Despite cutting guidance for 2021 revenue in its second quarter financial results today, Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) share price rose over 12% on the Tel Aviv Stock Exchange and is currently up over 15% on Wall Street.
In its 2021 guidance, Teva cut the revenue range from $16.4-16.8 billion to $16-$16.4 billion, compared with revenue of $16.7 billion in 2020. In other words, Teva will end 2021 for the fourth consecutive year without growth. Teva CFO Eli Kalif blamed Covid-19 for the lower revenue and said, "Everywhere that interaction between the patient and doctor is required now takes more time."
Do you expect growth to resume in 2022?
"It's too early to say at this stage but we want to see how we can return to a stable situation in terms of market demand. You must not forget that it is only most recently that several very large European countries came out of lockdown."
"So if Covid remains with us as well as restrictions, then the chances of Teva resuming growth are small?
"It depends on the mix of sales and products. We were influenced by this in the first half of the year and that influences total revenue that we expect for this year. Perhaps ultimately there will be a faster rebound than we currently expect."
Despite the cut in revenue guidance for 2021, the profit forecast remains unchanged.
On Teva's growth engines, Kalif said, "Biosimilars are back. We don't give figures of course for Truxima but in terms of market share and growth we are back to the figures before Covid and we are continuing to see growth. Combined sales of Ajovy and Austedo will exceed Copaxone sales this year with $1.15 billion compared with $1.05 billion for Copaxone. For Ajovy we have an ambitious target of a 33% market share and we are at 24%-25% at the moment, and we see ourselves reaching it."
Meanwhile, Teva CEO Kare Schultz spoke during the conference call earlier today about reaching a final settlement in the US on the opioid painkiller lawsuits, which are a black cloud hanging over the Israeli pharmaceutical company.
He said, "First of all there is the overall nationwide settlement that has been announced between the three distributors and J&J. I think the risk of a blow-up or lack of participation is extremely low."
Published by Globes, Israel business news - en.globes.co.il - on July 28, 2021
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