ANIP vs. TEVA: Which Drug Stock Is the Better Buy Right Now?

Both ANI Pharmaceuticals ANIP and Teva Pharmaceuticals TEVA operate in the pharmaceutical sector, focusing on generic and specialty medications.ANIP’s operations are split between rare disease therapies and generics, with specialty growth led by Cortrophin Gel. In contrast, TEVA operates as a global pharmaceutical giant that develops, manufactures and markets both branded and generic/biosimilar drugs.But which one makes for a better investment pick today? Let's examine the fundamentals of the two stocks to make a prudent choice.The Case for ANIPANI Pharmaceuticals has delivered solid financial performance in recent quarters, driven by steady execution across its rare disease and generics businesses.However, momentum is increasingly skewed toward its rare disease franchise, which has emerged as the company’s primary growth engine. Much of this strength stems from the ACTH-based injection Cortrophin Gel, which has become the focus of the company’s specialty strategy. Recently, ANI Pharmaceuticals reported preliminary sales of around $348 million for the drug for the full-year 2025 — up 76% year over year — supported by broader adoption across neurology, rheumatology, nephrology and ophthalmology.This momentum in Cortrophin Gel is likely to continue, supported by new clinical studies (including a phase IV study in acute gouty arthritis) and ongoing efforts to deepen specialty penetration. For the full year 2026, ANI Pharmaceuticals expects this product’s sales to be between $540 million and $575 million, reflecting a 55-65% increase over the unaudited 2025 sales number.ANIP also reported unaudited sales for its recently acquired ophthalmology assets, Iluvien and Yutiq, which it claims added around $75 million in full-year 2025. Though the drugs’ sales were pressured last year by reimbursement challenges and continued utilization of existing inventory at physician offices, the company expects the franchise to return to growth in 2026. Expanded field efforts and improved patient access are expected to support the rebound. ANI Pharmaceuticals expects full-year 2026 sales for the drug to be between $78 million and $83 million, up 4-11% from the preliminary 2025 number.Taken together, these dynamics are expected to further increase the contribution of ANIP’s rare disease franchise. For 2026, the company projects total revenues of $1.055 billion to $1.115 billion, with roughly 60% coming from rare disease products.The remaining 40% of revenues is expected to come from the generics segment, which we view as a stabilizing foundation rather than a primary growth driver. ANI Pharmaceuticals targets the launch of 10-15 new generic products annually, providing baseline revenue support amid a competitive pricing environment.However, competitive pressure is also building within the rare disease space. The primary competitor to Cortrophin Gel is Acthar Gel, which is marketed by Keenova Therapeutics (formerly Mallinckrodt Pharmaceuticals). Like ANIP, Keenova has been experiencing strong demand for Acthar Gel and recently raised its full-year 2025 sales growth outlook for the drug to 30-35%, up from the prior 20-30% range. This suggests that the competitive environment for ACTH-based therapies is intensifying.The Case for TEVAThis Israel-based company is the world’s largest generic drug company in terms of both total and new prescriptions. Its scale and manufacturing footprint provide it with significant leverage, particularly in the United States. Teva commands a share of around 7% in the U.S. generic market.The company has established a growing presence in biosimilars. In the past few quarters, Teva has launched several successful biosimilars and other high-value complex generics, including Truxima (biosimilar to Roche’s Rituxan), Herzuma (biosimilar to Roche’s Herceptin), Epysqli (biosimilar to AstraZeneca’s Soliris), Simlandi (biosimilar to AbbVie’s Humira) and Selarsdi (biosimilar to J&J’s Stelara).Teva has a decent pipeline of biosimilars, with some being developed in partnership with Alvotech ALVO, including high-value complex generics, like Simlandi and Selarsdi. Simlandi and Selarsdi are the first two biosimilars to be launched in the United States under the Teva and Alvotech strategic partnership, which includes five biosimilars.Looking ahead, TEVA aims to double its global biosimilars sales by 2027. The company launched three biosimilars, Simlandi, Selarsdi and Epysqli, in the United States in 2025 and expects five additional launches by 2027.Beyond generics and biosimilars, Teva maintains a diversified portfolio of branded products. These include Copaxone (multiple sclerosis), Austedo (chorea associated with Huntington’s disease and tardive dyskinesia), Uzedy (schizophrenia) and Ajovy (preventive treatment of migraine). The company is seeing continued market share growth of its newest branded drugs, Austedo, Ajovy and Uzedy.However, the company’s generic business was soft in the first nine months of 2025 due to tough year-over-year comparables, increased competitive pressure and softness in certain markets. In International Markets, generics sales are being hurt by the divestment of Teva’s business venture in Japan.The company also faces competitive pressure for some of its key branded drugs. In addition, it has a high debt load and faces some price-fixing charges. Teva may face a revenue cliff for lenalidomide capsules (the generic version of Bristol-Myers’ Revlimid) in 2026.How Do Estimates Compare for ANIP & TEVA?The Zacks Consensus Estimate for ANIP’s 2026 sales and EPS implies a year-over-year growth of about 8% each. Bottom-line estimates for 2026 have increased during the past 30 days.Image Source: Zacks Investment ResearchFor Teva, the Zacks Consensus Estimate for 2026 sales is expected to remain flat year over year, while EPS estimates are expected to grow by 6%. Bottom-line estimates for 2026 have been trending upwards over the past 30 days.Image Source: Zacks Investment ResearchPrice Performance and Valuation of ANIP & TEVAIn the past year, shares of ANIP have surged 48%, while those of TEVA have soared 49%. In comparison, the industry has climbed 39%, as seen in the chart below.Image Source: Zacks Investment ResearchFrom a valuation standpoint, ANI Pharmaceuticals seems to be trading at a slightly more premium compared to Teva Pharmaceuticals, going by the price/earnings (P/E) ratio. ANIP’s shares currently trade at 12.74 times forward 12-month earnings, higher than 12.39 for TEVA.Image Source: Zacks Investment ResearchANIP or TEVA: Which Is a Better Pick?While both companies remain financially robust with diversified operations, the sales momentum in ANI Pharmaceuticals’ business gives it an edge over Teva Pharmaceuticals. This top-line strength is also translating into faster earnings growth compared with TEVA, which continues to face margin pressures across some of its key branded drugs.Also, ANI Pharmaceuticals carries a Zacks Rank #2 (Buy) while Teva Pharmaceuticals carries a Zacks Rank #3 (Hold). This further reinforces ANIP’s more favorable standing in the current investment landscape. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Teva Pharmaceutical Industries Ltd. (TEVA): Free Stock Analysis Report ANI Pharmaceuticals, Inc. (ANIP): Free Stock Analysis Report Alvotech (ALVO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks