resulted from updated assumptions in connection with Teva’s intention to divest its API business through a sale.
Teva performed a quantitative assessment in the fourth quarter of 2024, which resulted in the recording of a goodwill impairment charge of $280 million related to Teva’s API reporting unit.
In addition, as further discussed in note 2, on December 31, 2024, Teva classified its API business (including its R&D, manufacturing and commercial activities) as held for sale. As a result, Teva reallocated goodwill from its reporting units to the held for sale disposal group using a relative fair value allocation. In conjunction with the goodwill reallocation, Teva performed a goodwill impairment test for the balances in its United States, Europe, International Markets and Medis reporting units and concluded that the fair value of each reporting unit was in excess of its carrying value.
Teva’s United States, Europe, International Markets and Medis reporting units have fair values in excess of 10% over their respective book values as of December 31, 2024.
v3.25.0.1
Leases
 12 Months Ended
Dec. 31, 2024
Leases
NOTE 8 – Leases:
The components of operating lease cost for the years ended December 31, 2024, 2023 and 2022 were as follows:
 
    
Year ended
December 31,
     
Year ended
December 31,
     
Year ended
December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
     
(U.S. $ in millions)
     
(U.S. $ in millions)
  
Operating lease cost:
         
Fixed payments and variable payments that depend on an index or rate
      123        132        142  
Variable lease payments not included in the lease liability
      16        5        4  
Short-term lease cost
      3        3        2  
  
 
 
     
 
 
     
 
 
  
   $ 142      $ 139      $ 148  
  
 
 
     
 
 
     
 
 
  
Supplemental cash flow information related to operating leases was as follows:
 
    
Year ended
December 31,
     
Year ended
December 31,
     
Year ended
December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
     
(U.S. $ in millions)
     
(U.S. $ in millions)
  
Cash paid for amounts included in the measurement of lease liabilities:
         
Operating cash flows from operating leases
    $ 143      $ 141      $ 140  
Right-of-use
assets obtained in exchange for lease obligations
(non-cash):
         
Operating leases
    $ 137      $ 121      $ 81  
Supplemental balance sheet information related to operating leases was as follows:
 
    
December 31,
     
December 31,
  
    
2024
     
2023
  
    
(U.S. $ in millions)
     
(U.S. $ in millions)
  
Operating leases:
      
Operating lease ROU assets
    $ 367      $ 397  
  
 
 
     
 
 
  
Other current liabilities
      87        97  
Operating
lease
liabilities
      296        320  
  
 
 
     
 
 
  
Total operating lease liabilities
    $ 383      $ 417  
  
 
 
     
 
 
  
 
 
    
December 31,
    
December 31,
  
    
2024
    
2023
  
Weighted average remaining lease term
     
Operating leases
      6.1 years       6.1 years  
Weighted average discount rate
     
Operating leases
      6.5 %      6.0 % 
Maturities of operating lease liabilities were as follows:
 
    
December 31,
  
    
2024
  
    
(U.S. $ in millions)
  
2025
      120  
2026
      102  
2027
      81  
2028
      57  
2029 and thereafter
      135  
  
 
 
  
Total operating lease payments
    $ 495  
  
 
 
  
Less: imputed interest
      112  
  
 
 
  
Present value of lease liabilities
    $ 383  
  
 
 
  
As of December 31, 2024, Teva’s
total finance lease assets
and
finance lease liabilities
were $
23 
million and $18 million, respectively. As of December 31, 2023,
total finance lease assets
and
finance lease liabilities
were $32 million and $23 million, respectively. The difference between those amounts is mainly due to amortization and short
-
term liabilities.
v3.25.0.1
Debt obligations
 12 Months Ended
Dec. 31, 2024
Debt obligations
NOTE 9 —Debt obligations:
 
a.
Short-term debt:
 
                 
December 31,
  
    
Weighted average
interest rate as of
December 31, 2024
    
Maturity
     
2024
     
2023
  
                 
(U.S. $ in millions)
  
Convertible debentures
      0.25 %      2026      $ 23      $ 23  
Current maturities of long-term liabilities
 
      1,758        1,649  
       
 
 
     
 
 
  
Total short term debt
 
    $ 1,781      $ 1,672  
Convertible senior debentures
The principal amount of Teva’s 0.25% convertible senior debentures due 2026 was $23 million as of December 31, 2024 and December 31, 2023. These convertible senior debentures include a “net share settlement” feature according to which the principal amount will be paid in cash and in case of conversion, only the residual conversion value above the principal amount will be paid in Teva shares. Due to the “net share settlement” feature, exercisable at any time, these convertible senior debentures are classified in the Balance Sheet under short-term debt.
 
 
b.
Long-term debt:
 
   
Interest rate as of
December 31, 2024
    
Maturity
    
December 31,
2024
    
December 31,
2023
  
               
(U.S. $ in millions)
  
Senior notes USD 1,250 million (4)
     6.00 %      2024       —        956  
Senior notes EUR 1,500 million (5)
     1.13 %      2024       —        693  
Senior notes EUR 1,000 million (6)
     6.00 %      2025       429       453  
Senior notes USD 1,000 million (7)
     7.13 %      2025       427       427  
Senior notes EUR 900 million
     4.50 %      2025       515       547  
Senior notes CHF 350 million
     1.00 %      2025       387       416  
Senior notes USD 3,500 million
     3.15 %      2026       3,374       3,374  
Senior notes EUR 700 million
     1.88 %      2027       730       771  
Sustainability-linked senior notes USD 1,000 million (1)(*)
     4.75 %      2027       1,000       1,000  
Sustainability-linked senior notes EUR 1,100 million (1)(*)
     3.75 %      2027       1,144       1,215  
Senior notes USD 1,250 million
     6.75 %      2028       1,250       1,250  
Senior notes EUR 750 million
     1.63 %      2028       778       826  
Sustainability-linked senior notes USD 1,000 million (2)(*)
     5.13 %      2029       1,000       1,000  
Sustainability-linked senior notes USD 600 million (3)(*)
     7.88 %      2029       600       600  
Sustainability-linked senior notes EUR 800 million (3)(*)
     7.38 %      2029       835       884  
Sustainability-linked senior notes EUR 1,500 million (2)(*)
     4.38 %      2030       1,562       1,656  
Sustainability-linked senior notes USD 500 million (3)(*)
     8.13 %      2031       500       500  
Sustainability-linked senior notes EUR 500 million (3)(*)
     7.88 %      2031       521       552  
Senior notes USD 789 million
     6.15 %      2036       783       783  
Senior notes USD 2,000 million
     4.10 %      2046       1,986       1,986  
     
 
 
    
 
 
  
Total senior notes
 
     17,821       19,889  
Other long-term debt
 
     —        1  
Less current maturities
 
     (1,758 )      (1,649 ) 
Less debt issuance costs
 
     (61 )      (80 ) 
     
 
 
    
 
 
  
Total senior notes and loans
 
   $ 16,002     $ 18,161  
     
 
 
    
 
 
  

(1)
If Teva fails to achieve certain sustainability performance targets, a
one-time
premium payment of
0.15%-0.45%
out of the principal amount will be paid at maturity or upon earlier redemption, if such redemption is on or after May 9, 2026.
(2)
If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by
0.125%-0.375%
per annum, from and including May 9, 2026.
(3)
If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by
0.100%-0.300%
per annum, from and including September 15, 2026.
(4)
In April 2024, Teva repaid $956 million of its 6% senior notes due 2024 at maturity.
(5)
In October 2024, Teva repaid $685 million of its 1.13% senior notes due 2024 at maturity.
(6)
In January 2025, Teva repaid $426 million of its 6% senior notes due 2025 at maturity.
(7)
In January 2025, Teva repaid $427 million of its 7.13% senior notes due 2025 at maturity.
*
Interest rate adjustments and a potential
one-time
premium payment related to the sustainability-linked bonds are treated as bifurcated embedded derivatives. See note 10c.
Long-term debt was issued by several indirect wholly-owned subsidiaries of the Company and is fully and unconditionally guaranteed by the Company as to payment of all principal, interest, discount and additional amounts, if any. The long-term debt outlined in the above table is generally redeemable at any time at varying redemption prices plus accrued and unpaid interest.
 
 
Teva’s debt as of December 31, 2024 was effectively denominated in the following currencies: 61% in U.S. dollars, 37% in euro and 2% in Swiss franc.
Teva’s principal sources of short-term liquidity are its cash on hand, existing cash investments, liquid securities and available credit facilities, primarily its $1.8 billion unsecured syndicated sustainability-linked revolving credit facility entered into in April 2022, as amended on February 6, 2023 and on May 3, 2024 (“RCF”).
The RCF had an initial maturity date of
April 2026
with two
one-year
extension options. In April 2024, an extension option was exercised and the RCF maturity date was extended to April 2027. The RCF contains certain covenants, including certain limitations on incurring liens and indebtedness and maintenance of certain financial ratios, including a maximum leverage ratio, which becomes more restrictive over time.
On May 3, 2024, the terms of the RCF were amended to update the Company’s maximum permitted leverage ratio under the RCF for certain periods. Under the terms of the RCF, as amended, the Company’s leverage ratio shall not exceed (i) 4.00x in 2024, 2025 and the first quarter of 2026, (ii) 3.75x in the second, third and fourth quarters of 2026 and (iii) 3.50x in the first quarter of 2027 and onwards. The RCF permits the Company to increase the maximum leverage ratio if it consummates or commences certain material transactions.
Under the RCF, as amended, the applicable margin used to calculate the interest rate under the RCF is linked to one sustainability performance target, the number of new regulatory submissions in low and middle-income countries.
Proceeds from borrowings under the RCF can be used for general corporate purposes, including repaying existing debt. As of December 31, 2024, and as of the date of this Annual Report on Form
10-K,
no amounts were outstanding under the RCF. Based on current and forecasted results, the Company expects that it will not exceed the financial covenant thresholds set forth in the RCF within one year from the date the financial statements are issued.
Under specified circumstances, including
non-compliance
with any of the covenants described above and the unavailability of any waiver, amendment or other modification thereto, the Company will not be able to borrow under the RCF. Additionally, violations of the covenants, under the circumstances referred to above, would result in an event of default in all borrowings under the RCF and, when greater than a specified threshold amount as set forth in each series of senior notes and sustainability-linked senior notes is outstanding, could lead to an event of default under the Company’s senior notes and sustainability-linked senior notes due to cross-acceleration provisions.
Teva expects that it will continue to have sufficient cash resources to support its debt service payments and all other financial obligations within one year from the date that the financial statements are issued.
 
 
As of December 31, 2024, the required annual principal payments of long-term debt (excluding debt issuance costs), including convertible senior debentures, starting from the year 2026, are as follows:
 
    
December 31,
2024
  
    
(U.S. $ in millions)
  
2026*
    $ 3,397  
2027
      2,874  
2028
      2,028  
2029
      2,435  
2030 and thereafter
      5,352  
  
 
 
  
   $ 16,086  
  
 
 
  
 
*
Including $23 million convertible notes. See note 9a.
v3.25.0.1
Derivative instruments and hedging activities
 12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities
NOTE 10—Derivative instruments and hedging activities:
 
a.
Foreign exchange risk management:
In 2024, approximately 47% of Teva’s revenues were denominated in currencies other than the U.S. dollar. As a result, Teva is subject to significant foreign currency risks.
The Company enters into forward exchange contracts and purchases and writes options in order to hedge the currency exposure on balance sheet items, revenues and expenses. In addition, the Company takes measures to reduce its exposure by using natural hedging. The Company also acts to offset risks in opposite directions among the subsidiaries within Teva. The currency hedged items are usually denominated in the following main currencies: euro, Swiss franc, Japanese yen, British pound, Russian ruble, Canadian dollar, Polish zloty, new Israeli shekel, Indian rupee and other currencies. Depending on market conditions, foreign currency risk is also managed through the use of foreign currency debt.
The Company may choose to hedge against possible fluctuations in foreign subsidiaries net assets (“net investment hedge”) and has entered into cross currency swaps and forward contracts in the past in order to hedge such an exposure.
Most of the counterparties to the derivatives are major banks and the Company is monitoring the associated inherent credit risks. The Company does not enter into derivative transactions for trading purposes.
 
b.
Interest risk management:
The Company raises capital through various debt instruments, including senior notes, sustainability-linked senior notes, bank loans and convertible debentures that bear fixed or variable interest rates, as well as a syndicated sustainability-linked revolving credit facility and securitization programs that bear a variable interest rate. In some cases, the Company has swapped from a fixed to a variable interest rate (“fair value hedge”) and from a fixed to a fixed interest rate with an exchange from a currency other than the functional currency (“cash flow hedge”), thereby reducing overall interest expenses or hedging risks associated with interest rate fluctuations. As of December 31, 2024, all outstanding senior notes, sustainability-linked senior notes and convertible debentures bear a fixed interest rate.
 
c.
Bifurcated embedded derivatives:
Upon issuance of sustainability-linked senior notes, Teva recognized embedded derivatives related to interest rate adjustments and a potential
one-time
premium payment upon failure to achieve certain sustainability
 
 
performance targets, such as access to medicines in
low-to-middle-income
countries and absolute greenhouse gas emissions reduction, which were bifurcated and are accounted for separately as derivative financial instruments. As of December 31, 2024 the fair value of these derivative instruments is negligible.
 
d.
Derivative instrument outstanding:
The following table summarizes the notional amounts for hedged items, when transactions are designated as hedge accounting:
 
    
December 31,

2024
     
December 31,

2023
  
    
(U.S. $ in millions)
  
Cross-currency swap-cash flow hedge (1)
    $ —       $ 169  
  
 
 
     
 
 
  
The following table summarizes the classification and fair values of derivative instruments:
 
    
Fair value
  
    
Designated as hedging
instruments
     
Not designated as hedging

instruments
  
    
December 31,

2024
     
December 31,

2023
     
December 31,

2024
    
December 31,

2023
  
Reported under
   
(U.S. $ in millions)
     
(U.S. $ in millions)
  
Asset derivatives:
           
Other current assets:
           
Option and forward contracts
    $ —       $ —       $ 71     $ 38  
Other
non-current
assets:
           
Cross-currency swaps - cash flow hedge (1)
      —         8        —        —   
Liability derivatives:
           
Other current liabilities:
           
Option and forward contracts
    $ —       $ —       $ (24 )    $ (39 ) 
The table below provides information regarding the location and amount of
pre-tax
(gains) losses from derivatives designated in fair value or cash flow hedging relationships:
 
Reported under
   
Financial expenses, net
     
Other comprehensive income
(loss)
  
    
Year ended December 31,
     
Year ended December 31,
  
    
 2024 
    
 2023 
    
 2022 
     
 2024 
    
 2023 
     
 2022 
  
    
(U.S. $ in millions)
  
Line items in which effects of hedges are recorded
    $ 981     $ 1,057     $ 966      $ (508 )    $ 91      $ (270 ) 
Cross-currency swaps - cash flow hedge (1)
      (8 )      (11 )      —         1       1        —   
 
 
The table below provides information regarding the location and amount of
pre-tax
(gains) losses from derivatives not designated as hedging instruments:
 
Reported under
   
Financial expenses, net
    
Net revenues
  
    
Year ended December 31,
    
Year ended December 31,
  
    
 2024 
    
  2023 
    
 2022 
    
 2024 
    
 2023 
    
 2022 
  
    
(U.S. $ in millions)
  
Line items in which effects of hedges are recorded
    $ 981     $ 1,057     $ 966     $ (16,544 )    $ (15,846 )    $ (14,925 ) 
Option and forward contracts (2)
      (109 )      (54 )      (12 )      —        —        —   
Option and forward contracts economic hedge (3)
      —        —        —        (34 )      2       (11 ) 
 
(1)
On March 31, 2023, Teva entered into a cross-currency interest rate swap agreement, designated as cash flow hedge for accounting purposes with respect to an intercompany loan due October 2026, denominated in Japanese yen. The agreement was terminated in the first quarter of 2024 and resulted in cash proceeds of $16 million.
(2)
Teva uses foreign exchange contracts (mainly option and forward contracts) to hedge balance sheet items from currency exposure. These foreign exchange contracts are not designated as hedging instruments for accounting purposes. In connection with these foreign exchange contracts, Teva recognizes gains or losses that offset the revaluation of the balance sheet items also recorded under financial expenses, net.
(3)
Teva entered into option and forward contracts designed to limit the exposure of foreign exchange fluctuations on projected revenues and expenses recorded in Swiss franc, Japanese yen, British pound, Russian ruble, Canadian dollar, Polish zloty and some other currencies to protect its projected operating results for 2024 and 2025. These derivative instruments do not meet the criteria for hedge accounting, however, they are accounted for as an economic hedge. These derivative instruments, which may include hedging transactions against future projected revenues and expenses, are recognized on the balance sheet at their fair value on a quarterly basis, while the foreign exchange impact on the underlying revenues and expenses may occur in subsequent quarters. In 2024, the positive impact from these derivatives recognized under revenues was $34 million. In 2023, the negative impact from these derivatives recognized under
revenues
was $2 million. In 2022, the positive impact from these derivatives recognized under revenues was $11 million. Changes in the fair value of the derivative instruments are recognized in the same line item in the statements of income as the underlying exposure being hedged. Cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows.
 
e.
Amortizations due to terminated derivative instruments:
Forward starting interest rate swaps and treasury lock agreements
In 2015, Teva entered into forward starting interest rate swaps and treasury lock agreements to protect the Company from interest rate fluctuations in connection with a future debt issuance the Company was planning. These forward starting interest rate swaps and treasury lock agreements were terminated in July 2016 upon the debt issuance. The termination of these transactions resulted in a loss
position
of $493 million, which was recorded in other comprehensive income (loss) and is amortized under financial expenses, net over the life of the debt.
With respect to these forward starting interest rate swaps and treasury lock agreements, losses of $28 million, $31 million and $30 million were recognized under financial expenses, net for the years ended December 31, 2024, 2023 and 2022, respectively.
 
f.
Securitization:
U.S. securitization program
On November 7, 2022, Teva and a bankruptcy-remote special purpose vehicle (“SPV”) entered into an accounts receivable securitization facility (“AR Facility”) with PNC Bank, National Association (“PNC”) with a three-year term. The AR Facility provided for purchases of accounts receivable by PNC in an amount of up to $1 billion through November 2023, and up to $500 million from November 2023 through November 2025. On June 30, 2023, the AR Facility agreement was amended to include an additional receivables purchaser under the agreement, in an amount of up to $250 million through November 2025. As a result, the total commitment of PNC was reduced to an amount of up to $750 million, effective June 30, 2023. Under the terms of the AR facility agreement, in November 2023, the total commitment of PNC was further reduced to an amount of up to $500 million through November 2025. On November 7, 2023, the SPV amended the agreement and increased the commitment amount to a maximum of $1 billion by including an additional receivables purchaser in an amount of up to $250 million through March 2024, which was then reduced by $125 million through November 2025. As a result, the commitment amount was reduced to a maximum of $875 million without any additional purchasers participating in the AR facility. On October 29, 2024, the SPV amended the agreement and increased the commitment amount to a maximum amount of $950 million by utilizing an existing receivables purchaser increasing its commitment by $75 million.
Under the AR Facility, Teva’s subsidiaries continuously sell their accounts receivables, originated in the U.S., to the SPV and the SPV
on-sells
them to the receivables purchasers.
The SPV is a variable interest entity (“VIE”) for which Teva is considered to be the primary beneficiary. The SPV’s sole business consists of the purchase of receivables from Teva’s subsidiaries and the subsequent transfer of such receivables to the receivables purchasers.
Although the SPV is included in Teva’s consolidated financial statements, it is a separate legal entity with separate creditors. The assets of the SPV are not available to pay creditors of Teva or its subsidiaries.
Upon the transfer of ownership and control of the receivables to the SPV, Teva and its subsidiaries have no retained interests in the receivables sold, and they become unavailable to Teva’s creditors should the relevant seller become insolvent.
Teva has collection and administrative responsibilities for the receivables sold to the SPV. The fair value of these servicing arrangements as well as the fees earned was immaterial.
The Company accounts for receivables sold from the SPV to the receivables purchasers as a sale of financial assets under ASC 860 and derecognizes the trade receivables from the Company’s Consolidated Balance Sheet.
The total balance of accounts receivables sold to the receivables purchasers and derecognized by the SPV, as of December 31, 2024 and 2023, was $895 million and $864 million, respectively. In addition to the accounts receivables sold, as of December 31, 2024 and 2023, an amount of $558 million and $437 million of the SPV’s accounts receivables was pledged by the SPV as a seller guarantee, and is included under “Accounts receivables, net,” in the Consolidated Balance Sheet.
In the years ended December 31, 2024 and 2023, Teva received proceeds of $895 million and $861 million, respectively, under the AR facility, which are included in cash from operating activities in the Consolidated Statements of Cash Flows for the year ended December 31, 2024 and 2023, respectively.
 
 
EU securitization program
In April 2011, Teva established a trade receivables securitization program (the “EU securitization program”) to sell accounts receivables, mainly originated in Europe, to BNP Paribas Bank (“BNP”). Under the EU securitization program, Teva, on a consolidated basis through its participating subsidiaries, receives an initial cash purchase price and the right to a deferred purchase price (“DPP”), according to the purchase price for the receivables sold by it.
On an individual seller basis, each Teva subsidiary participating in the EU securitization program sells receivables to BNP at their nominal amount. BNP then immediately
on-sells
such receivables at their nominal amount to a bankruptcy-remote special-purpose entity (“SPE”), which in turn sells such receivables to a conduit sponsored by BNP (“the conduit”) for an initial cash purchase price (equal to the nominal amount of such receivables less a discount) and the right to receive a DPP.
The SPE is a VIE for which Teva is considered to be the primary beneficiary. The SPE’s sole business consists of the purchase of receivables from Teva subsidiaries and the subsequent sale of such receivables to the conduit.
Although the SPE is included in Teva’s consolidated financial statements, it is a separate legal entity with separate creditors. The conduit and other designated creditors of the SPE are entitled, both before and upon the SPE’s liquidation, to be paid out of the SPE’s assets prior to the DPP payable to Teva. The SPE’s assets are not available to pay Teva’s or its subsidiaries’ creditors.
In August 2021, Teva extended the EU securitization program by an additional five years, to August 2026.
Once a Teva subsidiary sells receivables to BNP, such subsidiary does not retain any interests in the receivables sold and does not have access to such receivables upon its insolvency. The conduit has all the rights in the securitized trade receivables, including the right to pledge or dispose such receivables. Consequently, receivables sold under this agreement are
de-recognized
from Teva’s Consolidated Balance Sheet.
The portion of the purchase price for the receivables which is not paid in cash by the conduit is a DPP asset. The conduit pays the SPE the DPP from collections received by the conduit from the securitized trade receivables (after paying senior costs and expenses, including the conduit’s debt service obligations), which the SPE then pays to Teva. The DPP asset represents a beneficial interest in the transferred financial assets and is recognized at fair value as part of the sale transaction. The DPP asset is included in other current assets on Teva’s Consolidated Balance Sheet.
Teva has collection and administrative responsibilities for the sold receivables. The fair value of these servicing arrangements as well as the fees earned was immaterial.
The DPP asset as of December 31, 2024 and 2023 was $231 million and $247 million, respectively.
As of December 31, 2024 and 2023, the outstanding principal amount of receivables sold, net of DPP, was $626 million and $686 million, respectively.
 
The following table summarizes the change in the sold receivables outstanding balance, net of DPP, under the outstanding securitization program:
 
    
As of and for the year
ended December 31,
  
    
 2024 
     
 2023 
  
    
(U.S. $ in millions)
  
Sold receivables at the beginning of the year
    $ 686      $ 636  
Proceeds from sale of receivables
      4,737        4,391  
Cash collections (remitted to the owner of the receivables)
      (4,768 )       (4,365 ) 
Effect of currency exchange rate changes
      (29 )       24  
  
 
 
     
 
 
  
Sold receivables at the end of the year
    $ 626      $ 686  
  
 
 
     
 
 
  
 
g.
Supplier Finance Program Obligation
Teva maintains supply chain finance agreements with participating financial institutions. Under these agreements, participating suppliers may voluntarily elect to sell their accounts receivable with Teva to these financial institutions. Teva’s suppliers negotiate their financing agreements directly with the respective financial institutions and Teva is not a party to these agreements. Teva has no economic interest in its suppliers’ decisions to participate in the program and Teva pays the financial institutions the stated amount of confirmed invoices on the maturity dates, which is generally within 120 days from the date the invoice was received. The agreements with the financial institutions do not require Teva to provide assets pledged as security or other forms of guarantees for the supplier finance program. All outstanding amounts related to suppliers participating in the supplier finance program are recorded under accounts payables in Teva’s consolidated balance sheets. As of December 31, 2024 and December 31, 2023, the outstanding
accounts payables to suppliers
participating in these supplier finance programs were $158 million and $108 million, respectively.
The following table summarizes the change in the outstanding accounts payables under the program:
 
    
As of and for the year ended
December 31, 2024
  
    
(U.S. $ in millions)
  
Confirmed obligations outstanding at the beginning of the year
    $ 108  
Invoices confirmed during the year
      533  
Confirmed invoices paid during the year
      (483 ) 
  
 
 
  
Confirmed obligations outstanding at the end of the year
    $ 158  
  
 
 
  
v3.25.0.1
Legal Settlements and Loss Contingencies
 12 Months Ended
Dec. 31, 2024
Legal Settlements and Loss Contingencies
NOTE 11—Legal settlements and loss contingencies:
Legal settlements and loss contingencies expenses in 2024 were $761 million, compared to expenses of $1,043 million in 2023 and expenses of $2,082 million in 2022.
Legal settlements and loss contingencies in 2024 were mainly related to a decision by the European Commission in its antitrust investigation into COPAXONE, and an update to the estimated settlement provision for the opioid cases (mainly the passage of time on the net present value of the discounted payments and the settlement agreement with the city of Baltimore).
 
Legal settlements and loss contingencies in 2023 were mainly related to an estimated provision for the DOJ patient assistance program litigation, an update to the estimated settlement provision of the opioid cases, the provision for the settlement of the U.S. DOJ criminal antitrust charges on the marketing and pricing of certain Teva USA generic products, as well as the provision for the settlement of the reverse-payment antitrust litigation over certain HIV medicines.
Legal settlements and loss contingencies in 2022 were mainly related to updates of the estimated settlement provision recorded in connection with the remaining opioid cases.
As of December 31, 2024 and 2023, Teva’s provision for legal settlements and loss contingencies recorded under accrued expenses and other taxes and long-term liabilities was $4,881 million and $4,771 million, respectively.
v3.25.0.1
Commitments and contingencies
 12 Months Ended
Dec. 31, 2024
Commitments and contingencies
NOTE 12—Commitments and contingencies:
 
a.
Commitments:
Royalty commitments:
The Company is committed to pay royalties to owners of
know-how,
partners in alliances and other certain arrangements and to parties that financed research and development, at a wide range of rates as a percentage of sales or of the gross margin of certain products, as defined in the underlying agreements.
Royalty expenses in each of the years ended December 31, 2024, 2023 and 2022 were $719 million, $543 million and $560 million, respectively.
Milestone commitments:
Teva has committed to make potential future milestone payments to third parties under various agreements. These payments are contingent upon the occurrence of certain future events and, given the nature of these events, it is unclear when, if ever, Teva may be required to pay such amounts. As of December 31, 2024, if all development milestones and targets, for compounds in Phase 2 and more advanced stages of development, are achieved, the total contingent payments could reach an aggregate amount of up to $91 million. Additional contingent payments are owed upon achievement of product approval or launch milestones.
 
b.
Contingencies
General
From time to time, Teva and/or its subsidiaries are subject to claims for damages and/or equitable relief arising in the ordinary course of business. In addition, as described below, in large part as a result of the nature of its business, Teva is frequently subject to litigation. Teva generally believes that it has meritorious defenses to the actions brought against it and vigorously pursues the defense or settlement of each such action.
Teva records a provision in its consolidated financial statements to the extent that it concludes that a contingent liability is probable and the amount thereof is reasonably estimable. Based upon the status of the cases described below, management’s assessments of the likelihood of damages, and the advice of legal counsel, no material provisions have been made regarding the matters disclosed in this note, except as noted below. Litigation outcomes and contingencies are unpredictable, and substantial damages or other relief may be awarded. Accordingly, management’s assessments involve complex judgments about future events and often rely
heavily on estimates and assumptions. Teva continuously reviews the matters described below and may, from time to time, remove previously disclosed matters where the exposures were fully resolved in the prior year, or determined to no longer meet the materiality threshold for disclosure, or were substantially resolved.
If one or more of such proceedings described below were to result in final judgments against Teva, such judgments could be material to its results of operations and cash flows in a given period. In addition, Teva incurs significant legal fees and related expenses in the course of defending its positions even if the facts and circumstances of a particular litigation do not give rise to a provision in the consolidated financial statements.
In connection with third-party agreements, Teva may under certain circumstances be required to indemnify, and may be indemnified by, in unspecified amounts, the parties to such agreements against third-party claims. Among other things, Teva’s agreements with third parties may require Teva to indemnify them, or require them to indemnify Teva, for the costs and damages incurred in connection with product liability claims, in specified or unspecified amounts.
Except as otherwise noted, all of the litigation matters disclosed below involve claims arising in the United States. Except as otherwise noted, all third-party sales figures given below are based on IQVIA data.
Intellectual Property Litigation
From time to time, Teva seeks to develop generic and biosimilar versions of patent-protected pharmaceuticals and biopharmaceuticals for sale prior to patent expiration in various markets. In the United States, to obtain approval for most generics prior to the expiration of the originator’s patents, Teva must challenge the patents under the procedures set forth in the Hatch-Waxman Act of 1984, as amended. For many biosimilar products that are covered by patents, Teva participates in the “patent dance” procedures of the Biologics Price Competition and Innovation Act (“BPCIA”), which allow for the challenge to originator patents prior to obtaining biosimilar product approval. To the extent that Teva seeks to utilize such patent challenge procedures, Teva is and expects to be involved in patent litigation regarding the validity, enforceability or infringement of the originator’s patents. Teva may also be involved in patent litigation involving the extent to which its product or manufacturing process techniques may infringe other originator or third-party patents.
Additionally, depending upon a complex analysis of a variety of legal and commercial factors, Teva may, in certain circumstances, elect to market a generic or biosimilar version of the product even though litigation is still pending. To the extent Teva elects to proceed in this manner, it could face substantial liability for patent infringement if the final court decision is adverse to Teva, which could be material to its results of operations and cash flows in a given period.
Teva could also be sued for patent infringement outside of the context of the Hatch-Waxman Act or BPCIA. For example, Teva could be sued for patent infringement after commencing sales of a product. This type of litigation can involve any of Teva’s pharmaceutical products, not just its generic and biosimilar products.
The general rule for damages in patent infringement cases in the United States is that the patentee should be compensated by no less than a reasonable royalty and it may also be able, in certain circumstances, to be compensated for its lost profits. The amount of a reasonable royalty award would generally be calculated based on the sales of Teva’s product. The amount of lost profits would generally be based on the lost sales of the patentee’s product. In addition, the patentee may seek consequential damages as well as enhanced damages of up to three times the profits lost by the patent holder for willful infringement, although courts have typically awarded much lower multiples.
 
Teva is also involved in litigation regarding patents in other countries where it does business, particularly in Europe. The laws concerning generic pharmaceuticals and patents differ from country to country. Damages for patent infringement in Europe may include lost profits or a reasonable royalty, but enhanced damages for willful infringement are generally not available.
In July 2014, GlaxoSmithKline (“GSK”) filed claims against Teva in the U.S. District Court for the District of Delaware for infringement of a patent directed to using carvedilol in a specified manner to decrease the risk of mortality in patients with congestive heart failure. Teva began selling its carvedilol tablets (the generic version of GSK’s Coreg
®
) in September 2007. A jury returned a verdict in GSK’s favor, which was initially overturned by the U.S. District Court. The Court of Appeals for the Federal Circuit reinstated the $235.5 
million jury verdict, not including
pre-
or post-judgment interest, finding Teva liable for patent infringement. The U.S. Supreme Court denied Teva’s appeal for a rehearing. On December 12, 2024, the U.S. District Court for the District of Delaware set a schedule for briefing on legal issues that remain in the case. Such schedule is expected to be complete on March 12, 2025. In addition to those legal issues, there will need to be a trial regarding certain equitable issues that were never presented in the 2017 jury trial. Teva recognized a provision based on its offer to settle the matter.
In January 2021, Teva initiated a patent invalidity action against the compound patent and Supplementary Protection Certificate (“SPC”) asserted to cover Bristol-Myers Squibb Company’s (“BMS”) Eliquis
®
(apixaban). In May 2022, the U.K. High Court held that the compound patent and SPC are invalid and Teva began selling its generic version of Eliquis
®
(apixaban). In May 2023, the U.K. Court of Appeal upheld this decision and denied BMS’s request to appeal to the U.K. Supreme Court. On October 31, 2023, the U.K. Supreme Court denied BMS’s application for further review, making the decision to revoke the compound patent and SPC final. Separately, in February 2021, Teva initiated a patent invalidity action against the formulation patents, which were also under opposition at the European Patent Office (“EPO”). On July 15, 2022, the U.K. High Court held that these formulation patents were invalid but granted permission to appeal, which was subsequently stayed pending the outcome of the opposition at the EPO to one of the formulation patents. On December 21, 2023, the EPO’s Technical Board of Appeal held its hearing on the opposition, and on March 13, 2024, it issued a written decision revoking the patent. On May 13, 2024, BMS filed a submission to the Enlarged Board of Appeal (“EBA”) seeking permission to review the Technical Board of Appeal’s decision. The EBA held a hearing on December 3, 2024, at which the EBA dismissed BMS’s petition, and held that the formulation patents are invalid. BMS is now required to withdraw its appeal of the U.K. High Court’s decision to revoke the formulation patents, terminating any further litigation for Teva in the U.K. related to apixaban.
Product Liability Litigation
Teva’s business inherently exposes it to potential product liability claims. Teva maintains a program of insurance, which may include commercial insurance, self-insurance (including direct risk retention), or a combination of both types of insurance, in amounts and on terms that it believes are reasonable and prudent in light of its business and related risks. However, Teva sells, and will continue to sell, pharmaceuticals that are not covered by its product liability insurance; in addition, it may be subject to claims for which insurance coverage is denied, as well as claims that exceed its policy limits. Product liability coverage for pharmaceutical companies is becoming more expensive and increasingly difficult to obtain. As a result, Teva may not be able to obtain the type and amount of insurance it desires, or any insurance on reasonable terms, in certain or all of its markets.
Teva and its subsidiaries are parties to litigation relating to previously unknown nitrosamine impurities discovered in certain products. The discovery led to a global recall of single and combination valsartan medicines around the world starting in July 2018 and to subsequent recalls on other products. The nitrosamine impurities in valsartan were allegedly found in the active pharmaceutical ingredient (“API”) supplied to Teva by multiple API
manufacturers, including by Zhejiang Huahai Pharmaceuticals Co. Ltd. Since July 2018, Teva has been actively engaged with global regulatory authorities in reviewing its products to determine whether NDMA and/or other related nitrosamine impurities are present in specific products. Where necessary, Teva has initiated additional voluntary recalls.
Multiple lawsuits have been filed in connection with this matter. Teva’s products allegedly at issue in the various nitrosamine-related litigations pending in the United States include valsartan, losartan, metformin and ranitidine. There are currently two Multi-District Litigations (“MDL”) pending against Teva and other manufacturers, including one MDL in the U.S. District Court for the District of New Jersey related to, with respect to Teva, valsartan and losartan, and another MDL in the U.S. District Court for the Southern District of Florida related to ranitidine. The claims against Teva in these MDLs include individual personal injury and/or product liability claims, economic damages claims brought by consumers and end payors as putative class actions, and medical monitoring class claims. The district court in the valsartan MDL certified a series of subclasses on plaintiffs’ economic loss claims as well as a medical monitoring class and originally scheduled the first trial to commence in the fourth quarter of 2024, but that trial has been postponed indefinitely by the court. Discovery is ongoing in the MDL with respect to the losartan claims against Teva. The claims against Teva and other generic manufacturers in the ranitidine MDL have been dismissed on preemption grounds but are subject to appeal. The district court in the ranitidine MDL also excluded all of plaintiffs’ general causation experts and granted summary judgment to the brand defendants on preemption grounds and later applied that general causation ruling to all defendants. This ruling is on appeal in the Eleventh Circuit Court of Appeals.
Certain generic manufacturers, including Teva, have also been named in state court actions asserting allegations similar to those in the aforementioned MDLs. In particular, state court valsartan and losartan actions are pending but currently stayed in New Jersey and Delaware, with the exception of a single-plaintiff case that was later refiled in a New Jersey state court in October 2022 and is in the very initial stages of discovery. State court ranitidine cases naming Teva are also pending in coordinated proceedings in California and Pennsylvania. Teva was dismissed from all ranitidine claims pending in Illinois based on preemption grounds, which plaintiffs have appealed for final judgments as to all remaining defendants. Teva was also dismissed on preliminary objections in Pennsylvania for plaintiffs whose cases are governed by Pennsylvania law, but further motion practice may continue. The litigation in Pennsylvania has effectively been stayed pending a decision on a motion filed by plaintiffs to recuse the presiding judge which was denied but certified for interlocutory appeal.
In addition to the valsartan and ranitidine MDLs and coordinated state court proceedings, Teva has been named in a consolidated proceeding pending in the U.S. District Court for the District of New Jersey brought by individuals and end payors seeking economic damages on behalf of purported classes of consumers and end payors who purchased Teva’s and other generic manufacturers’ metformin products. In December 2024, Teva reached a settlement of this matter with that resolves all of the plaintiffs’ claims against Teva. On January 6, 2025, the parties jointly notified the U.S. District Court for the District of New Jersey of the settlement and are in the process of preparing a formal settlement agreement, which will be presented to the court for approval. Similar lawsuits are pending in Canada and Germany.
Competition Matters
As part of its generic pharmaceuticals business, Teva has challenged a number of patents covering branded pharmaceuticals, some of which are among the most widely-prescribed and well-known drugs on the market. Many of Teva’s patent challenges have resulted in litigation relating to Teva’s attempts to market generic versions of such pharmaceuticals under the federal Hatch-Waxman Act. Some of this litigation has been resolved through settlement agreements in which Teva obtained a license to market a generic version of the drug, often years before the patents expire.
 
Teva and its subsidiaries have been named as defendants in cases that allege antitrust violations arising from such settlement agreements. The plaintiffs in these cases are usually direct and indirect purchasers of pharmaceutical products, some of whom assert claims on behalf of classes of all direct and indirect purchasers, and they typically allege that (i) Teva received something of value from the innovator in exchange for an agreement to delay generic entry, and (ii) significant savings could have been realized if there had been no settlement agreement and generic competition had commenced earlier. These plaintiffs seek various forms of injunctive and monetary relief, including damages based on the difference between the brand price and what the generic price allegedly would have been and disgorgement of profits, which are often automatically tripled under the relevant statutes, plus attorneys’ fees and costs. The alleged damages generally depend on the size of the branded market and the length of the alleged delay, and can be substantial, potentially measured in multiples of the annual brand sales, particularly where the alleged delays are lengthy or branded drugs with annual sales in the billions of dollars are involved.
Teva believes that its settlement agreements are lawful and serve to increase competition, and has defended them vigorously. In Teva’s experience to date, these cases have typically settled for a fraction of the high end of the damages sought, although there can be no assurance that such outcomes will continue.
In June 2013, the U.S. Supreme Court held, in Federal Trade Commission (“FTC”) v. Actavis, Inc., that a rule of reason test should be applied in analyzing whether such settlements potentially violate the federal antitrust laws. The Supreme Court held that a trial court must analyze each agreement in its entirety in order to determine whether it violates the U.S. antitrust laws. This test has resulted in increased scrutiny of Teva’s patent settlements, additional action by the FTC and state and local authorities, and an increased risk of liability in Teva’s currently pending antitrust litigations.
In December 2011, three groups of plaintiffs filed claims against Wyeth and Teva for alleged violations of the U.S. antitrust laws in connection with their November 2005 settlement of patent litigation involving extended-release venlafaxine (generic Effexor XR
®
). The cases were filed by a purported class of direct purchasers, a purported class of indirect purchasers and certain chain pharmacies in the U.S. District Court for the District of New Jersey. The plaintiffs claim that the settlement agreement between Wyeth and Teva unlawfully delayed generic entry. On September 18, 2024, the district court lifted its stay of discovery and the case is now proceeding. On October 16, 2024, Teva and one group of plaintiffs (the “Indirect Purchaser Plaintiffs” or “IPPs”) announced that they have reached an agreement in principle to resolve the IPPs’ claims against Teva. The parties are in the process of documenting the proposed settlement, which will be subject to court approval. Annual sales of Effexor XR
®
were approximately
$2.6 billion at the time of settlement and at the time Teva launched its generic version of Effexor XR
®
in July 2010.
In February 2012, two purported classes of direct-purchaser plaintiffs filed claims against GSK and Teva in the U.S. District Court for the District of New Jersey for alleged violations of the antitrust laws in connection with their February 2005 settlement of patent litigation involving lamotrigine (generic Lamictal
®
). The plaintiffs claimed that the settlement agreement unlawfully delayed generic entry and sought unspecified damages. During February 2023, a number of direct purchasers who were denied class certification filed suit as individual plaintiffs, which action was transferred to the U.S. District Court for the District of New Jersey. Discovery of the newly added individual plaintiffs is ongoing. Annual sales of Lamictal
®
were approximately $950 million at the time of the settlement and approximately $2.3 billion at the time Teva launched its generic version of Lamictal
®
in July 2008.
In April 2013, purported classes of direct purchasers of, and end payers for, Niaspan
®
(extended release niacin) filed claims against Teva and Abbott for violating the antitrust laws by entering into a settlement agreement in April 2005 to resolve patent litigation over the product. A multidistrict litigation has been
established in the U.S. District Court for the Eastern District of Pennsylvania. Throughout 2015 and in January 2016, several individual direct-purchaser
opt-out
plaintiffs filed complaints with allegations nearly identical to those of the direct purchasers’ class. On April 24, 2023, the U.S. District Court’s denial of the indirect purchasers’ motion for class certification was affirmed by the Court of Appeals for the Third Circuit, and on June 5, 2023, the Court of Appeals denied the indirect purchasers’ petition for
re-hearing.
In October 2016, the District Attorney for Orange County, California, filed a similar complaint in California state court, alleging violations of state law and seeking restitution and civil penalties. The California state court case is temporarily stayed. Annual sales of Niaspan
®
were approximately $416 million at the time of the settlement and approximately $1.1 billion at the time Teva launched its generic version of Niaspan
®
in September 2013.
In August 2019, certain direct-purchaser plaintiffs filed claims in federal court in Philadelphia against Teva and its affiliates alleging that the September 2006 patent litigation settlement relating to AndroGel
®
1% (testosterone gel) between Watson, from which Teva later acquired certain assets and liabilities, and Solvay Pharmaceuticals, Inc. (“Solvay”) violated U.S. antitrust laws. In September 2023, the plaintiffs voluntarily dismissed certain claims, and in September 2024, certain defendants, including the remaining Teva affiliates, and the plaintiffs agreed to settle the remaining claims. Pursuant to the settlement, on January 21, 2025, the court entered an order dismissing all claims against Teva and its affiliates. Annual sales of AndroGel
®
1% were approximately $
350 million at the time of the earlier Watson/Solvay settlement and approximately $140 million at the time Actavis launched its generic version of AndroGel
®
1% in November 2015. A provision for this matter was previously included in the financial statements.
Between September 1, 2020 and December 20, 2020, plaintiffs purporting to represent putative classes of direct and indirect purchasers and
opt-out
retailer purchasers of Bystolic
®
(nebivolol hydrochloride) filed complaints in the U.S. District Court for the Southern District of New York against several generic manufacturers, including Teva, Actavis, and Watson, alleging, among other things, that the settlement agreements that these generic manufacturers entered into with Forest Laboratories, Inc., the innovator, to resolve patent litigation over Bystolic
®
violated the antitrust laws. The cases were coordinated, and the district court granted the defendants’ motion to dismiss all claims with prejudice. The plaintiffs appealed the district court’s grant of defendants’ motion to dismiss, and on May 13, 2024, the U.S. Court of Appeals for the Second Circuit affirmed the district court’s dismissal with prejudice and issued a mandate on June 4, 2024, formally ending the appeal. The plaintiffs’ period to file a petition for a writ of certiorari to the U.S. Supreme Court expired. Annual sales of Bystolic
®
in the United States were approximately $700 million at the time of Watson’s 2013 settlement with Forest.
In November 2020, the European Commission issued a final decision in its proceedings against both Cephalon and Teva, finding that the 2005 settlement agreement between the parties had the object and effect of hindering the entry of generic modafinil, and imposed fines totaling euro
60.5 
million on Teva and Cephalon. Teva and Cephalon filed an appeal against the decision in February 2021, and a judgment was issued on October 18, 2023 rejecting Teva’s grounds of appeal. A provision for this matter was included in the financial statements. In lieu of posting a cash bond, Teva has provided the European Commission with a bank guarantee in the amount of the imposed fines. On January 4, 2024, Teva appealed the October 2023 judgment to the European Court of Justice.
In February 2021, the State of New Mexico filed a lawsuit against Teva and certain other defendants related to various medicines used to treat HIV (the “New Mexico litigation”). Between September 2021 and April 2022, several private plaintiffs including retailers and health insurance providers filed similar claims in various courts, which were all removed and/or consolidated into the U.S. District Court for the Northern District of California (the “California litigation”). As they relate to Teva, the lawsuits challenged settlement agreements Teva entered into with Gilead in 2013 and/or 2014 to resolve patent litigation relating to Teva’s generic versions of Viread
®
and/or Truvada
®
and Atripla
®
, although plaintiffs in the California litigation abandoned any claim for damages
relating to the Viread
®
settlement. In May 2023, Teva and Gilead reached a settlement agreement with the retailer plaintiffs in the California litigation and Teva recognized a provision for this matter based on such settlement. On June 30, 2023, the jury in the trial against the remaining plaintiffs in the California litigation issued a verdict in favor of Teva and Gilead, rejecting all of the remaining plaintiffs’ claims. On February 12, 2024, the court entered a judgment as to all claims against Teva in the California litigation and the plaintiffs have filed notices of appeal with the U.S. Court of Appeals for the Ninth Circuit, and the appeal is currently being briefed. In the New Mexico litigation, on June 27, 2024, Teva and the State of New Mexico finalized their settlement agreement, and the New Mexico court entered a consent judgment resolving the New Mexico litigation. Teva recognized a provision for the settlement with New Mexico. Annual sales in the United States at the time of the settlement of Viread
®
, Truvada
®
and Atripla
®
were approximately $582 million, $2.4 billion, and $2.9 billion, respectively. Annual sales in the United States at the time Teva launched its generic version of Viread
®
in 2017, Truvada
®
in 2020 and Atripla
®
in 2020 were approximately $728 million, $2.1 billion and $444 million, respectively.
In March 2021, the European Commission opened a formal antitrust investigation to assess whether Teva may have abused a dominant position by delaying the market entry and uptake of medicines that compete with COPAXONE. On October 10, 2022, the European Commission issued a Statement of Objections, which sets forth its preliminary allegations that Teva had engaged in anti-competitive practices. On October 31, 2024, the European Commission announced its final decision, alleging that Teva had abused a dominant position in certain European member states by (i) filing and withdrawing certain divisional patents, and (ii) raising concerns about competitors’
follow-on
versions of COPAXONE.
The decision also includes a fine of euro
462.6
 
million. Teva filed an appeal against the decision with the General Court of the European Union in January 2025, and that appeal remains pending. In accordance with Accounting Standards Codification 450 “Accounting for Contingencies,” Teva recognized a provision in its financial statements in the third quarter of 2024, based on management’s current best estimate of the outcome within a range of outcomes for the final resolution of this case. Teva intends to provide the European Commission with surety underwritten guarantees to cover the fine amount. Certain generic competitors in Europe have also brought similar antitrust claims against Teva in Germany and the Netherlands, which have been stayed. Teva could face additional claims from generic competitors, payors, or other private plaintiffs in Europe related to this matter.
On June 29, 2021, Mylan Pharmaceuticals (“Mylan”) filed claims against Teva in the U.S. District Court for the District of New Jersey. On March 11, 2022 and March 15, 2022, purported purchasers of COPAXONE filed claims against Teva in the U.S. District Court for the District of New Jersey on behalf of themselves and similarly situated direct and indirect purchasers of COPAXONE. On August 22, 2022, additional purported purchasers of COPAXONE sued Teva in the U.S. District Court for the District of Vermont on behalf of themselves and similarly situated indirect purchasers of COPAXONE. The complaints variously assert claims for alleged violations of the Lanham Act, state and federal unfair competition and monopolization laws, tortious interference, trade libel, and a violation of the Racketeer Influenced and Corrupt Organizations Act (“RICO Act”). Additionally, plaintiffs claim Teva was involved in an unlawful scheme to delay and hinder generic competition concerning COPAXONE sales. Plaintiffs seek damages for lost profits and expenses, disgorgement, restitution, treble damages, attorneys’ fees and costs, and injunctive relief. Teva moved to dismiss all of the complaints, and on January 22, 2024, Teva’s motion to dismiss the complaint in the District of Vermont was granted as to certain state law claims but was otherwise denied. Decisions on Teva’s remaining motions to dismiss are pending.
On July 15, 2021, the U.K. Competition and Markets Authority (“CMA”) issued a decision imposing fines for breaches of U.K. competition law by Allergan, Actavis UK, Auden Mckenzie and a number of other companies in connection with the supply of 10mg and 20mg hydrocortisone tablets in the U.K. The decision combines the CMA’s three prior investigations into the supply of hydrocortisone tablets in the U.K., as well as
the CMA’s subsequent investigation relating to an alleged anticompetitive agreement with Waymade. On January 9, 2017, Teva completed the sale of Actavis UK to Accord Healthcare Limited, in connection with which Teva agreed to indemnify Accord Healthcare for potential fines imposed by the CMA and/or damages awarded by a court against Actavis UK in relation to two of the three statements of objection from the CMA (dated December 16, 2016 and March 3, 2017), and resulting from conduct prior to the closing date of the sale. In addition, Teva agreed to indemnify Allergan against losses arising from this matter in the event of any such fines or damages. On October 6, 2021, Accord UK (previously Actavis UK) and Auden Mckenzie appealed to the U.K. Competition Appeal Tribunal (the “Tribunal”) the CMA’s decisions that the prices of hydrocortisone were unfair and excessive and that the agreements amounted to infringements of the U.K.’s Competition Act as
so-called
pay-for-delay
arrangements. The hearing for the appeal concluded in the first quarter of 2023, with partial judgments handed down by the Tribunal on September 18, 2023 (judgment on unfair pricing), March 8, 2024 (judgments on
pay-for-delay
and due process) and April 29, 2024 (judgment on fines). The CMA appealed to the U.K. Court of Appeals on an expedited basis against certain elements of the
pay-for-delay
and due process judgments that it had lost, and on September 6, 2024, the U.K. Court of Appeal overturned the Tribunal’s judgment on due process and, as a result, the Tribunal will now consider and issue a further judgment on fines. Accord UK and Auden Mckenzie requested permission to appeal the U.K. Court of Appeal’s ruling (overturning the Tribunal’s judgment on due process) to the U.K. Supreme Court, but that request was denied in January 2025. Accord UK and Auden Mckenzie have also submitted to the Tribunal additional applications for permission to appeal certain other issues relating to unfair pricing and fines. A provision for the estimated exposure for Teva related to the fines and/or damages has been recorded in the financial statements.
In November 2022, two complaints filed by plaintiffs purporting to represent retailer purchasers and a putative class of
end-payor
purchasers were filed in the U.S. District Court for the District of New Jersey against Teva and its marketing partner, Natco Pharma Limited (“Natco”), alleging violations of the antitrust laws in connection with their December 2015 settlement of patent litigation with Celgene Corporation (which was subsequently acquired by BMS) involving the drug Revlimid
®
(lenalidomide). The complaints also name Celgene and BMS as defendants. On January 24, 2023, the complaints were consolidated for
pre-trial
purposes only with an earlier-filed, already consolidated Insurer
Opt-Out
Action filed against BMS and Celgene. On February 16, 2023, plaintiffs filed amended complaints adding additional plaintiffs. On May 16, 2023, Teva and Natco, along with Celgene, moved to dismiss the complaints against them. Additionally, on October 6, 2023, two individual payor plaintiffs brought claims similar to those described above in the U.S. District Court for the Northern District of California, which actions were consolidated with the pending consolidated actions and transferred to the U.S. District Court for the District of New Jersey. On June 6, 2024, the court granted in full Celgene’s motion to dismiss the Insurer
Opt-Out
Action, but allowed plaintiffs leave to amend most of their claims. The Court had previously administratively terminated Teva’s, Natco’s, and Celgene’s motions to dismiss the retailer and
end-payor
complaints pending the decision on the Insurer
Opt-Out
Action. The plaintiffs filed amended complaints on August 5, 2024, and the defendants subsequently filed motions to dismiss, which remain pending. On December 16, 2024, five individual Insurer Opt Out plaintiffs, each of whom had added Teva and Natco as defendants in the Insurer Amended Complaint filed on August 5, 2024, filed new standalone complaints adding no new substantive allegations and naming Teva, Natco and other defendants as defendants. Annual sales of Revlimid
®
in the United States were approximately $3.5 billion at the time of the settlement.
On December 2, 2022, plaintiffs purporting to represent putative classes of indirect purchasers of EpiPen
®
(epinephrine injection) and NUVIGIL
®
(armodafinil) filed a complaint in the U.S. District Court for the District of Kansas against Teva, Cephalon, and a former Teva executive. Teva owns the New Drug Application (“NDA”) for NUVIGIL and sold the brand product, for which generic entry occurred in 2016. Teva filed an ANDA to sell generic EpiPen
®
, which Teva launched in 2018, following receipt of FDA approval. The complaint alleges, among other things, that the defendants violated federal antitrust laws, the RICO Act, and various state laws in connection with settlements resolving patent litigation relating to those products. Plaintiffs seek injunctive relief,
compensatory and punitive damages, interest, attorneys’ fees and costs. On September 26, 2023, plaintiffs filed a brief in opposition to Teva’s motion to dismiss the amended complaint, in which plaintiffs limited their claims only to those relating to the alleged delay of generic NUVIGIL. On March 26, 2024, the court issued its decision, which granted Teva’s motion in part, dismissing plaintiffs’ RICO claims and certain state law claims, but denied Teva’s motion regarding plaintiffs’ antitrust claims. On April 26, 2024, Teva sought certification to seek an interlocutory appeal of the decision, which the court denied on November 6, 2024. On June 14, 2024, the court entered orders bifurcating discovery and limiting the first phase to the question of the timeliness of plaintiffs’ claims. Annual sales of NUVIGIL in the United States were approximately $300 million at the time Teva entered into the first settlement with an ANDA filer in 2012.
In May 2023, certain
end-payor
plaintiffs filed putative class action complaints in the U.S. District Court for the District of Massachusetts against Teva and a number of its affiliates, alleging that Teva engaged in anticompetitive conduct to suppress generic competition to its branded QVAR
®
asthma inhalers in violation of state and federal antitrust laws and state consumer protection laws. On May 7, 2024, the court granted Teva’s motion to dismiss in part and denied its motion in part. The court dismissed plaintiffs’ claim that Teva had engaged in “sham litigation” and certain of plaintiffs’ state antitrust and consumer protection claims, but permitted the case to proceed on the remainder of plaintiffs’ allegations. On June 18, 2024, Teva answered in all cases and simultaneously moved for judgment on the pleadings pursuant to Rule 12(c). On June 28, 2024, Teva stipulated to the dismissal of the two direct purchaser plaintiffs’ claims, with prejudice. On November 6, 2024, the court granted in part Teva’s Rule 12(c) motion, dismissing plaintiffs’ reverse payment claim, while denying the remainder of Teva’s motion. Discovery in this case is ongoing.
Government Investigations and Litigation Relating to Pricing and Marketing
Teva is involved in government investigations and litigation arising from the marketing and promotion of its pharmaceutical products in the United States.
In 2015 and 2016, Actavis and Teva USA each respectively received subpoenas from the U.S. Department of Justice (“DOJ”) Antitrust Division seeking documents and other information relating to the marketing and pricing of certain Teva USA generic products and communications with competitors about such products. On August 25, 2020, a federal grand jury in the Eastern District of Pennsylvania returned a three-count indictment charging Teva USA with criminal felony Sherman Act violations. On August 21, 2023, Teva USA entered into a
3-year
deferred prosecution agreement (“DPA”) with the DOJ. Under the terms of the DPA, Teva USA: (i) admitted to violating the antitrust laws by agreeing with competitors, in three instances between 2013 and 2015 involving three separate customers, not to bid on an opportunity to supply a customer with a particular generic product (in the first instance pravastatin, in the second clotrimazole, and in the third tobramycin); (ii) agreed to divest the pravastatin that it sells in the United States to a third-party buyer; (iii) agreed to donate $50 million worth of clotrimazole and tobramycin, valued at wholesale acquisition cost (“WAC”), to humanitarian organizations over five years; and (iv) agreed to pay a fine in the amount of $225 million over 5 years, with $22.5 million due each year from 2024 through 2027, and $135 million due in 2028. Teva recognized a provision for the resolution of this case and, in November 2024, divested pravastatin pursuant to the DPA.
In May 2018, Teva received a civil investigative demand from the DOJ Civil Division pursuant to its investigation concerning allegations that generic pharmaceutical manufacturers, including Teva, engaged in market allocation and/or price-fixing agreements, paid illegal remuneration, and caused false claims to be submitted in violation of the False Claims Act. On October 10, 2024, Teva entered into a settlement agreement with the
Civil
Division to resolve these allegations. Teva will pay $25 million under the terms of the settlement – $10 million in the fourth quarter of 2024, and $15 million in 2025 – which includes no admission of wrongdoing. Teva has recognized a provision for the resolution of this matter.
 
In 2015 and 2016, Actavis and Teva USA each respectively received a subpoena from the Connecticut Attorney General seeking documents
and
other information relating to potential state antitrust law violations. On December 15, 2016, and as subsequently amended, a civil action was brought by the attorneys general of 49 states, as well as the District of Columbia and Puerto Rico, which includes claims against both Actavis and Teva. On May 10, 2019, and as subsequently amended, most of these attorneys general filed another antitrust complaint against Actavis, Teva and other companies and individuals alleging that Teva was at the center of a conspiracy in the generic pharmaceutical industry and asserting that Teva and others allegedly fixed prices, rigged bids, and allocated customers and market share with respect to certain products. The second complaint was amended on November 22, 2024, to add California as a plaintiff as well as to add additional defendants. On June 10, 2020, most of the same states, with the addition of the U.S. Virgin Islands, filed a separate, third complaint in the U.S. District Court for the District of Connecticut naming, among other defendants, Actavis, in a similar complaint relating to dermatological generic products, and that complaint was later amended to, among other things, add California as a plaintiff.
In the various complaints described above, which also include claims against certain former employees of Actavis and Teva USA, the states seek a finding that the defendants’ actions violated federal antitrust law and state antitrust and consumer protection laws, as well as injunctive relief, disgorgement, damages on behalf of various state and governmental entities and consumers, civil penalties and costs. In April 2024, all three of the attorneys general’s lawsuits were transferred back to the U.S. District Court for the District of Connecticut where they were originally filed, which has adopted a schedule for summary judgment in the attorneys general’s third complaint pursuant to which multiple groups of motions will be filed during 2025. Fact discovery in the first and second complaints is ongoing.
Teva has settled with the states of Mississippi (in June 2021), Louisiana (in March 2022), Georgia (in September 2022), Arkansas (in
October
2022), Florida (in February 2023), Kentucky (in June 2023), South Dakota (in June 2024), and New Mexico (in June 2024). Teva paid each state an amount proportional to its share of the national population (approximately $1,000,000 for each 1% share of the national population), and the states have dismissed their claims against Actavis and Teva USA, as well as certain former employees of Actavis and Teva USA, pursuant to these settlements. These settlements, in addition to the status of ongoing negotiations with several other U.S. state attorneys general to settle on comparable terms, caused management to consider settlement of the claims filed by the remaining attorneys general to be probable, and management recorded an estimated provision in the third quarter of 2022. The States of Alabama (in March 2022) and Hawaii (in August 2023) and the territories of American Samoa (in July 2020) and Guam (in February 2023) have all voluntarily dismissed all of their claims in the litigation against Actavis and Teva USA. The
dismissals
by Alabama, Hawaii and Guam were with prejudice and the dismissal by American Samoa was without prejudice.
Beginning on March 2, 2016, and through July 2023, numerous complaints have been filed in the United States on behalf of putative classes of direct and indirect purchasers of several generic drug products, as well as several individual direct and indirect purchaser
opt-out
plaintiffs, including most recently an
opt-out
complaint filed by nine direct-action plaintiffs on April 4, 2024. All such complaints were transferred to the generic drug multidistrict litigation in the Eastern District of Pennsylvania (“Pennsylvania MDL”). These complaints, which allege that the defendants engaged in conspiracies to fix prices and/or allocate market share of generic products have been brought against various manufacturer defendants, including Teva USA and Actavis. The plaintiffs generally seek injunctive relief and damages under federal antitrust law, and damages under various state laws. The Pennsylvania MDL court has not yet scheduled potential bellwether trials for the putative classes of direct and indirect purchasers of two drugs. From 2019 to 2021, certain individual plaintiffs commenced civil actions in the Pennsylvania Court of Common Pleas of Philadelphia County against many of the defendants in the Pennsylvania MDL, including Teva and Actavis. The defendants have moved to place all of the cases filed in the Court of Common Pleas of Philadelphia County in deferred status. One Plaintiff, Aetna Inc., filed a complaint in
 
Connecticut state court on December 30, 2024. Certain counties in New York and Texas have also commenced civil actions against many of the defendants in the Pennsylvania MDL, including Teva and Actavis, and the complaints have been transferred to the Pennsylvania MDL.
There is also one similar complaint brought in Canada, which is in its early stages and alleges that the defendants engaged in conspiracies to fix prices and/or allocate market share of generic drug products to the detriment of a class of private payors.
In March 2017, Teva received a subpoena from the U.S. Attorney’s office in Boston, Massachusetts requesting documents related to Teva’s donations to patient assistance programs. In August 2020, the U.S. Attorney’s office in Boston, Massachusetts brought a civil action in the U.S. District Court for the District of Massachusetts alleging causes of action under the federal False Claims Act and for unjust enrichment (the “DOJ PAP Complaint”). It was alleged that Teva’s donations to certain 501(c)(3) charities that provided financial assistance to multiple sclerosis patients violated the Anti-Kickback Statute. On October 10, 2024, Teva entered into a settlement agreement with the DOJ to resolve these claims. Teva will pay $425 million over 6 years under the terms of the settlement – $19 million in the fourth quarter of 2024, $34 million in 2025, $49 million in each of 2026 and 2027, $99 million in 2028, and $175 million in 2029 – which includes no admission of wrongdoing. The case was dismissed with prejudice on November 19, 2024. Teva has recognized a provision for the resolution of this case. Additionally, on January 8, 2021, Humana, Inc. (“Humana”) filed an action against Teva in the U.S. District Court for the Middle District of Florida based on the allegations raised in the DOJ PAP Complaint. In June 2023, Teva filed a joint motion to dismiss the amended complaint, together with
co-defendant
Advanced Care Scripts, Inc., on the grounds that Humana lacks standing to assert RICO claims and the claims are time-barred and/or insufficiently pled, and that motion remains pending. On November 17, 2022, United Healthcare also filed an action against Teva in the U.S. District Court for the District of New Jersey based on the conduct alleged in the DOJ PAP Complaint, and on February 29, 2024, United Healthcare filed an amended complaint. On August 16, 2024, several MSP Recovery-related entities filed a putative class action against Teva and others in the U.S. District Court for the District of Kansas based on the alleged conduct in the DOJ PAP Complaint. On November 18, 2024, Teva filed a motion to dismiss the complaint.
In April 2021, a city and county in Washington filed claims against Teva in the U.S. District Court for the Western District of Washington for alleged violations of the RICO Act, Washington’s Consumer Protection Act, and unjust enrichment concerning Teva’s sale of COPAXONE. Plaintiffs purport to represent a nationwide class of health plans and a subclass of Washington-based health plans that purchased and/or reimbursed health plan members for COPAXONE. Plaintiffs allege that Teva engaged in several fraudulent schemes that resulted in plaintiffs and the putative class members purchasing and/or reimbursing plan members for additional prescriptions of COPAXONE and/or at inflated COPAXONE prices. Plaintiffs seek treble damages for the excess reimbursements and inflated costs, as well as injunctive relief. On November 17, 2021, Teva moved to dismiss the suit, on the grounds that plaintiffs’ claims are barred by the applicable statutes of limitations and the direct purchaser rule, suffer from jurisdictional defects, and fail to plausibly allege fraud or other elements of their claims. On March 9, 2023, the court held a hearing on the motion to dismiss, and a decision remains pending.
On December 1, 2022, Teva received a civil subpoena from the U.S. Attorney’s office in Boston, Massachusetts requesting certain documents related to the sale and marketing of AUSTEDO and risperidone LAI. Teva is cooperating with the request for documents and information.
In June 2024, Teva received a civil investigative demand from the Federal Trade Commission (“FTC”) seeking documents and information regarding an investigation related to patents listed in the Food and Drug Administration’s Approved Drug Products with Therapeutic Equivalence Evaluations publication (“Orange
Book”) in connection with certain inhaler products. Teva is cooperating with the request for documents and information.
On October 1, 2024, Teva received a civil investigative demand from the U.S. Attorney’s office in Boston, Massachusetts and the Civil Division of the Department of Justice requesting certain documents and information related to the manufacturing practices at its former manufacturing facility in Irvine, California, which Teva closed in 2022. Teva is cooperating with the request for documents and information.
Opioids Litigation
Since May 2014, more than 3,500 complaints have been filed by various governmental agencies and private plaintiffs in U.S. state and federal courts with respect to opioid sales and distribution against various Teva affiliates and several other pharmaceutical companies, the vast majority of which have been resolved. Cases brought by third party payers, both as individual cases and as class actions, remain. The majority of the remaining cases are consolidated in the multidistrict litigation in the Northern District of Ohio (the “MDL Opioid Proceeding”). These cases assert claims under similar provisions of different state laws and generally allege that the defendants engaged in improper marketing and distribution of Teva’s branded opioids, including ACTIQ
®
and FENTORA
®
, and also assert claims related to Teva’s generic opioid products.
In addition, over 950 personal injury plaintiffs, including various putative class actions of individuals, have asserted personal injury and wrongful death claims in over 600 complaints, nearly all of which are consolidated in the MDL Opioid Proceeding. Furthermore, approximately 100 personal injury complaints allege that Anda (in addition to naming other distributors and manufacturers) failed to develop and implement systems sufficient to identify suspicious orders of opioid products and prevent their abuse and diversion. Plaintiffs seek a variety of remedies, including restitution, civil penalties, disgorgement of profits, treble
damages, non-economic
damages, attorneys’ fees and injunctive relief. Certain plaintiffs seek damages for all costs associated with addressing the abuse of opioids and opioid addiction and certain plaintiffs specify multiple billions of dollars in the aggregate as alleged damages. In many of these cases, plaintiffs are seeking joint and several damages among all defendants. All but a handful of these cases are stayed in the MDL Opioid Proceedings.
In June 2023, Teva finalized and fully resolved its nationwide settlement agreement with the states and litigating subdivisions. Under the financial terms of the nationwide settlement agreement with the states and subdivisions, Teva will pay up to $4.25 billion (including the already settled cases), spread over 13 years. This total includes the supply of up to $1.2 billion of Teva’s generic version of Narcan
®
(naloxone hydrochloride nasal spray), valued at wholesale acquisition cost, over 10 years or cash at 20% of the wholesale acquisition cost ($240 million) in lieu of product. In September 2024, Teva reached and finalized an agreement with the City of Baltimore to settle its opioid-related claims for a total of $80 million (of which $35 
million was paid in December 2024), averting a trial that was scheduled to begin on September 16, 2024.
With its settlement with the City of Baltimore, Teva has settled with 100% of the U.S. states and litigating political subdivisions and the Native American tribes (the “Tribes”). Teva’s estimated cash payments between 2024 and 2028 for all opioids settlements are: $428 million paid in 2024, $423 million payable in 2025; $363 million payable in 2026; $364 million payable in 2027; and $385 million payable in 2028. These payments are subject to change based on various factors including, but not limited to, timing of payments, most favored nations clauses associated with prior settlements, and the states’ elections to take Teva’s generic version of Narcan
®
(naloxone hydrochloride nasal spray). The remaining payments, subject to adjustments, will be paid beyond 2029.
Various Teva affiliates, along with several other pharmaceutical companies, were named as defendants in opioids cases initiated by approximately 500 U.S. hospitals and other healthcare providers asserting opioid-
 
related claims, including public nuisance. Specifically, the lawsuits brought by the hospitals allege that they have incurred financial harm from increased operating costs for treating patients whose underlying illnesses are purportedly exacerbated or complicated by opioid addiction. In September 2024, Teva and the representatives for acute care hospitals finalized the terms of a proposed settlement agreement. Under the financial terms of the proposed national settlement agreement, Teva will pay up to $
126 million in cash, spread over 18 years, and supply up to $49 million of Teva’s generic version of Narcan
®
(naloxone hydrochloride nasal spray), valued at wholesale acquisition cost, over 7 years. The proposed settlement agreement is contingent upon Teva’s satisfaction, in its sole discretion, with the level of participation by acute care hospitals and health care systems in the proposed settlement agreement.
In light of the nationwide settlement agreement between Teva and the States’ Attorneys General and their subdivisions, Teva’s indemnification obligations arising from Teva’s acquisition of the Actavis Generics business for opioid-related claims, prior settlements reached with Louisiana, Texas, Rhode Island, Florida, San Francisco, West Virginia, New York, the Tribes, Nevada and the City of Baltimore, the agreement in principle with the hospitals discussed above, as well as an estimate for a number of items including, but not limited to, costs associated with administering injunctive terms, and most favored nations clauses associated with prior settlements, the Company has recorded a provision. The provision is a reasonable estimate of the ultimate costs for Teva’s opioids settlements, after discounting payments to their net present value. Opioid-related lawsuits brought against Teva by dozens of third-party payers, such as unions and welfare funds, remain pending. A reasonable upper end of a range of loss cannot be determined for the entirety of the remaining opioid-related cases. An adverse resolution of any of these lawsuits or investigations may involve large monetary penalties, damages, and/or other forms of monetary and
non-monetary
relief and could have a material and adverse effect on Teva’s reputation, business, results of operations and cash flows.
In addition, Teva, certain of its subsidiaries and other defendants, are defending claims and putative class action lawsuits in Canada related to the manufacture, sale, marketing and distribution of opioid medications. The lawsuits include a claim by the Province of British Columbia on behalf of itself and a putative class of other federal and provincial governments, and claims of municipalities, First Nations, and persons who used opioids on behalf of themselves and putative classes. In November and December 2023, the British Columbia Supreme Court held a hearing regarding preliminary motions, including plaintiffs’ certification motion, which remain pending. On January 22, 2025, the court granted plaintiffs’ motion for class certification. The deadline to appeal this decision is February 21, 2025.
Shareholder Litigation
On November 6, 2016 and December 27, 2016, two putative securities class actions were filed in the U.S. District Court for the Central District of California against Teva and certain of its current and former officers and directors. Those lawsuits subsequently were consolidated and transferred to the U.S. District Court for the District of Connecticut (the “Ontario Teachers Securities Litigation”). On December 13, 2019, the lead plaintiff filed an amended complaint, purportedly on behalf of purchasers of Teva’s securities between February 6, 2014 and May 10, 2019, asserting that Teva and certain of its current and former officers and directors violated federal securities and common laws in connection with Teva’s alleged failure to disclose pricing strategies for various drugs in its generic drug portfolio and by making allegedly false or misleading statements in certain offering materials. From July 2017 to June 2019, other putative securities class actions were filed in other federal courts based on similar allegations and claims, and were transferred to the U.S. District Court for the District of Connecticut. Between August 2017 and January 2022, twenty-three complaints were filed against Teva and certain of its current and former officers and directors on behalf of plaintiffs in various forums across the country, but many of those plaintiffs
“opted-out”
of the Ontario Teachers Securities Litigation. On January 18, 2022, Teva entered into a settlement in the Ontario Teachers Securities Litigation for $420 
million, which
 
 
received final approval from the court on June 2, 2022. The vast majority of the total settlement amount was covered by the Company’s insurance carriers, with a small portion contributed by Teva. Additionally, as part of the settlement, Teva admitted no liability and denied all allegations of wrongdoing. On January 22, 2021, the Court dismissed the
“opt-out”
plaintiffs’ claims arising from statements made prior to the five-year statute of repose, but denied Teva’s motion to dismiss their claims under Israeli laws. Teva has settled the majority of the
“opt-out”
claims, and one
opt-out
case remains outstanding. Teva also reached a settlement with shareholders who filed class actions in Israel with similar allegations to those raised in the Ontario Teachers Securities Litigation, which was approved by the court in Israel in November 2023.
On September 23, 2020, a putative securities class action was filed in the U.S. District Court for the Eastern District of Pennsylvania against Teva and certain of its former officers. On August 10, 2021, the lead plaintiff filed a corrected amended class action complaint, purportedly on behalf of persons who purchased or otherwise acquired Teva securities between October 29, 2015 and August 18, 2020. The corrected amended complaint alleges that Teva and certain of its current and former officers violated federal securities laws by allegedly making false and misleading statements regarding the commercial performance of COPAXONE, namely, by failing to disclose that Teva had allegedly caused the submission of false claims to Medicare through Teva’s donations to bona fide independent charities that provide financial assistance to patients, which allegedly impacted COPAXONE’s commercial success and the sustainability of its revenues and resulted in the DOJ PAP Complaint filed by the DOJ. The corrected amended complaint seeks unspecified damages and legal fees. On November 3, 2023, the court granted plaintiff’s motion for class certification, to which Teva filed a petition with the Third Circuit Court of Appeals for leave to appeal, which was denied on May 16, 2024. A motion to approve a securities class action was also filed in September 2022 in the Central District Court in Israel, which has been stayed pending the U.S. litigation, with similar allegations to those made in the above complaint filed in the U.S. District Court for the Eastern District of Pennsylvania.
Environmental Matters
Teva or its subsidiaries are party to a number of environmental proceedings, or have received claims, including under the federal Superfund law or other federal, provincial or state and local laws, imposing liability for alleged noncompliance, or for the investigation and remediation of releases of hazardous substances and for natural resource damages. Many of these proceedings and claims seek to require the generators of hazardous wastes disposed of at a third party-owned site, or the party responsible for a release of hazardous substances that impacted a site, to investigate and clean the site or to pay or reimburse others for such activities, including for oversight by governmental authorities and any related damages to natural resources. Teva or its subsidiaries have received claims, or been made a party to these proceedings, along with others, as an alleged generator of wastes that were disposed of or treated at third-party waste disposal sites, or as a result of an alleged release from one of Teva’s facilities or former facilities.
Although liability among the responsible parties, under certain circumstances, may be joint and several, these proceedings are frequently resolved so that the allocation of
clean-up
and other costs among the parties reflects the relative contributions of the parties to the site conditions and takes into account other pertinent factors. Teva’s potential liability varies greatly at each of the sites; for some sites the costs of the investigation,
clean-up
and natural resource damages have not yet been determined, and for others Teva’s allocable share of liability has not been determined. At other sites, Teva has taken an active role in identifying those costs, to the extent they are identifiable and estimable, which do not include reductions for potential recoveries of
clean-up
costs from insurers, indemnitors, former site owners or operators or other potentially responsible parties. In addition, enforcement proceedings relating to alleged violations of federal, state, commonwealth or local requirements at some of Teva’s facilities may result in the imposition of significant penalties (in amounts not expected to materially adversely affect Teva’s results of operations) and the recovery of certain costs and natural resource damages, and may require that corrective actions and enhanced compliance measures be implemented.
Item 103 of Regulation
S-K
promulgated by the SEC requires disclosure of certain environmental matters when a governmental authority is a party to the proceedings and such proceedings involve potential monetary sanctions, unless the Company reasonably believes that the matter will result in no monetary sanctions, or in monetary sanctions, exclusive of interest and costs, of less than $300,000. The following matter is disclosed in accordance with that requirement. On July 8, 2021, the National Green Tribunal Principal Bench, New Delhi, issued an order against Teva’s subsidiary in India, Teva API India Private Limited, finding
non-compliance
with environmental laws and assessed a penalty of $1.4 million. The Company disputed certain of the findings and the amount of the penalty and filed an appeal before the Supreme Court of India. On August 5, 2021, the Supreme Court of India admitted the appeal for hearing and granted an interim unconditional stay on the National Green Tribunal’s order. The Company does not believe that the eventual outcome of such matter will have a material effect on its business.
Other Matters
On February 1, 2018, former shareholders of Ception Therapeutics, Inc., a company that was acquired by and merged into Cephalon in 2010, prior to Cephalon’s acquisition by Teva, filed breach of contract and other related claims against the Company, Teva USA and Cephalon in the Delaware Court of Chancery. Among other things, the plaintiffs alleged that Cephalon had breached the terms of the 2010 Ception-Cephalon merger agreement by failing to exercise commercially reasonable efforts to develop and commercialize CINQAIR
®
(reslizumab) for the treatment of eosinophilic esophagitis (“EE”). The plaintiffs claimed damages of at least $200 million, an amount they alleged was equivalent to the milestones payable to the former shareholders of Ception in the event Cephalon were to obtain regulatory approval for EE in the United States ($150 million) and Europe ($50
million). On December 28, 2018, following defendants’ motion to dismiss the complaint, the court granted the motion in part and dismissed all of plaintiffs’ claims, except for their claim against Cephalon for breach of contract. In November 2021, plaintiffs moved to amend their complaint to, among other things, reassert claims against the Company and Teva USA. However, on July 12, 2022, plaintiffs filed a new amended complaint that included claims against Teva USA but not the Company, in exchange for Teva USA’s agreement to guarantee any judgment entered against Cephalon in the litigation. A bench trial for this matter was held in September 2022 and on April 30, 2024, the court issued a memorandum opinion in favor of Cephalon and Teva USA, finding that they did not breach the merger agreement as plaintiffs had alleged. Plaintiffs appealed that ruling, but the Delaware Supreme Court affirmed it on January 24, 2025.
Gain Contingencies
From time to time, Teva may directly or indirectly pursue claims against certain parties, including but not limited to patent infringement lawsuits against other pharmaceutical companies to protect its patent rights, as well as derivative actions brought on behalf of Teva. Teva recognizes gain contingencies from the defendants in such lawsuits when they are realized or when all related contingencies have been resolved. No gain has been recognized regarding the matters disclosed below, unless mentioned otherwise.
In October 2017, Teva filed a lawsuit in the U.S. District Court for the District of Massachusetts alleging that Eli Lilly & Co.’s (“Lilly”) marketing and sale of its galcanezumab product for the treatment of migraine infringes nine Teva patents, including three method of treatment patents and six composition of matter patents. Lilly then submitted inter partes review (“IPR”) petitions to the Patent Trial and Appeal Board (“PTAB”), challenging the validity of the nine Teva patents. The PTAB issued decisions upholding the three method of treatment patents but finding the six composition of matter patents invalid, which decisions were affirmed by the Court of Appeals for the Federal Circuit on August 16, 2021. A jury trial regarding the three method of treatment patents resulted in a verdict in Teva’s favor on November 9, 2022, in which the three method of treatment patents were determined to be valid and infringed by Lilly and Teva was awarded $176.5 
million in damages. On
 
 
September 26, 2023, the U.S. District Court for the District of Massachusetts issued a decision that reversed the jury’s verdict and damages award, finding Teva’s method of treatment patents to be invalid. Teva filed its opening appeal brief on February 2, 2024 and Lilly filed its responsive brief on April 19, 2024. Teva filed its responsive brief on May 29, 2024, and Lilly’s final brief was filed on July 19, 2024. No date has been set for the appeal hearing.
In March 2024, Teva filed a lawsuit in the U.S. District Court for the District of New Jersey alleging that Amarin Pharma, Inc., Amarin Pharmaceuticals Ireland Limited, and Amarin Corporation plc (collectively “Amarin”) engaged in a decade-long scheme to lock up the supply of icosapent ethyl to prevent and delay generic competition to its branded Vascepa
®
drug product. Teva’s lawsuit coincides with four other lawsuits brought by generic drug manufacturers and purchasers of branded Vascepa
®
 alleging the same or similar conduct by Amarin. Teva’s requested relief includes compensatory damages for lost sales and lost profits from generic icosapent ethyl drug sales that Teva could have made absent Amarin’s alleged interference. On May 24, 2024, Amarin filed a motion in the U.S. District Court for the District of Nevada, seeking to enforce the terms of an earlier Teva-Amarin agreement to settle patent litigation regarding Vascepa
®
, which Amarin asserts precludes Teva from filing the present antitrust action. Teva opposed this motion on June 7, 2024, and on December 4, 2024, the Nevada court denied Amarin’s motion. As the lawsuit is still in its initial stages, it is not possible to predict its outcome and there is no guarantee that Teva will be granted its requested relief.
In June 2024, Teva filed a lawsuit in the U.S. District Court for the Northern District of California alleging that Corcept Therapeutics, Inc. (“Corcept”), and Optime Care Inc. (“Optime”) have engaged in a multifaceted, years-long scheme to stifle generic competition to Corcept’s branded Korlym
®
(mifepristone) drug product, which is indicated to treat endogenous Cushing’s syndrome. Teva alleges that Corcept and Optime have suppressed competition by abusing the patent and judicial systems, entering a long-term, blanket exclusive-dealing agreement that has locked up a key pharmaceutical distribution channel, and making illicit payments to physicians as compensation for prescribing Korlym
®
. Teva’s requested relief includes compensatory damages for lost sales and lost profits from generic mifepristone drug sales that Teva could have made absent Corcept and Optime’s alleged interference, as well as injunctive relief to remove the unlawful barriers to generic competition created by Corcept and Optime. Teva filed an amended complaint in September 2024. Defendants filed a joint motion to dismiss in October 2024, which motion is fully briefed and awaiting decision. As the lawsuit is still in its initial stages, it is not possible to predict its outcome and there is no guarantee that Teva will be granted its requested relief.
Motions to approve derivative actions seeking monetary damages against certain past and present directors and officers have been filed in Israeli Courts alleging negligence and recklessness, as well as motions for document disclosure prior to initiating derivative actions. Motions were filed with respect to several U.S. and EU settlement agreements, allegations related to the DOJ PAP Complaint, and with respect to the European Commission’s proceedings relating to COPAXONE. In May 2024, Teva settled the derivative action related to the opioids litigation, and on September 16, 2024, the settlement received final approval from the Tel Aviv District Court.
v3.25.0.1
Income taxes
 12 Months Ended
Dec. 31, 2024
Income taxes
NOTE 13—Income taxes:
 
a.
Income (loss) before income taxes:
 
    
Year ended December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
  
Parent Company and its Israeli subsidiaries
    $ (456 )     $ (767 )     $ (119 ) 
Non-Israeli
subsidiaries
      (828 )      143        (3,044 ) 
  
 
 
     
 
 
     
 
 
  
   $ (1,284 )    $ (624 )     $ (3,163 ) 
  
 
 
     
 
 
     
 
 
  
b. Income taxes:
 
    
Year ended December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
  
In Israel
    $ 721      $ (402 )     $ 33  
Outside Israel
      (45 )       395        (676 ) 
  
 
 
     
 
 
     
 
 
  
   $ 676      $ (7 )     $ (643 ) 
  
 
 
     
 
 
     
 
 
  
Current
    $ 1,094      $ 333      $ 430  
Deferred
      (418 )       (340 )       (1,073 ) 
  
 
 
     
 
 
     
 
 
  
   $ 676      $ (7 )     $ (643 ) 
  
 
 
     
 
 
     
 
 
  
 
 
 
  
2024
 
 
2023
 
 
2022
 
 
  
(U.S. $ in millions)
 
Income (loss) before income taxes
    $ (1,284 )   $ (624 )    $ (3,163 ) 
Statutory tax rate in Israel
      23 %      23 %      23 % 
  
 
 
    
 
 
    
 
 
  
Theoretical provision for income taxes
    $ (295 )   $ (144 )    $ (727 ) 
Increase (decrease) in the provision for income taxes due to:
       
Tax benefits arising from net deferred taxes, resulting from intellectual property related integration plans, including carryforward losses
      (87)     (272)   — 
The Parent Company and its Israeli subsidiaries - Settlement with the Israeli tax authorities
      514     —    — 
Increase (decrease) in other uncertain tax positions - net
    171     —        —   
Tax benefits arising from reduced tax rates under benefit programs
        14     15
Mainly nondeductible items and prior year tax
      16       —        35  
Non-Israeli subsidiaries
                         
Impairments that did not have a corresponding tax effect, non-deductible interest and other items
      463       372       941  
Adjustments to valuation allowances on deferred tax assets (*)
      (105)       —        —   
Worthless stock deduction (**)
        —        (909 ) 
Increase (decrease) in other uncertain tax positions - net
      (1 )      23       2  
  
 
 
    
 
 
    
 
 
  
Effective consolidated income taxes
    $ 676     $ (7 )    $ (643 ) 
  
 
 
    
 
 
    
 
 
  
*
Mainly related to deduction of interest expenses in the United States.
**
In 2022, one of Teva’s U.S. subsidiaries was determined to be insolvent for tax purposes (i.e., its liabilities exceeded the fair market value of its assets), mainly in light of its accumulated operational losses. Consequently, Teva recognized on its 2022 tax return, a worthless stock deduction of approximately $4.2 billion, with
a 
related tax benefit of approximately $909 million.
Teva’s effective tax rate is the result of a variety of factors, including the geographic mix and type of products sold during the year, different effective tax rates applicable to
non-Israeli
subsidiaries that have tax rates different than Teva’s average tax rate, a settlement agreement with the Israeli Tax Authorities (“ITA”), impairment charges with no corresponding tax effects, net deferred tax benefits from intellectual property related integration plans, an adjustment to the Company’s corporate tax rate in Israel on losses related to
non-qualified
tax incentive activities in Israel, adjustments to valuation allowances on deferred tax assets, adjustments to uncertain tax positions and interest expense disallowances.
 
 
c.
Deferred income taxes:
 
    
December 31,
  
    
2024
     
2023
  
    
(U.S. $ in millions)
  
Deferred tax assets (liabilities), net:
   
Inventory related
    $ 88      $ 76  
Sales reserves and allowances
      55        81  
Provision for legal settlements
      667        702  
Intangible assets (*)
      170        (118 ) 
Carryforward losses and deductions and credits (**)
      1,557        2,463  
Property, plant and equipment
      (157 )       (225 ) 
Deferred interest
      789        799  
Provisions for employee related obligations
      95        80  
Other (***)
      69        357  
  
 
 
     
 
 
  
     3,333        4,215  
Valuation allowance—in respect of carryforward losses and deductions that may not be utilized
      (2,017 )       (3,009 ) 
  
 
 
     
 
 
  
   $ 1,316      $ 1,206  
  
 
 
     
 
 
  

(*)
The increase in deferred tax is mainly due to intellectual property related integration.
(**)
The amounts are shown after reduction for unrecognized tax benefits of $163 million and $2 million as of December 31, 2024 and 2023, respectively.
The amount as of December 31, 2024 represents the tax effect of gross carryforward losses and deductions with the following expirations:
2025
-
2026
—$38 million;
2027
-
2034
—$486 million;
2035
and thereafter—$38 million. The remaining balance—$995 million—can be utilized with no expiration date.
 
(***)
The amounts shown for 2023 are primarily comprised of Capitalization of R&D Expenses.
The deferred income taxes are reflected in the balance sheets among:
 
    
December 31,
  
    
2024
     
2023
  
    
(U.S. $ in millions)
  
Long-term assets—deferred income taxes
      1,799        1,812  
Long-term liabilities—deferred income taxes
      (483 )       (606 ) 
  
 
 
     
 
 
  
   $ 1,316      $ 1,206  
  
 
 
     
 
 
  
 
d.
Uncertain tax positions:
The following table summarizes the activity of Teva’s gross unrecognized tax benefits:
 
    
Year ended December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
  
Balance at the beginning of the year
    $ 651      $ 638      $ 672  
Increase (decrease) related to prior year tax positions, net
      109        (1 )       (46 ) 
Increase related to current year tax positions
      53        15        42  
Decrease related to settlements with tax authorities and lapse of applicable statutes of limitations
      (395 )       (15 )       (31 ) 
Other
      29        14        1  
  
 
 
     
 
 
     
 
 
  
Balance at the end of the year
    $ 449      $ 651      $ 638  
  
 
 
     
 
 
     
 
 
  
Uncertain tax positions, mainly of a long-term nature, include accrued potential penalties and interest of $69 million, $224 million and $212 million as of December 31, 2024, 2023 and 2022, respectively. The total amount of interest and penalties reflected in the consolidated statements of income was a net decrease of $155 million for the year ended December 31, 2024, and a net increase of $12 million and $2 million for the years ended December 31, 2023 and 2022, respectively. Substantially all the above uncertain tax benefits, if recognized, would reduce Teva’s annual effective tax rate. Teva does not expect uncertain tax positions to change significantly over the next 12 months, except in the case of settlements with tax authorities or court decisions, the likelihood and timing of which is difficult to estimate.
 
e.
Tax assessments:
Teva files income tax returns in various jurisdictions with varying statutes of limitations. Teva and its subsidiaries in Israel have received final tax assessments through tax year 2020.
On June 23, 2024, Teva entered into an agreement with the ITA to settle certain litigation with respect to taxes payable for the Company’s taxable years 2008 through 2020 (the “Agreement”). Pursuant to the terms of the Agreement, the Company will pay a total amount of approximately $750 million to the ITA spread over a
six-year
period beginning in 2024. The Company has the right to prepay, and amounts paid over time are subject to interest and increase for inflation. Such total amount includes: (i) $495 million in corporate taxes with respect to the Company’s historical earnings that were previously considered by the Company to be exempt from taxes under the Encouragement for Capital Investment Law; and (ii) approximately $250 million in corporate taxes, relating to additional disputed tax issues in the aforementioned taxable years. The Agreement resulted in an increase of $506 million in the Company’s total income taxes in 2024, as certain elements had been recognized in previous periods. Additionally, under the terms of the Agreement, it was further agreed that in the future event the Company pays dividends on, or repurchases, its equity interests, the Company will pay an additional
5%-7%
of the amount of such dividends or repurchases in corporate taxes, up to a maximum tax payment amount of approximately $500 million. Any amounts due under this provision of the Agreement will be recorded in the future as incurred.
In the U.S., Teva is subject to ongoing examination of its U.S. subsidiaries by federal and state tax authorities. The years 2015 to 2019 are open years, currently under IRS examination. Additionally, Teva is currently under examination by various state tax authorities for open years from 2014 to 2023. In addition to ongoing audits, Teva and its subsidiaries have tax years 2009 to 2014 that are in administrative suspense for one open matter, pending the outcome of the court cases discussed further below.
 
Teva currently has a legal proceeding in the U.S. Tax Court and one on appeal to the U.S. District Court of Appeals for the Federal Circuit. Each dispute with the IRS addresses the question of whether certain legal fees incurred related to Abbreviated New Drug Applications (“ANDAs”) were eligible to be deducted in the year incurred for tax purposes or were required to be amortized over longer periods under U.S. tax law. Additionally, the Tax Court case includes a question dealing with qualified research expenses. The U.S. Tax Court case remains in the
pre-trial
phase. Oral arguments were heard by the Federal Circuit in June 2024. While Teva continues to vigorously defend itself in these cases, and believes it is
more-likely-than-not
to prevail, there is uncertainty in the outcome and an adverse ruling could materially affect the Company’s financial statements.
Teva filed a claim seeking the refund of withholding taxes paid to the Indian tax authorities in 2012. Trial in this case is ongoing. A final and binding decision against Teva in this case may lead to an impairment in an amount of up to $122 million.
The Company’s subsidiaries in Europe have received final tax assessments mainly through tax year 2015.
Teva believes it has adequately provided for all uncertain tax positions for open years, and that any other adverse results of examinations or litigation would have an immaterial impact on the Company’s financial statements.
 
f.
Basis of taxation:
The Company and its subsidiaries are subject to tax in many jurisdictions, and estimation is required in recording the assets and liabilities related to income taxes. The Company believes that its accruals for tax liabilities are adequate for all open years. The Company considers various factors in making these assessments, including past history, recent interpretations of tax law, and the specifics of each matter. Because tax regulations are subject to interpretation and tax litigation is inherently uncertain, these assessments can involve a series of complex judgments regarding future events.
An assessment of the tax that would have been payable had the Company’s foreign subsidiaries distributed their income to the Company is not practicable because of the multiple levels of corporate ownership and multiple tax jurisdictions involved in each hypothetical dividend distribution.
Incentives Applicable until 2013
Under the incentives regime applicable to the Company until 2013, industrial projects of Teva and certain of its Israeli subsidiaries were eligible for “Approved Enterprise” status.
Most of the projects in Israel have been granted Approved Enterprise status under the “alternative” tax benefit track which offered tax exemption on undistributed income for a period of two to ten years, depending on the location of the enterprise. Upon distribution of such exempt income, the distributing company is subject to corporate tax at the rate ordinarily applicable to the Approved Enterprise’s income.
Amendment 69 to the Investment Law
Pursuant to Amendment 69 to the Investment Law (“Amendment 69”), a company that elected by November 11, 2013 to pay a corporate tax rate as set forth in that amendment (rather than the tax rate applicable to Approved Enterprise income) with respect to undistributed exempt income accumulated by the company up until December 31, 2011 is entitled to distribute a dividend from such income without being required to pay additional corporate tax with respect to such dividend. A company that has so elected must make certain qualified investments in Israel over the five-year period commencing in 2013. Teva invested the entire required amount in 2013.
 
During 2013, Teva applied the provisions of Amendment 69 to certain exempt profits Teva accrued prior to 2012. Consequently, Teva paid $577 million in corporate tax on exempt income of $9.4 billion. Part of this income was distributed as dividends during 2013-2018, while the remainder is available to be distributed as dividends in future years with no additional corporate tax liability.
Incentives Applicable starting 2014
:
The Incentives Regime – Amendment 68 to the Investment Law
Under Amendment 68 to the Investment Law, which Teva started applying in 2014, upon an irrevocable election made by a company, a uniform corporate tax rate will apply to all qualifying industrial income of such company (“Preferred Enterprise”), as opposed to the previous law’s incentives, which were limited to income from Approved Enterprises during the benefits period. Under the law, when the election is made, the uniform tax rate for 2014 until 2016 was 9% in areas in Israel designated as Development Zone A and 16% elsewhere in Israel. The uniform tax rate for Development Zone A, as of January 1, 2017, is 7.5% (as part of changes enacted in Amendment 73, as described below). The profits of these “Preferred Enterprise” will be freely distributable as dividends, subject to a 20% or lower withholding tax, under an applicable tax treaty. Certain “Special Preferred Enterprises” that meet more stringent criteria (significant investment, R&D or employment thresholds) will enjoy further reduced tax rates of 5% in Zone A and 8% elsewhere. In order to be classified as a “Special Preferred Enterprises,” the approval of three governmental authorities in Israel is required.
The New Technological Enterprise Incentives Regime – Amendment 73 to the Investment Law
Since 2017, a portion of the Company’s taxable income in Israel is entitled to a preferred 6% tax rate under Amendment 73 to the Investment Law as it pertains to Special Preferred Technological Enterprises.
The new incentives regime applies to “Preferred Technological Enterprises” or “Special Preferred Technological Enterprises.” A “Preferred Technological Enterprise” is an enterprise that meet certain conditions, including, inter alia:
 
  a.
Investment of at least 7% of income, or at least NIS 75 million (approximately $22 million) in R&D activities; and
 
  b.
One of the following:
 
  a.
At least 20% of the workforce (or at least 200 employees) are employed in R&D;
 
  b.
A venture capital investment approximately equivalent to at least $2 million was previously made in the company; or
 
  c.
Growth in sales or workforce by an average of 25% over the three years preceding the tax year.
A “Special Preferred Technological Enterprise” is an enterprise that meets, inter alia conditions 1 and 2 above, and in addition has total annual consolidated revenues above NIS 10 billion (approximately $2.9 billion).
Preferred Technological Enterprises are subject to a corporate tax rate of 7.5% on their income derived from intellectual property in areas in Israel designated as Zone A and 12% elsewhere, while Special Preferred Technological Enterprises are subject to 6% on such income. The withholding tax on dividends from these enterprises is 4% to foreign companies (or a lower rate under a tax treaty, if applicable).
Income not eligible for Preferred Technological Enterprise benefits is taxed at the regular corporate tax rate, which is 23%, or the preferred tax rate, as the case may be.
 
The Parent Company and its Israeli subsidiaries elected to compute their taxable income in accordance with Income Tax Regulations (Rules for Accounting for Foreign Investors Companies and Certain Partnerships and Setting their Taxable Income), 1986. Accordingly, the taxable income or loss is calculated in U.S. dollars. Applying these regulations reduces the effect of U.S. dollar – NIS exchange rate on the Company’s Israeli taxable income.
Non-Israeli
subsidiaries are taxed according to the tax laws in their respective country of residence. Certain manufacturing subsidiaries operate in several jurisdictions outside Israel, some of which benefit from tax incentives such as reduced tax rates, investment tax credits and accelerated deductions.
Pillar Two Taxation
The OECD introduced Base Erosion and Profit Shifting (“BEPS”) Pillar Two rules that impose a global minimum tax rate of 15% for large multinational corporations. On December 12, 2022, the EU Council announced that EU member states had reached an agreement to implement the minimum taxation component of 15% of the OECD’s reform of international taxation. Other countries have also enacted legislation to be effective as early as January 1, 2024, with general implementation of a global minimum tax by January 1, 2025, or are expected to enact such legislation in the future. Teva has evaluated the potential impact on its 2024 consolidated financial statements and related disclosures and does not expect Pillar Two to have a material impact on its effective tax rate or consolidated financial statements in the foreseeable future.
v3.25.0.1
Equity
 12 Months Ended
Dec. 31, 2024
Equity
NOTE 14—Equity:
 
a.
Ordinary shares and ADSs
As of December 31, 2024 and 2023, Teva had approximately 1.2 billion ordinary shares issued. Teva ordinary shares are traded on the
Tel-Aviv
Stock Exchange and on the New York Stock Exchange, in the form of American Depositary Shares (“ADSs”), each of which represents one ordinary share.
 
b.
Stock-based compensation plans
Stock-based compensation plans are comprised of stock options, RSUs, PSUs, and other equity-based awards to employees, officers, directors and consultants of the Company and its affiliates. The purpose of the plans is to (a) attract, retain, motivate, and reward such individuals, and (b) promote the creation of long-term value for shareholders of the Company by closely aligning the interests of such individuals with those of the shareholders.
On June 29, 2010, the Teva 2010 Long-Term Equity-Based Incentive Plan (“2010 Plan”) was approved by Teva’s shareholders, under which 70 million equivalent share units, including options exercisable into ordinary shares, RSUs and PSUs, were approved for grant. The 2010 Plan expired on June 28, 2015 (except with respect to awards outstanding on that date), and no additional awards under the 2010 Plan may be made.
On September 3, 2015, the Teva 2015 Long-Term Equity-Based Incentive Plan (“2015 Plan”) was approved by Teva’s shareholders, under which 43.7 million equivalent share units, including options exercisable into ordinary shares, RSUs and PSUs, were approved for grant.
On April 18, 2016, Teva’s shareholders approved an increase of an additional 33.3 million equivalent share units to the share reserve of the 2015 Plan, so that 77 million equivalent share units, including options exercisable into ordinary shares, RSUs and PSUs, were approved for grant.
 
On July 13, 2017, Teva’s shareholders approved an increase of an additional 65 million equivalent share units to the share reserve of the 2015 Plan, so that 142 million equivalent share units, including options exercisable into ordinary shares, RSUs and PSUs, were approved for grant.
The 2015 Plan expired on June 30, 2020 (except with respect to awards outstanding on that date), and no additional awards under the 2015 Plan may be made.
On June 11, 2020, the Teva 2020 Long-Term Equity-Based Incentive Plan (“2020 Plan”) was approved by Teva’s shareholders and became effective on July 1, 2020. Under the 2020 Plan, 68 million shares, including options exercisable into ordinary shares, RSUs and PSUs, were approved for grant.
As of December 31, 202
4
, 59.1 million shares remain available for future awards under the 2020 Plan.
In the past, Teva had various employee-stock and incentive plans under which stock options and other share-based awards were granted. Stock options and other share-based awards granted under such prior plans continue in accordance with the terms of the respective plans.
The vesting period of the outstanding options and RSUs is generally between one to four years from grant date. The vesting period of PSUs is generally three years from grant date. The rights of ordinary shares obtained from the exercise of options, RSUs or PSUs are identical to those of other ordinary shares of the Company. The contractual term of these options is primarily for ten years.
Status of options
A summary of the status of the options granted by Teva as of December 31, 2024, 2023 and 2022, and changes during the years ended on those dates, is presented below (the number of options represents ordinary shares exercisable in respect thereof).
 
    
Year ended December 31,
  
    
2024
     
2023
     
2022
  
    
Number

(in thousands)
    
Weighted
average
exercise
price
     
Number

(in thousands)
    
Weighted
average
exercise
price
     
Number

(in thousands)
    
Weighted
average
exercise
price
  
Balance outstanding at beginning of year
      22,703     $ 36.89        24,119     $ 36.83        29,015     $ 36.96  
Changes during the year:
               
Exercised
      (1,284 )      15.37        —        —         —        —   
Forfeited
      (1,211 )      34.13        (885 )      34.65        (2,378 )      33.77  
Expired
      (2,495 )      48.84        (531 )      37.57        (2,518 )      41.26  
  
 
 
       
 
 
       
 
 
    
Balance outstanding at end of year
      17,713       39.96        22,703       36.89        24,119       36.83  
  
 
 
       
 
 
       
 
 
    
Balance exercisable at end of year
      17,713       39.96        22,703       36.89        24,119       36.83  
  
 
 
       
 
 
       
 
 
    
No options were granted during 2024, 2023 and 2022.
 
The following table summarizes information as of December 31, 2024, regarding the number of ordinary shares issuable upon vested options:
 
Number of ordinary shares issuable upon exercise of vested options
  
Range of exercise prices
   
Balance at end of
period (in thousands)
     
Weighted average
exercise price
     
Weighted average
remaining life
  
    
Number of shares
     
$
     
Years
  
$15.01 - $25.00
      6,152        18.96        3.14  
$25.01 - $35.00
      5,167        34.67        2.16  
$35.01 - $45.00
      57        37.70        1.92  
$45.01 - $55.00
      2,987        53.25        1.28  
$55.01 - $65.00
      3,350        59.01        0.34  
  
 
 
        
Total
      17,713        36.96        2.01  
  
 
 
        
The aggregate intrinsic value represents the total
pre-tax
intrinsic value, based on the Company’s closing stock price of $22.04 on December 31, 2024, less the weighted average exercise price in each range. This represents the potential amount receivable by the option holders had all option holders exercised their options as of such date. The total number of
in-the-money
options exercisable as of December 31,2024 was 6 million.
The total intrinsic value of options exercised during the year ended December 31, 2024
,
was $
3 million based on the Company’s average stock price of $15.97.
No options were exercised during 2023 and 2022.
Status of
non-vested
RSUs and PSUs
The following table summarizes information about the number of RSUs and PSUs granted and outstanding:
 
    
Year ended December 31,
  
    
2024
     
2023
     
2022
  
    
Number

(in thousands)
    
Weighted
average
grant
date fair
value
     
Number

(in thousands)
    
Weighted
average
grant
date fair
value
     
Number

(in thousands)
    
Weighted
average
grant
date fair
value
  
Balance outstanding at beginning of year
      35,664     $ 9.07        32,302     $ 9.11        24,412     $ 11.58  
Granted
      11,557       13.66        16,608       9.77        18,755       7.42  
Vested
      (11,464 )      9.46        (10,195 )      10.28        (7,571 )      13.02  
Forfeited
      (1,947 )      9.81        (3,052 )      9.81        (3,293 )      9.81  
  
 
 
       
 
 
       
 
 
    
Balance outstanding at end of year
      33,810       10.46        35,664       9.07        32,302       9.11  
  
 
 
       
 
 
       
 
 
    
 
 
The Company expenses compensation costs based on the grant-date fair value. For the years ended December 31, 2024, 2023 and 2022, the Company recorded stock-based compensation costs as follows:
 
    
Year ended December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
  
Employee stock options
    $ —       $ —       $ 2  
RSUs and PSUs
      123        121        122  
  
 
 
     
 
 
     
 
 
  
Total stock-based compensation expense
      123        121        124  
Tax effect on stock-based compensation expense
      11        11        9  
  
 
 
     
 
 
     
 
 
  
Net effect
    $ 112      $ 110      $ 115  
  
 
 
     
 
 
     
 
 
  
As of December 31, 2024, the total unrecognized compensation cost before tax on RSUs/PSUs amounted to $217 million. The cost is expected to be recognized over a weighted average period of approximately 2.5 years. There were no unrecognized compensation costs related to employee stock options.
 
c.
Dividends
Teva has not paid dividends on Teva ordinary shares or ADSs since December 2017.
 
 
d.
Accumulated other comprehensive loss
The components of accumulated other comprehensive loss attributable to Teva are presented in the table below:
 
    
Net Unrealized Gains (Losses)
    
Benefit Plans
        
    
Foreign
currency
translation
adjustments
    
Derivative
financial
instruments
    
Actuarial
gains(losses)
and prior
service
(costs)

credits
    
Total
  
    
(U.S. $ in millions)
  
Balance as of January 1, 2022
    $ (2,274 )      (324 )      (85 )      (2,683 ) 
Other comprehensive income(loss) before reclassifications
      (223 )      —        40       (183 ) 
Amounts reclassified to the statements of income
      —        29       27       56  
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income(loss) before tax
      (223 )      29       67       (127 ) 
Corresponding income tax
      (17 )      —        (10 )      (27 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income(loss) after tax*
      (240 )      29       57       (154 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of December 31, 2022
      (2,514 )      (295 )      (28 )      (2,838 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Other comprehensive income(loss) before reclassifications
      167       (1 )      (17 )      149  
Amounts reclassified to the statements of income
      —        30       (4 )      26  
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income(loss) before tax
      167       29       (21 )      175  
Corresponding income tax
      (37 )      —        3       (34 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income(loss) after tax*
      130       29       (18 )      141  
  
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of December 31, 2023
      (2,384 )      (266 )      (46 )      (2,697 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Other comprehensive income(loss) before reclassifications
      (456 )        (1 )      (457 ) 
Amounts reclassified to the statements of income
      —        28       (6 )      22  
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income(loss) before tax
      (456 )      28       (7 )      (434 ) 
Corresponding income tax
      (17 )      —        1       (16 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income(loss) after tax*
      (473 )      28       (6 )      (450 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of December 31, 2024
    $ (2,857 )    $ (238 )    $ (52 )    $ (3,148 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  

*
Amounts do not include foreign currency translation adjustments attributable to
non-controlling
interests of $61 million loss in 2024, $50 million loss in 2023 and $116 million loss in 2022.
v3.25.0.1
Other assets impairments, restructuring and other items
 12 Months Ended
Dec. 31, 2024
Other assets impairments, restructuring and other items
NOTE 15—Other assets impairments, restructuring and other items:
 
    
Year ended December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
  
Impairment of long-lived tangible assets
(
*
)
    $ 1,024      $ 28      $ 47  
Contingent consideration (see note 20)
      303        548        261  
Restructuring
      74        111        146  
Other
      (14 )       30        57  
  
 
 
     
 
 
     
 
 
  
Total
    $ 1,388      $ 718      $ 512  
  
 
 
     
 
 
     
 
 
  

(*)
Including impairments related to exit and disposal activities.
Impairments
Impairments of tangible assets for the years ended December 31, 2024, 2023 and 2022 were $1,024 million, $28 million and $47 million, respectively. Impairments for the year ended December 31, 2024 were mainly related to the classification of the business venture in Japan and the API business (including its R&D, manufacturing and commercial activities) as held for sale (see note 2). Impairments for the year ended December 31, 2023 were mainly related to certain assets in Europe and the United States. Impairments for the year ended December 31, 2022 were mainly related to certain assets in the United States.
Teva may record additional impairments in the future, to the extent it changes its plans on any given asset and/or the assumptions underlying such plans, as a result of its network consolidation activities and its “Pivot to Growth Strategy”.
Contingent consideration
In 2024, Teva recorded expenses of $303 million for contingent consideration, compared to expenses of $548 million in 2023 and $261 million in 2022. Expenses in 2024 and 2023 were mainly related to a change in the estimated future royalty payments to Allergan in connection with lenalidomide (generic equivalent of Revlimid
®
) and a change in the estimated future royalty payments to Eagle in connection with expected future bendamustine sales. Expenses in 2022 were mainly related to changes in the estimated future royalty payments to Allergan in connection with lenalidomide (generic equivalent of Revlimid
®
).
Restructuring
In 2024, Teva recorded $74 million of
restructuring expenses
, compared to $111 million in 2023 and $146 million in 2022. Expenses in 2024 and 2023 and 2022 were primarily related to network consolidation activities.
The following table provides the components of restructuring costs:
 
    
Year ended December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
  
Restructuring
         
Employee termination
    $ 53      $ 52      $ 117  
Other
      21        59        29  
  
 
 
     
 
 
     
 
 
  
Total
    $ 74      $ 111      $ 146  
  
 
 
     
 
 
     
 
 
  
 
The following table provides the components of and changes in the Company’s restructuring accruals:
 
    
Employee
termination
costs
     
Other
     
Total
  
    
(U.S. $ in millions )
  
Balance as of January 1, 2022
    $ (131 )     $ (7 )     $ (138 ) 
  
 
 
     
 
 
     
 
 
  
Provision
      (117 )       (29 )       (146 ) 
Utilization and other*
      136        29        165  
  
 
 
     
 
 
     
 
 
  
Balance as of December 31, 2022
    $ (112 )     $ (7 )     $ (119 ) 
  
 
 
     
 
 
     
 
 
  
Provision
      (52 )       (59 )       (111 ) 
Utilization and other*
      90        59        149  
  
 
 
     
 
 
     
 
 
  
Balance as of December 31, 2023
    $ (75 )     $ (7 )     $ (82 ) 
  
 
 
     
 
 
     
 
 
  
Provision
      (53 )       (21 )       (74 ) 
Utilization and other*
      73        16        88  
  
 
 
     
 
 
     
 
 
  
Balance as of December 31, 2024
    $ (55 )     $ (13 )     $ (68 ) 
  
 
 
     
 
 
     
 
 
  

*
Includes adjustments for foreign currency translation.
v3.25.0.1
Other income
 12 Months Ended
Dec. 31, 2024
Other income
NOTE 16—Other income:
 
    
Year ended
December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
  
Gain on divestitures, net of divestitures related costs
    $ 15      $ 3      $ 46  
Section 8 and similar payments
      1        5        13  
Gain (loss) on sale of assets
      2        25        18  
Other, net
      (5 )       16        31  
  
 
 
     
 
 
     
 
 
  
Total other income
    $ 14      $ 49      $ 107  
  
 
 
     
 
 
     
 
 
  
v3.25.0.1
Financial expenses, net
 12 Months Ended
Dec. 31, 2024
Financial expenses, net
NOTE 17—Financial expenses, net:
 
    
Year ended December, 31
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
  
Interest expenses and other bank charges
    $ 1,002      $ 1,029      $ 930  
(Income) loss from investments
      (86 )       (68 )       (10 ) 
Foreign exchange (gains) losses, net
      17        30        (16 ) 
Other, net (*)
      48        66        61  
  
 
 
     
 
 
     
 
 
  
Total finance expense, net
    $ 981      $ 1,057      $ 966  
  
 
 
     
 
 
     
 
 
  

(*)
Amortization of issuance costs and terminated derivative instruments.
v3.25.0.1
Earnings (loss) per share
 12 Months Ended
Dec. 31, 2024
Earnings (loss) per share
NOTE 18—Earnings (loss) per share:
The net income (loss) attributable to Teva and the weighted average number of ordinary shares used in the computation of basic and diluted earnings (loss) per share for the years ended December 31, 2024, 2023 and 2022 are as follows:
 
    
Year ended December, 31
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions, except share data)
  
Net income (loss) used for the computation of basic and diluted earnings (loss) per share
    $ (1,639 )    $ (559 )     $ (2,446 ) 
  
 
 
     
 
 
     
 
 
  
Weighted average number of shares used in the computation of basic earnings (loss) per share
      1,131        1,119        1,110  
  
 
 
     
 
 
     
 
 
  
Weighted average number of shares used in the computation of diluted earnings (loss) per share
      1,131        1,119        1,110  
  
 
 
     
 
 
     
 
 
  
Basic earnings (loss) per share are computed by dividing net income (loss) attributable to Teva’s ordinary shareholders by the weighted average number of ordinary shares outstanding (including fully vested RSUs and PSUs during the period), net of treasury shares.
In computing diluted loss per share for the years ended December 31, 2024, 2023 and 2022, no account was taken of the potential dilution that could occur upon the exercise of options and
non-vested
RSUs and PSUs granted under employee stock compensation plans, and convertible senior debentures, since they had an anti-dilutive effect on loss per share.
Basic and diluted loss per share was $1.45 for the year ended December 31, 2024, compared to basic and diluted loss per share of $0.50 and $2.20 for the years ended December 31, 2023 and 2022, respectively.
v3.25.0.1
Segments
 12 Months Ended
Dec. 31, 2024
Segments
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 addition to these three segments, Teva has other sources of revenues included in other activities, primarily the sale of APIs to third parties, certain contract manufacturing services and an
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 loss (income)). While CODM analyzes these categories, the area of focus is period over period fluxes and
budget-to-actual
variances to determine the right allocation of resources is attributed to each segment in order to ensure profitability is maximized.
Segment profit is comprised of revenues for the segment less cost of sales, R&D expenses, S&M expenses, G&A expenses and other loss (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 recent 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 have been recast to conform to the reporting structure for the current year.
On January 31, 2024, Teva announced that it intends to divest its API business (including its R&D, manufacturing and commercial activities) through a sale. The intention to divest is in alignment with Teva’s Pivot to Growth strategy. However, there can be no assurance regarding the ultimate timing or structure of a potential divestiture or that a divestiture will be agreed or completed at all. See note 2.
 
a.
Segment information:
 
    
Year ended December 31,
  
    
2024
  
    
United
States
     
Europe
     
International
Markets
  
    
(U.S. $ in millions)
  
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 loss (income)
      §        3        (2 ) 
  
 
 
     
 
 
     
 
 
  
Segment profit
    $ 2,296      $ 1,575      $ 440  
  
 
 
     
 
 
     
 
 
  
 
§
Represents an amount less than $0.5 million.
 
    
Year ended December 31,
  
    
2023
  
    
United
States
     
Europe
     
International
Markets
  
    
(U.S. $ in millions)
  
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 ) 
  
 
 
     
 
 
     
 
 
  
Segment profit
    $ 2,394      $ 1,478      $ 465  
  
 
 
     
 
 
     
 
 
  
 
    
Year ended December 31,
  
    
2022
  
    
United
States
     
Europe
     
International
Markets
  
    
(U.S. $ in millions)
  
Revenues
    $ 7,003      $ 4,525      $ 2,352  
Cost of sales
      3,269        1,825        1,128  
R&D expenses
      485        213        119  
S&M expenses
      879        748        467  
G&A expenses
      440        246        154  
Other loss (income)
      (3 )       (3 )       (54 ) 
  
 
 
     
 
 
     
 
 
  
Segment profit
    $ 1,934      $ 1,496      $ 538  
  
 
 
     
 
 
     
 
 
  
 
    
Year ended December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
  
United States profit
    $ 2,296      $ 2,394      $ 1,934  
Europe profit
      1,575        1,478        1,496  
International Markets profit
      440        465        538  
  
 
 
     
 
 
     
 
 
  
Total reportable segments profit
      4,311        4,338        3,968  
Profit of other activities
      18        24        172  
  
 
 
     
 
 
     
 
 
  
Amounts not allocated to segments:
            —   
Amortization
      588        616        732  
Other assets impairments, restructuring and other items
      1,388        718        512  
Goodwill impairment
      1,280        700        2,045  
Intangible assets impairments
      251        350        355  
Legal settlements and loss contingencies
      761        1,043        2,082  
Other unallocated amounts
      364        502        610  
  
 
 
     
 
 
     
 
 
  
Consolidated operating income (loss)
      (303 )      433        (2,197 ) 
  
 
 
     
 
 
     
 
 
  
Financial expenses, net
      981        1,057        966  
  
 
 
     
 
 
     
 
 
  
Consolidated income (loss) before income taxes
    $ (1,284 )
 
    $ (624 )     $ (3,163 ) 
  
 
 
     
 
 
     
 
 
  
 
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, 2024, 2023 and 2022:
United States segment:
 
    
Year ended December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
  
Generic products (including biosimilars)
    $ 3,599      $ 3,138      $ 3,155  
AJOVY
      207        211        210  
AUSTEDO
      1,642        1,225        963  
BENDEKA and TREANDA
      168        237        309  
COPAXONE
      242        297        359  
UZEDY
      117        23        —   
Anda
      1,536        1,577        1,471  
Other*
      523        1,025        536  
  
 
 
     
 
 
     
 
 
  
Total
    $ 8,034      $ 7,731      $ 7,003  
  
 
 
     
 
 
     
 
 
  

*
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 (see note 2).
Europe segment:
 
    
Year ended December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
  
Generic products (including OTC and biosimilars)
    $ 3,926      $ 3,664      $ 3,466  
AJOVY
      216        160        124  
COPAXONE
      213        231        268  
Respiratory products
      244        265        273  
Other*
      504        516        393  
  
 
 
     
 
 
     
 
 
  
Total
    $ 5,103      $ 4,837      $ 4,525  
  
 
 
     
 
 
     
 
 
  

*
Other revenues in 2024 and 2023 include the sale of certain product rights.
International Markets segment:
 
    
Year ended December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
  
Generic products (including OTC and biosimilars)
    $ 1,937      $ 1,932      $ 1,980  
AJOVY
      84        63        42  
COPAXONE
      48        63        64  
AUSTEDO
      46        15        8  
Other*
      349        278        257  
  
 
 
     
 
 
     
 
 
  
Total
    $ 2,463      $ 2,351      $ 2,352  
  
 
 
     
 
 
     
 
 
  
 
 


*
Other revenues in 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 49%, 49% and 47% of Teva’s consolidated revenues for the years ended December 31, 2024, 2023 and 2022, respectively. Revenues within the Company’s country of domicile (Israel) constituted 2%, 2% and 2% of Teva’s consolidated revenues for the years ended December 31, 2024, 2023 and 2022, respectively.
 
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, 2024, 2023 and 2022.
 
    
Percentage of Third Party Net Sales
  
    
2024
    
2023
    
2022
  
McKesson Corporation
      12 %      9 %      10 % 
AmerisourceBergen Corporation
      9 %      9 %      10 % 
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,
  
    
2024
     
2023
  
    
(U.S. $ in millions)
  
Israel
    $ 1,066      $ 1,312  
Germany
      1,262        1,318  
United States
      561        596  
Croatia
      277        447  
Czech republic
      206        309  
Hungary
      83        279  
Ireland
      261        266  
Other
      865        1,222  
  
 
 
     
 
 
  
Total property, plant and equipment
    $ 4,581      $ 5,750  
  
 
 
     
 
 
  
v3.25.0.1
Fair value measurement
 12 Months Ended
Dec. 31, 2024
Fair value measurement
NOTE 20—Fair value measurement:
Financial items carried at fair value as of December 31, 2024 and 2023 are classified in the tables below in one of the three categories described in note 1f:
 
    
December 31, 2024
  
    
Level 1
     
Level 2
     
Level 3
     
Total
  
    
(U.S. $ in millions)
  
Cash and cash equivalents:
            
Money markets
    $ 2,005        —         —       $ 2,005  
Cash, deposits and other
      1,295        —         —         1,295  
Investment in securities:
            
Equity securities
      12        —         —         12  
Other
      3        —         —         3  
Derivatives:
            
Asset derivatives
:
            
Options and forward contracts
      —         71        —         71  
Liabilities derivatives
:
               —   
Options and forward contracts
      —         (24 )       —         (24 ) 
Bifurcated embedded derivatives
      —         —         §        —   
Contingent consideration*
      —         —         (401 )       (401 ) 
  
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 3,315      $ 47      $ (401 )     $ 2,961  
  
 
 
     
 
 
     
 
 
     
 
 
  
 
    
December 31, 2023
  
    
Level 1
     
Level 2
     
Level 3
     
Total
  
    
(U.S. $ in millions)
  
Cash and cash equivalents:
            
Money markets
    $ 1,704        —         —       $ 1,704  
Cash, deposits and other
      1,522        —         —         1,522  
Investment in securities:
            
Investment in convertible bond security
      —         —         40        40  
Equity securities
      7        —         —         7  
Other
      1        —         —         1  
Restricted cash
      1        —         —         1  
Derivatives:
            
Asset derivatives
:
            
Options and forward contracts
         38        —         38  
Cross-currency interest rate swap
         8        —         8  
Liabilities derivatives
:
            
Options and forward contracts
      —         (39 )       —         (39 ) 
Bifurcated embedded derivatives
      —         —         §        —   
Contingent consideration*
      —         —         (517 )       (517 ) 
  
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 3,235      $ 7      $ (477 )     $ 2,765  
  
 
 
     
 
 
     
 
 
     
 
 
  

§
Represents an amount less than $0.5 million.
*
Contingent consideration represents liabilities recorded at fair value in connection with acquisitions. The contingent consideration liability is recorded under accrued expenses and other taxes and long term liabilities.
 
Teva determined the fair value of the liabilities for the contingent consideration based on a probability-weighted discounted cash flow analysis. This fair value measurement is based on significant unobservable inputs in the market and thus represents a Level 3 measurement within the fair value hierarchy. The fair value of the contingent consideration is based on several factors, such as: the cash flows projected from the success of unapproved product candidates; the probability of success of product candidates, including risks associated with uncertainty regarding achievement and payment of milestone events; the time and resources needed to complete the development and approval of product candidates; the life of the potential commercialized products and associated risks of obtaining regulatory approvals in the United States and Europe, and the risk adjusted discount rate for fair value measurement. The discount rate applied ranged from 8.5% to 11%. The weighted average discount rate, calculated based on the relative fair value of Teva’s contingent consideration liabilities, was 8.8%. The contingent consideration is evaluated quarterly, or more frequently, if circumstances dictate. Changes in the fair value of contingent consideration are recorded in consolidated statements of income. Significant changes in unobservable inputs, mainly the cash flows projected, could result in material changes to the contingent consideration liabilities. A change of the discount rate by 1% would have not resulted in material changes to the contingent consideration liabilities.
The following table summarizes the activity for those financial assets and liabilities where fair value measurements are estimated utilizing Level 3 inputs.
 
    
December 31,
2024
     
December 31,
2023
  
    
(U.S. $ in millions)
  
Fair value at the beginning of the period
    $ (477 )     $ (250 ) 
Investment in convertible bond *
      —         25  
Conversion option*
      —         15  
Redemption of convertible bond security*
      (40)        —   
Bifurcated embedded derivatives
      §        §  
Adjustments to provisions for contingent consideration:
      
Allergan transaction
      (270 )       (422 ) 
Eagle transaction
      (31 )       (132 ) 
Novetide transaction
      (2 )       2  
Settlement of contingent consideration:
      
Allergan transaction
      363        207  
Eagle transaction
      54        76  
Novetide transaction
      2        2  
  
 
 
     
 
 
  
Fair value at the end of the period
    $ (401 )     $ (477 ) 
  
 
 
     
 
 
  

§
Represents an amount less than $0.5 million.
*
On September 29, 2023, Teva purchased $40 million of subordinated convertible bonds of Alvotech. On June 26, 2024, Alvotech announced its intention to exercise its redemption rights and redeemed the convertible bonds, which were paid to Teva in July 2024 (see note 2).
Teva’s financial instruments consist mainly of cash and cash equivalents, investments in securities, current and
non-current
receivables, short-term credit, accounts payable and accruals, loans, senior notes and sustainability-linked senior notes, convertible senior debentures and derivatives.
The fair value of the financial instruments included in working capital approximates their carrying value. The fair value of long-term bank loans mostly approximates their carrying value, since they bear interest at rates close to the prevailing market rates.
 
 
Financial instruments not measured at fair value
Financial instruments measured on a basis other than fair value consist of senior notes, sustainability-linked senior notes and convertible senior debentures (see note 9), and are presented in the below table in terms of fair value:
 
    
Estimated fair value*
  
    
December 31,
  
    
2024
     
2023
  
    
(U.S. $ in millions)
  
Senior notes and sustainability-linked senior notes included under senior notes and loans
    $ 15,717      $ 17,214  
Senior notes and convertible senior debentures included under short-term debt
      1,779        1,651  
  
 
 
     
 
 
  
Total*
    $ 17,496      $ 18,865  
  
 
 
     
 
 
  

*
The fair value was estimated based on quoted market prices.
v3.25.0.1
Long-term Employee-related Obligations
 12 Months Ended
Dec. 31, 2024
Long-term Employee-related Obligations
NOTE 21—Long-term employee-related obligations:
 
a.
Long-term employee-related obligations consisted of the following:
 
    
December 31,
  
    
2024
     
2023
  
    
(U.S. $ in millions)
  
Accrued severance obligations
    $ 65      $ 74  
Defined benefit plans
      63        73  
  
 
 
     
 
 
  
Total (*)
    $ 128      $ 148  
  
 
 
     
 
 
  

(*)
Teva’s long-term employee-related obligations are presented in the Consolidated Balance Sheet under other taxes and long-term liabilities.
As of December 31, 2024 and 2023, Teva had $97 million and $90 million, respectively, deposited in funds managed by financial institutions and earmarked by management to cover severance pay liability. Such deposits are not considered to be “plan assets” and are therefore included in other
non-current
assets.
The Company expects to expense an approximate contribution of $118 million in 2025 to pension funds and insurance companies in connection with its severance and pension pay obligations.
The main terms of the different arrangements with employees are described in below.
 
b.
Terms of arrangements:
Israel
Israeli law generally requires payment of severance pay upon dismissal of an employee or upon termination of employment in certain other circumstances. The Parent Company and its Israeli subsidiaries make ongoing deposits into employee pension plans to fund their severance liabilities. Generally, employees that joined the Company after 2005, have signed an arrangement, pursuant to which such deposits are made in lieu of the
 
Company’s severance liability. Therefore, no obligation is provided for in the financial statements. Severance pay liabilities with respect to employees who were employed by the Parent Company and its Israeli subsidiaries prior to that date, as well as employees who have special contractual arrangements, are provided for in the financial statements based upon the number of years of service and the latest monthly salary of such employees.
Europe
Many of the employees in the Company’s European subsidiaries are entitled to a retirement grant when they leave the Company. In the consolidated financial statements, the liability of the European subsidiaries is accrued, based on the length of service and remuneration of each employee at the balance sheet date. Other employees in Europe are entitled to a pension according to a defined benefit scheme providing benefits based on final or average pensionable pay or according to a hybrid pension scheme that provides retirement benefits on a defined benefit and a defined contribution basis. Independent certified actuaries value these schemes and determine the rates of contribution payable. Pension costs for the defined benefit section of the scheme are accounted for on the basis of charging the expected cost of providing pensions over the period during which the subsidiaries benefit from the employees’ services. The Company uses December 31 as the measurement date for defined benefit plans.
North America
The Company’s North American subsidiaries mainly provide various defined contribution plans for the benefit of their employees. Under these plans, contributions are based on specified percentages of pay. Additionally, a multi-employer plan is maintained in accordance with various union agreements.
Latin America
The majority of the employees in Latin America are entitled to severance under local law. The severance payments are calculated based on service term and employee remuneration, and accruals are maintained to reflect these amounts. In some Latin American countries, it is Teva’s practice to offer retirement health benefits to qualifying employees. Based on the specific plan requirements, benefits accruals are maintained to reflect the estimated amounts or adjusted if future plans are modified.
The Company expects to pay the following future minimum benefits to its employees: $14 million in 2025; $13 million in 2026; $12 million in 2027; $14 million in 2028; $14 million in 2029; and $78 million in the aggregate between 2030 to 2034. These amounts do not include amounts that may be paid to employees who cease working with the Company before their normal retirement age.
v3.25.0.1
Redeemable Non-Controlling Interests
 12 Months Ended
Dec. 31, 2024
Redeemable Non Controlling Interests [Abstract]  
Redeemable Non-Controlling Interests
NOTE 22— Redeemable
Non-Controlling
Interests:
In December 2024, Teva entered into an agreement with JKI Co., Ltd. (“JKI”) established by the fund managed and operated by private equity firm
J-Will
Partners Co., Ltd.
(“J-Will”),
through which JKI will acquire Teva-Takeda, Teva’s business venture in Japan (the “BV”), which includes generic products and legacy products.
Since the establishment of the BV and as of December 31, 2024, Teva holds 
51
% of the outstanding common stock of the BV, therefore consolidating the BV in its financial statements.
Pursuant to existing agreements with the minority investors of the BV, a redemption feature exists whereby the interest held by the minority investors is redeemable as a result of a sale of the BV, subject to certain terms listed therein. The redemption value would be determined based on a prescribed formula derived from the consideration received from the sale of the BV.
 
 
The balance of the redeemable
non-controlling
interest is reported at the greater of the initial carrying amount adjusted for the redeemable
non-controlling
interest’s share of earnings or losses and other comprehensive income or loss, or its estimated redemption value. The resulting changes in the estimated redemption amount (increases or decreases) are recorded with corresponding adjustments against retained earnings or, in the absence of retained earnings, additional
paid-in-capital.
Since the share redemption feature does not include a share cap, these interests are presented on the consolidated balance sheets outside of permanent equity under the caption “Redeemable
non-controlling
interest”.
As of December 31, 2024, the total balance of the redeemable
non-controlling
interests is $340 million.
v3.25.0.1
Schedule of Valuation and Qualifying Accounts
 12 Months Ended
Dec. 31, 2024
Schedule of Valuation and Qualifying Accounts
Column A
  
Column B
    
Column C
    
Column D
    
Column E
  
   
Balance at
beginning
of period
    
Charged to costs
and expenses
    
Charged to other
accounts
    
Deductions
    
Balance at end
of period
  
Allowance for doubtful accounts including credit
losses:
          
Year ended December 31, 2024
   $ 164     $ 35     $ (8 )    $ (46 )      146  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Year ended December 31, 2023
   $ 162     $ 10     $ (6 )    $ (2 )      164  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Year ended December 31, 2022
   $ 164     $ 8     $ (2 )    $ (8 )    $ 162  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Allowance in respect of carryforward tax losses and deductions that may not be utilized:
          
Year ended December 31, 2024
   $ 3,009     $ 100     $ —      $ (1,093 )    $ 2,017  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Year ended December 31, 2023
   $ 3,072     $ 161     $ —      $ (224 )    $ 3,009  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Year ended December 31, 2022
   $ 2,723     $ 443     $ —      $ (93 )    $ 3,072  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
v3.25.0.1
Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2024
General
a.
General:
Operations
Teva Pharmaceutical Industries Limited (the “Parent Company”), headquartered in Israel, together with its subsidiaries and associated companies (the “Company,” “Teva” or the “Group”), is engaged in the development, manufacturing, marketing and distribution of generics, innovative medicines and biopharmaceuticals. The majority of the Group’s revenues are in the United States and Europe.
Basis of presentation and use of estimates
The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”).
In preparing the Company’s consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets, liabilities, equity and disclosure of contingent liabilities and assets at the dates of the financial statements and the reported amounts of revenues and expenses during the reported years. Actual results could differ from those estimates.
In preparing the Company’s consolidated financial statements, management also considered the economic implications of inflation expectations on its critical and significant accounting estimates. Government actions taken to address macroeconomic developments, as well as their economic impact on Teva’s third-party manufacturers and suppliers, customers and markets, could also impact such estimates and may change in future periods. As applicable to these consolidated financial statements, the most significant estimates and assumptions relate to: determining the valuation and recoverability of IPR&D assets, marketed product rights, contingent consideration and goodwill, assessing sales reserves and allowances in the United States, uncertain tax positions, valuation allowances and contingencies. Some of these estimates could be impacted by higher costs and the ability to pass on such higher costs to customers, which is highly uncertain.
As of the date of these consolidated financial statements, sustained conflict between Russia and Ukraine and disruption in the region is ongoing. Russia and Ukraine markets are included in Teva’s International Markets segment results. Teva has no manufacturing or R&D facilities in these markets. Other than its impact on the goodwill impairment charge in its International Markets reporting unit recorded in the second quarter of 2023, the impact of the Russia-Ukraine conflict on Teva’s results of operations and financial condition continues to be immaterial.
In October 2023, Israel was attacked by a terrorist organization and entered a state of war on several fronts. As of the date of these consolidated financial statements, sustained conflict in the region is ongoing. Israel is included in Teva’s International Markets segment results. Teva’s global headquarters and several manufacturing and R&D facilities are located in Israel. Currently, such activities in Israel remain largely unaffected. Teva continues to maintain contingency plans with backup production locations for key products. During the years ended December 31, 2024 and 2023, the impact of this war on Teva’s results of operations and financial condition was immaterial, but such impact may increase, which could be material, as a result of the continuation, escalation or expansion of such war.
Certain amounts in the consolidated financial statements and associated notes may not add up due to rounding. All percentages have been calculated using unrounded amounts.
 
Functional currency
A major part of the Group’s operations is carried out by the Company in the United States, Israel and certain other countries. The functional currency of these entities is the U.S. dollar (“dollar” or “$”).
The functional currency of certain subsidiaries and associated companies is their local currency. The financial statements of those companies are included in the consolidated financial statements, translated into U.S. dollars. Assets and liabilities are translated at
year-end
exchange rates, while revenues and expenses are translated at monthly average exchange rates during the year. Differences resulting from translation are presented as other comprehensive income (loss) in the consolidated statements of comprehensive income (loss).
In the event of a divestiture of a foreign subsidiary, the related foreign currency translation results net of related income taxes are reversed from equity to income. Foreign currency exchange gains and losses are included in net income (loss).
Principles of consolidation
The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries, joint ventures and variable interest entities (“VIEs”) for which the Company is considered the primary beneficiary. For those consolidated entities where Teva owns less than 100%, the outside shareholders’ interests are shown as non-controlling interests
in equity. Investments in affiliates over which the Company has significant influence but not a controlling interest, are carried on the equity basis.
For VIEs, the Company performs an analysis to determine whether the variable interests give a controlling financial interest in a VIE. The Company periodically reassesses whether it controls its VIEs.
Intercompany transactions and balances are eliminated on consolidation; profits from intercompany sales, not yet realized outside the Group, are also eliminated.
New accounting pronouncements
b.
New accounting pronouncements
Recently adopted accounting pronouncements
In November 2023, the FASB issued ASU
2023-07
“Segment Reporting: Improvements to Reportable Segment Disclosures”. This guidance expands public entities’ segment disclosures primarily by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. The amendments are required to be applied retrospectively to all prior periods presented in an entity’s financial statements. The Company adopted the new accounting standard for the fiscal year 2024. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements related disclosures.
Recently issued accounting pronouncements, not yet adopted
In November 2024, the FASB issued ASU 2024-03 “Income Statement: Reporting Comprehensive Income— Expense Disaggregation Disclosures,” which requires more detailed information about specified categories of expenses (purchases of inventory, employee compensation, depreciation, amortization, and depletion) included in certain expense captions presented on the face of the income statement, as well as disclosures about selling expenses. This ASU is effective for fiscal years beginning after December 15, 2026 and for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The
 
amendments may be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this ASU or (2) retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements disclosures.
In December 2023, the FASB issued ASU
2023-09
“Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. This guidance is intended to enhance the transparency and decision-usefulness of income tax disclosures. The amendments in ASU
2023-09
address investor requests for enhanced income tax information primarily through changes to disclosure regarding rate reconciliation and income taxes paid both in the U.S. and in foreign jurisdictions. ASU
2023-09
is effective for fiscal years beginning after December 15, 2024 on a prospective basis, with the option to apply the standard retrospectively. Early adoption is permitted. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements disclosures.
In October 2023, the FASB issued ASU
2023-06
“Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative,” which incorporates certain SEC disclosure requirements into the FASB Accounting Standards Codification (“Codification”). The amendments in the ASU are expected to clarify or improve disclosure and presentation requirements of a variety of Codification topics, allow investors to more easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the Codification with the SEC’s regulations. The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation
S-X
or Regulation
S-K
becomes effective, with early adoption prohibited. The amendments in this ASU should be applied prospectively. The Company does not expect ASU
2023-06
will have a material impact to its consolidated financial statements.
Acquisitions
c.
Acquisitions:
Teva’s consolidated financial statements include the operations of acquired businesses from the date of the acquisition’s consummation. Acquired businesses are accounted for using the acquisition method of accounting, which requires, among other things, that most assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date and that the fair value of acquired IPR&D be recorded on the balance sheet. Transaction costs are expensed as incurred. Any excess of the consideration transferred over the assigned values of the net assets acquired is recorded as goodwill. When Teva acquires net assets that do not constitute a business, as defined under U.S. GAAP, no goodwill is recognized and acquired IPR&D is expensed unless it has an alternative future use.
Contingent consideration incurred in a business combination is included as part of the acquisition price and recorded at a probability weighted assessment of its fair value as of the acquisition date. The fair value of the contingent consideration is
re-measured
at each reporting period, with any adjustments in fair value recognized in earnings under other asset impairments, restructuring and other items.
Collaborative arrangements
d.
Collaborative arrangements:
The Company enters into collaborative arrangements, typically with other pharmaceutical or biotechnology companies, to develop and commercialize drug candidates or intellectual property. These arrangements typically involve two (or more) parties who are active participants in the collaboration and are exposed to significant risks and rewards dependent on the commercial success of the activities. These collaborations usually involve various activities by one or more parties, including research and development, marketing and selling and distribution. Often, these collaborations require upfront, milestone and royalty or profit share payments, contingent upon the occurrence of certain future events linked to the success of the asset in development.
 
The Company recognizes revenue generated and costs incurred on sales to third parties as it relates to collaborative agreements on a gross or net basis. When the Company is the principal on sales transactions with third parties, the Company recognizes sales, cost of sales and selling, general and administrative expenses on a gross basis. Profit sharing amounts it pays to its collaborative partners are recorded within cost of sales. When the collaborative partner is the principal on sales transactions with third parties, the Company records profit sharing amounts received from its collaborative partners on a net basis.
Research and development costs the Company incurs related to collaborations are recorded within Research and development expenses. Cost reimbursements to the collaborative partner or payments received from the collaborative partner to share these costs pursuant to the terms of the collaboration agreements are recorded as increases or decreases to Research and development expenses.
In addition, the terms of the collaboration agreements may require the Company to make payments based upon the achievement of certain developmental, regulatory approval or commercial milestones. Upfront and milestone payments payable by the Company to collaborative partners prior to regulatory approval are expensed as incurred and included in Research and development expenses. Payments due to collaborative partners upon or subsequent to regulatory approval are capitalized and amortized to Cost of sales over the estimated useful life of the corresponding intangible asset, provided that future cash flows support the amounts capitalized. Sales-based milestones payable by the Company to collaborative partners are accrued and capitalized, subject to cumulative amortization
catch-up,
when determined to be probable of being achieved by the Company. The amortization
catch-up
is calculated either from the time of the first regulatory approval for indications that were unapproved at the time the collaboration was formed, or from the time of the formation of the collaboration for approved products. The related intangible asset that is recognized is amortized to Cost of sales over its remaining useful life, subject to impairment testing.
Equity investments
e.
Equity investments:
The Company measures equity investments at fair value with changes in fair value recognized in net income. The Company accounts for equity investments that do not have a readily determinable fair value as cost method investments under the measurement alternative to the extent such investments are not subject to consolidation or the equity method. Under the measurement alternative, these financial instruments are carried at cost, less any impairment (assessed quarterly for triggering events), adjusted for changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. In addition, income is recognized when dividends are received only to the extent they are distributed from net accumulated earnings of the investee. Otherwise, such distributions are considered returns of investment and are recorded as a reduction of the cost of the investment.
Fair value measurement
f.
Fair value measurement:
The Company measures and discloses the fair value of financial assets and liabilities. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The accounting standard establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below:
Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.
 
 
Level 2: Observable inputs that are based on inputs not quoted on active markets, but corroborated by market data.
Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.
In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and considers counterparty credit risk in its assessment of fair value.
Investment in debt securities
g.
Investment in debt securities:
Investment in securities consists of debt securities classified as
available-for-sale
and recorded at fair value. The fair value of quoted securities is based on their current market value. When debt securities do not have an active market, fair value is determined using a valuation model. This model is based on reference to other instruments with similar characteristics, a discounted cash flow analysis or other pricing models making use of market inputs and relying as little as possible on entity-specific inputs.
Unrealized gains and losses for
available-for-sale
securities are excluded from earnings and reported net of the related tax effect in the accumulated other comprehensive income component of shareholders’ equity. The Current Expected Credit Loss (CECL) methodology requires the Company to estimate lifetime expected credit losses for all
available-for-sale
debt securities in an unrealized loss position. When estimating a security’s probability of default and the recovery rate, the Company assesses the security’s credit indicators, including credit ratings. If the assessment indicates that an expected credit loss exists, the Company determines the portion of the unrealized loss attributable to credit deterioration and records an allowance for the expected credit loss through the Consolidated Statements of Income. Unrealized gains and any portion of a security’s unrealized loss attributable to
non-credit
losses are recorded in the Consolidated Statements of Comprehensive Income, net of tax.
Cash and cash equivalents
h.
Cash and cash equivalents:
All highly liquid investments, which include short-term bank deposits and money market instruments, that are not restricted as to withdrawal or use, and investment in short-term debentures, the period to maturity of which did not exceed three months at the time of investment, are considered to be cash equivalents.
Restricted cash
i.
Restricted cash:
Restricted cash represents amounts which are legally restricted to withdrawal or usage and is presented in the Consolidated Balance Sheet under other current assets.
Accounts receivables
j.
Accounts Receivables:
Accounts receivable have been reduced by an allowance for credit losses. The Company maintains the allowance for estimated losses resulting from the inability of the Company’s customers to make required payments. The allowance represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable considering current market conditions and supportable forecasts when appropriate. The estimate is a result of the Company’s ongoing evaluation of collectability, customer creditworthiness, historical levels of credit losses, and future expectations.
Write-off
activity and recoveries for the periods presented were not material.
Concentration of credit risks
k.
Concentration of credit risks:
Most of Teva’s cash and cash equivalents, along with investment in securities, on December 31, 2024 were deposited with European, U.S. and Israeli banks and financial institutions and were comprised mainly of money market funds investments and cash deposits.
The U.S. market constituted approximately 49% of Teva’s consolidated revenues in 2024. The exposure of credit risks relating to other trade receivables outside the U.S. is limited, due to the relatively large number of group customers and their wide geographic distribution. Teva performs ongoing credit evaluations of its customers for the purpose of determining the appropriate allowance for doubtful accounts and generally does not require collateral and from time to time the Company may choose to purchase trade credit insurance.
Inventories
l.
Inventories:
Inventories are valued at the lower of cost or net realizable value. Cost of raw and packaging materials, purchased products, manufactured finished products, products in process and capitalized production costs are determined predominantly on a standard cost basis, approximating actual costs. Other methods which are utilized for determining the value of inventories are moving average, cost basis and the first in first out method. Teva regularly reviews its inventories for obsolescence and other impairment risks and reserves are established when necessary.
Inventories acquired in a business combination are
stepped-up
to their estimated fair value and amortized to cost of sales as that inventory is sold or written off.
Long-lived assets
m.
Long-lived assets:
Teva’s long-lived,
non-current
assets are comprised mainly of goodwill, identifiable intangible assets, property, plant and equipment, and operating lease
right-of-use
(“ROU”) assets. All long-lived assets are monitored for impairment indicators throughout the year. Impairment testing for goodwill and all indefinite-lived intangible assets is performed at least annually. When necessary, charges for impairments of long-lived assets, other than goodwill, are recorded for the amount by which the fair value is less than the carrying value of these assets.
Goodwill
Goodwill reflects the excess of the consideration transferred, including the fair value of any contingent consideration and any
non-controlling
interest in the acquiree, over the assigned fair values of the identifiable net assets acquired, as part of a business combination. Goodwill is not amortized, and is assigned to reporting units and tested for impairment at least on an annual basis, in the second quarter of the fiscal year.
The goodwill impairment test is performed according to the following principles:
 
  1.
An initial qualitative assessment may be performed to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount.
 
  2.
If the Company concludes it is more likely than not that the fair value of the reporting unit is less than its carrying amount, a quantitative fair value test is performed. An impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value is recognized.
An interim goodwill impairment test may be required in advance or after of the annual impairment test if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit
 
below its carrying amount. For example, a substantial decline in the Company’s market capitalization, unexpected adverse business conditions, economic factors and unanticipated competitive activities may indicate that an interim impairment test is required. In the event that the Company’s market capitalization declines below its book value, the Company considers the length and severity of the decline and the reason for the decline when assessing whether potential goodwill impairment exists.
Identifiable intangible assets
Identifiable intangible assets are comprised of definite and indefinite life intangible assets.
Definite life intangible assets primarily include acquired product rights and other rights related to products approved by the FDA or the equivalent regulatory agencies in other countries. These assets are amortized using mainly the straight-line method over their estimated period of useful life or based on economic benefit models when they better reflect the expected cash flow patterns. Amortization of acquired product rights is recorded under cost of sales, while amortization of marketing and distribution rights, if separable, is recorded under selling and marketing expenses (“S&M”).
Indefinite life intangible assets, primarily IPR&D assets, are monitored for research and development progress, clinical trial outcomes, and regulatory approvals to identify any triggering events for impairment.
IPR&D acquired in a business combination is capitalized as an indefinite life intangible asset until the related research and development efforts are either completed or abandoned. In the reporting periods where they are treated as indefinite life intangible assets, they are not amortized but rather are monitored triggering events and tested for impairment at least on an annual basis, in the second quarter of the fiscal year. Upon completion of the related research and development efforts, management determines the useful life of the intangible assets and amortizes them accordingly. In case of abandonment or a reduction in the expected realizable value of the asset, the related research and development assets are impaired.
Whenever impairment indicators are identified for definite life intangible assets, Teva reconsiders the asset’s estimated life, calculates the undiscounted value of the asset’s or asset group’s cash flows and compares such value against the asset’s or asset group’s carrying amount. If the carrying amount is greater, Teva records an impairment loss for the excess of book value over fair value based on the discounted cash flows.
For indefinite life intangible assets, Teva performs an impairment test annually in the second quarter and whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. Teva determines the fair value of the asset based on discounted cash flows and records an impairment loss if its book value exceeds fair value.
In determining the estimated fair value of identifiable intangible assets, Teva utilized a discounted cash flow model. The key assumptions within the model related to forecasting future revenue and operating income, an appropriate discount rate and an appropriate terminal value based on the nature of the long-lived asset. The Company’s updated forecasts of net cash flows for the impaired assets reflect, among others, the following: (i) for IPR&D assets, the impact of changes to the development programs, the projected development and regulatory timeframes and the risks associated with these assets; and (ii) for product rights, pricing and volume projections, as well as patent life and any significant changes to the competitive environment.
Property, plant and equipment
Property, plant and equipment are stated at cost, after deduction of the related investment grants, and depreciated using the straight-line method over the estimated useful life of the assets: buildings, mainly 40 years; machinery and equipment, mainly 20 years; and other assets, between 5 to 10 years.
 
For property, plant and equipment, whenever impairment indicators are identified, Teva reconsiders the asset’s estimated life, calculates the undiscounted value of the asset’s cash flows and compares such value against the asset’s carrying amount. If the carrying amount is greater, Teva records an impairment loss for the excess of book value over fair value.
Lease
right-of-use
(ROU) assets
See note 8 and note 1ff for further discussion.
Assets and liabilities held for sale
Assets and liabilities classified as held for sale are measured at the lower of their carrying amount or fair value, less costs to sell. Non-current assets included in assets held for sale are not subject to depreciation or amortization while classified as held for sale. These assets and liabilities are presented separately within current assets and current liabilities on the Consolidated Balance Sheets.
Contingent consideration
n.
Contingent consideration:
The fair value of contingent consideration liabilities acquired as part of business combination is determined at the acquisition date using unobservable inputs. These inputs include the estimated amount and timing of projected cash flows, the probability of success (achievement of the contingent event) and the risk-adjusted discount rate used to present value the probability-weighted cash flows. Subsequent to the acquisition date, at each reporting period until the contingency is resolved, the contingent consideration liability is remeasured at current fair value with changes (either expense or income) recorded in earnings under other asset impairments, restructuring and other items. Significant events that increase or decrease the probability of achieving development and regulatory milestones or that increase or decrease projected cash flows will result in corresponding increases or decreases in the fair values of the related contingent consideration obligations.
Contingencies
0.
Contingencies:
The Company is involved in various patent, product liability, commercial, government investigations, environmental claims and other legal proceedings that arise from time to time in the ordinary course of business. Except for income tax contingencies, contingent consideration, other contingent liabilities incurred or acquired in a business combination, Teva records accruals for these types of contingencies to the extent that Teva concludes their occurrence is probable and that the related liabilities are reasonably estimable. When accruing these costs, the Company will recognize an accrual in the amount within a range of loss that is the best estimate within the range. When no amount within the range is a better estimate than any other amount, the Company accrues for the minimum amount within the range. Teva records anticipated recoveries under existing insurance contracts that are probable of occurring at the gross amount that is expected to be collected, in the limit these anticipated recoveries do not exceed the loss recognized. When applicable, the Company classifies the effect that the passage of time had on the net present value of a discounted legal accrual as legal expenses. Legal costs are expensed as incurred.
The Company recognizes gain contingencies when they are realized or when all related contingencies have been resolved.
Treasury shares
p.
Treasury shares:
Treasury shares are presented as a reduction of Teva shareholders’ equity and carried at their cost to Teva, under treasury shares.
Stock-based compensation
q.
Stock-based compensation:
Teva recognizes stock-based compensation expense for equity grants under the Company’s long-term incentive plans (including stock options, restricted share units (“RSUs”) and performance share units (“PSUs”). The grant-date fair value of an award is generally recognized as compensation expense over the award’s requisite service period.
Teva uses the Black-Scholes model to compute the estimated fair value of stock option awards. Additionally, the Company uses a Monte Carlo simulation to compute the estimated fair value of performance share units that are subject to vesting based on the Company’s attainment of
pre-established
criteria that include a market condition. The fair value of the restricted share units is based on the market value of the underlying stock at the date of grant, less the present value of expected dividends not received during the vesting period, if applicable.
For performance-based restricted stock units that contain a performance condition, the Company recognizes stock-based compensation expense if and when the Company determines that it is probable the performance condition will be achieved. If the Company subsequently determines that the performance criteria are not met or are not expected to be met, any amounts previously recognized as compensation expense are reversed in the period when such determination is made.
Teva accounts for forfeitures of share-based awards, RSUs and PSUs, at the time they occur. If an employee forfeits an award due to not completing the required service period, the Company reverses any previously recognized compensation expense in the same period the forfeiture takes place.
Deferred income taxes
r.
Deferred income taxes:
Deferred income taxes are determined utilizing the “asset and liability” method based on the estimated future tax effects of temporary differences between the financial accounting and tax basis of assets and liabilities under the applicable tax laws, and on tax rates anticipated to be in effect when the deferred income taxes are expected to be paid or realized. A valuation allowance is provided if, based upon the weight of available evidence, it is more likely than not that a portion of the deferred income tax assets will not be realized. In determining whether a valuation allowance is needed, Teva considers all available evidence, including historical information, long range forecast of future taxable income and evaluation of tax planning strategies. Amounts recorded for valuation allowance can result from a complex series of judgments about future events and can rely on estimates and assumptions. Deferred income tax liabilities and assets are classified as
non-current.
Tax has not been provided on the following items:
 
  1.
Taxes that would apply in the event of disposal of investments in subsidiaries, as it is generally the Company’s intention to hold these investments, not to realize them. The determination of the amount of related unrecognized deferred tax liability is not practicable.
 
  2.
Amounts of
tax-exempt
income generated from the Company’s current Approved Enterprises and unremitted earnings from foreign subsidiaries retained for reinvestment in the Group. See note 13f.
Uncertain tax positions
s.
Uncertain tax positions:
Teva recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefit recognized in the financial statements for a particular tax position is based on the largest benefit that is more likely than not to be realized. Teva regularly
re-evaluates
its tax positions based on developments in its tax audits, statute of limitations expirations, changes in tax laws and new information that can affect the
technical merits and change the assessment of Teva’s ability to sustain the tax benefit. In addition, the Company classifies interest and penalties recognized in the financial statements relating to uncertain tax position under the income taxes line item.
Provisions for uncertain tax positions, whereas Teva has net operating losses to offset additional income taxes that would result from the settlement of the tax position, are presented as a reduction of the deferred tax assets for such net operating loss.
Derivatives and hedging
t.
Derivatives and hedging:
The Group carries out transactions involving derivative financial instruments (mainly forward exchange contracts, currency options, cross-currency swap contracts, interest rate swap contracts and treasury locks). The transactions are designed to hedge the Company’s currency and interest rate exposures. The Company does not enter into derivative transactions for trading purposes.
Derivative instruments are recognized on the balance sheet at their fair value.
For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument as well as the offsetting gain or loss on the hedged item attributable to the hedged risk is recognized in financial expenses, net in the statements of income in the period that the changes in fair value occur.
For derivative instruments that are designated and qualify as a cash-flow hedge, the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the anticipated transaction in the same period or periods during which the hedged transaction affects earnings.
For derivative instruments that are designated as
net-investment
hedge, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income. The effective portion is determined by looking into changes in spot exchange rate. The change in fair value attributable to changes other than those due to fluctuations in the spot exchange rate are excluded from the assessment of hedge effectiveness and are recognized in the statement of income under financial expenses, net.
For derivative instruments that qualify for hedge accounting, the cash flows associated with these derivatives are reported in the consolidated statements of cash flows consistently with the classification of the cash flows from the underlying hedged items that these derivatives are hedging.
Derivative instruments that do not qualify for hedge accounting are recognized on the balance sheet at their fair value, with changes in the fair value recognized as a component of financial expenses, net in the statements of income. The cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows.
Revenue recognition
u.
Revenue recognition:
A contract with a customer exists only when: the parties to the contract have approved it and are committed to perform their respective obligations, the Company can identify each party’s rights regarding the distinct goods or services to be transferred (“performance obligations”), the Company can determine the transaction price for the goods or services to be transferred, the contract has commercial substance and it is probable that the Company will collect the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer.
 
Revenues are recorded in the amount of consideration to which the Company expects to be entitled in exchange for performance obligations upon transfer of control to the customer, excluding amounts collected on behalf of other third parties and sales taxes.
The amount of consideration to which Teva expects to be entitled varies as a result of rebates, chargebacks, returns and other sales reserves and allowances (“SR&A”) that the Company offers to its customers and their customers, as well as the occurrence or nonoccurrence of future events, including milestone events. A minimum amount of variable consideration is recorded by the Company concurrently with the satisfaction of performance obligations to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Estimates of variable consideration are based on historical experience and the specific terms in the individual agreements (which the Company believes approximates expected value). Rebates and chargebacks are the largest components of SR&A. If a minimum cannot be reasonably estimated, such revenue may be deferred to a future period when better information is available. For further description of SR&A components and how they are estimated, see “Variable Consideration” below.
Shipping and handling costs, after control of the product has transferred to a customer, are accounted for as a fulfillment cost and are recorded under S&M expenses.
Teva does not adjust the promised amount of consideration for the effects of a significant financing component since the Company expects, at contract inception, that the period between the time of transfer of the promised goods or services to the customer and the time the customer pays for these goods or services to be generally one year or less, based on the practical expedient. The Company’s credit terms to customers are, on average, between thirty and ninety days.
The Company generally recognizes the incremental costs of obtaining contracts as an expense since the amortization period of the assets that the Company otherwise would have recognized is one year or less. The costs are recorded under S&M expenses. Similarly, Teva does not disclose the value of unsatisfied performance obligations for contracts with original expected duration of one year or less.
Nature of revenue streams
Revenue from sales of goods, including sales to distributors is recognized when the customer obtains control of the product. This generally occurs when products are shipped once the Company has a present right to payment and legal title, and risk and rewards of ownership are obtained by the customer.
Licensing arrangements performance obligations generally include intellectual property (“IP”) rights, certain R&D and contract manufacturing services. The Company accounts for IP rights and services separately if they are distinct – i.e. if they are separately identifiable from other items in the arrangement and if the customer can benefit from them on their own or with other resources that are readily available to the customer. The consideration is allocated between IP rights and services based on their relative stand-alone selling prices.
Revenue for distinct IP rights is accounted for based on the nature of the promise to grant the license. In determining whether the Company’s promise is to provide a right to access its IP or a right to use its IP, the Company considers the nature of the IP to which the customer will have rights. IP is either functional IP which has significant standalone functionality or symbolic IP which does not have significant standalone functionality. Revenue from functional IP is recognized at the point in time when control of the distinct license is transferred to the customer. Revenue from symbolic IP is recognized over the access period to the Company’s IP.
 
Revenue from sales based milestones and royalties promised in exchange for a license of IP is recognized only when, or as, the later of subsequent sale or the performance obligation to which some or all of the sales-based royalty has been allocated, is satisfied.
Distribution revenues are derived from sales of third-party products for which the Company acts as distributor, mostly in the United States via Anda and in Israel via Salomon Levin and Elstein Ltd. (SLE). In the United States, the Company is generally the principal in these arrangements and therefore records revenue on a gross basis as it controls the promised goods before transferring these goods to the customer. In Israel, the Company is the agent in these arrangements and therefore records revenue on a net basis as it has no discretion in establishing prices for any specified goods or services, limited inventory risk and is not primarily responsible for contract fulfillment. Revenue is recognized when the customer obtains control of the products. This generally occurs when products are shipped once the Company has a present right to payment and legal title and risk and rewards of ownership are obtained by the customer.
Other revenues are primarily comprised of contract manufacturing services, sales of IP rights, sales of medical devices and other miscellaneous items. Revenue is recognized when the customer obtains control of such rights or products. This generally occurs when products are shipped, once the Company has a present right to payment and legal title and risk and rewards of ownership are obtained by the customer.
Trade receivables and contract liabilities
Trade receivables are presented net of allowance for credit losses, which include amounts billed and currently due from customers.
Contract liabilities are mainly comprised of deferred revenues (defined as obligations to provide products or services to customers when payment has been made in advance and delivery or performance has not yet occurred), which were immaterial as of December 31, 2024 and 2023.
Variable consideration
Variable consideration mainly includes SR&A, comprised of rebates (including Medicaid and other governmental program discounts), chargebacks, returns and other promotional (including shelf stock adjustments) items. Provisions for prompt payment discounts are netted against trade receivables.
The Company recognizes these provisions at the time of sale and adjusts them if the actual amounts differ from the estimated provisions. The following describes the nature of each deduction and how provisions are estimated:
Rebates
Rebates are primarily related to volume incentives and are offered to key customers to promote loyalty. These rebate programs provide that, upon the attainment of
pre-established
volumes or the attainment of revenue milestones for a specified period, the customer receives a rebate. Since rebates are contractually agreed upon, they are estimated based on the specific terms in each agreement based on historical trends and expected sales. Externally obtained inventory levels and expected sales usage by contract are evaluated in relation to estimates made for rebates payable to indirect customers and managed care agreements.
Medicaid and Other Governmental Rebates
Pharmaceutical manufacturers whose products are covered by the Medicaid program are required to provide a rebate to each state as a percentage of their average manufacturer’s price for generic products dispensed and “best price” for innovative products dispensed. Many states have also implemented supplemental rebate
 
programs that obligate manufacturers to pay rebates in excess of those required under federal law. The Company estimates these rebates based on historical trends of rebates paid, as well as on changes in wholesaler inventory levels and increases or decreases in sales.
Chargebacks
The Company has arrangements with various third parties, such as managed care organizations and drug store chains, establishing prices for certain of Teva’s products. While these arrangements are made between the Company and the customers, the customers independently select a wholesaler from which they purchase the products. Alternatively, certain wholesalers may enter into agreements with the customers, with Teva’s concurrence, which establish the pricing for certain products which the wholesalers provide. Under either arrangement, Teva will issue a credit (referred to as a “chargeback”) to the wholesaler for the difference between the invoice price to the wholesaler and the customer’s contract prices. Provisions for chargebacks involve estimates of contract prices of over 2,000 products and multiple contracts with multiple wholesalers. Provisions for chargebacks involve estimates of usage by retailers and other indirect buyers with varying contract prices for multiple wholesalers. The provision for chargebacks varies in relation to changes in product mix, pricing and the level of inventory at the wholesalers and, therefore, will not necessarily fluctuate in proportion to an increase or decrease in sales. Provisions for estimating chargebacks are calculated using historical chargeback experience and/or expected chargeback levels for new products and anticipated pricing changes. Teva considers current and expected price competition when evaluating the provision for chargebacks. Chargeback provisions are compared to externally obtained distribution channel reports for reasonableness. The Company regularly monitors the provision for chargebacks and makes adjustments when the Company believes that actual chargebacks may differ from estimated provisions.
Other Promotional Arrangements
Other promotional or incentive arrangements are periodically offered to customers, specifically related to the launch of products or other targeted promotions. Provisions are made in the period for which the Company can estimate the incentive earned by the customer, in accordance with the contractual terms. The Company regularly monitors the provision for other promotional arrangements and makes adjustments when it believes that the actual provision may differ from the estimated provisions.
Shelf Stock Adjustments
The custom in the pharmaceutical industry is generally to grant customers a shelf stock adjustment based on the customers’ existing inventory contemporaneously with decreases in the market price of the related product. The most significant of these relate to products for which an exclusive or semi-exclusive period exists. Provisions for price reductions depend on future events, including price competition, new competitive launches and the level of customer inventories at the time of the price decline. Teva regularly monitors the competitive factors that influence the pricing of its products and customer inventory levels and adjust these estimates where appropriate.
Returns
Returns primarily relate to customer returns of expired products which, the customer has the right to return up to one year following the expiration date. Such returned products are destroyed and credits and/or refunds are issued to the customer for the value of the returns. Accordingly, no returned assets are recoded in connection with those products. The returns provision is estimated by applying a historical return rate to the amounts of revenue estimated to be subject to returns. Revenue subject to returns is estimated based on the lag time from time of sale to date of return. The estimated lag time is developed by analyzing historical experience.
 
Additionally, The Company considers specific factors, such as estimated levels of inventory in the distribution channel, product dating and expiration, size and maturity of launch, entrance of new competitors, changes in formularies or packaging and any changes to customer terms, for determining the overall expected levels of returns.
Prompt Pay Discounts
Prompt pay discounts are offered to most customers to encourage timely payment. Discounts are estimated at the time of invoice based on historical discounts in relation to sales. Prompt pay discounts are almost always utilized by customers. As a result, the actual discounts do not vary significantly from the estimated amount.
Research and development
v.
Research and development:
Research and development expenses are charged to statement of income (loss) as incurred. Participations and grants in respect of research and development expenses are recognized as a reduction of research and development expenses as the related costs are incurred, or as the related milestone is met.
Advance payments for goods or services that will be used or rendered for future research and development activities are deferred. Such amounts are recognized as an expense as the related goods are used or the services are rendered.
Research and development
in-process
acquired as part of an asset purchase, which has not reached technological feasibility and has no alternative future use, is expensed as incurred.
The Company accounts for grants received to perform research and development services in accordance with
ASC 730-20,
Research and Development Arrangements. At the inception of the grant, the Company performs an assessment as to whether the grant is a liability or a contract to perform research and development services for others. If Teva is obligated to repay the grant funds to the grantor regardless of the outcome of the research and development activities, then it is required to estimate and recognize that liability. Alternatively, if Teva is not required to repay, or if it is required to repay the grant funds only if the research and development activities are successful, then the grant agreement is accounted for as a contract to perform research and development services for others, in which case, a reduction of research and development costs is recognized when the related research and development expenses are incurred.
Shipping and handling costs
w.
Shipping and handling costs:
Shipping and handling costs to end customers, which are included in S&M expenses, were $119 million, $124 million and $118 million for the years ended December 31, 2024, 2023 and 2022, respectively.
Advertising costs
x.
Advertising costs:
Advertising costs are expensed as incurred. Advertising costs for the years ended December 31, 2024, 2023 and 2022 were $259 million, $162 million and $168 million, respectively.
Restructuring
y.
Restructuring:
Restructuring provisions are recognized for the direct expenditures arising from restructuring initiatives, where the plans are sufficiently detailed and where appropriate communication to those affected has been made.
Costs for
one-time
termination benefits in which the employee is required to render service until termination in order to receive the benefits are recognized ratably over the future service period.
 
 
Contractual termination benefits are provided to employees when employment is terminated due to an event specified in the provisions of an existing plan or agreement. A liability is recorded and the expense is recognized when it is probable that employees will be entitled to the benefits and the amount is reasonably estimable.
Special termination benefits arise when the Company offers, for a short period of time, to provide certain additional benefits to employees electing voluntary termination. A liability is recorded and the expense is recognized in the period the employees irrevocably accept the offer and the amount of the termination liability is reasonably estimable.
Segment reporting
z.
Segment reporting:
The Company’s business includes three reporting segments based on three geographical areas:
 
 
(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 in which Teva operates other than those in the United States and Europe segments.
Each business segment manages the entire product portfolio in its region, including generic products, innovative medicines and
over-the-counter
(“OTC”) products.
In addition to these three segments, Teva has other sources of revenues, primarily the sale of APIs to third parties, certain contract manufacturing services and an
out-licensing
platform offering a portfolio of products to other pharmaceutical companies through its affiliate Medis. See also note 19.
Earnings per share
aa.
Earnings per share:
Basic earnings (loss) per share are computed by dividing net income (loss) attributable to Teva’s ordinary shareholders by the weighted average number of ordinary shares outstanding, including fully vested RSUs and PSUs during the period, net of treasury shares.
In computing diluted earnings per share, basic earnings per share are adjusted to take into account the potential dilution that could occur upon: (i) the exercise of options and
non-vested
RSUs and PSUs granted under employee stock compensation plans and convertible senior debentures, using the treasury stock method; and (ii) the conversion of the remaining convertible senior debentures using the
“if-converted”
method, by adding to net income interest expense on the debentures and amortization of issuance costs, net of tax benefits, and by adding the weighted average number of shares issuable upon assumed conversion of the debentures.
Securitization and factoring
bb.
Securitization and factoring
Teva accounts for transfers of its trade receivable as sales when it has surrendered control over the related assets in accordance with ASC Topic 860 “Transfer and Servicing” of Financial Assets. Whether control has been relinquished requires, among other things, an evaluation of relevant legal considerations and an assessment of the nature and extent of the Company’s continuing involvement with the assets transferred. Assets obtained and liabilities incurred in connection with transfers reported as sales are initially recognized in the balance sheet at fair value. Refer to note 10f.
Supplier finance program
cc.
Supplier finance program
The Company has established a supplier finance program to facilitate the payment of trade payables for its operations. Under this program, participating suppliers have the option to receive early payment on their invoices
from a third-party financial institution, based on terms agreed between the supplier and the financial institution. The Company’s obligations to its suppliers under the program remain consistent with its original payment terms and are not legally modified as a result of the supplier’s participation in the program.
Amounts outstanding under the supplier finance program are recorded within trade payables on the balance sheet, as the nature of the liability has not changed. Payments made through the program are reflected in operating cash flows, consistent with the classification of other accounts payable.
Divestitures
dd.
Divestitures
The Company nets the proceeds on the divestitures of businesses and tangible assets with the carrying amount of the related assets and records gain or loss on sale within other income. Any contingent payments that are potentially due to the Company as a result of these divestitures are recorded when it is probable that a significant reversal of income will not occur, or in the case of a business, when such payments are realizable. For divestures of businesses, including divestitures of products that qualify as a business, the Company reflects the relative fair value of goodwill associated with the businesses in the determination of gain or loss on sale.
Debt instruments
ee.
Debt instruments
Debt instruments are initially recognized at the fair value of the consideration received. Debt issuance costs are recorded on the consolidated balance sheet as a reduction of liability. They are subsequently recognized at amortized cost using the effective interest method. Debt may be considered extinguished when it has been modified and the terms of the new debt instruments and old debt instruments are “substantially different” (as defined in the debt modification guidance in ASC
470-50
“Debt—Modifications and Extinguishments”). The Company classifies the current portion of long term debt as
non-current
liabilities on the balance sheet when it has the intent and ability to refinance the obligation on a long-term basis, in accordance with ASC
470-50
“Debt”.
Leases
ff.
Leases
Teva determines if an arrangement is a lease at inception. Lease classification is governed by five criteria in ASC
842-10-25-2.
If any of these five criteria is met, Teva classifies the lease as a finance lease. Otherwise, Teva classifies the lease as an operating lease. When determining lease classification, Teva’s approach in assessing two of the mentioned criteria is: (i) generally, 75% or more of the remaining economic life of the underlying asset is a major part of the remaining economic life of that underlying asset; and (ii) generally, 90% or more of the fair value of the underlying asset comprises substantially all of the fair value of the underlying asset.
Operating leases are included in operating lease ROU assets, other current liabilities and operating lease liabilities in the consolidated balance sheet. Finance leases are included in property, plant and equipment, other current liabilities, and other long-term liabilities in the consolidated balance sheet.
ROU assets represent Teva’s right to use an underlying asset for the lease term and lease liabilities represent Teva’s obligation to make lease payments arising from the lease. Operating lease ROU and finance lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term, which may include options to extend or terminate the lease, when it is reasonably certain at the commencement date whether the Company will or will not exercise the option to renew or terminate the lease. Teva uses its incremental borrowing rate based on the information available at the commencement date to determine the present value of the lease payments.
 
For finance leases, Teva recognizes interest on the lease liability separately from amortization of the assets in the consolidated statement of income. For operating leases, lease expenses are recognized on a straight-line basis over the lease term.
Teva elected the short-term lease recognition exemption for all leases with a term shorter than 12 months. This means that for those leases, Teva does not recognize ROU assets or lease liabilities, but recognizes lease expenses over the lease term on a straight line basis. Teva also elected the practical expedient to not separate lease and
non-lease
components for all of Teva’s leases, other than leases of real estate.
Lease terms will include options to extend or terminate the lease when it is reasonably certain that Teva will either exercise or not exercise the option to renew or terminate the lease.
Teva’s lease agreements have remaining lease terms ranging from 1 year to 76 years. Some of these agreements include options to extend the leases for up to 10 years and some include options to terminate the leases immediately. Certain leases also include options to purchase the leased property.
The depreciable life of leasehold improvements is limited by the expected lease term, unless there is a transfer of title or a purchase option for the leased asset reasonably certain of exercise.
Some of Teva’s vehicle lease agreements include rental payments based on the actual usage of the vehicles and other lease agreements include rental payments adjusted periodically for inflation. Teva’s lease agreements do not contain any material residual value guarantees.
Teva rents out or subleases certain assets to third parties, which has an immaterial impact on Teva’s consolidated financial statements.
v3.25.0.1
Certain transactions (Tables)
 12 Months Ended
Dec. 31, 2024
Summary of Major Classes of Assets and Liabilities Included as Held for Sale
The table below summarizes all of Teva’s assets and liabilities included as held for sale as of December 31, 2024 and December 31, 2023:
 
    
December 31,
     
December 31,
  
    
2024
     
2023
  
    
(U.S. $ in millions)
  
Accounts receivables
      222        —   
Inventories
    $ 647      $ 12  
Property, plant and equipment, net and others
      913        5  
Identifiable intangible assets, net
      83        —   
Goodwill
      255        30  
Other current assets
      99        23  
Other
non-current
assets
      236        —   
Expected loss on sale*
      (684 )      —   
  
 
 
     
 
 
  
Total assets of the disposal group classified as held for sale in the consolidated balance sheets
    $ 1,771      $ 70  
  
 
 
     
 
 
  
Accounts payables
      (283 )       —   
Other current liabilities
      (49 )       (13 ) 
Other
non-current
liabilities
      (85 )       —   
Expected loss on sale*
      (281 )       —   
  
 
 
     
 
 
  
Total liabilities of the disposal group classified as held for sale in the consolidated balance sheets
    $ (698 )     $ (13 ) 
  
 
 
     
 
 
  
v3.25.0.1
Revenue from contracts with customers (Tables)
 12 Months Ended
Dec. 31, 2024
Summary of disaggregates revenues by major revenue streams
The following table disaggregates Teva’s revenues by major revenue streams. For additional information on disaggregation of revenues, see note 19.
In conjunction with a recent 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 have been recast to conform to the reporting structure for the current year.
 
    
Year ended December 31, 2024
  
    
United
states
     
Europe
     
International
Markets
     
Other
activities
     
Total
  
    
(U.S.$ in millions)
  
Sale of goods
      6,327        4,891        2,280        933        14,430  
Licensing arrangements
      103        35        24        11        173  
Distribution
      1,536        1        39        —         1,576  
Other*
      68        176        121        §        365  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
   $ 8,034      $ 5,103      $ 2,463      $ 944      $ 16,544  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  

*
“Other” revenues in all segments include revenues related to sales of certain product rights.
§
Represents an amount less than $0.5 million.
 
    
Year ended December 31, 2023
  
    
United
states
     
Europe
     
International
Markets
     
Other
activities
     
Total
  
    
(U.S.$ in millions)
  
Sale of goods
      5,554        4,631        2,229        565        12,979  
Licensing arrangements *
      597        51        28        5        681  
Distribution
      1,577        §        38        —         1,615  
Other**
      2        155        57        357        570  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
   $ 7,731      $ 4,837      $ 2,351      $ 926      $ 15,846  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  

*
Revenues from licensing arrangements in United states segment were mainly comprised of $500 million upfront payment received in connection with the collaboration on Teva’s anti-TL1A asset. See note 2.
**
“Other” revenues in Europe segment mainly related to the sale of certain product rights.
§
Represents an amount less than $0.5 million.
 
    
Year ended December 31, 2022
  
    
United
states
     
Europe
     
International
Markets
     
Other
activities
     
Total
  
    
(U.S.$ in millions)
  
Sale of goods
      5,383        4,455        2,257        671        12,766  
Licensing arrangements
      136        51        22        4        212  
Distribution
      1,471        1        46        —         1,519  
Other
      13        18        27        370        428  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
   $ 7,003      $ 4,525      $ 2,352      $ 1,045      $ 14,925  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Summary of Sales Reserves and Allowances
 
 
 
Sales Reserves and Allowances
 
 
 
Reserves
included in
Accounts
Receivable,
net
 
 
Rebates
 
 
Medicaid and
other
governmental
allowances
 
 
Chargebacks
 
 
Returns
 
 
Other
 
 
Total
reserves
included in
Sales
Reserves
and
Allowances
 
 
Total
 
 
 
(U.S.$ in millions)
 
Balance at January 1, 2024
   $ 61       1,603       540       859       436       97     $ 3,535     $ 3,596  
Provisions related to sales made in current year period
     390       4,640       787       7,952       276       149       13,804       14,194  
Provisions related to sales made in prior periods
     —        5       22       (11 )
 
     (22 )
 
     (3 )
 
     (9 )
 
     (9 )
 
Credits and payments
     (395 )
 
     (4,531 )
 
     (781 )
 
     (7,851 )     (286 )     (126 )     (13,575 )     (13,970 )
Translation differences
     —        (43 )     (7 )     (13 )     (5 )     (9 )     (77 )     (77 )
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance at December 31, 2024
   $ 56     $ 1,674     $ 561     $ 936     $ 399     $ 108     $ 3,678     $ 3,734  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
   
Sales Reserves and Allowances
  
   
Reserves
included in
Accounts
Receivable,
net
    
Rebates
    
Medicaid and
other
governmental
allowances
    
Chargebacks
    
Returns
    
Other
    
Total
reserves
included in
Sales
Reserves
and
Allowances
    
Total
  
   
(U.S.$ in millions)
  
Balance at January 1, 2023
   $ 67     $ 1,575     $ 663     $ 991     $ 455     $ 66     $ 3,750     $ 3,817  
Provisions related to sales made in current year period
     354       4,015       654       7,579       264       109       12,621       12,975  
Provisions related to sales made in prior periods
     —        (31 )      (33 )      (54 )      17       —        (101 )      (101 ) 
Credits and payments
     (360 )      (3,974 )      (748 )      (7,662 )      (304 )      (77 )      (12,765 )      (13,125 ) 
Translation differences
     —        18       4       5       4       (1 )      30       30  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance at December 31, 2023
   $ 61     $ 1,603     $ 540     $ 859     $ 436     $ 97     $ 3,535     $ 3,596  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
v3.25.0.1
Inventories (Tables)
 12 Months Ended
Dec. 31, 2024
Summary of Inventories
Inventories, net of reserves, consisted of the following:
 
    
December 31,
  
    
 2024 
     
 2023 
  
    
(U.S. $ in millions)
  
Finished products
    $ 1,783      $ 2,346  
Raw and packaging materials
      671        993  
Products in process
      353        500  
Materials in transit and payments on account
      199        183  
  
 
 
     
 
 
  
   $ 3,007      $ 4,021  
  
 
 
     
 
 
  
During the year ended December 31, 2024, the Company classified inventories in the amount of $647 million as assets held for sale. See note 2.
v3.25.0.1
Property, Plant and Equipment (Tables)
 12 Months Ended
Dec. 31, 2024
Summary of Property, Plant and Equipment, Net
Property, plant and equipment, net, consisted of the following:
 
    
December 31,
  
    
2024
     
2023
  
    
(U.S. $ in millions)
  
Machinery and equipment
    $ 3,092      $ 4,807  
Buildings
      1,968        2,488  
Computer equipment and other assets
      2,388        2,419  
Assets under construction and payments on account
      1,330        1,427  
Land
      213        246  
  
 
 
     
 
 
  
     8,991        11,387  
Less- accumulated depreciation
      (4,410 )       (5,637 ) 
  
 
 
     
 
 
  
   $ 4,581      $ 5,750  
  
 
 
     
 
 
  
v3.25.0.1
Identifiable Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2024
Summary of Identifiable Intangible Assets
Identifiable intangible assets consisted of the following:
 
    
Gross carrying
amount net of
impairment
     
Accumulated
amortization
     
Net carrying amount
  
    
December 31,
  
    
 2024 
     
 2023 
     
 2024 
     
 2023 
     
 2024 
     
 2023 
  
    
(U.S. $ in millions)
  
Product rights
    $ 15,915      $ 17,981      $ 11,998      $ 13,274      $ 3,917      $ 4,707  
Trade names
      568        583        300        269        268        314  
In-process
research and development (IPR&D)
      233        366        —         —         233        366  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 16,716      $ 18,930      $ 12,298      $ 13,543      $ 4,418      $ 5,387  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
v3.25.0.1
Goodwill (Tables)
 12 Months Ended
Dec. 31, 2024
Summary of Changes in the Carrying Amount of Goodwill by Segment
Changes in the carrying amount of goodwill for the years ended December 31, 2024 and 2023 were as follows:
 
                            
Other
        
    
North
America
    
United
States
    
Europe
    
International
Markets
    
Teva’s API
    
Medis
    
Total
  
    
(U.S. $ in millions)
        
Balance as of December 31, 2022 (1)
    $ 6,450     $ —        8,302     $ 1,339     $ 1,293     $ 249     $ 17,633  
Changes during the period:
               
Goodwill impairment
      —          —        (700 )      —        —        (700 ) 
Goodwill reclassified as assets held for sale
      —          —        (30 )      —        —        (30 ) 
Translation differences
      9         164       66       20       16       275  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of December 31, 2023 (1)
    $ 6,459     $ —      $ 8,466     $ 675     $ 1,313     $ 265     $ 17,177  
Goodwill allocation related to the shift of Canada to International Markets
      (6,459 )      5,813       —        646       —        —        —   
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of January 1, 2024
    $ —      $ 5,813     $ 8,466     $ 1,321     $ 1,313     $ 265     $ 17,177  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Other changes during the period:
               
Goodwill impairment
      —        —        —        —        (1,280 )     —        (1,280 )
Goodwill reclassified as assets held for sale
      —        (81 )
 
     (98 )     (50 )     —        (7 )     (236 )
Translation differences and other
      —        —        (293 )      (161 )      (33 )      (26 )      (513 ) 
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of December 31, 2024 (1)
    $ —      $ 5,732     $ 8,075     $ 1,110     $ —      $ 232     $ 15,147  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  

(1)
Cumulative goodwill impairment as of December 31, 2024, December 31, 2023 and December 31, 2022 was approximately $29.58 billion, $28.3 billion and $27.6 billion, respectively.
v3.25.0.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2024
Components Of Lease Expense
The components of operating lease cost for the years ended December 31, 2024, 2023 and 2022 were as follows:
 
    
Year ended
December 31,
     
Year ended
December 31,
     
Year ended
December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
     
(U.S. $ in millions)
     
(U.S. $ in millions)
  
Operating lease cost:
         
Fixed payments and variable payments that depend on an index or rate
      123        132        142  
Variable lease payments not included in the lease liability
      16        5        4  
Short-term lease cost
      3        3        2  
  
 
 
     
 
 
     
 
 
  
   $ 142      $ 139      $ 148  
  
 
 
     
 
 
     
 
 
  
Supplemental cash flow information related to leases
Supplemental cash flow information related to operating leases was as follows:
 
    
Year ended
December 31,
     
Year ended
December 31,
     
Year ended
December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
     
(U.S. $ in millions)
     
(U.S. $ in millions)
  
Cash paid for amounts included in the measurement of lease liabilities:
         
Operating cash flows from operating leases
    $ 143      $ 141      $ 140  
Right-of-use
assets obtained in exchange for lease obligations
(non-cash):
         
Operating leases
    $ 137      $ 121      $ 81  
Supplemental Balance Sheet Information Related To Leases
Supplemental balance sheet information related to operating leases was as follows:
 
    
December 31,
     
December 31,
  
    
2024
     
2023
  
    
(U.S. $ in millions)
     
(U.S. $ in millions)
  
Operating leases:
      
Operating lease ROU assets
    $ 367      $ 397  
  
 
 
     
 
 
  
Other current liabilities
      87        97  
Operating
lease
liabilities
      296        320  
  
 
 
     
 
 
  
Total operating lease liabilities
    $ 383      $ 417  
  
 
 
     
 
 
  
 
 
    
December 31,
    
December 31,
  
    
2024
    
2023
  
Weighted average remaining lease term
     
Operating leases
      6.1 years       6.1 years  
Weighted average discount rate
     
Operating leases
      6.5 %      6.0 % 
Maturities of lease liabilities
Maturities of operating lease liabilities were as follows:
 
    
December 31,
  
    
2024
  
    
(U.S. $ in millions)
  
2025
      120  
2026
      102  
2027
      81  
2028
      57  
2029 and thereafter
      135  
  
 
 
  
Total operating lease payments
    $ 495  
  
 
 
  
Less: imputed interest
      112  
  
 
 
  
Present value of lease liabilities
    $ 383  
  
 
 
  
v3.25.0.1
Debt obligations (Tables)
 12 Months Ended
Dec. 31, 2024
Schedule of Short-term Debt
a.
Short-term debt:
 
                 
December 31,
  
    
Weighted average
interest rate as of
December 31, 2024
    
Maturity
     
2024
     
2023
  
                 
(U.S. $ in millions)
  
Convertible debentures
      0.25 %      2026      $ 23      $ 23  
Current maturities of long-term liabilities
 
      1,758        1,649  
       
 
 
     
 
 
  
Total short term debt
 
    $ 1,781      $ 1,672  
Schedule of Senior Notes and Loans
b.
Long-term debt:
 
   
Interest rate as of
December 31, 2024
    
Maturity
    
December 31,
2024
    
December 31,
2023
  
               
(U.S. $ in millions)
  
Senior notes USD 1,250 million (4)
     6.00 %      2024       —        956  
Senior notes EUR 1,500 million (5)
     1.13 %      2024       —        693  
Senior notes EUR 1,000 million (6)
     6.00 %      2025       429       453  
Senior notes USD 1,000 million (7)
     7.13 %      2025       427       427  
Senior notes EUR 900 million
     4.50 %      2025       515       547  
Senior notes CHF 350 million
     1.00 %      2025       387       416  
Senior notes USD 3,500 million
     3.15 %      2026       3,374       3,374  
Senior notes EUR 700 million
     1.88 %      2027       730       771  
Sustainability-linked senior notes USD 1,000 million (1)(*)
     4.75 %      2027       1,000       1,000  
Sustainability-linked senior notes EUR 1,100 million (1)(*)
     3.75 %      2027       1,144       1,215  
Senior notes USD 1,250 million
     6.75 %      2028       1,250       1,250  
Senior notes EUR 750 million
     1.63 %      2028       778       826  
Sustainability-linked senior notes USD 1,000 million (2)(*)
     5.13 %      2029       1,000       1,000  
Sustainability-linked senior notes USD 600 million (3)(*)
     7.88 %      2029       600       600  
Sustainability-linked senior notes EUR 800 million (3)(*)
     7.38 %      2029       835       884  
Sustainability-linked senior notes EUR 1,500 million (2)(*)
     4.38 %      2030       1,562       1,656  
Sustainability-linked senior notes USD 500 million (3)(*)
     8.13 %      2031       500       500  
Sustainability-linked senior notes EUR 500 million (3)(*)
     7.88 %      2031       521       552  
Senior notes USD 789 million
     6.15 %      2036       783       783  
Senior notes USD 2,000 million
     4.10 %      2046       1,986       1,986  
     
 
 
    
 
 
  
Total senior notes
 
     17,821       19,889  
Other long-term debt
 
     —        1  
Less current maturities
 
     (1,758 )      (1,649 ) 
Less debt issuance costs
 
     (61 )      (80 ) 
     
 
 
    
 
 
  
Total senior notes and loans
 
   $ 16,002     $ 18,161  
     
 
 
    
 
 
  

(1)
If Teva fails to achieve certain sustainability performance targets, a
one-time
premium payment of
0.15%-0.45%
out of the principal amount will be paid at maturity or upon earlier redemption, if such redemption is on or after May 9, 2026.
(2)
If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by
0.125%-0.375%
per annum, from and including May 9, 2026.
(3)
If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by
0.100%-0.300%
per annum, from and including September 15, 2026.
(4)
In April 2024, Teva repaid $956 million of its 6% senior notes due 2024 at maturity.
(5)
In October 2024, Teva repaid $685 million of its 1.13% senior notes due 2024 at maturity.
(6)
In January 2025, Teva repaid $426 million of its 6% senior notes due 2025 at maturity.
(7)
In January 2025, Teva repaid $427 million of its 7.13% senior notes due 2025 at maturity.
*
Interest rate adjustments and a potential
one-time
premium payment related to the sustainability-linked bonds are treated as bifurcated embedded derivatives. See note 10c.
Required Annual Principal Payments of Long-term Debt, Excluding Debt Issuance Cost
As of December 31, 2024, the required annual principal payments of long-term debt (excluding debt issuance costs), including convertible senior debentures, starting from the year 2026, are as follows:
 
    
December 31,
2024
  
    
(U.S. $ in millions)
  
2026*
    $ 3,397  
2027
      2,874  
2028
      2,028  
2029
      2,435  
2030 and thereafter
      5,352  
  
 
 
  
   $ 16,086  
  
 
 
  
 
*
Including $23 million convertible notes. See note 9a.
v3.25.0.1
Derivative instruments and hedging activities (Tables)
 12 Months Ended
Dec. 31, 2024
Summary of Notional Amounts for Hedged Items
The following table summarizes the notional amounts for hedged items, when transactions are designated as hedge accounting:
 
    
December 31,

2024
     
December 31,

2023
  
    
(U.S. $ in millions)
  
Cross-currency swap-cash flow hedge (1)
    $ —       $ 169  
  
 
 
     
 
 
  
Summary of Classification and Fair Values of Derivative Instruments
The following table summarizes the classification and fair values of derivative instruments:
 
    
Fair value
  
    
Designated as hedging
instruments
     
Not designated as hedging

instruments
  
    
December 31,

2024
     
December 31,

2023
     
December 31,

2024
    
December 31,

2023
  
Reported under
   
(U.S. $ in millions)
     
(U.S. $ in millions)
  
Asset derivatives:
           
Other current assets:
           
Option and forward contracts
    $ —       $ —       $ 71     $ 38  
Other
non-current
assets:
           
Cross-currency swaps - cash flow hedge (1)
      —         8        —        —   
Liability derivatives:
           
Other current liabilities:
           
Option and forward contracts
    $ —       $ —       $ (24 )    $ (39 ) 
Summary of Pre-tax (Gains) Losses From Derivatives Designated in Cash Flow Hedging Relationships
The table below provides information regarding the location and amount of
pre-tax
(gains) losses from derivatives designated in fair value or cash flow hedging relationships:
 
Reported under
   
Financial expenses, net
     
Other comprehensive income
(loss)
  
    
Year ended December 31,
     
Year ended December 31,
  
    
 2024 
    
 2023 
    
 2022 
     
 2024 
    
 2023 
     
 2022 
  
    
(U.S. $ in millions)
  
Line items in which effects of hedges are recorded
    $ 981     $ 1,057     $ 966      $ (508 )    $ 91      $ (270 ) 
Cross-currency swaps - cash flow hedge (1)
      (8 )      (11 )      —         1       1        —   
Summary of Pre-tax (Gains) Losses From Derivatives Not Designated in as Hedging Instruments
The table below provides information regarding the location and amount of
pre-tax
(gains) losses from derivatives not designated as hedging instruments:
 
Reported under
   
Financial expenses, net
    
Net revenues
  
    
Year ended December 31,
    
Year ended December 31,
  
    
 2024 
    
  2023 
    
 2022 
    
 2024 
    
 2023 
    
 2022 
  
    
(U.S. $ in millions)
  
Line items in which effects of hedges are recorded
    $ 981     $ 1,057     $ 966     $ (16,544 )    $ (15,846 )    $ (14,925 ) 
Option and forward contracts (2)
      (109 )      (54 )      (12 )      —        —        —   
Option and forward contracts economic hedge (3)
      —        —        —        (34 )      2       (11 ) 
Summary of Sold Receivables Outstanding Balance Net of DPP Asset under Outstanding Securitization Program
The following table summarizes the change in the sold receivables outstanding balance, net of DPP, under the outstanding securitization program:
 
    
As of and for the year
ended December 31,
  
    
 2024 
     
 2023 
  
    
(U.S. $ in millions)
  
Sold receivables at the beginning of the year
    $ 686      $ 636  
Proceeds from sale of receivables
      4,737        4,391  
Cash collections (remitted to the owner of the receivables)
      (4,768 )       (4,365 ) 
Effect of currency exchange rate changes
      (29 )       24  
  
 
 
     
 
 
  
Sold receivables at the end of the year
    $ 626      $ 686  
  
 
 
     
 
 
  
Schedule of Change in Outstanding Accounts Payable
The following table summarizes the change in the outstanding accounts payables under the program:
 
    
As of and for the year ended
December 31, 2024
  
    
(U.S. $ in millions)
  
Confirmed obligations outstanding at the beginning of the year
    $ 108  
Invoices confirmed during the year
      533  
Confirmed invoices paid during the year
      (483 ) 
  
 
 
  
Confirmed obligations outstanding at the end of the year
    $ 158  
  
 
 
  
v3.25.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Schedule of Income Before Income Taxes
a.
Income (loss) before income taxes:
 
    
Year ended December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
  
Parent Company and its Israeli subsidiaries
    $ (456 )     $ (767 )     $ (119 ) 
Non-Israeli
subsidiaries
      (828 )      143        (3,044 ) 
  
 
 
     
 
 
     
 
 
  
   $ (1,284 )    $ (624 )     $ (3,163 ) 
  
 
 
     
 
 
     
 
 
  
Schedule of the Provision for Income Taxes
b. Income taxes:
 
    
Year ended December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
  
In Israel
    $ 721      $ (402 )     $ 33  
Outside Israel
      (45 )       395        (676 ) 
  
 
 
     
 
 
     
 
 
  
   $ 676      $ (7 )     $ (643 ) 
  
 
 
     
 
 
     
 
 
  
Current
    $ 1,094      $ 333      $ 430  
Deferred
      (418 )       (340 )       (1,073 ) 
  
 
 
     
 
 
     
 
 
  
   $ 676      $ (7 )     $ (643 ) 
  
 
 
     
 
 
     
 
 
  
Accumulated Other Comprehensive Income/(Loss) (Net of Tax)
 
  
2024
 
 
2023
 
 
2022
 
 
  
(U.S. $ in millions)
 
Income (loss) before income taxes
    $ (1,284 )   $ (624 )    $ (3,163 ) 
Statutory tax rate in Israel
      23 %      23 %      23 % 
  
 
 
    
 
 
    
 
 
  
Theoretical provision for income taxes
    $ (295 )   $ (144 )    $ (727 ) 
Increase (decrease) in the provision for income taxes due to:
       
Tax benefits arising from net deferred taxes, resulting from intellectual property related integration plans, including carryforward losses
      (87)     (272)   — 
The Parent Company and its Israeli subsidiaries - Settlement with the Israeli tax authorities
      514     —    — 
Increase (decrease) in other uncertain tax positions - net
    171     —        —   
Tax benefits arising from reduced tax rates under benefit programs
        14     15
Mainly nondeductible items and prior year tax
      16       —        35  
Non-Israeli subsidiaries
                         
Impairments that did not have a corresponding tax effect, non-deductible interest and other items
      463       372       941  
Adjustments to valuation allowances on deferred tax assets (*)
      (105)       —        —   
Worthless stock deduction (**)
        —        (909 ) 
Increase (decrease) in other uncertain tax positions - net
      (1 )      23       2  
  
 
 
    
 
 
    
 
 
  
Effective consolidated income taxes
    $ 676     $ (7 )    $ (643 ) 
  
 
 
    
 
 
    
 
 
  
*
Mainly related to deduction of interest expenses in the United States.
**
In 2022, one of Teva’s U.S. subsidiaries was determined to be insolvent for tax purposes (i.e., its liabilities exceeded the fair market value of its assets), mainly in light of its accumulated operational losses. Consequently, Teva recognized on its 2022 tax return, a worthless stock deduction of approximately $4.2 billion, with
a 
related tax benefit of approximately $909 million.
Schedule of Deferred Income Taxes
c.
Deferred income taxes:
 
    
December 31,
  
    
2024
     
2023
  
    
(U.S. $ in millions)
  
Deferred tax assets (liabilities), net:
   
Inventory related
    $ 88      $ 76  
Sales reserves and allowances
      55        81  
Provision for legal settlements
      667        702  
Intangible assets (*)
      170        (118 ) 
Carryforward losses and deductions and credits (**)
      1,557        2,463  
Property, plant and equipment
      (157 )       (225 ) 
Deferred interest
      789        799  
Provisions for employee related obligations
      95        80  
Other (***)
      69        357  
  
 
 
     
 
 
  
     3,333        4,215  
Valuation allowance—in respect of carryforward losses and deductions that may not be utilized
      (2,017 )       (3,009 ) 
  
 
 
     
 
 
  
   $ 1,316      $ 1,206  
  
 
 
     
 
 
  

(*)
The increase in deferred tax is mainly due to intellectual property related integration.
(**)
The amounts are shown after reduction for unrecognized tax benefits of $163 million and $2 million as of December 31, 2024 and 2023, respectively.
The amount as of December 31, 2024 represents the tax effect of gross carryforward losses and deductions with the following expirations:
2025
-
2026
—$38 million;
2027
-
2034
—$486 million;
2035
and thereafter—$38 million. The remaining balance—$995 million—can be utilized with no expiration date.
 
(***)
The amounts shown for 2023 are primarily comprised of Capitalization of R&D Expenses.
Schedule of Deferred Tax Assets and Liabilities By Report Caption
The deferred income taxes are reflected in the balance sheets among:
 
    
December 31,
  
    
2024
     
2023
  
    
(U.S. $ in millions)
  
Long-term assets—deferred income taxes
      1,799        1,812  
Long-term liabilities—deferred income taxes
      (483 )       (606 ) 
  
 
 
     
 
 
  
   $ 1,316      $ 1,206  
  
 
 
     
 
 
  
Schedule of Unrecognized Tax Benefits
d.
Uncertain tax positions:
The following table summarizes the activity of Teva’s gross unrecognized tax benefits:
 
    
Year ended December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
  
Balance at the beginning of the year
    $ 651      $ 638      $ 672  
Increase (decrease) related to prior year tax positions, net
      109        (1 )       (46 ) 
Increase related to current year tax positions
      53        15        42  
Decrease related to settlements with tax authorities and lapse of applicable statutes of limitations
      (395 )       (15 )       (31 ) 
Other
      29        14        1  
  
 
 
     
 
 
     
 
 
  
Balance at the end of the year
    $ 449      $ 651      $ 638  
  
 
 
     
 
 
     
 
 
  
v3.25.0.1
Equity (Tables)
 12 Months Ended
Dec. 31, 2024
Summary of Stock Option Activity
A summary of the status of the options granted by Teva as of December 31, 2024, 2023 and 2022, and changes during the years ended on those dates, is presented below (the number of options represents ordinary shares exercisable in respect thereof).
 
    
Year ended December 31,
  
    
2024
     
2023
     
2022
  
    
Number

(in thousands)
    
Weighted
average
exercise
price
     
Number

(in thousands)
    
Weighted
average
exercise
price
     
Number

(in thousands)
    
Weighted
average
exercise
price
  
Balance outstanding at beginning of year
      22,703     $ 36.89        24,119     $ 36.83        29,015     $ 36.96  
Changes during the year:
               
Exercised
      (1,284 )      15.37        —        —         —        —   
Forfeited
      (1,211 )      34.13        (885 )      34.65        (2,378 )      33.77  
Expired
      (2,495 )      48.84        (531 )      37.57        (2,518 )      41.26  
  
 
 
       
 
 
       
 
 
    
Balance outstanding at end of year
      17,713       39.96        22,703       36.89        24,119       36.83  
  
 
 
       
 
 
       
 
 
    
Balance exercisable at end of year
      17,713       39.96        22,703       36.89        24,119       36.83  
  
 
 
       
 
 
       
 
 
    
Schedule of Ordinary Shares Issued Upon Vested Options
The following table summarizes information as of December 31, 2024, regarding the number of ordinary shares issuable upon vested options:
 
Number of ordinary shares issuable upon exercise of vested options
  
Range of exercise prices
   
Balance at end of
period (in thousands)
     
Weighted average
exercise price
     
Weighted average
remaining life
  
    
Number of shares
     
$
     
Years
  
$15.01 - $25.00
      6,152        18.96        3.14  
$25.01 - $35.00
      5,167        34.67        2.16  
$35.01 - $45.00
      57        37.70        1.92  
$45.01 - $55.00
      2,987        53.25        1.28  
$55.01 - $65.00
      3,350        59.01        0.34  
  
 
 
        
Total
      17,713        36.96        2.01  
  
 
 
        
Schedule of the Number of RSUs Issued and Outstanding
The following table summarizes information about the number of RSUs and PSUs granted and outstanding:
 
    
Year ended December 31,
  
    
2024
     
2023
     
2022
  
    
Number

(in thousands)
    
Weighted
average
grant
date fair
value
     
Number

(in thousands)
    
Weighted
average
grant
date fair
value
     
Number

(in thousands)
    
Weighted
average
grant
date fair
value
  
Balance outstanding at beginning of year
      35,664     $ 9.07        32,302     $ 9.11        24,412     $ 11.58  
Granted
      11,557       13.66        16,608       9.77        18,755       7.42  
Vested
      (11,464 )      9.46        (10,195 )      10.28        (7,571 )      13.02  
Forfeited
      (1,947 )      9.81        (3,052 )      9.81        (3,293 )      9.81  
  
 
 
       
 
 
       
 
 
    
Balance outstanding at end of year
      33,810       10.46        35,664       9.07        32,302       9.11  
  
 
 
       
 
 
       
 
 
    
Summary of Company Expenses Compensation Costs Based on Grant Date Fair Value
The Company expenses compensation costs based on the grant-date fair value. For the years ended December 31, 2024, 2023 and 2022, the Company recorded stock-based compensation costs as follows:
 
    
Year ended December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
  
Employee stock options
    $ —       $ —       $ 2  
RSUs and PSUs
      123        121        122  
  
 
 
     
 
 
     
 
 
  
Total stock-based compensation expense
      123        121        124  
Tax effect on stock-based compensation expense
      11        11        9  
  
 
 
     
 
 
     
 
 
  
Net effect
    $ 112      $ 110      $ 115  
  
 
 
     
 
 
     
 
 
  
Accumulated Other Comprehensive Income/(Loss) (Net of Tax)
The components of accumulated other comprehensive loss attributable to Teva are presented in the table below:
 
    
Net Unrealized Gains (Losses)
    
Benefit Plans
        
    
Foreign
currency
translation
adjustments
    
Derivative
financial
instruments
    
Actuarial
gains(losses)
and prior
service
(costs)

credits
    
Total
  
    
(U.S. $ in millions)
  
Balance as of January 1, 2022
    $ (2,274 )      (324 )      (85 )      (2,683 ) 
Other comprehensive income(loss) before reclassifications
      (223 )      —        40       (183 ) 
Amounts reclassified to the statements of income
      —        29       27       56  
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income(loss) before tax
      (223 )      29       67       (127 ) 
Corresponding income tax
      (17 )      —        (10 )      (27 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income(loss) after tax*
      (240 )      29       57       (154 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of December 31, 2022
      (2,514 )      (295 )      (28 )      (2,838 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Other comprehensive income(loss) before reclassifications
      167       (1 )      (17 )      149  
Amounts reclassified to the statements of income
      —        30       (4 )      26  
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income(loss) before tax
      167       29       (21 )      175  
Corresponding income tax
      (37 )      —        3       (34 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income(loss) after tax*
      130       29       (18 )      141  
  
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of December 31, 2023
      (2,384 )      (266 )      (46 )      (2,697 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Other comprehensive income(loss) before reclassifications
      (456 )        (1 )      (457 ) 
Amounts reclassified to the statements of income
      —        28       (6 )      22  
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income(loss) before tax
      (456 )      28       (7 )      (434 ) 
Corresponding income tax
      (17 )      —        1       (16 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income(loss) after tax*
      (473 )      28       (6 )      (450 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of December 31, 2024
    $ (2,857 )    $ (238 )    $ (52 )    $ (3,148 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  

*
Amounts do not include foreign currency translation adjustments attributable to
non-controlling
interests of $61 million loss in 2024, $50 million loss in 2023 and $116 million loss in 2022.
v3.25.0.1
Other assets impairments, restructuring and other items (Tables)
 12 Months Ended
Dec. 31, 2024
Schedule of Other Assets Impairments, Restructuring and Other Items
    
Year ended December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
  
Impairment of long-lived tangible assets
(
*
)
    $ 1,024      $ 28      $ 47  
Contingent consideration (see note 20)
      303        548        261  
Restructuring
      74        111        146  
Other
      (14 )       30        57  
  
 
 
     
 
 
     
 
 
  
Total
    $ 1,388      $ 718      $ 512  
  
 
 
     
 
 
     
 
 
  

(*)
Including impairments related to exit and disposal activities.
Summary of Restructuring Plan Including Costs Related to Exit and Disposal
The following table provides the components of restructuring costs:
 
    
Year ended December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
  
Restructuring
         
Employee termination
    $ 53      $ 52      $ 117  
Other
      21        59        29  
  
 
 
     
 
 
     
 
 
  
Total
    $ 74      $ 111      $ 146  
  
 
 
     
 
 
     
 
 
  
Summary of Restructuring Accruals
The following table provides the components of and changes in the Company’s restructuring accruals:
 
    
Employee
termination
costs
     
Other
     
Total
  
    
(U.S. $ in millions )
  
Balance as of January 1, 2022
    $ (131 )     $ (7 )     $ (138 ) 
  
 
 
     
 
 
     
 
 
  
Provision
      (117 )       (29 )       (146 ) 
Utilization and other*
      136        29        165  
  
 
 
     
 
 
     
 
 
  
Balance as of December 31, 2022
    $ (112 )     $ (7 )     $ (119 ) 
  
 
 
     
 
 
     
 
 
  
Provision
      (52 )       (59 )       (111 ) 
Utilization and other*
      90        59        149  
  
 
 
     
 
 
     
 
 
  
Balance as of December 31, 2023
    $ (75 )     $ (7 )     $ (82 ) 
  
 
 
     
 
 
     
 
 
  
Provision
      (53 )       (21 )       (74 ) 
Utilization and other*
      73        16        88  
  
 
 
     
 
 
     
 
 
  
Balance as of December 31, 2024
    $ (55 )     $ (13 )     $ (68 ) 
  
 
 
     
 
 
     
 
 
  

*
Includes adjustments for foreign currency translation.
v3.25.0.1
Other income (Tables)
 12 Months Ended
Dec. 31, 2024
Schedule of Other Income
    
Year ended
December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
  
Gain on divestitures, net of divestitures related costs
    $ 15      $ 3      $ 46  
Section 8 and similar payments
      1        5        13  
Gain (loss) on sale of assets
      2        25        18  
Other, net
      (5 )       16        31  
  
 
 
     
 
 
     
 
 
  
Total other income
    $ 14      $ 49      $ 107  
  
 
 
     
 
 
     
 
 
  
v3.25.0.1
Financial expenses, net (Tables)
 12 Months Ended
Dec. 31, 2024
Schedule of Financial Expenses
    
Year ended December, 31
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
  
Interest expenses and other bank charges
    $ 1,002      $ 1,029      $ 930  
(Income) loss from investments
      (86 )       (68 )       (10 ) 
Foreign exchange (gains) losses, net
      17        30        (16 ) 
Other, net (*)
      48        66        61  
  
 
 
     
 
 
     
 
 
  
Total finance expense, net
    $ 981      $ 1,057      $ 966  
  
 
 
     
 
 
     
 
 
  

(*)
Amortization of issuance costs and terminated derivative instruments.
v3.25.0.1
Earnings (loss) per share (Tables)
 12 Months Ended
Dec. 31, 2024
Schedule of Earnings per Share
The net income (loss) attributable to Teva and the weighted average number of ordinary shares used in the computation of basic and diluted earnings (loss) per share for the years ended December 31, 2024, 2023 and 2022 are as follows:
 
    
Year ended December, 31
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions, except share data)
  
Net income (loss) used for the computation of basic and diluted earnings (loss) per share
    $ (1,639 )    $ (559 )     $ (2,446 ) 
  
 
 
     
 
 
     
 
 
  
Weighted average number of shares used in the computation of basic earnings (loss) per share
      1,131        1,119        1,110  
  
 
 
     
 
 
     
 
 
  
Weighted average number of shares used in the computation of diluted earnings (loss) per share
      1,131        1,119        1,110  
  
 
 
     
 
 
     
 
 
  
v3.25.0.1
Segments (Tables)
 12 Months Ended
Dec. 31, 2024
Summary of Segment Profit
a.
Segment information:
 
    
Year ended December 31,
  
    
2024
  
    
United
States
     
Europe
     
International
Markets
  
    
(U.S. $ in millions)
  
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 loss (income)
      §        3        (2 ) 
  
 
 
     
 
 
     
 
 
  
Segment profit
    $ 2,296      $ 1,575      $ 440  
  
 
 
     
 
 
     
 
 
  
 
§
Represents an amount less than $0.5 million.
 
    
Year ended December 31,
  
    
2023
  
    
United
States
     
Europe
     
International
Markets
  
    
(U.S. $ in millions)
  
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 ) 
  
 
 
     
 
 
     
 
 
  
Segment profit
    $ 2,394      $ 1,478      $ 465  
  
 
 
     
 
 
     
 
 
  
 
    
Year ended December 31,
  
    
2022
  
    
United
States
     
Europe
     
International
Markets
  
    
(U.S. $ in millions)
  
Revenues
    $ 7,003      $ 4,525      $ 2,352  
Cost of sales
      3,269        1,825        1,128  
R&D expenses
      485        213        119  
S&M expenses
      879        748        467  
G&A expenses
      440        246        154  
Other loss (income)
      (3 )       (3 )       (54 ) 
  
 
 
     
 
 
     
 
 
  
Segment profit
    $ 1,934      $ 1,496      $ 538  
  
 
 
     
 
 
     
 
 
  
 
    
Year ended December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
  
United States profit
    $ 2,296      $ 2,394      $ 1,934  
Europe profit
      1,575        1,478        1,496  
International Markets profit
      440        465        538  
  
 
 
     
 
 
     
 
 
  
Total reportable segments profit
      4,311        4,338        3,968  
Profit of other activities
      18        24        172  
  
 
 
     
 
 
     
 
 
  
Amounts not allocated to segments:
            —   
Amortization
      588        616        732  
Other assets impairments, restructuring and other items
      1,388        718        512  
Goodwill impairment
      1,280        700        2,045  
Intangible assets impairments
      251        350        355  
Legal settlements and loss contingencies
      761        1,043        2,082  
Other unallocated amounts
      364        502        610  
  
 
 
     
 
 
     
 
 
  
Consolidated operating income (loss)
      (303 )      433        (2,197 ) 
  
 
 
     
 
 
     
 
 
  
Financial expenses, net
      981        1,057        966  
  
 
 
     
 
 
     
 
 
  
Consolidated income (loss) before income taxes
    $ (1,284 )
 
    $ (624 )     $ (3,163 ) 
  
 
 
     
 
 
     
 
 
  
Schedule of Net Sales by Product Line
The following tables present revenues by major products and activities for each segment for the year ended December 31, 2024, 2023 and 2022:
United States segment:
 
    
Year ended December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
  
Generic products (including biosimilars)
    $ 3,599      $ 3,138      $ 3,155  
AJOVY
      207        211        210  
AUSTEDO
      1,642        1,225        963  
BENDEKA and TREANDA
      168        237        309  
COPAXONE
      242        297        359  
UZEDY
      117        23        —   
Anda
      1,536        1,577        1,471  
Other*
      523        1,025        536  
  
 
 
     
 
 
     
 
 
  
Total
    $ 8,034      $ 7,731      $ 7,003  
  
 
 
     
 
 
     
 
 
  

*
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 (see note 2).
Europe segment:
 
    
Year ended December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
  
Generic products (including OTC and biosimilars)
    $ 3,926      $ 3,664      $ 3,466  
AJOVY
      216        160        124  
COPAXONE
      213        231        268  
Respiratory products
      244        265        273  
Other*
      504        516        393  
  
 
 
     
 
 
     
 
 
  
Total
    $ 5,103      $ 4,837      $ 4,525  
  
 
 
     
 
 
     
 
 
  

*
Other revenues in 2024 and 2023 include the sale of certain product rights.
International Markets segment:
 
    
Year ended December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
  
Generic products (including OTC and biosimilars)
    $ 1,937      $ 1,932      $ 1,980  
AJOVY
      84        63        42  
COPAXONE
      48        63        64  
AUSTEDO
      46        15        8  
Other*
      349        278        257  
  
 
 
     
 
 
     
 
 
  
Total
    $ 2,463      $ 2,351      $ 2,352  
  
 
 
     
 
 
     
 
 
  
 
Schedule of Sales Percentage by Therapeutic Category
The following table represents the percentage of consolidated third party net sales to Teva’s major customers during the years ended December 31, 2024, 2023 and 2022.
 
    
Percentage of Third Party Net Sales
  
    
2024
    
2023
    
2022
  
McKesson Corporation
      12 %      9 %      10 % 
AmerisourceBergen Corporation
      9 %      9 %      10 % 
Schedule of Property, Plant and Equipment by Geographic Location
    
December 31,
  
    
2024
     
2023
  
    
(U.S. $ in millions)
  
Israel
    $ 1,066      $ 1,312  
Germany
      1,262        1,318  
United States
      561        596  
Croatia
      277        447  
Czech republic
      206        309  
Hungary
      83        279  
Ireland
      261        266  
Other
      865        1,222  
  
 
 
     
 
 
  
Total property, plant and equipment
    $ 4,581      $ 5,750  
  
 
 
     
 
 
  
v3.25.0.1
Fair Value Measurement (Tables)
 12 Months Ended
Dec. 31, 2024
Summary of Financial Items Carried at Fair Value
Financial items carried at fair value as of December 31, 2024 and 2023 are classified in the tables below in one of the three categories described in note 1f:
 
    
December 31, 2024
  
    
Level 1
     
Level 2
     
Level 3
     
Total
  
    
(U.S. $ in millions)
  
Cash and cash equivalents:
            
Money markets
    $ 2,005        —         —       $ 2,005  
Cash, deposits and other
      1,295        —         —         1,295  
Investment in securities:
            
Equity securities
      12        —         —         12  
Other
      3        —         —         3  
Derivatives:
            
Asset derivatives
:
            
Options and forward contracts
      —         71        —         71  
Liabilities derivatives
:
               —   
Options and forward contracts
      —         (24 )       —         (24 ) 
Bifurcated embedded derivatives
      —         —         §        —   
Contingent consideration*
      —         —         (401 )       (401 ) 
  
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 3,315      $ 47      $ (401 )     $ 2,961  
  
 
 
     
 
 
     
 
 
     
 
 
  
 
    
December 31, 2023
  
    
Level 1
     
Level 2
     
Level 3
     
Total
  
    
(U.S. $ in millions)
  
Cash and cash equivalents:
            
Money markets
    $ 1,704        —         —       $ 1,704  
Cash, deposits and other
      1,522        —         —         1,522  
Investment in securities:
            
Investment in convertible bond security
      —         —         40        40  
Equity securities
      7        —         —         7  
Other
      1        —         —         1  
Restricted cash
      1        —         —         1  
Derivatives:
            
Asset derivatives
:
            
Options and forward contracts
         38        —         38  
Cross-currency interest rate swap
         8        —         8  
Liabilities derivatives
:
            
Options and forward contracts
      —         (39 )       —         (39 ) 
Bifurcated embedded derivatives
      —         —         §        —   
Contingent consideration*
      —         —         (517 )       (517 ) 
  
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 3,235      $ 7      $ (477 )     $ 2,765  
  
 
 
     
 
 
     
 
 
     
 
 
  

§
Represents an amount less than $0.5 million.
*
Contingent consideration represents liabilities recorded at fair value in connection with acquisitions. The contingent consideration liability is recorded under accrued expenses and other taxes and long term liabilities.
Summary of Fair Value of Financial Liabilities Measured Using Level 3 Inputs
The following table summarizes the activity for those financial assets and liabilities where fair value measurements are estimated utilizing Level 3 inputs.
 
    
December 31,
2024
     
December 31,
2023
  
    
(U.S. $ in millions)
  
Fair value at the beginning of the period
    $ (477 )     $ (250 ) 
Investment in convertible bond *
      —         25  
Conversion option*
      —         15  
Redemption of convertible bond security*
      (40)        —   
Bifurcated embedded derivatives
      §        §  
Adjustments to provisions for contingent consideration:
      
Allergan transaction
      (270 )       (422 ) 
Eagle transaction
      (31 )       (132 ) 
Novetide transaction
      (2 )       2  
Settlement of contingent consideration:
      
Allergan transaction
      363        207  
Eagle transaction
      54        76  
Novetide transaction
      2        2  
  
 
 
     
 
 
  
Fair value at the end of the period
    $ (401 )     $ (477 ) 
  
 
 
     
 
 
  

§
Represents an amount less than $0.5 million.
*
On September 29, 2023, Teva purchased $40 million of subordinated convertible bonds of Alvotech. On June 26, 2024, Alvotech announced its intention to exercise its redemption rights and redeemed the convertible bonds, which were paid to Teva in July 2024 (see note 2).
Summary of Financial Instrument Measured on a Basis Other Than Fair Value
Financial instruments measured on a basis other than fair value consist of senior notes, sustainability-linked senior notes and convertible senior debentures (see note 9), and are presented in the below table in terms of fair value:
 
    
Estimated fair value*
  
    
December 31,
  
    
2024
     
2023
  
    
(U.S. $ in millions)
  
Senior notes and sustainability-linked senior notes included under senior notes and loans
    $ 15,717      $ 17,214  
Senior notes and convertible senior debentures included under short-term debt
      1,779        1,651  
  
 
 
     
 
 
  
Total*
    $ 17,496      $ 18,865  
  
 
 
     
 
 
  

*
The fair value was estimated based on quoted market prices.
v3.25.0.1
Long-term Employee-related Obligations (Tables)
 12 Months Ended
Dec. 31, 2024
Schedule of Long Term Employee Related Obligation
    
December 31,
  
    
2024
     
2023
  
    
(U.S. $ in millions)
  
Accrued severance obligations
    $ 65      $ 74  
Defined benefit plans
      63        73  
  
 
 
     
 
 
  
Total (*)
    $ 128      $ 148  
  
 
 
     
 
 
  

(*)
Teva’s long-term employee-related obligations are presented in the Consolidated Balance Sheet under other taxes and long-term liabilities.
v3.25.0.1
Significant Accounting Policies - Additional information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Significant Accounting Policies [Line Items]      
Percentage of consolidated sales in North America 49.00%    
Shipping and handling costs, which are included in selling and marketing expenses $ 119 $ 124 $ 118
Advertising expense $ 259 $ 162 $ 168
Operating lease description Teva determines if an arrangement is a lease at inception. Lease classification is governed by five criteria in ASC 842-10-25-2. If any of these five criteria is met, Teva classifies the lease as a finance lease. Otherwise, Teva classifies the lease as an operating lease. When determining lease classification, Teva’s approach in assessing two of the mentioned criteria is: (i) generally, 75% or more of the remaining economic life of the underlying asset is a major part of the remaining economic life of that underlying asset; and (ii) generally, 90% or more of the fair value of the underlying asset comprises substantially all of the fair value of the underlying asset.    
Minimum [Member]      
Significant Accounting Policies [Line Items]      
Operating lease remaining lease term 1 year    
Maximum [Member]      
Significant Accounting Policies [Line Items]      
Operating lease remaining lease term 76 years    
Building [Member]      
Significant Accounting Policies [Line Items]      
Property plant and equipment useful life 40 years    
Other Machinery and Equipment [Member]      
Significant Accounting Policies [Line Items]      
Property plant and equipment useful life 20 years    
Other Capitalized Property Plant and Equipment [Member] | Minimum [Member]      
Significant Accounting Policies [Line Items]      
Property plant and equipment useful life 5 years    
Other Capitalized Property Plant and Equipment [Member] | Maximum [Member]      
Significant Accounting Policies [Line Items]      
Property plant and equipment useful life 10 years    
v3.25.0.1
Certain Transactions - Other Transactions - Additional Information (Detail) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 26, 2024
Nov. 09, 2023
Jun. 12, 2023
Jan. 31, 2024
Oct. 31, 2021
Aug. 31, 2021
Dec. 31, 2016
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Sep. 30, 2022
Jun. 30, 2022
Dec. 31, 2021
Jun. 30, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2021
Dec. 31, 2020
Mar. 28, 2024
Oct. 03, 2023
Sep. 29, 2023
Noncash or Part Noncash Acquisitions [Line Items]                                            
Percentage of other asset impairment charges related to noncontrolling interest                               49.00%            
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax               $ 115 $ 83   $ 369                      
Other commitment                                       $ 150    
Other Asset Impairment Charges               129   $ 67 577                      
Additional milestone payment payable                     $ 150                      
Sanofi [Member] | Collaborative Arrangement [Member]                                            
Noncash or Part Noncash Acquisitions [Line Items]                                            
Upfront payment                                 $ 500          
Milestone payment receivable                                         $ 500  
Development and launch milestone payment receivable                                         $ 1,000  
Johnson And Johnson [Member] | Settlement And License Agreement Alvotech And Teva [Member]                                            
Noncash or Part Noncash Acquisitions [Line Items]                                            
Maximum entry date for granting license entry     Feb. 21, 2025                                      
Biolojic Design Ltd [Member] | Collaborative Arrangement [Member]                                            
Noncash or Part Noncash Acquisitions [Line Items]                                            
Additional development and milestone payments receivable               500               $ 500            
Biolojic Design Ltd [Member] | Research and Development Expense [Member]                                            
Noncash or Part Noncash Acquisitions [Line Items]                                            
Milestone payment       $ 10                                    
Royalty Pharma [Member]                                            
Noncash or Part Noncash Acquisitions [Line Items]                                            
Collaborative agreement milestone payments   $ 100                                        
Term of royalty payment   5 years                                        
Collaborative agreement milestone amount increase   $ 125                                        
Royalty Pharma [Member] | Research and Development Expense [Member] | Collaborative Arrangement [Member]                                            
Noncash or Part Noncash Acquisitions [Line Items]                                            
Reimbursement of research and development expenses incurred                               100 100          
Takeda [Member]                                            
Noncash or Part Noncash Acquisitions [Line Items]                                            
Upfront payment             $ 30                              
Milestone payment             $ 20           $ 25                  
Teva's API business [Member]                                            
Noncash or Part Noncash Acquisitions [Line Items]                                            
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax               34                            
Other Asset Impairment Charges               $ 275                            
Abingworth [Member] | Research and Development Expense [Member]                                            
Noncash or Part Noncash Acquisitions [Line Items]                                            
Reimbursement of research and development expenses incurred                               42            
Teva [Member]                                            
Noncash or Part Noncash Acquisitions [Line Items]                                            
Cost of the investment                                           $ 40
Alvotech [Member]                                            
Noncash or Part Noncash Acquisitions [Line Items]                                            
Collaborative agreement milestone payments                             $ 380              
Proceeds from available for sale debt securities $ 44                                          
Alvotech [Member] | Research and Development Expense [Member]                                            
Noncash or Part Noncash Acquisitions [Line Items]                                            
Milestone payment                 $ 19 27             $ 78 $ 78 $ 78      
mAbxience [Member]                                            
Noncash or Part Noncash Acquisitions [Line Items]                                            
Collaborative agreement milestone payments                               320            
mAbxience [Member] | Research and Development Expense [Member]                                            
Noncash or Part Noncash Acquisitions [Line Items]                                            
Aggregate upfront and milestone payments                   20           $ 15            
MedinCell [Member]                                            
Noncash or Part Noncash Acquisitions [Line Items]                                            
Milestone payment                       $ 3                    
Collaborative agreement milestone payments           $ 105       $ 117                        
MODAG [Member]                                            
Noncash or Part Noncash Acquisitions [Line Items]                                            
License agreement potential aggregate milestone payments amount         $ 30                                  
MODAG [Member] | Research and Development Expense [Member]                                            
Noncash or Part Noncash Acquisitions [Line Items]                                            
Milestone payment                           $ 10                
v3.25.0.1
Certain Transactions - Business Acquisitions - Summary of Major Classes of Assets and Liabilities Included as Held for Sale (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Business Combinations [Abstract]    
Accounts receivables $ 222 $ 0
Inventories 647 12
Property, plant and equipment, net and others 913 5
Identifiable intangible assets, net 83 0
Goodwill 255 30
Other current assets 99 23
Other non-current assets 236 0
Expected loss on sale [1] (684) 0
Total assets of the disposal group classified as held for sale in the consolidated balance sheets 1,771 70
Accounts payables (283) 0
Other current liabilities (49) (13)
Other non-current liabilities (85) 0
Expected loss on sale [1] (281) 0
Total liabilities of the disposal group classified as held for sale in the consolidated balance sheets $ (698) $ (13)
[1] Includes an expected loss from reclassification of currency translation adjustments to the consolidated statements of income (loss) upon sale.
v3.25.0.1
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Revenue Recognition [Line Items]    
Allowance for credit losses $ 78 $ 95
United States [Member]    
Revenue Recognition [Line Items]    
Percentage sales reserves and allowances to U.S. customers 69.00%  
v3.25.0.1
Revenue from Contracts with Customers - Summary of Disaggregation of Revenues by Major Revenue Streams (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Disaggregation of Revenue [Line Items]      
Total revenue $ 16,544 $ 15,846 $ 14,925
Sale of Goods [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 14,430 12,979 12,766
Licensing Arrangements [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 173 681 [1] 212
Distribution [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 1,576 1,615 1,519
Other [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 365 [2] 570 [3] 428
International Markets [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 2,463 2,351 2,352
International Markets [Member] | Sale of Goods [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 2,280 2,229 2,257
International Markets [Member] | Licensing Arrangements [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 24 28 [1] 22
International Markets [Member] | Distribution [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 39 38 46
International Markets [Member] | Other [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 121 [2] 57 [3] 27
Other activities [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 944 926 1,045
Other activities [Member] | Sale of Goods [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 933 565 671
Other activities [Member] | Licensing Arrangements [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 11 5 [1] 4
Other activities [Member] | Distribution [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 0 0 0
Other activities [Member] | Other [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue   357 [3] 370
United States [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 8,034 7,731 7,003
United States [Member] | Sale of Goods [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 6,327 5,554 5,383
United States [Member] | Licensing Arrangements [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 103 597 [1] 136
United States [Member] | Distribution [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 1,536 1,577 1,471
United States [Member] | Other [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 68 [2] 2 [3] 13
Europe [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 5,103 4,837 4,525
Europe [Member] | Sale of Goods [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 4,891 4,631 4,455
Europe [Member] | Licensing Arrangements [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 35 51 [1] 51
Europe [Member] | Distribution [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 1   1
Europe [Member] | Other [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue $ 176 [2] $ 155 [3] $ 18
[1] Revenues from licensing arrangements in United states segment were mainly comprised of $500 million upfront payment received in connection with the collaboration on Teva’s anti-TL1A asset. See note 2.
[2] “Other” revenues in all segments include revenues related to sales of certain product rights.
[3] “Other” revenues in Europe segment mainly related to the sale of certain product rights.
v3.25.0.1
Revenue from Contracts with Customers - Summary of Disaggregation of Revenues by Major Revenue Streams (Parenthetical) (Detail)
$ in Millions
 12 Months Ended
Dec. 31, 2023
USD ($)
Sanofi [Member] | Collaborative Arrangement [Member]  
Disaggregation of Revenue [Line Items]  
Upfront payment $ 500
v3.25.0.1
Revenue from Contracts with Customers - Schedule of Sales Reserves and Allowances (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Revenue Recognition [Line Items]    
Balance at beginning of period $ 3,596 $ 3,817
Provisions related to sales made in current year period 14,194 12,975
Provisions related to sales made in prior periods (9) (101)
Credits and payments (13,970) (13,125)
Translation differences (77) 30
Balance at end of period 3,734 3,596
Reserves Included in Accounts Receivable, net [Member]    
Revenue Recognition [Line Items]    
Balance at beginning of period 61 67
Provisions related to sales made in current year period 390 354
Provisions related to sales made in prior periods 0 0
Credits and payments (395) (360)
Translation differences 0 0
Balance at end of period 56 61
Rebates [Member]    
Revenue Recognition [Line Items]    
Balance at beginning of period 1,603 1,575
Provisions related to sales made in current year period 4,640 4,015
Provisions related to sales made in prior periods 5 (31)
Credits and payments (4,531) (3,974)
Translation differences (43) 18
Balance at end of period 1,674 1,603
Medicaid and other governmental allowances [Member]    
Revenue Recognition [Line Items]    
Balance at beginning of period 540 663
Provisions related to sales made in current year period 787 654
Provisions related to sales made in prior periods 22 (33)
Credits and payments (781) (748)
Translation differences (7) 4
Balance at end of period 561 540
Chargebacks [Member]    
Revenue Recognition [Line Items]    
Balance at beginning of period 859 991
Provisions related to sales made in current year period 7,952 7,579
Provisions related to sales made in prior periods (11) (54)
Credits and payments (7,851) (7,662)
Translation differences (13) 5
Balance at end of period 936 859
Returns [Member]    
Revenue Recognition [Line Items]    
Balance at beginning of period 436 455
Provisions related to sales made in current year period 276 264
Provisions related to sales made in prior periods (22) 17
Credits and payments (286) (304)
Translation differences (5) 4
Balance at end of period 399 436
Other [Member]    
Revenue Recognition [Line Items]    
Balance at beginning of period 97 66
Provisions related to sales made in current year period 149 109
Provisions related to sales made in prior periods (3) 0
Credits and payments (126) (77)
Translation differences (9) (1)
Balance at end of period 108 97
Total reserves included in sales reserves and allowances [Member]    
Revenue Recognition [Line Items]    
Balance at beginning of period 3,535 3,750
Provisions related to sales made in current year period 13,804 12,621
Provisions related to sales made in prior periods (9) (101)
Credits and payments (13,575) (12,765)
Translation differences (77) 30
Balance at end of period $ 3,678 $ 3,535
v3.25.0.1
Inventories - Summary of Inventories (Detail) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Inventories [Line Items]    
Finished products $ 1,783 $ 2,346
Raw and packaging materials 671 993
Products in process 353 500
Materials in transit and payments on account 199 183
Total $ 3,007 $ 4,021
v3.25.0.1
Inventories - Additional Information (Detail)
$ in Millions
 12 Months Ended
Dec. 31, 2024
USD ($)
Inventory Disclosure [Abstract]  
Inventories held for sale $ 647
v3.25.0.1
Property, Plant and Equipment - Summary of Property, Plant and Equipment, Net (Detail) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]    
Machinery and equipment $ 3,092 $ 4,807
Buildings 1,968 2,488
Computer equipment and other assets 2,388 2,419
Assets under construction and payments on account 1,330 1,427
Land 213 246
Subtotal 8,991 11,387
Less- accumulated depreciation (4,410) (5,637)
Property, Plant and Equipment, Net, Total $ 4,581 $ 5,750
v3.25.0.1
Property, Plant and Equipment - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]      
Depreciation expense for the year $ 471 $ 537 $ 576
Impairment charge during the year on property, plant and equipment 1,024 28 47
Property, plant and equipment, net and others 913 5  
Teva [Member]      
Property, Plant and Equipment [Line Items]      
Impairment charge during the year on property, plant and equipment $ 61 $ 28 $ 47
v3.25.0.1
Identifiable Intangible Assets - Additional Information (Detail)
$ in Millions
 12 Months Ended
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Finite-Lived Intangible Assets [Line Items]      
Amortization of intangible assets useful life   8 years  
Amortization of intangible assets $ 588 $ 616 $ 732
2025 491    
2026 496    
2027 533    
2028 516    
2029 448    
Impairment of intangible assets excluding goodwill $ 251 350 $ 355
Impairment, Intangible Asset, Statement of Income or Comprehensive Income [Extensible Enumeration]     Intangible Assets Impairments
Change In Tevas Commercial Plans Regarding Certain Program [Member]      
Finite-Lived Intangible Assets [Line Items]      
Impairment of intangible assets excluding goodwill     $ 108
Minimum [Member] | Measurement input, discount rate [Member]      
Finite-Lived Intangible Assets [Line Items]      
Business combination, contingent consideration, liability, measurement input 8.5    
Maximum [Member] | Measurement input, discount rate [Member]      
Finite-Lived Intangible Assets [Line Items]      
Business combination, contingent consideration, liability, measurement input 11    
Generic Pipeline Products [Member] | In Process Research And Development To Product Rights [Member] | Development Progress And Changes In Other Key Valuation Assumptions [Member]      
Finite-Lived Intangible Assets [Line Items]      
Impairment of intangible assets excluding goodwill $ 57 90 $ 45
In process research and development [Member] | Minimum [Member]      
Finite-Lived Intangible Assets [Line Items]      
Business combination, contingent consideration, liability, measurement input     8.25
In process research and development [Member] | Maximum [Member]      
Finite-Lived Intangible Assets [Line Items]      
Business combination, contingent consideration, liability, measurement input     10
In process research and development [Member] | Maximum [Member] | Measurement input, discount rate [Member]      
Finite-Lived Intangible Assets [Line Items]      
Business combination, contingent consideration, liability, measurement input     90
Identifiable product rights [Member]      
Finite-Lived Intangible Assets [Line Items]      
Impairment of intangible assets excluding goodwill $ 194 260 $ 310
Identifiable product rights [Member] | Regulatory Price And Volume Of Products [Member]      
Finite-Lived Intangible Assets [Line Items]      
Impairment of intangible assets excluding goodwill   148  
Identifiable product rights [Member] | Updated Market Assumptions [Member]      
Finite-Lived Intangible Assets [Line Items]      
Impairment of intangible assets excluding goodwill   $ 112 256
Identifiable product rights [Member] | Change In Tevas Commercial Plans Regarding Certain Program [Member]      
Finite-Lived Intangible Assets [Line Items]      
Impairment of intangible assets excluding goodwill     $ 54
v3.25.0.1
Identifiable Intangible Assets - Summary of Identifiable Intangible Assets (Detail) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount net of impairment $ 16,716 $ 18,930
Accumulated amortization 12,298 13,543
Net carrying amount 4,418 5,387
Product rights [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount net of impairment 15,915 17,981
Accumulated amortization 11,998 13,274
Net carrying amount 3,917 4,707
Trade names [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount net of impairment 568 583
Accumulated amortization 300 269
Net carrying amount 268 314
In process research and development [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount net of impairment 233 366
Accumulated amortization 0 0
Net carrying amount $ 233 $ 366
v3.25.0.1
Goodwill - Summary of Changes in the Carrying Amount of Goodwill by Segment (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Goodwill [Line Items]          
Beginning balance   $ 17,177 $ 17,177 [1] $ 17,177 $ 17,633 [1]
Goodwill allocation related to the shift of Canada to International Markets       0  
Goodwill impairment $ (400)   (1,280) (700) (2,045)
Goodwill reclassified as assets held for sale     (236) (30)  
Translation differences     (513) 275  
Ending balance     15,147 [1] 17,177 [1] 17,177
Medis Reporting Units [Member]          
Goodwill [Line Items]          
Beginning balance [1]         249
Goodwill impairment       0  
Goodwill reclassified as assets held for sale       0  
Translation differences       16  
Tevas API Reporting Unit [Member]          
Goodwill [Line Items]          
Beginning balance [1]         1,293
Goodwill impairment       0  
Goodwill reclassified as assets held for sale       0  
Translation differences       20  
North America [Member]          
Goodwill [Line Items]          
Beginning balance   0 6,459 [1] 0 6,450 [1]
Goodwill allocation related to the shift of Canada to International Markets       (6,459)  
Goodwill impairment     0 0  
Goodwill reclassified as assets held for sale     0 0  
Translation differences     0 9  
Ending balance     0 [1] 6,459 [1] 0
Europe [Member]          
Goodwill [Line Items]          
Beginning balance   8,466 8,466 [1] 8,466 8,302 [1]
Goodwill allocation related to the shift of Canada to International Markets       0  
Goodwill impairment     0 0  
Goodwill reclassified as assets held for sale     (98) 0  
Translation differences     (293) 164  
Ending balance     8,075 [1] 8,466 [1] 8,466
International Markets [Member]          
Goodwill [Line Items]          
Beginning balance   1,321 675 [1] 1,321 1,339 [1]
Goodwill allocation related to the shift of Canada to International Markets       646  
Goodwill impairment   (700) 0 (700)  
Goodwill reclassified as assets held for sale     (50) (30)  
Translation differences     (161) 66  
Ending balance     1,110 [1] 675 [1] 1,321
Other [Member] | Medis Reporting Units [Member]          
Goodwill [Line Items]          
Beginning balance   265 265 [1] 265  
Goodwill allocation related to the shift of Canada to International Markets       0  
Goodwill impairment     0    
Goodwill reclassified as assets held for sale     (7)    
Translation differences     (26)    
Ending balance     232 [1] 265 [1] 265
Other [Member] | Tevas API Reporting Unit [Member]          
Goodwill [Line Items]          
Beginning balance   1,313 1,313 [1] 1,313  
Goodwill allocation related to the shift of Canada to International Markets       0  
Goodwill impairment     (1,280)    
Goodwill reclassified as assets held for sale     0    
Translation differences     (33)    
Ending balance     0 [1] 1,313 [1] 1,313
United States [Member]          
Goodwill [Line Items]          
Beginning balance   $ 5,813 0 [1] 5,813 0 [1]
Goodwill allocation related to the shift of Canada to International Markets       5,813  
Goodwill impairment     0    
Goodwill reclassified as assets held for sale     (81)    
Translation differences     0    
Ending balance     $ 5,732 [1] $ 0 [1] $ 5,813
[1] Cumulative goodwill impairment as of December 31, 2024, December 31, 2023 and December 31, 2022 was approximately $29.55 billion, $28.3 billion and $27.6 billion, respectively.
v3.25.0.1
Goodwill - Summary of Changes in the Carrying Amount of Goodwill by Segment (Parenthetical) (Detail) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Goodwill [Line Items]      
Accumulated goodwill impairment $ 29,580 $ 28,300 $ 27,600
v3.25.0.1
Goodwill - Additional Information (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Goodwill [Line Items]              
Goodwill impairment     $ 400   $ 1,280 $ 700 $ 2,045
Teva United States Europe International Markets and Medis Reporting [Member]              
Goodwill [Line Items]              
Reporting unit percentage of fair value in excess of carrying amount 10.00%       10.00%    
Tevas United States, Europe, International Markets and Medis reporting units [Member]              
Goodwill [Line Items]              
Reporting unit percentage of fair value in excess of carrying amount     10.00%        
Tevas API Reporting Unit [Member]              
Goodwill [Line Items]              
Goodwill impairment $ 280 $ 600          
International Markets [Member]              
Goodwill [Line Items]              
Goodwill impairment       $ 700 $ 0 $ 700  
v3.25.0.1
Leases - Components of Lease Expense (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Operating lease cost:      
Fixed payments and variable payments that depend on an index or rate $ 123 $ 132 $ 142
Variable lease payments not included in the lease liability 16 5 4
Short-term lease cost 3 3 2
Total operating lease cost $ 142 $ 139 $ 148
v3.25.0.1
Leases - Supplemental cash flow information related to leases (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:      
Operating cash flows from operating leases $ 143 $ 141 $ 140
Right-of-use assets obtained in exchange for lease obligations (non-cash):      
Operating leases $ 137 $ 121 $ 81
v3.25.0.1
Leases - Supplemental Balance Sheet Information Related To Leases (Detail) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Operating leases:    
Operating lease ROU assets $ 367 $ 397
Other current liabilities 87 97
Operating lease liabilities 296 320
Total operating lease liabilities $ 383 $ 417
Weighted average remaining lease term Operating leases 6 years 1 month 6 days 6 years 1 month 6 days
Weighted average discount rate Operating leases 6.50% 6.00%
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Liabilities, Current Liabilities, Current
v3.25.0.1
Leases - Maturities of lease liabilities (Detail) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
2025 $ 120  
2026 102  
2027 81  
2028 57  
2029 and thereafter 135  
Total operating lease payments 495  
Less: imputed interest 112  
Present value of lease liabilities $ 383 $ 417
v3.25.0.1
Leases - Additional Information (Detail) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Finance Lease, Right-of-Use Asset $ 18 $ 23
Finance Lease, Liability $ 23 $ 32
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] Other Liabilities, Noncurrent Other Liabilities, Noncurrent
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Property, Plant and Equipment, Net Property, Plant and Equipment, Net
v3.25.0.1
Debt Obligations - Schedule of Short-term Debt (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Debt Instrument [Line Items]    
Current maturities of long-term liabilities $ 1,758 $ 1,649
Total short term debt $ 1,781 1,672
Convertible senior debentures [Member]    
Debt Instrument [Line Items]    
Interest rate 0.25%  
Maturity 2026  
Convertible senior debentures $ 23 $ 23
v3.25.0.1
Debt Obligations - Schedule of Senior Notes and Loans (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Debt Instrument [Line Items]    
Total senior notes $ 17,821 $ 19,889
Less current maturities (1,758) (1,649)
Less debt issuance costs (61) (80)
Total senior notes and loans $ 16,002 18,161
Senior notes USD 1,250 million [Member]    
Debt Instrument [Line Items]    
Weighted average interest rate [1] 6.00%  
Maturity [1] 2024  
Total senior notes [1] $ 0 956
Senior notes EUR 1,500 million [Member]    
Debt Instrument [Line Items]    
Weighted average interest rate [2] 1.13%  
Maturity [2] 2024  
Total senior notes [2] $ 0 693
Senior notes EUR 1,000 million [Member]    
Debt Instrument [Line Items]    
Weighted average interest rate [3] 6.00%  
Maturity [3] 2025  
Total senior notes [3] $ 429 453
Senior notes USD 1,000 million [Member]    
Debt Instrument [Line Items]    
Weighted average interest rate [4] 7.13%  
Maturity [4] 2025  
Total senior notes [4] $ 427 427
Senior notes EUR 900 million [Member]    
Debt Instrument [Line Items]    
Weighted average interest rate 4.50%  
Maturity 2025  
Total senior notes $ 515 547
Senior notes CHF 350 million [Member]    
Debt Instrument [Line Items]    
Weighted average interest rate 1.00%  
Maturity 2025  
Total senior notes $ 387 416
Senior notes USD 3,500 million [Member]    
Debt Instrument [Line Items]    
Weighted average interest rate 3.15%  
Maturity 2026  
Total senior notes $ 3,374 3,374
Senior notes EUR 700 million [Member]    
Debt Instrument [Line Items]    
Weighted average interest rate 1.88%  
Maturity 2027  
Total senior notes $ 730 771
Sustainability-linked senior notes USD 1,000 million [Member]    
Debt Instrument [Line Items]    
Weighted average interest rate [5],[6] 4.75%  
Maturity [5],[6] 2027  
Total senior notes [5],[6] $ 1,000 1,000
Sustainability-linked senior notes EUR 1,100 million [Member]    
Debt Instrument [Line Items]    
Weighted average interest rate [5],[6] 3.75%  
Maturity [5],[6] 2027  
Total senior notes [5],[6] $ 1,144 1,215
Senior notes USD 1,250 million [Member]    
Debt Instrument [Line Items]    
Weighted average interest rate 6.75%  
Maturity 2028  
Total senior notes $ 1,250 1,250
Senior notes EUR 750 million [Member]    
Debt Instrument [Line Items]    
Weighted average interest rate 1.63%  
Maturity 2028  
Total senior notes $ 778 826
Sustainability-linked senior notes USD 1,000 million [Member]    
Debt Instrument [Line Items]    
Weighted average interest rate [6],[7] 5.13%  
Maturity [6],[7] 2029  
Total senior notes [6],[7] $ 1,000 1,000
Sustainability-linked senior notes USD 600 million [Member]    
Debt Instrument [Line Items]    
Weighted average interest rate [6],[8] 7.88%  
Maturity [6],[8] 2029  
Total senior notes [6],[8] $ 600 600
Sustainability-linked senior notes EUR 800 million [Member]    
Debt Instrument [Line Items]    
Weighted average interest rate [6],[8] 7.38%  
Maturity [6],[8] 2029  
Total senior notes [6],[8] $ 835 884
Sustainability-linked senior notes EUR 1,500 million [Member]    
Debt Instrument [Line Items]    
Weighted average interest rate [6],[7] 4.38%  
Maturity [6],[7] 2030  
Total senior notes [6],[7] $ 1,562 1,656
Sustainability-linked senior notes USD 500 million [Member]    
Debt Instrument [Line Items]    
Weighted average interest rate [6],[8] 8.13%  
Maturity [6],[8] 2031  
Total senior notes [6],[8] $ 500 500
Sustainability-linked senior notes EUR 500 million [Member]    
Debt Instrument [Line Items]    
Weighted average interest rate [6],[8] 7.88%  
Maturity [6],[8] 2031  
Total senior notes [6],[8] $ 521 552
Senior notes USD 789 million [Member]    
Debt Instrument [Line Items]    
Weighted average interest rate 6.15%  
Maturity 2036  
Total senior notes $ 783 783
Senior notes USD 2,000 million [Member]    
Debt Instrument [Line Items]    
Weighted average interest rate 4.10%  
Maturity 2046  
Total senior notes $ 1,986 1,986
Other Debentures [Member]    
Debt Instrument [Line Items]    
Total senior notes and loans $ 0 $ 1
[1] In April 2024, Teva repaid $956 million of its 6% senior notes due 2024 at maturity.
[2] In October 2024, Teva repaid $685 million of its 1.13% senior notes due 2024 at maturity.
[3] In January 2025, Teva repaid $426 million of its 6% senior notes due 2025 at maturity.
[4] In January 2025, Teva repaid $427 million of its 7.13% senior notes due 2025 at maturity.
[5] If Teva fails to achieve certain sustainability performance targets, a one-time premium payment of 0.15%-0.45% out of the principal amount will be paid at maturity or upon earlier redemption, if such redemption is on or after May 9, 2026.
[6] Interest rate adjustments and a potential one-time premium payment related to the sustainability-linked bonds are treated as bifurcated embedded derivatives. See note 10c.
[7] If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by 0.125%-0.375% per annum, from and including May 9, 2026.
[8] If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by 0.100%-0.300% per annum, from and including September 15, 2026.
v3.25.0.1
Debt Obligations - Schedule of Senior Notes and Loans (Parenthetical) (Detail)
€ in Millions, SFr in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2024
USD ($)
Jan. 31, 2025
USD ($)
Dec. 31, 2024
EUR (€)
Dec. 31, 2024
CHF (SFr)
Oct. 31, 2024
USD ($)
Apr. 30, 2024
USD ($)
Senior Notes [Member]            
Debt Instrument [Line Items]            
Senior notes repaid amount         $ 685 $ 956
Senior notes maturity percentage         1.13% 6.00%
Senior notes USD 1,250 million [Member]            
Debt Instrument [Line Items]            
Debt instrument face amount $ 1,250          
Senior notes EUR 1,500 million [Member]            
Debt Instrument [Line Items]            
Debt instrument face amount | €     € 1,500      
Senior notes EUR 1,000 million [Member]            
Debt Instrument [Line Items]            
Debt instrument face amount | €     1,000      
Senior notes USD 1,000 million [Member]            
Debt Instrument [Line Items]            
Debt instrument face amount 1,000          
Senior notes EUR 900 million [Member]            
Debt Instrument [Line Items]            
Debt instrument face amount | €     900      
Senior notes CHF 350 million [Member]            
Debt Instrument [Line Items]            
Debt instrument face amount | SFr       SFr 350    
Senior notes USD 3,500 million [Member]            
Debt Instrument [Line Items]            
Debt instrument face amount 3,500          
Senior notes EUR 700 million [Member]            
Debt Instrument [Line Items]            
Debt instrument face amount | €     700      
Sustainability-linked senior notes USD 1,000 million [Member]            
Debt Instrument [Line Items]            
Debt instrument face amount 1,000          
Sustainability-linked senior notes EUR 1,100 million [Member]            
Debt Instrument [Line Items]            
Debt instrument face amount | €     1,100      
Senior notes USD 1,250 million [Member]            
Debt Instrument [Line Items]            
Debt instrument face amount 1,250          
Senior notes EUR 750 million [Member]            
Debt Instrument [Line Items]            
Debt instrument face amount | €     750      
Sustainability-linked senior notes USD 1,000 million [Member]            
Debt Instrument [Line Items]            
Debt instrument face amount 1,000          
Sustainability-linked senior notes USD 600 million [Member]            
Debt Instrument [Line Items]            
Debt instrument face amount $ 600          
Sustainability-linked senior notes USD 600 million [Member] | Maximum [Member] | From September Fifteenth Two Thousand And Twenty Six [Member]            
Debt Instrument [Line Items]            
Debt Instrument, Interest Rate, Increase (Decrease) 0.30%          
Sustainability-linked senior notes USD 600 million [Member] | Minimum [Member] | From September Fifteenth Two Thousand And Twenty Six [Member]            
Debt Instrument [Line Items]            
Debt Instrument, Interest Rate, Increase (Decrease) 0.10%          
Sustainability-linked senior notes EUR 800 million [Member]            
Debt Instrument [Line Items]            
Debt instrument face amount | €     800      
Sustainability-linked senior notes EUR 1,500 million [Member]            
Debt Instrument [Line Items]            
Debt instrument face amount | €     1,500      
Sustainability-linked senior notes USD 500 million [Member]            
Debt Instrument [Line Items]            
Debt instrument face amount $ 500          
Sustainability-linked senior notes EUR 500 million [Member]            
Debt Instrument [Line Items]            
Debt instrument face amount | €     € 500      
Senior notes USD 789 million [Member]            
Debt Instrument [Line Items]            
Debt instrument face amount 789          
Senior notes USD 2,000 million [Member]            
Debt Instrument [Line Items]            
Debt instrument face amount $ 2,000          
Interest Rate Increase [Member] | Maximum [Member]            
Debt Instrument [Line Items]            
Debt Instrument, Interest Rate, Increase (Decrease) 0.375%          
Interest Rate Increase [Member] | Minimum [Member]            
Debt Instrument [Line Items]            
Debt Instrument, Interest Rate, Increase (Decrease) 0.125%          
One Time Premium Payment [Member]            
Debt Instrument [Line Items]            
Debt Instrument, Maturity Date May 09, 2026          
One Time Premium Payment [Member] | Maximum [Member]            
Debt Instrument [Line Items]            
Debt Instrument, Interest Rate, Increase (Decrease) 0.45%          
One Time Premium Payment [Member] | Minimum [Member]            
Debt Instrument [Line Items]            
Debt Instrument, Interest Rate, Increase (Decrease) 0.15%          
Senior Notes USD 429 Million [Member] | Senior Notes [Member]            
Debt Instrument [Line Items]            
Senior notes repaid amount   $ 426        
Senior notes maturity percentage   6.00%        
Senior Notes USD 427 Million [Member] | Senior Notes [Member]            
Debt Instrument [Line Items]            
Senior notes repaid amount   $ 427        
Senior notes maturity percentage   7.13%        
v3.25.0.1
Debt Obligations - Schedule Required Annual Principal Payments of Long-term Debt, Excluding Debt Issuance Cost (Detail)
$ in Millions
Dec. 31, 2024
USD ($)
Long Term Debt Maturity [Line Items]  
2026 $ 3,397 [1]
2027 2,874
2028 2,028
2029 2,435
2030 and thereafter 5,352
Total $ 16,086
[1] Including $23 million convertible notes. See note 9a.
v3.25.0.1
Debt Obligations - Schedule Required Annual Principal Payments of Long-term Debt, Excluding Debt Issuance Cost (Parenthetical) (Detail) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Convertible Debt [Member]    
Short-term Debt [Line Items]    
Principal amount currently outstanding on the debt instruments $ 23 $ 23
v3.25.0.1
Debt Obligations - Additional Information (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2027
Dec. 31, 2026
Sep. 30, 2026
Jun. 30, 2026
Mar. 31, 2026
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Debt Instrument [Line Items]                
Long term debt currency portion USD             61.00%  
Long term debt currency portion EUR             37.00%  
Long term debt currency portion CHF             2.00%  
Convertible Debt [Member]                
Debt Instrument [Line Items]                
Principal amount currently outstanding on the debt instruments             $ 23 $ 23
Weighted average interest rate             0.25%  
Revolving Credit Facility [Member]                
Debt Instrument [Line Items]                
Debt Instrument, Covenant Description             Proceeds from borrowings under the RCF can be used for general corporate purposes, including repaying existing debt. As of December 31, 2024, and as of the date of this Annual Report on Form 10-K, no amounts were outstanding under the RCF. Based on current and forecasted results, the Company expects that it will not exceed the financial covenant thresholds set forth in the RCF within one year from the date the financial statements are issued.  
Line of Credit Facility, Maximum Borrowing Capacity             $ 1,800  
Debt Instrument, Maturity Date             Apr. 30, 2026  
Line of credit extension period             one-year  
Revolving Credit Facility [Member] | Amended Revolving Credit Facility [Member]                
Debt Instrument [Line Items]                
Leverage Ratio             4.00  
Revolving Credit Facility [Member] | Amended Revolving Credit Facility [Member] | Subsequent Event [Member]                
Debt Instrument [Line Items]                
Leverage Ratio 3.50 3.75 3.75 3.75 4.00 4.00    
v3.25.0.1
Derivative instruments and hedging activities - Summary of Notional Amounts for Hedged Items (Detail) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Designated as Hedging Instrument [Member] | Cross Currency Swap Cash Flow Hedge [Member]    
Disclosure In Tabular Form Of Notional Amount Of Derivatives Designated As Hedging Instruments [Line Items]    
Cross-currency swap - cash flow hedge [1] $ 0 $ 169
[1] On March 31, 2023, Teva entered into a cross-currency interest rate swap agreement, designated as cash flow hedge for accounting purposes with respect to an intercompany loan due October 2026, denominated in Japanese yen. The agreement was terminated in the first quarter of 2024 and resulted in cash proceeds of $16 million.
v3.25.0.1
Derivative Instruments and Hedging Activities - Summary of Classification and Fair Values of Derivative Instruments (Detail) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Current Assets [Member]    
Derivative [Line Items]    
Asset derivatives $ 0 $ 0
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Current Liabilities [Member]    
Derivative [Line Items]    
Liability derivatives 0 0
Designated as Hedging Instrument [Member] | Cross Currency Swap Cash Flow Hedge [Member] | Other Non-current Assets [Member]    
Derivative [Line Items]    
Asset derivatives [1] 0 8
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Current Assets [Member]    
Derivative [Line Items]    
Asset derivatives 71 38
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Current Liabilities [Member]    
Derivative [Line Items]    
Liability derivatives (24) (39)
Not Designated as Hedging Instrument [Member] | Cross Currency Swap Cash Flow Hedge [Member] | Other Non-current Assets [Member]    
Derivative [Line Items]    
Asset derivatives [1] $ 0 $ 0
[1] On March 31, 2023, Teva entered into a cross-currency interest rate swap agreement, designated as cash flow hedge for accounting purposes with respect to an intercompany loan due October 2026, denominated in Japanese yen. The agreement was terminated in the first quarter of 2024 and resulted in cash proceeds of $16 million.
v3.25.0.1
Derivative Instruments and Hedging Activities - Summary of Pre-tax (Gains) Losses From Derivatives Designated in Cash Flow Hedging Relationships (Detail) - Designated as Hedging Instrument [Member] - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Other Comprehensive Income [Member]      
Derivative [Line Items]      
Other comprehensive income (loss) $ (508) $ 91 $ (270)
Financial expenses [Member]      
Derivative [Line Items]      
Financial expenses, net 981 1,057 966
Cross Currency Swap Cash Flow Hedge [Member] | Other Comprehensive Income [Member]      
Derivative [Line Items]      
Other comprehensive income (loss) [1] 1 1 0
Cross Currency Swap Cash Flow Hedge [Member] | Financial expenses [Member]      
Derivative [Line Items]      
Financial expenses, net [1] $ (8) $ (11) $ 0
[1] On March 31, 2023, Teva entered into a cross-currency interest rate swap agreement, designated as cash flow hedge for accounting purposes with respect to an intercompany loan due October 2026, denominated in Japanese yen. The agreement was terminated in the first quarter of 2024 and resulted in cash proceeds of $16 million.
v3.25.0.1
Derivative Instruments and Hedging Activities - Summary of Pre-tax (Gains) Losses From Derivatives Not Designated in as Hedging Instruments (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Net Revenues [Member] | Not Designated as Hedging Instrument [Member]      
Derivative [Line Items]      
Gain (Loss) on Derivative Instruments, Net, Pretax $ (16,544) $ (15,846) $ (14,925)
Net Revenues [Member] | Not Designated as Hedging Instrument, Trading [Member]      
Derivative [Line Items]      
Gain (Loss) on Derivative Instruments, Net, Pretax [1] 0 0 0
Net Revenues [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member]      
Derivative [Line Items]      
Gain (Loss) on Derivative Instruments, Net, Pretax [2] (34) 2 (11)
Financial expenses [Member] | Not Designated as Hedging Instrument [Member]      
Derivative [Line Items]      
Gain (Loss) on Derivative Instruments, Net, Pretax 981 1,057 966
Financial expenses [Member] | Not Designated as Hedging Instrument, Trading [Member]      
Derivative [Line Items]      
Gain (Loss) on Derivative Instruments, Net, Pretax [1] (109) (54) (12)
Financial expenses [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member]      
Derivative [Line Items]      
Gain (Loss) on Derivative Instruments, Net, Pretax [2] $ 0 $ 0 $ 0
[1] Teva uses foreign exchange contracts (mainly option and forward contracts) to hedge balance sheet items from currency exposure. These foreign exchange contracts are not designated as hedging instruments for accounting purposes. In connection with these foreign exchange contracts, Teva recognizes gains or losses that offset the revaluation of the balance sheet items also recorded under financial expenses, net.
[2] Teva entered into option and forward contracts designed to limit the exposure of foreign exchange fluctuations on projected revenues and expenses recorded in Swiss franc, Japanese yen, British pound, Russian ruble, Canadian dollar, Polish zloty and some other currencies to protect its projected operating results for 2024 and 2025. These derivative instruments do not meet the criteria for hedge accounting, however, they are accounted for as an economic hedge. These derivative instruments, which may include hedging transactions against future projected revenues and expenses, are recognized on the balance sheet at their fair value on a quarterly basis, while the foreign exchange impact on the underlying revenues and expenses may occur in subsequent quarters. In 2024, the positive impact from these derivatives recognized under revenues was $34 million. In 2023, the negative impact from these derivatives recognized under revenues was $2 million. In 2022, the positive impact from these derivatives recognized under revenues was $11 million. Changes in the fair value of the derivative instruments are recognized in the same line item in the statements of income as the underlying exposure being hedged. Cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows.
v3.25.0.1
Derivative Instruments and Hedging Activities - Summary of Sold Receivables Outstanding Balance Net of DPP Asset under Outstanding Securitization Program (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Derivative [Line Items]    
Sold receivables at the beginning of the year $ 686 $ 636
Proceeds from sale of receivables 4,737 4,391
Cash collections (remitted to the owner of the receivables) (4,768) (4,365)
Effect of currency exchange rate changes (29) 24
Sold receivables at the end of the year $ 626 $ 686
v3.25.0.1
Derivative Instruments and Hedging Activities - Summary of Change in Outstanding Accounts Payable (Detail)
$ in Millions
 12 Months Ended
Dec. 31, 2024
USD ($)
Derivative Instrument Detail [Abstract]  
Confirmed obligations outstanding at the beginning of the year $ 108
Invoices confirmed during the year 533
Confirmed invoices paid during the year (483)
Confirmed obligations outstanding at the end of the year $ 158
v3.25.0.1
Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Sep. 30, 2023
Nov. 07, 2022
Mar. 31, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Oct. 29, 2024
Nov. 07, 2023
Jun. 30, 2023
Derivative [Line Items]                  
Revenues other than USD       47.00%          
Derivative, negative impact       $ 493 $ 2        
Derivative, Loss, Statement of Income or Comprehensive Income [Extensible Enumeration]       Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest          
Forward starting interest rate swaps and treasury lock agreements losses       $ 28 31 $ 30      
Deferred purchase asset       231 247        
Sold receivables       626 686 $ 636      
Derivative, gain on derivative       $ 34 11        
Derivative, Gain, Statement of Income or Comprehensive Income [Extensible Enumeration]       Annual revenue          
Derivative, cash received on hedge     $ 16            
Supplier Finance Program, Obligation, Statement of Financial Position [Extensible Enumeration]       Liabilities          
Supplier finance program obligation       $ 158 108        
Proceeds from sale of accounts receivable classified as operating activities one       895 861        
Accounts Receivable Securitization Facility [Member] | Mizuho Bank [Member] | November 2025 [Member]                  
Derivative [Line Items]                  
Derivative notional amount                 $ 250
Accounts Receivable Securitization Facility [Member] | Mizuho Bank [Member] | November 2023 [Member]                  
Derivative [Line Items]                  
Derivative notional amount                 $ 750
Accounts Receivable Securitization Facility [Member] | PNC Bank [Member]                  
Derivative [Line Items]                  
Sold receivables       558 437        
Derivative notional amount   $ 875           $ 1,000  
Derivatives term of contract   3 years              
Transfer of financial assets sold and derecognized       $ 895 $ 864        
Accounts Receivable Securitization Facility [Member] | PNC Bank [Member] | March 2024 [Member]                  
Derivative [Line Items]                  
Derivative notional amount increase               250  
Accounts Receivable Securitization Facility [Member] | PNC Bank [Member] | November 2025 [Member]                  
Derivative [Line Items]                  
Derivative notional amount               $ 125  
Derivative notional amount decrease $ 500 $ 500              
Accounts Receivable Securitization Facility [Member] | PNC Bank [Member] | November 2023 [Member]                  
Derivative [Line Items]                  
Derivative notional amount   $ 1,000              
Accounts Receivable Securitization Facility [Member] | PNC Bank [Member] | SPV Amendment Agreement October Two Thousand And Twenty Four [Member]                  
Derivative [Line Items]                  
Derivative notional amount increase             $ 75    
Derivative notional amount             $ 950    
v3.25.0.1
Legal Settlements and Loss Contingencies - Additional Information (Detail)
€ in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Nov. 30, 2020
EUR (€)
Loss Contingencies [Line Items]        
Legal settlements and loss contingencies, expenses $ 761 $ 1,043 $ 2,082  
Accrued amount for legal settlements and loss contingencies $ 4,881 $ 4,771   € 60.5
Opioid Litigation [Member] | United States [Member]        
Loss Contingencies [Line Items]        
Restructuring expense and income Legal settlements and loss contingencies in 2024 were mainly related to a decision by the European Commission in its antitrust investigation into COPAXONE, and an update to the estimated settlement provision for the opioid cases (mainly the passage of time on the net present value of the discounted payments and the settlement agreement with the city of Baltimore). Legal settlements and loss contingencies in 2023 were mainly related to an estimated provision for the DOJ patient assistance program litigation, an update to the estimated settlement provision of the opioid cases, the provision for the settlement of the U.S. DOJ criminal antitrust charges on the marketing and pricing of certain Teva USA generic products, as well as the provision for the settlement of the reverse-payment antitrust litigation over certain HIV medicines. Legal settlements and loss contingencies in 2022 were mainly related to updates of the estimated settlement provision recorded in connection with the remaining opioid cases.  
v3.25.0.1
Commitments and Contingencies - Commitments - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Commitment And Contingencies [Line Items]      
Royalty expense $ 719 $ 543 $ 560
Maximum [Member]      
Commitment And Contingencies [Line Items]      
Milestone contingent expense $ 91    
v3.25.0.1
Commitments and Contingencies - Contingencies - Additional Information (Detail)
€ in Millions
 1 Months Ended 12 Months Ended
Oct. 10, 2024
USD ($)
Jun. 14, 2024
USD ($)
Nov. 09, 2022
USD ($)
Jun. 02, 2022
USD ($)
Feb. 01, 2018
USD ($)
Sep. 30, 2024
USD ($)
Jun. 30, 2023
USD ($)
Nov. 30, 2022
USD ($)
Feb. 28, 2021
USD ($)
Jul. 31, 2014
USD ($)
Sep. 30, 2013
USD ($)
Apr. 30, 2013
USD ($)
Dec. 31, 2011
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Mar. 28, 2024
USD ($)
Aug. 21, 2023
USD ($)
Jul. 08, 2021
USD ($)
Mar. 31, 2021
EUR (€)
Dec. 20, 2020
USD ($)
Nov. 30, 2020
EUR (€)
Aug. 31, 2019
USD ($)
Feb. 29, 2012
USD ($)
Jul. 31, 2008
USD ($)
Commitment And Contingencies [Line Items]                                                
Annual sales at the time of settlement                                       $ 700,000,000   $ 350,000,000    
Annual sales of Effexor                         $ 2,600,000,000                      
Annual sales of Lamictal                                             $ 950,000,000 $ 2,300,000,000
Annual sales of Niaspan                     $ 1,100,000,000 $ 416,000,000                        
Litigation settlement amount             $ 4,250,000,000             $ 495,000,000                    
Litigation settlement amount awarded distribution period             13 years                                  
Generic modafinil, and imposed fines amount                           4,881,000,000 $ 4,771,000,000           € 60.5      
Loss Contingency Accrual, Provision                   $ 235,500,000                            
Annual sales of the time of settlement of viread                 $ 582,000,000                              
Annual sales of the time of settlement of Truvada                 2,400,000,000                              
Annual sales of the time of settlement of Atripla                 2,900,000,000                              
Annual sales of the time of New launch of viread                 728,000,000                              
Annual sales of the time of New launch of Truvada                 2,100,000,000                              
Annual sales of the time of New launch of Atripla                 $ 444,000,000                              
Litigation Settlement Amount Distributable In Kind             $ 1,200,000,000                                  
Accrual for Environmental Loss Contingencies                           $ 300,000                    
Loss Contingencies On Environmental Laws Penalty                                   $ 1,400,000            
Litigation fine amount of copaxone | €                                     € 462.6          
Litigation Settlement amount payable year one           $ 35,000,000                                    
Litigation settlement amount payable remainder of fiscal year           80,000,000                                    
Other commitment                               $ 150,000,000                
Annual Sales Of Revlimid               $ 3,500,000,000                                
Annual Sales At The Time Of Nuvigil Entered Into First Settlement Of With AN ANDA Filer   $ 300,000,000                                            
Loss Contingency Claims Dismissed Value Paid To Each State Proportional To Its Share Of National Population                             $ 1,000,000,000,000                  
Percentage Of Share Of The National Population                             1.00%                  
Percentgae of amount in cash settlement             20.00%                                  
Litigation Settlement Amount Distributable in cash             $ 240,000,000                                  
Loss Contingency, Damages Awarded, Value     $ 176,500,000                                          
Deferred Prosecution Agreement With U.S. Department of Justice [Member] | Donation of Clotrimazole and Tobramycin [Member]                                                
Commitment And Contingencies [Line Items]                                                
Other commitment                                 $ 50,000,000              
Deferred Prosecution Agreement With U.S. Department of Justice [Member] | Fine for Violating the Antitrust Laws [Member]                                                
Commitment And Contingencies [Line Items]                                                
Other commitment, to be paid, year five                                 135,000,000              
Other commitment to pay for each year                                 22,500,000              
Other commitment                                 $ 225,000,000              
Opioid Litigation [Member]                                                
Commitment And Contingencies [Line Items]                                                
Loss contingency accrual, product liability, undiscounted, to be paid, year five             385,000,000                                  
Loss contingency accrual, product liability, undiscounted, to be paid, year four             364,000,000                                  
Loss contingency accrual, product liability, undiscounted, to be paid, year three             363,000,000                                  
Loss contingency accrual, product liability, undiscounted, to be paid, year two             423,000,000                                  
Loss contingency accrual, product liability, undiscounted, to be paid, year one             $ 428,000,000                                  
Modafinil Settlement Agreement [Member]                                                
Commitment And Contingencies [Line Items]                                                
Settlement as a percentage of aggregate subdivisions and tribes             100.00%                                  
Civil Action In Respect Of Donations To Patient Assistance Programmers [Member]                                                
Commitment And Contingencies [Line Items]                                                
Generic modafinil, and imposed fines amount $ 425,000,000                                              
Loss contingency accrual due in fifth year 175,000,000                                              
Loss contingency accrual due in fourth year 99,000,000                                              
Loss contingency accrual due in third year 49,000,000                                              
Loss contingency accrual due in second year 49,000,000                                              
Loss contingency accrual next twelve months 34,000,000                                              
Loss contingency accrual remainder of fiscal year 19,000,000                                              
Civil Investigative Demand From Department Of Justice Civil Division [Member]                                                
Commitment And Contingencies [Line Items]                                                
Generic modafinil, and imposed fines amount 25,000,000                                              
Loss Contingency Accrual, Provision 25,000,000                                              
Civil Investigative Demand From Department Of Justice Civil Division [Member] | Two Thousand And Twenty Five [Member]                                                
Commitment And Contingencies [Line Items]                                                
Loss contingency accrual current 15,000,000                                              
Civil Investigative Demand From Department Of Justice Civil Division [Member] | Two Thousand And Twenty Four [Member]                                                
Commitment And Contingencies [Line Items]                                                
Loss contingency accrual current $ 10,000,000                                              
Ontario Teachers Securities Litigation [Member] | Settled Litigation [Member]                                                
Commitment And Contingencies [Line Items]                                                
Litigation settlement amount       $ 420,000,000                                        
Litigation With US Hospitals And Other Healthcare Providers [Member]                                                
Commitment And Contingencies [Line Items]                                                
Litigation settlement amount           $ 126,000,000                                    
Litigation settlement amount awarded distribution period           18 years                                    
Product WAC Value           $ 49,000,000                                    
Product WAC Term           7 years                                    
Europe [Member]                                                
Commitment And Contingencies [Line Items]                                                
Damage claimed         $ 50,000,000                                      
Eosinophilic Esophagitis [Member]                                                
Commitment And Contingencies [Line Items]                                                
Damage claimed         200,000,000                                      
Eosinophilic Esophagitis [Member] | United States [Member]                                                
Commitment And Contingencies [Line Items]                                                
Damage claimed         $ 150,000,000                                      
AndroGel Rate at 1% [Member]                                                
Commitment And Contingencies [Line Items]                                                
Annual sales at the time of settlement                                           $ 140,000,000    
v3.25.0.1
Income Taxes - Schedule of Income Before Income Taxes (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Before Income Taxes And Income Tax Expense Benefit [Line Items]      
Parent Company and its Israeli subsidiaries $ (456) $ (767) $ (119)
Non-Israeli subsidiaries (828) 143 (3,044)
Income (loss) before income taxes $ (1,284) $ (624) $ (3,163)
v3.25.0.1
Income Taxes - Schedule of the Provision for Income Taxes (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Before Income Taxes And Income Tax Expense Benefit [Line Items]      
In Israel $ 721 $ (402) $ 33
Outside Israel (45) 395 (676)
Effective consolidated income taxes 676 (7) (643)
Current 1,094 333 430
Deferred (418) (340) (1,073)
Effective consolidated income taxes $ 676 $ (7) $ (643)
v3.25.0.1
Income Taxes - Accumulated Other Comprehensive Income/(Loss) (Net of Tax) (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2020
Income Before Income Taxes And Income Tax Expense Benefit [Line Items]        
Income (loss) before income taxes $ (1,284) $ (624) $ (3,163)  
Statutory tax rate in Israel 23.00% 23.00% 23.00% 23.00%
Theoretical provision for income taxes $ (295) $ (144) $ (727)  
Increase (decrease) in the provision for income taxes due to:        
Tax benefits arising from net deferred taxes, resulting from intellectual property related integration plans, including carryforward losses (87) (272) 0  
The parent company and its israeli subsidiaries - settlement with the israeli tax authorities 514 0 0  
Increase (decrease) in other uncertain tax positions - net 171 0 0  
Tax benefits arising from reduced tax rates under benefit programs   14 15  
Mainly nondeductible items and prior year tax 16 0 35  
Impairments that did not have a corresponding tax effect, non-deductible interest and other items 463 372 941  
Adjustments to valuation allowances on deferred tax assets [1] (105) 0 0  
Worthless stock deduction [2]   0 (909)  
Increase (decrease) in other uncertain tax positions - net (1) 23 2  
Effective consolidated income taxes $ 676 $ (7) $ (643)  
[1] Mainly related to deduction of interest expenses in the United States.
[2] In 2022, one of Teva’s U.S. subsidiaries was determined to be insolvent for tax purposes (i.e., its liabilities exceeded the fair market value of its assets), mainly in light of its accumulated operational losses. Consequently, Teva recognized on its 2022 tax return, a worthless stock deduction of approximately $4.2 billion, with a related tax benefit of approximately $909 million.
v3.25.0.1
Income Taxes - Accumulated Other Comprehensive Income/(Loss) (Net of Tax) (Parenthetical) (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Income Before Income Taxes And Income Tax Expense Benefit [Line Items]    
Obsolete stock written off   $ 4,200
Effective income tax reconciliation amount inventory written off [1] $ 0 $ 909
[1] In 2022, one of Teva’s U.S. subsidiaries was determined to be insolvent for tax purposes (i.e., its liabilities exceeded the fair market value of its assets), mainly in light of its accumulated operational losses. Consequently, Teva recognized on its 2022 tax return, a worthless stock deduction of approximately $4.2 billion, with a related tax benefit of approximately $909 million.
v3.25.0.1
Income Taxes - Schedule of Deferred Income Taxes (Detail) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Deferred Tax Assets Liabilities Net [Line Items]    
Inventory related $ 88 $ 76
Sales reserves and allowances 55 81
Provision for legal settlements 667 702
Intangible assets [1] 170 (118)
Carryforward losses and deductions and credits [2] 1,557 2,463
Property, plant and equipment (157) (225)
Deferred interest 789 799
Provisions for employee related obligations 95 80
Other [3] 69 357
Long-term deferred tax assets (liabilities)-gross 3,333 4,215
Valuation allowance—in respect of carryforward losses and deductions that may not be utilized (2,017) (3,009)
Deferred tax assets liabilities net $ 1,316 $ 1,206
[1] The increase in deferred tax is mainly due to intellectual property related integration.
[2] The amounts are shown after reduction for unrecognized tax benefits of $163 million and $2 million as of December 31, 2024 and 2023, respectively. The amount as of December 31, 2024 represents the tax effect of gross carryforward losses and deductions with the following expirations: 2025-2026—$38 million; 2027-2034—$486 million; 2035 and thereafter—$38 million. The remaining balance—$983 million—can be utilized with no expiration date.
[3] The amounts shown for 2023 are primarily comprised of Capitalization of R&D Expenses.
v3.25.0.1
Income Taxes - Schedule of Deferred Income Taxes (Parenthetical) (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Deferred Tax Assets Liabilities Net [Line Items]    
Unrecognized tax benefits $ 163 $ 2
Tax Carryforwards And Deductions Expiration Period One [Member]    
Deferred Tax Assets Liabilities Net [Line Items]    
Tax effect of unspecified carryforward losses and deductions $ 38  
Tax Carryforwards And Deductions Expiration Period One [Member] | Minimum [Member]    
Deferred Tax Assets Liabilities Net [Line Items]    
Expiration period Dec. 31, 2025  
Tax Carryforwards And Deductions Expiration Period One [Member] | Maximum [Member]    
Deferred Tax Assets Liabilities Net [Line Items]    
Expiration period Dec. 31, 2026  
Tax Carryforwards And Deductions Expiration Period Two [Member]    
Deferred Tax Assets Liabilities Net [Line Items]    
Tax effect of unspecified carryforward losses and deductions $ 486  
Tax Carryforwards And Deductions Expiration Period Two [Member] | Minimum [Member]    
Deferred Tax Assets Liabilities Net [Line Items]    
Expiration period Dec. 31, 2027  
Tax Carryforwards And Deductions Expiration Period Two [Member] | Maximum [Member]    
Deferred Tax Assets Liabilities Net [Line Items]    
Expiration period Dec. 31, 2034  
Tax Carryforwards And Deductions No Expiration [Member]    
Deferred Tax Assets Liabilities Net [Line Items]    
Expiration period Dec. 31, 2035  
Tax effect of unspecified carryforward losses and deductions $ 38  
Tax Carryforwards And Deductions Indefinite [Member]    
Deferred Tax Assets Liabilities Net [Line Items]    
Tax effect of unspecified carryforward losses and deductions $ 995  
v3.25.0.1
Income Taxes - Additional Information (Detail)
₪ in Millions, $ in Millions
 1 Months Ended 12 Months Ended
Jun. 23, 2024
USD ($)
Jan. 01, 2017
Jul. 31, 2020
USD ($)
Dec. 31, 2024
USD ($)
Employee
Dec. 31, 2024
ILS (₪)
Employee
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2020
Dec. 31, 2016
Income Tax [Line Items]                  
Balance of accrued potential penalties and interest in unrecognized tax benefits       $ 69   $ 224 $ 212    
Unrecognized Tax Benefits Income Tax Penalties And Interest Expense       $ 155   $ 12 $ 2    
Statutory tax rate in Israel       23.00% 23.00% 23.00% 23.00% 23.00%  
Annual revenue       $ 16,544   $ 15,846 $ 14,925    
Expected impairment of income tax benefit     $ 122            
With Effect From January 2025 [Member] | Organization For Economic Cooperation And Development [Member] | Pillar Two Rules [Member]                  
Income Tax [Line Items]                  
Global minimum tax rate percentage       15.00% 15.00%        
Israel Tax Authority [Member]                  
Income Tax [Line Items]                  
Withholding tax percentage on dividends                 8.00%
Israel Tax Authority [Member] | 2008 Through 2020 Tax Payable [Member]                  
Income Tax [Line Items]                  
Income tax examination increase in income tax expense In the current period       $ 506          
Maximum tax payment limit $ 500                
Effective income tax rate reconciliation, other reconciling items, amount, total 250                
Effective income tax rate reconciliation, tax exempt income, amount $ 495                
Number of years spread to pay tax payable 6 years                
Effective Income Tax Rate Reconciliation, Tax Settlement, Amount, Total $ 750                
Amendment 69 to Investment Law [Member]                  
Income Tax [Line Items]                  
Payment of corporate tax       577          
Exempt Income       9,400          
Amendment 68 to Investment Law [Member] | Israel Tax Authority [Member]                  
Income Tax [Line Items]                  
Statutory tax rate in Israel                 16.00%
Amendment 68 to Investment Law [Member] | Israel Tax Authority [Member] | Development Zonea [Member]                  
Income Tax [Line Items]                  
Statutory tax rate in Israel                 9.00%
Amendment 73 to Investment Law [Member] | Israel Tax Authority [Member] | Development Zonea [Member]                  
Income Tax [Line Items]                  
Statutory tax rate in Israel   7.50%              
Preferred Enterprise [Member] | Israel Tax Authority [Member]                  
Income Tax [Line Items]                  
Withholding tax percentage on dividends                 20.00%
Preferred Enterprise [Member] | Israel Tax Authority [Member] | Development Zonea [Member]                  
Income Tax [Line Items]                  
Withholding tax percentage on dividends                 5.00%
Preferred Technological Enterprises [Member]                  
Income Tax [Line Items]                  
Venture capital investment       $ 2          
Average growth rate in sales or workforce       25.00% 25.00%        
Average growth preceding period in sales or workforce       3 years 3 years        
Preferred Technological Enterprises [Member] | Research and Development Arrangement [Member]                  
Income Tax [Line Items]                  
Minimum percentage of investment income       7.00% 7.00%        
Minimum investment income       $ 22 ₪ 75        
Minimum percentage of workforce       20.00% 20.00%        
Minimum number of employees employed | Employee       200 200        
Preferred Technological Enterprises [Member] | Israel Tax Authority [Member]                  
Income Tax [Line Items]                  
Statutory tax rate in Israel       12.00% 12.00%        
Preferred Technological Enterprises [Member] | Israel Tax Authority [Member] | Development Zonea [Member]                  
Income Tax [Line Items]                  
Statutory tax rate in Israel       7.50% 7.50%        
Special Preferred Technological Enterprise [Member]                  
Income Tax [Line Items]                  
Annual revenue       $ 2,900 ₪ 10,000        
Special Preferred Technological Enterprise [Member] | Israel Tax Authority [Member]                  
Income Tax [Line Items]                  
Statutory tax rate in Israel       6.00% 6.00%        
Withholding tax percentage on dividends       4.00% 4.00%        
Minimum [Member] | Israel Tax Authority [Member] | 2008 Through 2020 Tax Payable [Member]                  
Income Tax [Line Items]                  
Effective income tax rate reconciliation, tax settlement, other, percent 5.00%                
Maximum [Member] | Israel Tax Authority [Member] | 2008 Through 2020 Tax Payable [Member]                  
Income Tax [Line Items]                  
Effective income tax rate reconciliation, tax settlement, other, percent 7.00%                
v3.25.0.1
Income Taxes - Schedule of Deferred Tax Assets and Liabilities By Report Caption (Detail) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Deferred Tax Assets Liabilities Net [Line Items]    
Long-term assets—deferred income taxes $ 1,799 $ 1,812
Long-term liabilities—deferred income taxes (483) (606)
Deferred tax assets liabilities net $ 1,316 $ 1,206
v3.25.0.1
Income Taxes - Schedule of Unrecognized Tax Benefits (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Schedule Of Unrecognized Tax Benefits [Line Items]      
Balance at the beginning of the year $ 651 $ 638 $ 672
Increase (decrease) related to prior year tax positions, net 109 (1) (46)
Increase related to current year tax positions 53 15 42
Decrease related to settlements with tax authorities and lapse of applicable statutes of limitations (395) (15) (31)
Other 29 14 1
Balance at the end of the year $ 449 $ 651 $ 638
v3.25.0.1
Equity - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Jul. 13, 2017
Apr. 18, 2016
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Jun. 11, 2020
Sep. 03, 2015
Jun. 29, 2010
Class of Stock [Line Items]                
Ordinary shares issuance ADSs     1,200,000,000 1,200,000,000        
Share price     $ 22.04          
Number of shares exercisable     17,713,000          
Number of shares available for future awards     59,100,000          
Vesting period, description     The vesting period of the outstanding options and RSUs is generally between one to four years from grant date. The vesting period of PSUs is generally three years from grant date. The rights of ordinary shares obtained from the exercise of options, RSUs or PSUs are identical to those of other ordinary shares of the Company. The contractual term of these options is primarily for ten years.          
Exercisable     17,713,000 22,703,000 24,119,000      
Intrinsic value of options exercised     $ 3          
Average stock price     $ 15.97          
Unrecognized compensation cost before tax related to RSUs/PSUs     $ 217          
Weighted average period     2 years 6 months          
Unrecognized compensation costs related to employee stock options     $ 0          
Money Options [Member]                
Class of Stock [Line Items]                
Exercisable     6,000,000          
2010 Long-Term Equity-Based Incentive Plan [Member]                
Class of Stock [Line Items]                
Number of shares exercisable               70,000,000
2015 Long-Term Equity-Based Incentive Plan [Member]                
Class of Stock [Line Items]                
Number of shares exercisable 142,000,000 77,000,000         43,700,000  
Number of additional shares authorized 65,000,000 33,300,000            
2020 Long-Term Equity-Based Incentive Plan [Member]                
Class of Stock [Line Items]                
Number of shares exercisable           68,000,000    
v3.25.0.1
Equity - Summary of Stock Option Activity (Detail) - $ / shares
shares in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Balance outstanding at beginning of year 22,703 24,119 29,015
Exercised (1,284) 0 0
Forfeited (1,211) (885) (2,378)
Expired (2,495) (531) (2,518)
Balance outstanding at end of year 17,713 22,703 24,119
Balance exercisable at end of year 17,713 22,703 24,119
Balance outstanding at beginning of year $ 36.89 $ 36.83 $ 36.96
Exercised 15.37 0 0
Forfeited 34.13 34.65 33.77
Expired 48.84 37.57 41.26
Balance outstanding at end of year 39.96 36.89 36.83
Balance exercisable at end of year $ 39.96 $ 36.89 $ 36.83
v3.25.0.1
Equity - Schedule of Ordinary Shares Issued Upon Vested Options (Detail)
shares in Thousands
 12 Months Ended
Dec. 31, 2024
yr
$ / shares
shares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Balance at end of period (in thousands) Number of shares | shares 17,713
Weighted average exercise price $ 36.96
Weighted average remaining life Years | yr 2.01
$15.01 - $25.00 [Member]  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Balance at end of period (in thousands) Number of shares | shares 6,152
Weighted average exercise price $ 18.96
Weighted average remaining life Years | yr 3.14
Range of exercise prices, lower limit $ 15.01
Range of exercise prices, upper limit $ 25
$25.01 - $35.00 [Member]  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Balance at end of period (in thousands) Number of shares | shares 5,167
Weighted average exercise price $ 34.67
Weighted average remaining life Years | yr 2.16
Range of exercise prices, lower limit $ 25.01
Range of exercise prices, upper limit $ 35
$35.01 - $45.00 [Member]  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Balance at end of period (in thousands) Number of shares | shares 57
Weighted average exercise price $ 37.7
Weighted average remaining life Years | yr 1.92
Range of exercise prices, lower limit $ 35.01
Range of exercise prices, upper limit $ 45
$45.01 - $55.00 [Member]  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Balance at end of period (in thousands) Number of shares | shares 2,987
Weighted average exercise price $ 53.25
Weighted average remaining life Years | yr 1.28
Range of exercise prices, lower limit $ 45.01
Range of exercise prices, upper limit $ 55
$55.01 - $65.00 [Member]  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Balance at end of period (in thousands) Number of shares | shares 3,350
Weighted average exercise price $ 59.01
Weighted average remaining life Years | yr 0.34
Range of exercise prices, lower limit $ 55.01
Range of exercise prices, upper limit $ 65
v3.25.0.1
Equity - Schedule of Number of RSUs Issued and Outstanding (Detail) - Restricted Stock Units [Member] - $ / shares
shares in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Balance outstanding at beginning of year 35,664 32,302 24,412
Granted 11,557 16,608 18,755
Vested (11,464) (10,195) (7,571)
Forfeited (1,947) (3,052) (3,293)
Balance outstanding at end of year 33,810 35,664 32,302
Weighted-average grant date fair value per share - RSUs at beginning year $ 9.07 $ 9.11 $ 11.58
Granted 13.66 9.77 7.42
Vested 9.46 10.28 13.02
Forfeited 9.81 9.81 9.81
Weighted-average grant date fair value per share - RSUs at end of year $ 10.46 $ 9.07 $ 9.11
v3.25.0.1
Equity - Summary of Company Expenses Compensation Costs Based on Grant Date Fair Value (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Stock Options Plan [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense $ 0 $ 0 $ 2
Restricted Stock Units [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense 123 121 122
Omnibus Long Term Share Incentive Plan [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense 123 121 124
Tax effect on stock-based compensation expense 11 11 9
Net effect $ 112 $ 110 $ 115
v3.25.0.1
Equity - Accumulated Other Comprehensive Income/(Loss) (Net of Tax) (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning Balance $ (2,697)    
Ending Balance (3,148) $ (2,697)  
Foreign Currency Translation Adjustments [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning Balance (2,384) (2,514) $ (2,274)
Other comprehensive income(loss) before reclassifications (456) 167 (223)
Net other comprehensive income(loss) before tax (456) 167 (223)
Corresponding income tax (17) (37) (17)
Net other comprehensive income(loss) after tax [1] (473) 130 (240)
Ending Balance (2,857) (2,384) (2,514)
Derivative Financial Instruments [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning Balance (266) (295) (324)
Other comprehensive income(loss) before reclassifications   (1)  
Amounts reclassified to the statements of income 28 30 29
Net other comprehensive income(loss) before tax 28 29 29
Net other comprehensive income(loss) after tax [1] 28 29 29
Ending Balance (238) (266) (295)
Benefit Plans [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning Balance (46) (28) (85)
Other comprehensive income(loss) before reclassifications (1) (17) 40
Amounts reclassified to the statements of income (6) (4) 27
Net other comprehensive income(loss) before tax (7) (21) 67
Corresponding income tax 1 3 (10)
Net other comprehensive income(loss) after tax [1] (6) (18) 57
Ending Balance (52) (46) (28)
AOCI Attributable to Parent [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning Balance (2,697) (2,838) (2,683)
Other comprehensive income(loss) before reclassifications (457) 149 (183)
Amounts reclassified to the statements of income 22 26 56
Net other comprehensive income(loss) before tax (434) 175 (127)
Corresponding income tax (16) (34) (27)
Net other comprehensive income(loss) after tax [1] (450) 141 (154)
Ending Balance $ (3,148) $ (2,697) $ (2,838)
[1] Amounts do not include foreign currency translation adjustments attributable to non-controlling interests of $61 million loss in 2024, $50 million loss in 2023 and $116 million loss in 2022.
v3.25.0.1
Equity - Accumulated Other Comprehensive Income/(Loss) (Net of Tax) (Parenthetical) (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Foreign Currency Translation Adjustments Attributable to Non-controlling Interests [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Foreign currency translation attributable to non-controlling interests $ (61) $ (50) $ (116)
v3.25.0.1
Other assets impairments, restructuring and other items - Schedule of Other Assets Impairments, Restructuring and Other Items (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Restructuring and Impairment Costs [Line Items]      
Impairment of long-lived tangible assets [1] $ 1,024 $ 28 $ 47
Contingent consideration 303 548 261
Restructuring 74 111 146
Other (14) 30 57
Total $ 1,388 $ 718 $ 512
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] Impairments Restructuring And Others Impairments Restructuring And Others Impairments Restructuring And Others
[1] Including impairments related to exit and disposal activities.
v3.25.0.1
Other assets impairments, restructuring and other items - Components of costs associated with restructuring plan including costs related to exit and disposal activities (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Restructuring Cost and Reserve [Line Items]      
Restructuring charges $ 74 $ 111 $ 146
Employee termination [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges 53 52 117
Other [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges $ 21 $ 59 $ 29
v3.25.0.1
Other assets impairments, restructuring and other items - Summary of Restructuring Accruals (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Restructuring Cost and Reserve [Line Items]      
Beginning balance $ (82) $ (119) $ (138)
Provision (74) (111) (146)
Utilization and other [1] 88 149 165
Ending balance (68) (82) (119)
Employee termination costs [Member]      
Restructuring Cost and Reserve [Line Items]      
Beginning balance (75) (112) (131)
Provision (53) (52) (117)
Utilization and other [1] 73 90 136
Ending balance (55) (75) (112)
Other Exit and Disposal [Member]      
Restructuring Cost and Reserve [Line Items]      
Beginning balance (7) (7) (7)
Provision (21) (59) (29)
Utilization and other [1] 16 59 29
Ending balance $ (13) $ (7) $ (7)
[1] Includes adjustments for foreign currency translation.
v3.25.0.1
Other assets impairments, restructuring and other items - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Restructuring and Impairment Costs [Line Items]      
Impairments of property, plant and equipment $ 1,024 $ 28 $ 47
Business combination contingent consideration arrangements change in amount of contingent consideration liability 303 548 261
Restructuring costs $ 74 $ 111 $ 146
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Operating Income (Loss) Operating Income (Loss) Operating Income (Loss)
v3.25.0.1
Other Income - Schedule of Other Income (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Other Income [Line Items]      
Gain on divestitures, net of divestitures related costs $ 15 $ 3 $ 46
Section 8 and similar payments 1 5 13
Gain (loss) on sale of assets 2 25 18
Other, net (5) 16 31
Total other income $ 14 $ 49 $ 107
v3.25.0.1
Financial expenses, net - Schedule of Financial Expenses (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Expenses [Line Items]      
Interest expenses and other bank charges $ 1,002 $ 1,029 $ 930
(Income) loss from investments (86) (68) (10)
Foreign exchange (gains) losses, net 17 30 (16)
Other, net [1] 48 66 61
Total finance expense, net $ 981 $ 1,057 $ 966
[1] Amortization of issuance costs and terminated derivative instruments.
v3.25.0.1
Earnings (loss) per share - Schedule of Earnings per Share (Detail) - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]      
Net income (loss) used for the computation of basic and diluted earnings (loss) per share $ (1,639) $ (559) $ (2,446)
Weighted average number of shares used in the computation of basic earnings (loss) per share 1,131 1,119 1,110
Weighted average number of shares used in the computation of diluted earnings (loss) per share 1,131 1,119 1,110
v3.25.0.1
Earnings (loss) per share - Additional Information (Detail) - $ / shares
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Basic $ (1.45) $ (0.5) $ (2.2)
Diluted $ (1.45) $ (0.5) $ (2.2)
Convertible Preferred Stock [Member]      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Weighted average shares with anti-dilutive effect on earnings per share 0 0 0
v3.25.0.1
Segments - Summary of Segment Profit (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Amounts Allocated To Segments [Abstract]        
Consolidated operating income (loss)   $ (303) $ 433 $ (2,197)
Amounts Not Allocated To Segments [Abstract]        
Amortization   588 616 732
Other asset impairments, restructuring and other items   1,388 718 512
Goodwill impairment $ 400 1,280 700 2,045
Intangible assets impairments   251 350 355
Legal settlements and loss contingencies   761 1,043 2,082
Other Unallocated Amounts   364 502 610
Revenues   16,544 15,846 14,925
R&D expenses   998 953 838
S&M expenses   2,541 2,336 2,265
G&A expenses   1,161 1,162 1,180
Segment profit   (303) 433 (2,197)
Financial expenses, net   981 1,057 966
Consolidated income (loss) before income taxes   (1,284) (624) (3,163)
United States [Member]        
Amounts Allocated To Segments [Abstract]        
Consolidated operating income (loss)   2,296 2,394 1,934
Amounts Not Allocated To Segments [Abstract]        
Revenues   8,034 7,731 7,003
Cost of Sales   3,646 3,421 3,269
R&D expenses   633 604 485
S&M expenses   1,049 938 879
G&A expenses   410 378 440
Other loss (income)     (5) (3)
Segment profit   2,296 2,394 1,934
Europe [Member]        
Amounts Allocated To Segments [Abstract]        
Consolidated operating income (loss)   1,575 1,478 1,496
Amounts Not Allocated To Segments [Abstract]        
Revenues   5,103 4,837 4,525
Cost of Sales   2,197 2,111 1,825
R&D expenses   229 220 213
S&M expenses   826 767 748
G&A expenses   272 263 246
Other loss (income)   3 (2) (3)
Segment profit   1,575 1,478 1,496
International Markets [Member]        
Amounts Allocated To Segments [Abstract]        
Consolidated operating income (loss)   440 465 538
Amounts Not Allocated To Segments [Abstract]        
Revenues   2,463 2,351 2,352
Cost of Sales   1,229 1,191 1,128
R&D expenses   112 104 119
S&M expenses   534 487 467
G&A expenses   150 142 154
Other loss (income)   (2) (39) (54)
Segment profit   440 465 538
Corporate Segment [Member]        
Amounts Allocated To Segments [Abstract]        
Consolidated operating income (loss)   4,311 4,338 3,968
Amounts Not Allocated To Segments [Abstract]        
Segment profit   4,311 4,338 3,968
Other Segments [Member]        
Amounts Allocated To Segments [Abstract]        
Consolidated operating income (loss)   18 24 172
Amounts Not Allocated To Segments [Abstract]        
Segment profit   $ 18 $ 24 $ 172
v3.25.0.1
Segments - Schedule of Revenues by Major Products and Activities (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Product Information [Line Items]      
Revenues $ 16,544 $ 15,846 $ 14,925
United States [Member]      
Product Information [Line Items]      
Revenues 8,034 7,731 7,003
Europe [Member]      
Product Information [Line Items]      
Revenues 5,103 4,837 4,525
International Markets [Member]      
Product Information [Line Items]      
Revenues 2,463 2,351 2,352
Generic products (including OTC and biosimilars) [Member] | United States [Member]      
Product Information [Line Items]      
Revenues 3,599 3,138 3,155
Generic products (including OTC and biosimilars) [Member] | Europe [Member]      
Product Information [Line Items]      
Revenues 3,926 3,664 3,466
Generic products (including OTC and biosimilars) [Member] | International Markets [Member]      
Product Information [Line Items]      
Revenues 1,937 1,932 1,980
AJOVY [Member] | United States [Member]      
Product Information [Line Items]      
Revenues 207 211 210
AJOVY [Member] | Europe [Member]      
Product Information [Line Items]      
Revenues 216 160 124
AJOVY [Member] | International Markets [Member]      
Product Information [Line Items]      
Revenues 84 63 42
AUSTEDO [Member] | United States [Member]      
Product Information [Line Items]      
Revenues 1,642 1,225 963
AUSTEDO [Member] | International Markets [Member]      
Product Information [Line Items]      
Revenues 46 15 8
BENDEKA and TREANDA [Member] | United States [Member]      
Product Information [Line Items]      
Revenues 168 237 309
COPAXONE [Member] | United States [Member]      
Product Information [Line Items]      
Revenues 242 297 359
COPAXONE [Member] | Europe [Member]      
Product Information [Line Items]      
Revenues 213 231 268
COPAXONE [Member] | International Markets [Member]      
Product Information [Line Items]      
Revenues 48 63 64
UZEDY [Member] | United States [Member]      
Product Information [Line Items]      
Revenues 117 23 0
Anda [Member] | United States [Member]      
Product Information [Line Items]      
Revenues 1,536 1,577 1,471
Respiratory Product [Member] | Europe [Member]      
Product Information [Line Items]      
Revenues 244 265 273
Other [Member] | United States [Member]      
Product Information [Line Items]      
Revenues [1] 523 1,025 536
Other [Member] | Europe [Member]      
Product Information [Line Items]      
Revenues [2] 504 516 393
Other [Member] | International Markets [Member]      
Product Information [Line Items]      
Revenues [3] $ 349 $ 278 $ 257
[1] 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 (see note 2).
[2] Other revenues in 2024 and 2023 include the sale of certain product rights.
[3] Other revenues in 2024 include the sale of certain product rights.
v3.25.0.1
Segments - Schedule of Revenues by Major Products and Activities (Parentheticals) (Detail)
$ in Millions
 3 Months Ended
Dec. 31, 2023
USD ($)
Collaborative Arrangement [Member] | Sanofi [Member]  
Product Information [Line Items]  
Milestone payment received $ 500
v3.25.0.1
Segments - Schedule of Sales Percentage by Therapeutic Category (Detail)
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
McKesson Corporation [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Third party net sales present 12.00% 9.00% 10.00%
AmerisourceBergen Corporation [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Third party net sales present 9.00% 9.00% 10.00%
v3.25.0.1
Segments - Schedule of Net Sales by Product Line - Schedule of Property, Plant and Equipment by Geographic Location (Detail) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net $ 4,581 $ 5,750
Israel [Member]    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net 1,066 1,312
Germany [Member]    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net 1,262 1,318
United States [Member]    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net 561 596
Croatia [Member]    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net 277 447
Czech republic [Member]    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net 206 309
Hungary [Member]    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net 83 279
Ireland [Member]    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net 261 266
Other [Member]    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net $ 865 $ 1,222
v3.25.0.1
Segments - Additional Information (Detail) - Segment
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Segment Reporting Information [Line Items]      
Number of reportable segments 3    
Israel [Member] | Sales Revenue, Net [Member] | Revenue from Rights Concentration Risk [Member]      
Segment Reporting Information [Line Items]      
Concentration Risk, Percentage 2.00% 2.00% 2.00%
UNITED STATES | Sales Revenue, Net [Member] | Revenue from Rights Concentration Risk [Member]      
Segment Reporting Information [Line Items]      
Concentration Risk, Percentage 49.00% 49.00% 47.00%
v3.25.0.1
Fair Value Measurement - Summary of Financial Items Carried at Fair Value (Detail) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Contingent consideration [1] $ (401) $ (517)
Total $ 2,961 $ 2,765
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Other Assets, Current Other Assets, Current
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Other Liabilities, Current Other Liabilities, Current
Asset Derivatives - Options and Forward Contracts [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives $ 71 $ 38
Liabilities Derivatives - Interest Rate and Cross Currency Swaps [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives   8
Convertible Debt Securities [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investment in securities   40
Liabilities Derivatives Options and Forward Contracts [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives (24) (39)
Money Markets [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents 2,005 1,704
Cash, Deposits and Other [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents 1,295 1,522
Equity Securities [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investment in securities 12 7
Other [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investment in securities 3 1
Restricted Cash [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Restricted cash   1
Level 1 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total 3,315 3,235
Level 1 [Member] | Money Markets [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents 2,005 1,704
Level 1 [Member] | Cash, Deposits and Other [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents 1,295 1,522
Level 1 [Member] | Equity Securities [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investment in securities 12 7
Level 1 [Member] | Other [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investment in securities 3 1
Level 1 [Member] | Restricted Cash [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Restricted cash   1
Level 2 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total 47 7
Level 2 [Member] | Asset Derivatives - Options and Forward Contracts [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives 71 38
Level 2 [Member] | Liabilities Derivatives - Interest Rate and Cross Currency Swaps [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives   8
Level 2 [Member] | Liabilities Derivatives Options and Forward Contracts [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives (24) (39)
Level 3 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Contingent consideration [1] (401) (517)
Total $ (401) (477)
Level 3 [Member] | Convertible Debt Securities [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investment in securities   $ 40
[1] Contingent consideration represents liabilities recorded at fair value in connection with acquisitions. The contingent consideration liability is recorded under accrued expenses and other taxes and long term liabilities.
v3.25.0.1
Fair value measurement - Additional Information (Detail)
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Percentage of increase decrease in contingent consideration liabilities 1.00%
Maximum [Member] | Measurement input, discount rate [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Business combination, contingent consideration, liability, measurement input 11
Minimum [Member] | Measurement input, discount rate [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Business combination, contingent consideration, liability, measurement input 8.5
Weighted Average [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Business combination, contingent consideration, liability, measurement input 8.8
v3.25.0.1
Fair Value Measurement - Summary of Fair Value of Financial Liabilities Measured Using Level 3 Inputs (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value at the beginning of the period $ (477) $ (250)
Fair value at the end of the period (401) (477)
Nove Tide Acquisition [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Adjustments to provisions for contingent consideration (2) 2
Settlement of contingent consideration 2 2
Allergan transaction [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Adjustments to provisions for contingent consideration (270) (422)
Settlement of contingent consideration 363 207
Eagle Transaction [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Adjustments to provisions for contingent consideration (31) (132)
Settlement of contingent consideration 54 76
Convertible Debt Securities [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investment in convertible bond [1]   25
Conversion Option [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Conversion option [1]   $ 15
Redemption Of Convertible Debt Security [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Redemption of convertible bond security [1] $ (40)  
[1] On September 29, 2023, Teva purchased $40 million of subordinated convertible bonds of Alvotech. On June 26, 2024, Alvotech announced its intention to exercise its redemption rights and redeemed the convertible bonds, which were paid to Teva in July 2024 (see note 2).
v3.25.0.1
Fair Value Measurement - Summary of Fair Value of Financial Liabilities Measured Using Level 3 Inputs (Parenthetical) (Detail)
$ in Millions
Sep. 29, 2023
USD ($)
Subordinated Convertible Bonds [Member] | Alvotech [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Debt instrument face amount $ 40
v3.25.0.1
Fair Value Measurement - Summary of Financial Instrument Measured on a Basis Other Than Fair Value (Detail) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total [1] $ 17,496 $ 18,865
Senior Notes And Sustainability Linked Senior Notes [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total [1] 15,717 17,214
Senior Notes and Convertible Senior Debentures Included Under Short-Term Debt [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total [1] $ 1,779 $ 1,651
[1] The fair value was estimated based on quoted market prices.
v3.25.0.1
Long-term Employee-related Obligations - Schedule of Long Term Employee Related Obligation (Detail) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plan Disclosure [Line Items]    
Accrued severance obligations $ 65 $ 74
Defined benefit plans 63 73
Total [1] $ 128 $ 148
[1] Teva’s long-term employee-related obligations are presented in the Consolidated Balance Sheet under other taxes and long-term liabilities.
v3.25.0.1
Long-term Employee-related Obligations - Additional Information (Detail) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plan Disclosure [Line Items]    
Long-term investments earmarked for severance pay liabilities in Israel $ 97 $ 90
Expected contributions to pension funds 118  
2025 14  
2026 13  
2027 12  
2028 14  
2029 14  
2030 to 2034 $ 78  
v3.25.0.1
Redeemable Non-Controlling Interests - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Redeemable Non Controlling Interests [Line Items]    
Redeemable non-controlling interests $ 340 $ 0
Corporate Joint Venture [Member] | Common Stock [Member]    
Redeemable Non Controlling Interests [Line Items]    
Ownership Percentage 51.00%  
v3.25.0.1
Schedule II Valuation and Qualifying Accounts (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Valuation and Qualifying Accounts Disclosure [Line Items]      
Balance at beginning of period $ 3,596 $ 3,817  
Deductions (13,970) (13,125)  
Balance at end of period 3,734 3,596 $ 3,817
Allowance For Doubtful Accounts [Member]      
Valuation and Qualifying Accounts Disclosure [Line Items]      
Balance at beginning of period 164 162 164
Charged to costs and expenses 35 10 8
Charged to other accounts (8) (6) (2)
Deductions (46) (2) (8)
Balance at end of period 146 164 162
Valuation Allowance in Tax Carryforward Losses And Deductions [Member]      
Valuation and Qualifying Accounts Disclosure [Line Items]      
Balance at beginning of period 3,009 3,072 2,723
Charged to costs and expenses 100 161 443
Deductions (1,093) (224) (93)
Balance at end of period $ 2,017 $ 3,009 $ 3,072