Goldman Sachs Bullish On Branded Drug Upside At Teva: What About Viatris?

Goldman Sachs has initiated coverage of generic pharmaceutical stocks, highlighting the sector's strong long-term potential despite recent volatility.

Analyst Matt Dellatorre points to a mix of company-specific challenges—such as fiscal 2025 guidance—and broader industry concerns like tariffs and drug pricing.

Still, he argues that many of these stocks are attractively valued and represent businesses well-positioned for growth.

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Teva Pharmaceutical 

Goldman Sachs has initiated Teva Pharmaceutical Industries Ltd. TEVA with a Buy rating, with a price target of $24.

Dellatorre sees an improvement in the core business, with an upside to consensus EBITDA estimates driven by strong growth in the branded segment.

On the generics side, Goldman Sachs expects limited growth over the next few years as an expanding biosimilar portfolio. Other new product launches are offset by the Revlimid settlement expiration in 2026.

The analyst expects robust growth on continued momentum for key assets on the branded side, acknowledging the industry-wide Part D re-design hit to 2025 growth and margins.

Goldman views Teva’s biosimilar portfolio as an important long-term growth driver for the generics business. The company now has 10 in-line assets and 13 biosimilars in the pipeline. 2027 expects five potential launches in the U.S. and three in the EU/exUS.

Teva expects biosimilar revenue of around $400 million in fiscal 2024 to double by fiscal 2027.

Goldman writes that Teva’s branded pipeline represents a significant valuation lever. It sees a favorable catalyst path over the next 24 months. The analyst sees an attractive catalyst path, with multiple opportunities to re-rate as these pipeline assets are de-risked.

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Viatris

Dellatorre initiated Viatris Inc VTRS with a Neutral rating and price target of $10. Why? There’s a lack of clarity on the growth outlook for the core business given current structural dynamics in the generics and branded segments.

More specifically, on the generics side, excluding Indore, Goldman is optimistic about recent underlying trends and continues to monitor Viatris’ ability to meaningfully offset price erosion via new product launches and progress on the ongoing portfolio optimization.

In the branded drugs segment, the analyst writes that older products losing market share in the U.S. and Asia have hurt growth, and it is watching for signs of recovery. However, there have been signs of stabilization in developed markets, China, and other emerging markets in recent quarters. Despite the decline, these products still generate steady cash, and Goldman is observing how the company reinvests this into new growth opportunities.

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Amneal Pharmaceuticals 

Goldman initiated Amneal AMRX with a Buy rating and a price target of $12.

The analyst is optimistic about the growth outlook for Amneal’s core business. He cites a strong product pipeline and track record of execution through various market environments.

Goldman has confidence in Amneal’s ability to continue to offset typical price erosion via new product launches. Amneal also has structural tailwinds as the company aggressively shifts its focus toward higher-value products.

In the branded segment, analyst Dellatorre is positive on the ongoing launch of the next-generation Parkinson’s disease drug Crexont to ultimately offset Rytary’s 2025 loss of exclusivity and the endocrinology franchise’s stable growth outlook.

Price Action: TEVA stock is up 1.39% at $17.49, AMRX stock is up 2.37% at $7.34, and VTRS stock is up 2.07% at $8.64 at the last check on Friday.

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