"Did TEVA really make a better version, or just change the colour?" What has this anything to do with "obviousness" ?
"TEVA told the FDA that the product was the same wrt safety and efficacy. " yes. What has this anything to do with "obviousness" ? This is evidence for inequitable conduct.
IMHO Obviousness would be possible If 1974 patent had some clues that lower molecular maybe more safe. Or if other prior art on copolymer mentions changes is toxicity with change in molecular weight to makes TEVA's findings obvious?