TEVA(TEVA) - 2022 Q2 - Quarterly Report

Revenue Performance - Revenues for the second quarter of 2022 were $3,786 million, a decrease of 3% compared to the second quarter of 2021, but an increase of 1% in local currency terms [284]. - North America segment revenues were $1,904 million, a decrease of 2% compared to the second quarter of 2021, with a profit of $481 million, down 8% [286]. - Europe segment revenues were $1,171 million, a decrease of 1% in U.S. dollars but an increase of 8% in local currency terms, with a profit increase of 13% [286]. - International Markets segment revenues were $454 million, a decrease of 6% in U.S. dollars but an increase of 3% in local currency terms, with a profit decrease of 23% [286]. - Total revenues for the company in Q2 2022 were $3,786 million, a decrease of 3% compared to $3,903 million in Q2 2021 [360]. - Total revenues for the company decreased by 6% to $7,447 million in the first six months of 2022, primarily due to lower revenues from COPAXONE and generic products [435]. Profitability - Operating loss was $949 million in the second quarter of 2022, compared to an operating income of $582 million in the second quarter of 2021 [286]. - Net loss attributable to Teva in Q2 2022 was $232 million, compared to net income of $207 million in Q2 2021 [387]. - Operating loss was $1,662 million in the first six months of 2022, compared to operating income of $1,015 million in the first six months of 2021, representing an operating loss as a percentage of revenues of 22.3% [451]. - Net loss attributable to Teva was $1,187 million in the first six months of 2022, compared to net income of $284 million in the first six months of 2021 [456]. Segment Performance - Generic products revenues in North America were $1,026 million, an increase of 8% compared to the second quarter of 2021, mainly due to revenues from lenalidomide capsules [291]. - Revenues from the North America segment for BENDEKA and TREANDA decreased by 22% to $83 million in Q2 2022 compared to Q2 2021, primarily due to competition from alternative therapies [301]. - COPAXONE revenues in North America decreased by 38% to $94 million in Q2 2022 compared to Q2 2021, driven by generic competition and reduced market share [306]. - AJOVY revenues in the Europe segment increased by 52% to $29 million in Q2 2022, up from $19 million in Q2 2021 [330]. - AJOVY revenues in the International Markets segment increased by 96% to $10 million in Q2 2022, compared to $5 million in Q2 2021 [348]. Expenses - R&D expenses for the North America segment in Q2 2022 were $147 million, down 10% from $162 million in Q2 2021 [319]. - R&D expenses in Q2 2022 were $228 million, an 8% decrease from Q2 2021, representing 6.0% of revenues compared to 6.3% in the prior year [365][368]. - S&M expenses in Q2 2022 were $594 million, a 3% decrease from Q2 2021, maintaining 15.7% of revenues for both periods [373]. - G&A expenses in Q2 2022 were $313 million, a 29% increase from Q2 2021, representing 8.3% of revenues compared to 6.2% in the prior year [374][375]. - R&D expenses for the Europe segment were $56 million in Q2 2022, a decrease of 11% from $63 million in Q2 2021 [338]. Balance Sheet and Debt - As of June 30, 2022, total debt was $22,082 million, a decrease from $23,043 million as of December 31, 2021 [286]. - Total balance sheet assets decreased to $45,932 million as of June 30, 2022, down from $47,666 million as of December 31, 2021 [463]. - Total equity was $9,828 million as of June 30, 2022, a decrease from $11,244 million as of December 31, 2021, primarily due to a net loss and negative currency impacts [473]. - Debt decreased to $22,082 million as of June 30, 2022, from $23,043 million as of December 31, 2021, mainly due to exchange rate fluctuations and senior notes repayment [468]. Currency and Exchange Rate Impact - Approximately 47% of revenues in Q2 2022 were denominated in currencies other than the U.S. dollar, exposing the company to significant foreign currency risks [390]. - Exchange rate movements negatively impacted overall revenues by $162 million and operating income by $6 million in Q2 2022 compared to Q2 2021 [392]. - Approximately 48% of revenues were denominated in currencies other than the U.S. dollar, exposing the company to significant foreign currency risks [458].