Teva Pharmaceutical Industries, based in Israel, is the leading generic drug manufacturer in the world. Teva derives half of its sales from North America and makes up a high-single-digit percentage of the total number of generic prescriptions in the US. It also has a significant presence in Europe, Japan, Russia, and Israel. Besides generics, Teva has a portfolio of innovative medicines and biosimilars in three main therapeutic areas: the central nervous system with Copaxone, Ajovy, and Austedo; respiratory with Qvar and ProAir; and oncology with Truxima, Herzuma, and Bendeka/Treanda. Teva also sells active pharmaceutical ingredients, offers contract manufacturing services, and owns Anda, a US-based generic and specialty drug distributor.

Argus has identified 10 Investment Themes for 2025. This week, we take a deep dive into Theme 10, Pharmaceuticals and Biotechnology. With the aging U.S. population, the use of medications and medical technology is rising. The number of medications dispensed increased about 60% from 2012 to 2022, according to Statista. With the aging Baby Boomers cohort and the increasing percentage of the population over the age of 65, the rate is expected to go up. Analysts estimate that nine out of 10 elderly adults take prescription medication and more than half take four or more prescriptions. While the elderly represent the majority of the prescription market, those under the age of 65 are also taking more medications than ever as treatments become available for chronic and rare diseases. Blockbuster drugs also contribute to the escalating use of prescriptions. The market for GLP-1 medications used for weight loss and diabetes reached $47 billion in 2024 and is projected to reach $150 billion by 2030, according to market research firm MarketsandMarkets. Similarly, the global Alzheimer's market was at $8 billion in 2024 and is expected to grow at a 5% compounded annually growth rate through 2032. Over the coming years, the industry will continue to face headwinds from patent expirations on key drugs. A growing number of Big Pharma companies have turned to AI for drug development to boost revenue streams. Medtech is another growth sector within Healthcare. Doctors increasingly are using robotics and sophisticated and evolving medical devices to enhance quality of life. This week's list is a collaboration from our Healthcare team. Here are some companies on the Argus BUY list that our analysts believe are poised to benefit.

Teva Pharmaceutical Industries Ltd. is the world's largest generic pharmaceutical manufacturer, with roughly 76 billion tablets and capsules produced annually. The company has roughly 37,000 employees and over 53 manufacturing facilities across more than 33 countries. One of every 12 prescriptions in the U.S. is filled with Teva products.

U.S. stocks closed higher on Thursday after a down day on Wednesday. The Dow closed up 4%, the S&P 500 gained 0.5% and the Nasdaq closed 0.3% higher. The first reading on 4Q GDP showed that the U.S. economy grew 2.3%, less than the 2.6% expected by the Street.