Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) announced the launch of an offering for senior notes through its special purpose finance subsidiaries. The company intends to issue both Euro-denominated and USD-denominated notes to refinance outstanding obligations.

The offering is subject to market conditions. Teva expects to use the net proceeds, along with cash on hand, for three primary purposes. First, the funds will finance the conditional redemptions of specific existing notes. Second, they will cover fees and expenses related to the transaction. Third, any remaining proceeds will be used for general corporate purposes, including repaying outstanding debt upon maturity or earlier redemption.

Conditional Redemptions

In connection with the offering, Teva intends to issue notices of conditional redemption. These redemptions are conditioned on the consummation of the new notes offering, although the offering itself is not conditioned on the redemptions. The company plans to redeem the following instruments:

Teva retains the discretion to issue additional notices of conditional redemption or amend the principal amounts to be redeemed, in accordance with the relevant indentures.

Structure and Guarantees

The new notes will be unsecured senior obligations of the issuers. They will be unconditionally guaranteed on a senior basis by Teva Pharmaceutical Industries Ltd. The issuance will be made pursuant to an effective automatic shelf registration statement on Form S-3, filed with the Securities and Exchange Commission on February 7, 2025.

Net proceeds from the offering may be temporarily invested pending their application for the stated purposes. The offering involves multiple financial institutions, including BNP Paribas, Citigroup, Goldman Sachs, and J.P. Morgan, acting as syndicate agents.

Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) shares rose 3.04% to $37.29 after the company announced positive topline results from its ongoing Phase 2a study of TEV-408. The investigational anti-interleukin-15 monoclonal antibody met its primary endpoint for adults with celiac disease, approaching its 52-week high of $38.36.

The randomized, placebo-controlled study enrolled 50 adult participants with celiac disease on a gluten-free diet who had minimal intestinal damage at baseline, defined by a villous height-to-crypt depth ratio (Vh:Cd) of ≥2.0. Two weeks after receiving a single subcutaneous dose of TEV-408, participants began a six-week daily gluten challenge. The assessment focused on biopsy-based measures of intestinal damage and inflammation alongside patient-reported symptoms.

Clinical Endpoints and Efficacy

At week 8, the end of the gluten challenge period, TEV-408 showed statistically significant prevention of gluten-induced intestinal damage compared to placebo. The primary endpoint measured the Vh:Cd ratio, with a least squares (LS) mean change from baseline of -0.43 for TEV-408 versus -0.88 for placebo. This represented a treatment difference of 0.45 (95% CI: 0.06, 0.84; p<0.05).

The drug also demonstrated a favorable effect on intestinal inflammation. The LS mean change from baseline in the density of intraepithelial lymphocytes (IELs) was an increase of 27.60 for placebo compared to 0.37 for participants treated with TEV-408. The treatment difference was -27.23 (95% CI: -39.67, -14.79).

Additionally, the study recorded lower gastrointestinal symptom scores for TEV-408 versus placebo, as assessed using the Celiac Disease Symptom Diary (CDSD), a patient-reported outcome. The treatment was well-tolerated with no emerging safety signals observed to date.

Pipeline-in-a-Product Strategy

Teva highlighted that these results, together with its vitiligo program, support TEV-408 as a potential pipeline-in-a-product opportunity across multiple diseases. TEV-408 is also being evaluated in a Phase 1b study for vitiligo, with the company advancing the asset into a Phase 2b study following encouraging early results. By blocking IL-15 activity, the antibody aims to reduce immune-mediated destruction of melanocytes in vitiligo patients.

In January 2026, Teva entered a strategic funding agreement with Royalty Pharma. Under this deal, Teva is eligible to receive up to $500 million to accelerate the clinical development of TEV-408. If approved and launched, Teva will pay a milestone to Royalty Pharma and a royalty on worldwide net sales of TEV-408.

What the Numbers Show

The data indicates a divergence in inflammatory response between the treatment and control groups. While the placebo group saw a substantial increase in IEL density (27.60), the TEV-408 group maintained near-baseline levels (0.37). This suggests the monoclonal antibody effectively suppressed the specific immune-mediated inflammation associated with gluten exposure in this cohort, aligning with the preservation of intestinal architecture seen in the Vh:Cd ratio results.

Next Steps

Teva stated that additional analyses from the ongoing Phase 2a study are underway. The company plans to present further data from the study at a future scientific meeting. An investor call and live webcast were held on September 2, 2026, to discuss these data.

Eric Hughes, Executive Vice President, Global R&D and Chief Medical Officer at Teva, said, "A strict gluten-free diet has long been the only option for people living with celiac disease. Yet, even with strict adherence to a gluten-free diet, many continue to experience symptoms, intestinal damage and a significant impact on their daily lives. These results underscore the potential to move beyond managing gluten exposure and address celiac disease at its biological source."