Core Insights - Teva Pharmaceutical Industries has faced significant challenges including opioid lawsuits, high debt levels, and intense competition in the generics market [1] Company Overview - Teva is a company that has been under scrutiny for years, often viewed negatively due to its legal issues and financial struggles [1] - The company operates in a highly competitive generics market, which adds pressure to its financial performance [1] Market Position - The stock has been a subject of criticism, reflecting broader concerns about its operational and financial health [1]

Core Viewpoint - Teva Pharmaceutical Industries reported mixed first-quarter 2025 results, beating earnings estimates but missing revenue expectations, with adjusted earnings of 52 cents per share and revenues of $3.89 billion [1][16]. Financial Performance - Adjusted earnings increased by 8% year over year, driven by higher operating profits [1]. - Total revenues rose 2% year over year on a reported basis and 5% on a constant currency basis [1]. - U.S. segment sales reached $1.91 billion, an 11% increase year over year, surpassing estimates [2]. Product Performance - Revenues from generic products in the U.S. rose 5% to $849 million, primarily due to the launch of Simlandi, a generic version of Humira [3][4]. - Sales of Austedo, a Huntington's disease drug, increased by 40% year over year to $396 million, exceeding estimates [6]. - Ajovy sales grew 18% year over year to $53 million, while Uzedy generated $39 million in sales [7]. Regional Performance - Europe segment revenues declined 6% year over year to $1.19 billion, missing estimates [9][10]. - International Markets segment sales decreased 2% year over year to $582 million, also missing estimates [11]. Guidance and Future Outlook - Teva expects total revenues for 2025 to be between $16.8 billion and $17.2 billion, slightly lowering the upper end of the previous guidance [13]. - Adjusted EPS guidance for 2025 was raised to a range of $2.45-$2.65 per share [13]. - The company anticipates $700 million in cost savings by 2027, with an adjusted operating margin target of 30% [15]. Market Reaction - Following the earnings release, Teva's stock rose over 9%, despite a year-to-date decline of 20.1% compared to the industry decline of 17.6% [19].

Revenue Performance - Revenues in Q1 2025 were $3,891 million, a 2% increase in U.S. dollars or 5% in local currency compared to Q1 2024, driven by higher revenues from AUSTEDO, generic products, AJOVY, and UZEDY [279]. - The United States segment generated revenues of $1,910 million, an 11% increase, and segment profit of $532 million, a 52% increase compared to Q1 2024 [279]. - The Europe segment reported revenues of $1,194 million, a 6% decrease in U.S. dollars, and segment profit decreased by 22% compared to Q1 2024 [279]. - The International Markets segment generated revenues of $582 million, a 2% decrease in U.S. dollars, while segment profit decreased by 17% compared to Q1 2024 [279]. - Total revenues for the company in Q1 2025 were $3,891 million, an increase of 2% in U.S. dollars compared to Q1 2024 [359]. Profitability Metrics - Gross profit margin improved to 48.2% in Q1 2025, up from 46.4% in Q1 2024 [279]. - Gross profit in Q1 2025 was $1,877 million, a 6% increase from $1,771 million in Q1 2024, with a gross profit margin of 48.2% compared to 46.4% [361]. - Profit from the U.S. segment in Q1 2025 was $532 million, a 52% increase from $350 million in Q1 2024, primarily due to higher gross profit [319]. - Profit from the International Markets segment was $97 million in Q1 2025, a decrease of 17% from $117 million in Q1 2024 [355]. - Net income attributable to Teva in Q1 2025 was $214 million, compared to a net loss of $139 million in Q1 2024 [389]. Research and Development (R&D) Expenses - R&D expenses in Q1 2025 were $247 million, a 2% increase from $242 million in Q1 2024 [279]. - R&D expenses for the U.S. segment in Q1 2025 were $154 million, unchanged from Q1 2024 [316]. - R&D expenses for the Europe segment were $60 million in Q1 2025, an increase of 9% from $56 million in Q1 2024 [332]. - R&D expenses in Q1 2025 were $247 million, up 2% from $242 million in Q1 2024, representing 6.3% of revenues, unchanged from the previous year [366][369]. Cash Flow and Debt Management - Free cash flow generated in Q1 2025 was $107 million, significantly up from $32 million in Q1 2024, mainly due to higher proceeds from divestitures [284]. - Cash flow used in operating activities was $105 million in the first quarter of 2025, a decrease from $124 million in the same period of 2024, attributed to higher profits in the U.S. segment [417]. - As of March 31, 2025, total debt was $16,651 million, a decrease from $17,783 million as of December 31, 2024 [284]. - The company's financial leverage ratio improved to 73% as of March 31, 2025, down from 77% as of December 31, 2024 [412]. - The portion of total debt classified as short-term decreased to 3% as of March 31, 2025, from 10% as of December 31, 2024 [412]. Segment-Specific Revenue Highlights - AUSTEDO revenues in the U.S. segment for Q1 2025 were $396 million, a 40% increase from $282 million in Q1 2024, driven by volume growth and the approval of AUSTEDO XR [294]. - UZEDY revenues in the U.S. segment for Q1 2025 were $39 million, a 156% increase compared to Q1 2024, primarily due to volume growth [298]. - Combined revenues for BENDEKA and TREANDA in the U.S. segment for Q1 2025 were $36 million, a 20% decrease from Q1 2024, attributed to competition from alternative therapies and generic products [300]. - AJOVY revenues in the Europe segment increased by 14% to $58 million in Q1 2025, compared to $51 million in Q1 2024 [326]. - AJOVY revenues in the International Markets segment increased by 65% to $28 million in Q1 2025, compared to $17 million in Q1 2024 [346]. Operating Expenses - S&M expenses for the U.S. segment in Q1 2025 were $273 million, a 5% increase from $261 million in Q1 2024, driven by promotional activities for AUSTEDO [317]. - G&A expenses for the U.S. segment in Q1 2025 were $96 million, a 3% increase compared to $93 million in Q1 2024 [318]. - S&M expenses in Q1 2025 were $622 million, a 2% increase from $610 million in Q1 2024, accounting for 16.0% of revenues compared to 15.9% in Q1 2024 [373][374]. - G&A expenses in Q1 2025 were $297 million, a 7% increase from $278 million in Q1 2024, representing 7.6% of revenues compared to 7.3% in Q1 2024 [375][376]. Balance Sheet and Equity - Total balance sheet assets as of March 31, 2025, were $38,415 million, down from $39,326 million as of December 31, 2024 [400]. - Cash and cash equivalents as of March 31, 2025, were $1,697 million, a decrease from $3,300 million as of December 31, 2024 [405]. - Total equity increased to $6,269 million as of March 31, 2025, compared to $5,380 million as of December 31, 2024, driven by a positive impact from exchange rate fluctuations of $467 million and a net income of $214 million attributable to the company [413]. Earnings Per Share - Diluted earnings per share in Q1 2025 were $0.18, compared to a diluted loss per share of $0.12 in Q1 2024 [390]. - The non-GAAP diluted EPS for the three months ended March 31, 2025, was $0.52, an increase from $0.48 in the same period of 2024 [427].

Core Viewpoint - Teva Pharmaceutical's shares are experiencing a significant increase following the release of strong Q1 earnings and an upward revision of its full-year profit guidance [1][5]. Financial Performance - Teva reported Q1 adjusted earnings per share (EPS) of $0.52, surpassing Wall Street's expectation of $0.48 [2]. - The company reported quarterly sales of $3.89 billion, missing the anticipated $4 billion [2]. - Despite the revenue miss, Teva's margins expanded to 48.2%, up from 46.4% a year ago, attributed to a higher proportion of specialty drugs in overall sales [2]. Product Performance - The drug Austedo, used for treating movement disorders, generated worldwide revenue of $411 million for the quarter, reflecting a 39% increase compared to the same period last year [3]. Guidance Update - Teva raised its fiscal 2025 adjusted EPS guidance from a range of $2.35 to $2.65 to a new range of $2.45 to $2.65, with the new midpoint exceeding the consensus estimate of $2.55 [5]. Strategic Direction - CEO Richard Francis highlighted that Teva is entering the "Acceleration Phase" of its "Pivot to Growth Strategy," focusing on innovative growth, strengthening its generics business, and optimizing operations [6]. - The company's growth plan appears to be resonating well with investors, supported by efficiency measures and product growth [6][7].

Core Viewpoint - Teva Pharmaceutical Industries Ltd reported its Q1 2025 financial results, showing a revenue increase but missing analyst expectations, while also providing an optimistic outlook for future earnings and operational efficiency [1][3][4]. Financial Performance - Teva's revenue for Q1 2025 was $3.89 billion, a 5% increase year-over-year, but below the analyst estimate of $4.00 billion [1]. - Adjusted earnings per share were 52 cents, surpassing estimates of 48 cents [3]. - Gross profit margin improved to 48.2% from 46.4% year-over-year, with adjusted gross profit margin rising to 52.8% from 51.4% [3]. Product Performance - Austedo's worldwide revenues reached $411 million in Q1 2025, marking a 39% increase in local currency compared to Q1 2024, with U.S. revenues growing by 40% to $396 million [1]. - Ajovy's global revenues were $139 million, a 26% increase in local currency terms compared to Q1 2024 [2]. - Uzedy's global revenues were $39 million in Q1 2025 [6]. Guidance and Outlook - Teva raised its fiscal 2025 adjusted earnings per share guidance from $2.35-$2.65 to $2.45-$2.65, aligning closely with the consensus of $2.55 [3][4]. - The company narrowed its 2025 sales guidance from $16.8 billion-$17.4 billion to $16.8 billion-$17.2 billion, compared to the consensus of $17.24 billion [4]. - Teva increased its Austedo 2025 sales outlook from approximately $1.9-2.05 billion to $1.95-2.05 billion [4]. Operational Strategy - Teva's CEO highlighted the company's transition into the "Acceleration Phase" of its Pivot to Growth Strategy, aiming for a 30% operating margin and $700 million in net savings by 2027 [3]. - The generics business showed growth across all regions, with a 5% increase in the U.S., 1% in Europe, and 2% in International Markets, all in local currency terms compared to Q1 2024 [6].

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Core Insights - Teva Pharmaceutical Industries Ltd. reported $3.89 billion in revenue for Q1 2025, a year-over-year increase of 1.9% and an EPS of $0.52, up from $0.48 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $3.97 billion by 1.92%, while the EPS exceeded the consensus estimate of $0.47 by 10.64% [1] Financial Performance - Teva's shares have returned +18.6% over the past month, outperforming the Zacks S&P 500 composite's +10.6% change [3] - The company currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3] Geographic Revenue Breakdown - United States: Revenue of $1.91 billion, exceeding the average estimate of $1.87 billion, with a year-over-year change of +10.7% [4] - Europe: AJOVY generated $58 million, slightly above the average estimate of $56.74 million, reflecting a +13.7% year-over-year change [4] - International Markets: COPAXONE revenue was $10 million, below the estimate of $10.67 million, representing a -16.7% change year-over-year [4] - Generic products in International Markets generated $468 million, slightly below the estimate of $487.47 million, with a -1.9% year-over-year change [4] - Europe: COPAXONE revenue was $42 million, below the estimate of $43.68 million, indicating a -26.3% year-over-year change [4] - Europe: Generic products revenue was $989 million, slightly below the estimate of $991.61 million, with a -1.5% year-over-year change [4] - Europe: Other products generated $50 million, significantly below the estimate of $95.70 million, reflecting a -46.8% year-over-year change [4] - Europe: Respiratory products revenue was $55 million, below the estimate of $60.84 million, indicating a -16.7% year-over-year change [4] - International Markets: Other products generated $61 million, below the estimate of $94.61 million, representing a -33% year-over-year change [4] - Total revenue from COPAXONE was $106 million, exceeding the estimate of $84.97 million, with a +7.1% year-over-year change [4] - API sales to third parties amounted to $130 million, surpassing the estimate of $115.17 million, reflecting a +1.6% year-over-year change [4]

Teva Pharmaceutical Industries (TEVA) Q1 2025 Earnings Call May 07, 2025 08:00 AM ET Speaker0 Hello, and welcome to the Q1 twenty twenty five Teva Pharmaceutical Industries Limited Earnings Conference Call. My name is Alex, and I'll be coordinating the call today. I'll now hand it over to your host, Christopher Stivo, Head of Investor Relations to begin. Please go ahead. Speaker1 Thank you, Alex. Good morning, everyone. In the course of this call, we're going to be making some forward looking statements. An ...

May 7, 2025 Teva Pharmaceutical Industries Ltd. This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management's current beliefs and expectations and are subject to substantial risks and uncertainties, both known and unknown, that could cause our future results, performance or achievements to differ significantly from that expressed or implied by such forward-looking statements. These forward-looking statements ...

Revenue Performance - Q1 2025 revenues reached $3.9 billion, a 5% increase in local currency terms compared to Q1 2024, with a net foreign exchange impact of $100 million resulting in a 2% growth in reported revenues [3]. - AUSTEDO generated worldwide revenues of $411 million in Q1 2025, reflecting a 39% increase in local currency terms year-over-year, with the full-year revenue outlook raised to $1.95-2.05 billion [3]. - AJOVY's global revenues were $139 million in Q1 2025, a 26% increase in local currency terms compared to Q1 2024, reaffirming a $600 million revenue outlook for 2025 [3]. - Revenues from the United States segment in Q1 2025 were $1,910 million, an increase of $184 million, or 11%, compared to Q1 2024 [28]. - Revenues from the Europe segment in Q1 2025 were $1,194 million, a decrease of 6% compared to Q1 2024 [44]. - Revenues from the International Markets segment in Q1 2025 were $582 million, a decrease of 2% compared to Q1 2024, but increased by 5% in local currency terms [57]. - Revenues from other activities in Q1 2025 were $206 million, a decrease of 9% in U.S. dollars compared to Q1 2024 [70]. - The outlook for total revenues in 2025 is projected to be between $16.8 billion and $17.2 billion [72]. - AUSTEDO revenues are expected to be between $1.950 billion and $2.050 billion in 2025 [72]. - Net revenues for Q1 2025 were $3,891 million, a 1.9% increase from $3,819 million in Q1 2024 [81]. Profitability Metrics - Non-GAAP diluted EPS for Q1 2025 was $0.52, an 8% increase year-over-year, while GAAP diluted EPS was $0.18 [3]. - Operating income for Q1 2025 was $519 million, representing a 13.3% margin, compared to an operating loss of $218 million in Q1 2024 [14]. - Gross profit for Q1 2025 was $1,877 million, up from $1,771 million in Q1 2024, reflecting a gross margin improvement [83]. - Net income attributable to Teva for Q1 2025 was $214 million, compared to a net loss of $139 million in Q1 2024 [83]. - Non-GAAP net income attributable to Teva for diluted earnings per share was $602 million in Q1 2025, compared to $548 million in Q1 2024 [83]. - The company reported a total reportable segment profit of $958 million for Q1 2025, up from $890 million in Q1 2024 [103]. Cash Flow and Financial Position - Free cash flow generated in Q1 2025 was $107 million, compared to $32 million in Q1 2024, indicating improved cash generation capabilities [23]. - Cash and cash equivalents decreased to $1,697 million as of March 31, 2025, down from $3,300 million at the end of 2024 [87]. - Total assets decreased to $38,415 million as of March 31, 2025, from $39,326 million at the end of 2024 [88]. - Total current liabilities decreased to $11,157 million as of March 31, 2025, compared to $12,796 million at the end of 2024 [88]. - The company reported a net cash used in operating activities of $105 million for Q1 2025, compared to $124 million for Q1 2024 [90]. Research and Development - Research and Development expenses in Q1 2025 were $247 million, a 2% increase compared to Q1 2024, driven by immunology and oncology projects [12]. - The company is preparing for the Phase 3 program initiation for duvakitug in H2 2025, with an NDA submission for olanzapine LAI also expected in H2 2025 [3]. - Research and development expenses remained stable at $154 million for both Q1 2025 and Q1 2024, indicating consistent investment in innovation [101]. Segment Performance - Gross profit from the United States segment increased by 23% to $1,058 million in Q1 2025, with a gross profit margin of 55.4% [41]. - Segment profit from the United States segment was $532 million in Q1 2025, a 52% increase compared to $350 million in Q1 2024 [42]. - Gross profit from the Europe segment in Q1 2025 was $658 million, down 11% from $738 million in Q1 2024, with a gross profit margin of 55.1% [50]. - Profit from the Europe segment in Q1 2025 was $329 million, a decrease of 22% compared to $423 million in Q1 2024 [52]. - Gross profit from the International Markets segment in Q1 2025 was $278 million, a decrease of 6% compared to $297 million in Q1 2024 [65]. - Profit from the International Markets segment in Q1 2025 was $97 million, a decrease of 17% compared to $117 million in Q1 2024 [67]. Strategic Initiatives - The company expects to achieve a 30% operating profit margin by 2027 as part of its Pivot to Growth Strategy, with targeted net savings of approximately $700 million by that year [3]. - The company plans to divest its API business as part of its strategy to streamline operations and focus on core areas [82].