I. IntroductionTEVA is one of the top fifteen pharmaceutical companies in the world, particularly a leader in generics and active pharmaceutical ingredient (API) suppliers. TEVA, headquartered in Israel, has over 46,000 employees in 60 countries (Ellis, 2012). This essay analyzes the current business model of TEVA Pharmaceutical Industries Ltd, based on a selected model. Subsequently, through a radical revision, it indicates the most fundamental challenge and prospect of change that TEVA faces from the past to the near future. Finally, explore the most considerable factor that would influence the business models of the entire pharmaceutical industry based on relevant industry analysis and empirical evidence.II. Business Model Analysis The business model illustrates the process of creating and capturing value and defines how that value is delivered to customers. Specifically, a business model articulates logic and provides data and other evidence to explain how a business actually operates. Furthermore, it outlines the composition of the revenue stream and cost structure to calculate the profits associated with the business providing that value (Teece, 2010). Chesbrough and Rosenbloom (2002) identify the business model as a conceptual framework that mediates between technological development and economic value creation. The definition of their business model is proposed, detailed and divided into 6 components that define the main function and purpose of a business model. (See Appendix 1) The success of a company is based on achieving commercial benefits with the support of technological innovation through the implementation of an appropriate business model. In other words, technological development plays an essential role... in the center of the paper... two largest markets: the United States and Europe. TEVA's profits are primarily derived from its breakthrough blockbuster drug: Copaxone. However, Copaxone is also the trigger that would bring enormous uncertainty and challenge to TEVA. Therefore, based on a series of evident analysis and interpretation of facts, TEVA requires to keep abreast of the industry's trading prospects. Furthermore, intellectual property rights play an essential role in the entire pharmaceutical industry, especially in the generic sector. It is true that the form of the transaction and the type of collaboration between companies, such as mergers, acquisitions and partnerships, have a generous influence on pharmaceutical products. In general, intellectual property rights could support substantial price differences between different countries, reflecting variations in income. Furthermore, intellectual property rights would encourage innovation in research and development for a company to exert more efforts.