Teva beats analysts on Q4 revenue and profit

Teva Photo: Sivan Faraj

The Israeli pharmaceutical company sees higher revenue and profit in 2020.

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) has reported its fourth quarter and full year 2019 financial results.

Revenue in the fourth quarter was $4.5 billion, up 1%, or 2% in local currency terms, compared with the fourth quarter of 2018, mainly due to an increase in sales of Austedo, Ajovy and certain respiratory products, partially offset by lower revenue from Copaxone in North America. Revenue beat the analysts' forecast of $4.35 billion.

GAAP net profit attributable to ordinary shareholders and GAAP diluted earnings per share in the fourth quarter of 2019 were $110 million and $0.10, respectively, compared with GAAP net loss attributable to ordinary shareholders and GAAP diluted loss per share of $2.940 billion and $2.85, respectively, in the fourth quarter of 2018. Non-GAAP net profit attributable to ordinary shareholders and non-GAAP diluted EPS in the fourth quarter of 2019 were $683 million and $0.62, respectively, compared with $543 million and $0.53, respectively, in the fourth quarter of 2018. EPS beat the analysts' forecast of $0.61 per share.

Revenue in 2019 was $16.887 billion, down 8%, or 5% in local currency terms from 2018, mainly due to generic competition to Copaxone, a decline in revenue from our US generics business, Bendeka/Treanda and Japan, partially offset by higher revenues from Austedo, Ajovy and Qvar in the US.

GAAP net loss attributable to Teva’s ordinary shareholders and GAAP diluted loss per share in 2019 were $999 million and $0.91, respectively, compared with net loss of $2.399 billion and diluted loss per share of $2.35 in 2018. Non-GAAP net profit attributable to ordinary shareholders for calculating diluted EPS and non-GAAP diluted EPS in 2019 were $2.627 billion and $2.40, respectively, compared with $2.985 billion and $2.92 in 2018.

Teva president and CEO Kåre Schultz said, "In 2019, we made great strides towards positioning Teva for renewed growth by completing our two-year restructuring plan, reducing our cost base by more than $3 billion, and reducing our net debt by more than $9 billion, all while maintaining our global leadership in generics, serving around 200 million patients every day."

He added, "Our key growth products met major milestones in 2019, including the launch of Ajovy in Europe, continued strong growth for Austedo, and the successful launch of our first biosimilar Truxima in North America. In 2020, we expect to see continued growth for Ajovy, Austedo and our biosimilars."

In the fourth quarter US revenue from Copaxone fell 26% to $264 million while Bendeka and Treanda revenue fell 11% to $125 million. Austedo revenue in North America doubled from $68 million in the fourth quarter of 2018 to $136 million while Ajovy revenue was $25 million, up from $3 million in 2018. Eueropean revenue from Copaxone fell 10% in the fourth quarter to $106 million.

In 2020, Teva sees revenue of $16.6 - $17.0 billion and non-GAAP earnings per share of $2.30 - $2.55.

Teva was forced to revise its revenue for 2017 and 2018 down by $500 million due to an error in distribution figures.

After slumping in 2019, Teva's share price has risen 23% since the start of 2020, giving a market cap of $13.4 billion. In pre-market trading the share price is up 3.07% at $12.69.  

Published by Globes, Israel business news - en.globes.co.il - on February 12, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Teva Photo: Sivan Faraj
Teva Photo: Sivan Faraj
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