Teva changing profit breakdown

Kare Schultz Photo: PR

From the first quarter of this year, Teva's financials will give a breakdown by region rather than by type of business.

This Thursday, May 3, Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) will publish its first quarter 2018 financials. For the first time, the financial statements will not show a breakdown between the company's generics business and its innovative business. Instead, results will be reported according to geographic distribution, the breakdown being between North America (the US and Canada); Europe (the EU plus certain other countries); and Growth Markets - that is, all other countries.

For each segment, Teva will report its profitability, which will comprise gross profit less R&D, selling and marketing, and general and administrative expenses, and other income attributable to that segment. Up to now, Teva has reported the profitability of its generics activity and its innovative activity, which includes its flagship Copaxone product, now facing generic competition.

Last week, Teva published its 2017 and 2016 results on the basis of the new segments. It emerges that profit in North America was $4.6 billion in 2017, 16.5% less than in 2016. Profit in this segment declined in each quarter of 2017, falling below the $1 billion level in the fourth quarter, to $938 million. Because of negative trends in the US generic drugs market, Teva wrote off goodwill of $17 billion last year.

In Europe, profit rose to $1 billion in 2017 from $667 million in 2016. In Growth Markets, profit shrank 33% in comparison with 2016, to $426 million.

Published by Globes [online], Israel business news - www.globes-online.com - on April 30, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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Kare Schultz Photo: PR
Kare Schultz Photo: PR
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