Teva Pharmaceutical - Conversion of ADSs to Ordinary Shares: Potential Index Impact

Research evidence excerpt

Teva Pharmaceutical - Conversion of ADSs to Ordinary Shares: Potential Index Impact

Min Moon AC Global Markets Strategy

(1-212 ) 272-8456 29 July 2026 J P M O R G A N

min.k.moon@jpmorgan.com

Russell indices. If all three HCIs do not point to one country, Russell compares the primary

location of the company’s assets/revenue with the three HCIs. If the primary location of assets

matches any of the HCIs, then the company is assigned to its primary location of assets/

revenue.

For Teva, asset location is not disclosed in segment reporting, so the analysis falls back to

revenue. Based on the reported revenue mix over the last 2 years, the U.S. accounts for 51%

of revenue versus 30% for Europe. On that basis, Teva’s country would be assigned to the U.S.

If the revenue split were not sufficiently differentiated (i.e., if the lead versus the next-largest

region were less than 20 percentage points), Russell would assign the company to the location

of its headquarters. Even under that sensitivity, Teva would still be expected to remain U.S.-

assigned and eligible for Russell U.S. indices.

Therefore, we expect Teva to be eligible for the Russell 1000 and included at the next index

reconstitution, expected to be effective December 11, 2026.

Others (CRSP):

Companies are reviewed based on factors including incorporation, headquarters, employer

identification number (EIN), and more than 5% ownership by U.S. public equity funds.

Generally, the Index Eligibility Committee reviews companies with incorporation and/or

headquarters outside of the U.S. on a case-by-case basis. The review may include information

on asset/revenue location, tax jurisdiction, history, corporate structure, primary exchange,

employment, makeup of executives, accounting rules, filing status, and any other relevant