Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) today reported better results for the fourth quarter of 2020 and full year 2020 than the analysts had predicted. Non-GAAP earnings per share of $0.68 in the fourth quarter were higher than the analysts' consensus of $0.63. Non-GAAP earnings per share for 2020 of $2.57 were above the analysts' expectations of $2.51.
Teva sees 2021 revenue of between $16.4 billion and $16.8 billion, not much growth if any above the 2020 revenue of $16.659 billion, which was down 1% from 2019.
As of December 31, 2020, Teva's debt was $25.919 billion, compared with $26.908 billion as of December 31, 2019.
Revenue in the fourth quarter of 2020 was $4.454 billion, flat compared with the fourth quarter of 2019, and slightly above analysts' expectations. The company reported lower revenue from its Anda distribution business in the US, Copaxone and certain oncology products, offset by higher revenue from its US generics business, Austedo and Ajovy. Revenue North America and Europe saw some reductions in volume due to less physician and hospital activity during the Covid-19 pandemic, but the North America segment also experienced increases in demand for certain products for treating Covid-19 and its symptoms.
In the fourth quarter of 2020, North American sales of migraine treatment Ajovy climbed 42% to $36 million and sales of Huntington's treatment Austedo rose 36% to $185 million. But North American sales of multiple sclerosis drug Copaxone were down 19% to $213 million.
GAAP net profit in the fourth quarter was $150 million ($0.14 per share) compared with GAAP net profit of $110 million ($0.10 per share) in the corresponding quarter of 2019. Non-GAAP net profit in the fourth quarter of 2020 was $603 million ($0.68 per share), well above the analysts' estimates of $0.63 per share.
Teva reiterated its full year 2020 outlook of non-GAAP earnings per share of $2.30-$2.55 and revenue of $16.6-$17 billion. Analysts expect earnings per share of $2.50 and $16.8 billion revenue.
Teva president and CEO Kåre Schultz said, "In 2020, Teva continued to provide essential medicines to millions of patients around the world every day, and despite the Covid-19 pandemic challenges, we saw minimal impact on our supply chain, R&D programs and product launches. Following a strong fourth quarter performance, we have met all components of our 2020 financial guidance."
He added, "Our key growth drivers delivered promising results and milestones, including the continued growth of Austedo and our leading biosimilar Truxima, as Ajovy sales continued to improve following the launch of the auto-injector. Our generic performance was boosted by the successful launch of the generic versions of HIV-1 treatments Truvada and Atripla tablets in the US. We have also taken steps to strengthen our biopharmaceutical pipeline, with a biosimilar commercialization agreement, and are advancing other pipeline assets, including the recently announced positive results from the phase 3 trial of risperidone extended-release injectable for patients with schizophrenia."
Teva's share price fell by 1.5% in 2020 but before today rose 30% since the start of 2021. Despite the strong results, the share price is down 8.5% in morning trading on Nasdaq, giving the company a market cap of $13.05 billion.
Published by Globes, Israel business news - en.globes.co.il - on February 10, 2021
© Copyright of Globes Publisher Itonut (1983) Ltd. 2021