Teva misses on profit, beats analysts on revenue

Richard Francis credit: PR
Richard Francis credit: PR

The Israeli company reported non-GAAP earnings per share of just $0.40, while market expectations were $0.56. Teva's share price is sharply lower.

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) has reported its first quarter 2023 financial results today, missing on profit but beating the analysts on revenue.

The Israeli company reported non-GAAP earnings per share of just $0.40, while market expectations were $0.56. Revenue in the first quarter was $3.7 billion, similar to the first quarter of 2022 and above expectations.

Teva president and CEO Richard Francis said, "We have seen growth across all regions - Europe is experiencing a solid 9% increase, international markets an 8% increase, and North America is up 2%."

He continued, "Our innovative brands performed well this quarter - AUSTEDO grew 10% year-over-year and AJOVY grew 35% across all regions in local currency. We are also excited about the recent approvals of AUSTEDO XR, the new once-daily formulation for AUSTEDO, and UZEDY (risperidone), our new long-acting injectable treatment for schizophrenia in adults. While we are seeing some positive tailwinds, we are also taking decisive actions to address some headwinds, mainly through improved portfolio mix driven by our innovative products and supply chain enhancements. We expect these actions will improve our gross profit margin in the coming quarters, and today, we are reaffirming our 2023 outlook which was provided in February.

"As we prepare to launch our new strategy next week, I am filled with enthusiasm and optimism. This strategy will build on Teva's strong foundations, key strengths, and sets the stage for long-term growth. We have worked hard over the last few months to challenge ourselves, look at how the market is evolving and how we can create substantial value both for Teva and for patients. I am really excited about the outcome - a new roadmap where we will make decisive choices and focus our resources to drive growth and innovation."

Teva reaffirmed its 2023 outlook. Revenue of $14.8 - $15.4 billion, adjusted EBITDA of $4.5 - $4.9 billion, and non-GAAP diluted earnings per share of $2.25 - $2.55.

Teva's share price is down 8.68% in premarket trading on Wall Street.

Published by Globes, Israel business news - en.globes.co.il - on May 10, 2023.

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

Richard Francis credit: PR
Richard Francis credit: PR
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