Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) recovery under new CEO Kare Schultz continues after the Israeli company reported stronger than expected second quarter 2018 results today, beating the analysts' expectations, and raised its 2018 guidance.
Revenue in the second quarter of 2018 was $4.7 billion, down 18%, or 19% in local currency terms, from the corresponding quarter of 2017, mainly due to continued price erosion in US generics business, generic competition to Copaxone and the sale of assets.
GAAP net loss in the second quarter was $241 million ($0.24 per share) compared with $6.0 billion ($5.94 per share) in the second quarter of 2017. Non-GAAP net profit in the second quarter of 2018 was $794 million ($0.78 per share) compared with $1.035 billion ($1.02 per share) in the second quarter of 2017.
The analysts had predicted revenue of $4.74 billion and non-GAAP earnings per share of $0.62.
While reiterating Teva's 2018 revenue guidance of $18.5-19 billion, the company raised its non-GAAP earning per share guidance from $2.40-2.65 per share to $2.55-2.80.
Teva president and CEO Kåre Schultz said, “I am satisfied with our progress in the second quarter. The restructuring program is on schedule, we have already achieved a significant cost base reduction towards our target for the year and we continue to reduce our net debt. Copaxone maintained its market share and Austedo continued to show solid growth. Given the second quarter results, we have decided to raise our 2018 full year guidance.”
He added, “Our PDUFA action date for fremanezumab is set for mid-September and we are preparing to launch this important product once approved."
Despite the upbeat report, Teva's share price was down 8% in premarket trading on the NYSE.
Published by Globes [online], Israel business news - www.globes-online.com - on August 2, 2018
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