Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) today reported results for the first quarter of 2018 - the first full quarter in which CEO Kåre Schultz has been in charge of the ailing company. Schultz took over at the helm on November 1 and the global streamlining plan that he has implemented already seems to be paying off as the Israeli pharmaceutical company beat the analysts' estimates. The company's share price was up over 8% in pre-market trading on the NYSE to $20.12.
Revenue in the first quarter was $5.1 billion, down 10%, or 15% in local currency terms, compared with the first quarter of 2017, mainly due to adverse market dynamics in the US generics market, generic competition to Copaxone and loss of revenue following Teva's divestment of products and discontinuation of activities. Copaxone sales fell 40% in the US to $476 million from $797 million in the first quarter of 2017.
GAAP net profit attributable to ordinary shareholders and GAAP diluted EPS in the first quarter of 2018 were $1.1 billion and $1.03, respectively, compared with $580 million and $0.57, respectively, in the first quarter of 2017. Non-GAAP net profit attributable to ordinary shareholders and non-GAAP diluted EPS in the first quarter of 2018 were $954 million and $0.94, respectively, compared with $1.1 billion and $1.06 in the first quarter of 2017.
Schultz said "2018 is off to a solid start. Our restructuring program is proceeding well, and we are on track to meet our cost reduction targets of $1.5 billion in 2018 and $3.0 billion by the end of 2019. During this quarter, our strong cash flow allowed us to continue to reduce our outstanding debt, and together with our recent debt issuance and covenant amendment, has placed Teva on a more stable financial footing. We have also benefited this quarter from the durability of Copaxone and a steady flow of generic launches in the US. Our strong first quarter performance, along with our confidence in executing the restructuring program, gives us a solid foundation to raise our guidance for the year."
Teva raised 2018 revenue guidance to $18.5-19 billion from $18.3-18.8 billion and raised the EPS forecast to $2.40-2.65 per share from $2.25-2.50.
Other good news was that Teva has cut its debt by a further $1.7 billion to $30.8 billion. On the other hand, the company announced that FDA approval of Teva's budding branded blockbuster migraine treatment fremanezumab, which had been expected next month, will now not be obtained until the end of the year.
Published by Globes [online], Israel business news - www.globes-online.com - on May 3, 2018
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