Teva returns to revenue growth, raises guidance

Teva  credit: Cineberg/Shutterstock
Teva credit: Cineberg/Shutterstock

The Israeli pharmaceutical company beat the analysts' expectations in the second quarter of 2023 with revenue of $3.9 billion and non-GAAP earnings per share of $0.56.

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) beat the analysts' expectations in the second quarter of 2023 with revenue of $3.9 billion and non-GAAP earnings per share of $0.56.

At the same time, the company has raised annual revenue guidance for 2023 from $14.8-15.4 billion to $15-15.4 billion. This means Teva has returned to growth after five years after shrinking revenue. Adjusted EBITDA of $4.5-$4.9 billion and non-GAAP EPS of $2.25-$2.55 are unchanged.

Second quarter revenue was $3.9 billion, up 2.4% from the corresponding quarter of 2022. Revenue in the first half of 2023 was $7.5 billion, up 1.2% from the first half of 2022.

Teva reported a GAAP net loss of $898 million in the second quarter and a GAAP net loss of $1.1 billion in the first half of 2023. Non-GAAP net profit in the second quarter was $629 million, down from last year but higher than expectations. In the first half of 2023, non-GAAP net profit was $1.1 billion, and EPS $0.96.

Teva president and CEO Richard Francis said, "Teva continued to deliver solid performance this quarter, with revenues coming in at $3.9 billion, up 4% vs. the second quarter of 2022 in local currency terms and non-GAAP gross margin up 3.1 percentage points vs. the first quarter of 2023. Our growth drivers continue to provide confidence in our Pivot to Growth strategy, highlighted by strong growth from AUSTEDO, a successful new innovative product launch of UZEDY and growth of our generics business in local currency terms. With this solid performance, we are slightly increasing the midpoint of our revenue guidance for the year and reaffirming all other guidance items."

He added, "As we remain determined to execute on our growth strategy, we are continuing to focus on our late-stage innovative pipeline delivery and early-stage pipeline development, both organically and through collaborations."

In premarket trading on the NYSE, Teva's share price is 7.36% at $8.91. Yesterday, the share closed down 1.31% at $8.29, giving a market cap of $9.556 billion.

Published by Globes, Israel business news - en.globes.co.il - on August 2, 2023.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.

Teva  credit: Cineberg/Shutterstock
Teva credit: Cineberg/Shutterstock
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