Workflow
Teva Shares Climb On Profit Beat, $700 Million Cost Plan, Biopharma Pivot Momentum
TEVATEVA(US:TEVA) Benzingaยท2025-05-07 16:13

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].