The company reported a second-quarter loss of $576 million, or 49 cents a share, a sharp reversal from the $282 million profit recorded during the same period last year. Adjusted earnings per share hit 2 cents, missing the 5-cent consensus estimate from FactSet. This figure accounts for a 61-cent impact linked to the acquisition of Emalex, which finalized in June. Despite a 1% dip in total revenue to $4.14 billion, the result beat analyst expectations of $3.97 billion.

Pressure on the firm’s legacy business remains evident, with generic drug sales sliding 15%. This decline stems largely from reduced revenue from lenalidomide, a generic alternative to the blood cancer treatment Revlimid, which faced intensified market competition. Conversely, Teva’s pivot to innovation is showing results: revenue from its three primary brand-name products surged 43%, contributing $1 billion to the quarterly total. Following these results, Teva lifted its full-year sales outlook to a range of $16.5 billion to $16.85 billion. Investors responded positively to the shift, pushing shares up 4% to $32.91 in premarket trading.