TEVA(US:TEVA)2025-07-30 20:06Revenue Performance - Revenues in Q2 2025 were $4,176 million, flat in U.S. dollars, or a decrease of 1% in local currency terms compared to Q2 2024, primarily due to lower revenues from generic products in International Markets and COPAXONE[322] - The U.S. segment generated revenues of $2,151 million, an increase of 2%, with segment profit rising by 12% to $706 million compared to Q2 2024[322] - The Europe segment reported revenues of $1,298 million, a 7% increase in U.S. dollars, or 3% in local currency terms, with segment profit increasing by 6% compared to Q2 2024[322] - The International Markets segment saw revenues decrease by 17% in U.S. dollars, with segment profit increasing by 1% compared to Q2 2024[322] - Total revenues for the company in Q2 2025 were $4,176 million, flat in U.S. dollars compared to Q2 2024[402] Profitability - Gross profit margin improved to 50.3% in Q2 2025, up from 48.6% in Q2 2024[322] - Operating income was $455 million in Q2 2025, a significant recovery from an operating loss of $5 million in Q2 2024[322] - Net income attributable to Teva was $282 million in Q2 2025, a significant recovery from a net loss of $846 million in Q2 2024[428] - Total reportable segments profit increased to $1,144 million in Q2 2025 from $1,043 million in Q2 2024[426] - Profit from the U.S. segment in Q2 2025 was $706 million, a 12% increase from $629 million in Q2 2024, driven by higher gross profit[361] Cash Flow and Debt - Cash flow from operating activities was $227 million in Q2 2025, up from $103 million in Q2 2024, driven by higher profits in the U.S. segment[322] - Free cash flow increased to $476 million in Q2 2025, compared to $324 million in Q2 2024, mainly due to higher cash flow from operating activities[322] - As of June 30, 2025, total debt was $17,227 million, a decrease from $17,783 million as of December 31, 2024[322] - Cash and cash equivalents decreased to $2,161 million as of June 30, 2025, down from $3,300 million as of December 31, 2024[504] - The company's debt decreased to $17,227 million as of June 30, 2025, from $17,783 million as of December 31, 2024, mainly due to the repayment of senior notes[507] Research and Development - R&D expenses decreased by 9% to $244 million in Q2 2025 compared to $269 million in Q2 2024[322] - R&D expenses in the U.S. segment for Q2 2025 were $152 million, an 11% decrease from $170 million in Q2 2024[358] - R&D expenses for the Europe segment were $59 million in Q2 2025, a 5% decrease from $62 million in Q2 2024[376] - R&D expenses, net in Q2 2025 were $244 million, a 9% decrease from $269 million in Q2 2024, primarily due to lower non-recurring milestone payments[409] - R&D expenses as a percentage of revenues decreased to 5.8% in Q2 2025 from 6.5% in Q2 2024[411] Segment Performance - AUSTEDO revenues in the U.S. segment for Q2 2025 were $495 million, a 22% increase from $407 million in Q2 2024, driven by volume growth and the approval of AUSTEDO XR[335] - UZEDY revenues in the U.S. segment for Q2 2025 were $54 million, a 120% increase compared to Q2 2024, primarily due to volume growth[339] - Combined revenues for BENDEKA and TREANDA in the U.S. segment for Q2 2025 were $40 million, a 3% decrease from Q2 2024, attributed to competition from alternative therapies and generic products[341] - COPAXONE revenues in the U.S. segment for Q2 2025 were $62 million, a 23% decrease compared to Q2 2024, mainly due to market share erosion and competition[346] - Revenues from the Europe segment in Q2 2025 were $1,298 million, a 7% increase from $1,213 million in Q2 2024[367] Expenses - S&M expenses in the U.S. segment for Q2 2025 were $279 million, a 3% increase from $270 million in Q2 2024, mainly due to promotional activities[359] - G&A expenses in the U.S. segment for Q2 2025 were $113 million, a 13% increase from $100 million in Q2 2024[360] - Selling and marketing expenses were $654 million in Q2 2025, unchanged from Q2 2024, with S&M expenses as a percentage of revenues slightly decreasing to 15.7%[415][416] - General and administrative expenses increased by 8% to $305 million in Q2 2025, with G&A expenses as a percentage of revenues rising to 7.3%[417][418] Foreign Currency Impact - Approximately 46% of the company's revenues in the first half of 2025 were denominated in currencies other than the U.S. dollar, exposing it to significant foreign currency risks[495] - Exchange rate movements negatively impacted overall revenues by $53 million and operating income by $51 million in the first half of 2025 compared to the same period in 2024[497]