Famed US billionaire investor Stanley Druckenmiller’s Duquesne Family Office has been buying shares of Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) for the past four consecutive quarters. Since the third quarter of 2024, Druckenmiller has purchased 16 million shares in Teva including one million shares in the second quarter of 2025, making it Duquesne’s second biggest holding
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Teva’s stock is cheap relative to a very expensive stock market. While the S&P 500’s Shiller multiple has recently approached 39, Teva’s forward multiple is just over 6. Teva’s risk versus opportunity for Druckenmiller is clear.
Although Teva’s stock has rebounded in the past two years, between 2015 and 2023, shareholders have had to deal with many challenges. During that time, Teva (in retrospect) overpaid for generic drugmaker Actavis, which significantly increased the company’s debt, and it has also faced a long list of opioid lawsuits (all of which were settled in early 2023).
But now Teva is growing again. The company’s CEO, Richard Francis, has shifted the company’s emphasis toward drug discovery and development of branded drugs. Although innovative drugs have a limited exclusivity period, they offer significantly higher profitability and growth rates compared with generic drugs. In addition, major streamlining measures have been implemented since the mid-2010s, leading to a significant reduction in Teva’s net debt, which could open the door to more R&D, and perhaps also to an increase in the earnings multiple.
Published by Globes, Israel business news – en.globes.co.il – on August 24, 2025.
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