PresentationMaybe to start, just hand the floor to you for a few minutes, high-level overview, current state of affairs, where you are in the growth journey. Any highlights from the third quarter that you reported about a month ago? And we'll jump into questions from there.So just continuing on the third and final day of our Citi Global Healthcare Conference. I'm Traver Davis, health care sector specialist at Citi, and we're delighted to have Teva with us. From the company, we have Richard Francis, Presiden ...

Financial Data and Key Metrics Changes - The company has transitioned from a leading generics company to a biopharma company, showing significant progress in financials and business setup over three years [2] - AUSTEDO's peak sales forecast has increased from $1.4 billion to over $2 billion for the current year, with expectations of exceeding $3 billion in peak sales [2][3] - The gross margin is projected to grow from approximately 48% in Q1 2023 to around 54% by the end of the year, with further growth expected to reach 57% to 58% by 2027 [10][11] Business Line Data and Key Metrics Changes - The innovative product portfolio, including AUSTEDO, UZEDY, and AJOVY, has shown strong growth, with AUSTEDO growing at 33% in Q3 [11] - The generics business has stabilized and grown over the last three years, contributing to overall EBITDA growth [4] Market Data and Key Metrics Changes - The company anticipates losing over $1 billion in sales from the generic Revlimid next year, but is committed to growing EBITDA through innovative products and cost-saving programs [7][8] - The market for AUSTEDO remains largely untreated, with 85% of patients not receiving treatment, presenting a significant growth opportunity [23][27] Company Strategy and Development Direction - The company is focused on a "Pivot to Growth" strategy, emphasizing innovation and the development of high-margin products [2][4] - The launch of olanzapine is expected to be a significant growth driver, with a projected market size of $1.5 billion to $2 billion for the schizophrenia franchise [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to grow EBITDA despite the loss of Revlimid sales, highlighting the importance of innovative product launches [8][9] - The company is optimistic about the impact of the IRA on AUSTEDO, forecasting $2.5 billion in sales by 2027 [16][17] Other Important Information - The company is actively pursuing partnerships for biosimilars, aiming to establish a portfolio of 25 biosimilars to drive growth [58][59] - Management emphasized the importance of maintaining price discipline while ensuring access to innovative products [42][43] Q&A Session Summary Question: How should we think about 2026 in terms of pushes and pulls? - Management indicated that 2026 is crucial as the company will lose significant sales from Revlimid but is committed to growing EBITDA through innovative products and cost-saving measures [7][8] Question: What are the underlying drivers for the $2.5 billion guidance in 2027? - The company highlighted the large untreated market for AUSTEDO and the importance of patient education and adherence programs to drive growth [23][24] Question: How does the company view the competitive landscape for AUSTEDO? - Management stated that they prioritize long-term value over immediate access, maintaining discipline in pricing strategies [21][22] Question: What is the potential impact of the olanzapine launch? - The company expects olanzapine to be a significant growth driver, with a unique position in the market as the only long-acting treatment for schizophrenia [35] Question: How does the company plan to allocate capital moving forward? - Management emphasized the importance of efficient capital allocation to support innovation and growth, reducing investment in generics to focus on high-return opportunities [65][66]

Core Insights - Teva Pharmaceutical Industries Ltd. reported third-quarter earnings that exceeded expectations, driven by strong sales of innovative therapies and an improved full-year outlook, resulting in a share price surge of over 17% in intra-day trading [1] Financial Performance - The company posted adjusted earnings of $0.78 per share, surpassing analyst forecasts of $0.68 [1] - Revenue increased by 3% year over year to $4.48 billion, exceeding the consensus estimate of $4.36 billion, with 1% growth in local currency [1] Innovative Medicine Portfolio - Teva's innovative medicine portfolio, including AUSTEDO, AJOVY, and UZEDY, saw segment revenue rise by 33% year over year in local currency to $830 million [2] - AUSTEDO was the primary driver of growth, achieving $618 million in global sales, reflecting a 38% increase in local currency [2] Future Outlook - Based on strong momentum, Teva raised its 2025 AUSTEDO revenue forecast by $50 million to $100 million, establishing a new target range of $2.05 billion to $2.15 billion [3] - The company tightened its full-year revenue guidance to a range of $16.8 billion to $17.0 billion and raised the low end of its adjusted EPS range to $2.55–$2.65 from $2.50–$2.65 [3] Operational Efficiency - Teva's non-GAAP operating margin improved to 28.9%, an increase of 86 basis points from the previous year, keeping the company on track to achieve its 30% target by 2027 under its "Pivot to Growth" strategy [4]

Q3 2025 Financial Performance - Revenues reached $4480 million, a 3% increase year-over-year[21, 93] - Adjusted EBITDA was $1400 million, up by 6% compared to the previous year[21] - Non-GAAP EPS increased by 14% to $078[21] - Free Cash Flow was $500 million[21] AUSTEDO Performance and Outlook - AUSTEDO U S revenues grew by 38% year-over-year to $601 million in Q3 2025[32] - AUSTEDO global revenues grew by 38% year-over-year to $618 million in Q3 2025[25] - The company reaffirmed its 2027 sales target for AUSTEDO at over $25 billion[29, 58] Pipeline and Strategic Updates - UZEDY revenues in Q3 2025 reached $43 million, a 24% increase year-over-year[25, 36] - The company reaffirmed its 2025 revenue outlook for UZEDY at $190 million - $200 million[35] - Global revenues for AJOVY reached $168 million in Q3 2025, a 19% increase year-over-year[25, 46] - The company is targeting olanzapine LAI FDA submission in Q4 2025[48, 63]

Core Insights - Teva Pharmaceutical Industries Ltd. reported Q3 2025 revenues of $4.5 billion, a 3% increase year-over-year in U.S. dollars, or 1% in local currency [2] - The company is on track to achieve a non-GAAP operating profit margin target of 30% by 2027 as part of its Pivot to Growth strategy [4][5] Financial Performance - Revenues increased by 5% in U.S. dollars, or 3% in local currency, when excluding Japan BV from Q3 2024 [2] - GAAP operating income margin was 19.7%, while non-GAAP operating income margin was 28.9%, reflecting an 86 basis points increase year-over-year [2] - Net income attributable to Teva was $433 million, with diluted earnings per share of $0.37, compared to a net loss of $437 million and loss per share of $0.39 in Q3 2024 [22] Segment Performance - The United States segment saw revenues of $2.48 billion, a 12% increase compared to Q3 2024, driven by key innovative products like AUSTEDO [30][32] - The Europe segment reported revenues of $1.24 billion, a decrease of 2% compared to Q3 2024, primarily due to lower revenues from generic products [46] - The International Markets segment experienced a 9% decrease in revenues to $557 million, largely due to the divestment of the business venture in Japan [58] Key Product Performance - AUSTEDO revenues grew by 38% year-over-year to $601 million, with an increased revenue outlook for 2025 [2][7] - AJOVY revenues increased by 19% to $168 million, reaffirming the 2025 revenue outlook of $630 million to $640 million [2][7] - UZEDY revenues reached $43 million, a 24% increase, with a reaffirmed 2025 revenue outlook of $190 million to $200 million [2][7] Research and Development - R&D expenses in Q3 2025 were $256 million, a 7% increase compared to Q3 2024, driven by immunology projects [12] - The innovative pipeline achieved key milestones, including Phase 3 trial data for olanzapine LAI and FDA Fast Track designation for emrusolmin [8][12] Strategic Initiatives - Teva is focused on transforming and modernizing its business through the Teva Transformation programs, aiming for ~$700 million in net savings by 2027 [5][15] - The company has terminated exclusive discussions with a selected buyer regarding the sale of its API business and is initiating a renewed sales process [15][70]

Core Insights - Teva Pharmaceutical Industries Limited is recognized as a promising stock under $100, with BofA raising its price target to $24 from $22 while maintaining a Buy rating [1] - The company has achieved its 10th consecutive quarter of year-over-year revenue growth, driven by its Pivot to Growth Strategy, targeting a 30% operating profit margin by 2027 [2] - Teva's innovative product portfolio has seen significant growth, with total revenues for Q2 2025 reaching $4.2 billion, marking a ~1% increase in local currency [2][3] Financial Performance - Teva's innovative portfolio collectively grew by ~26%, leading to an increased revenue outlook for key products [3] - AUSTEDO revenues were $498 million globally in Q2, up ~19% globally and ~22% in the US, with the 2025 revenue outlook raised to $2,000 to $2,050 million [3] - AJOVY global revenues reached $155 million, up ~31%, with the outlook increased to $630 to $640 million [3] - UZEDY revenues accelerated by ~120% to $54 million, with the outlook raised to $190 to $200 million [3] Strategic Initiatives - Teva is executing its Pivot to Growth Strategy, which has been a key driver of its recent revenue growth [2][3] - The company is focused on achieving a 30% operating profit margin by 2027 as part of its long-term strategy [2]

Summary of Neurocrine Biosciences (NBIX) FY Conference Call - August 13, 2025 Company Overview - Neurocrine Biosciences specializes in neuro and endocrine disorders, with a strong focus on commercialization and a robust pipeline of products [2][5] Key Points on Commercialization and Product Launches - The company successfully launched KRONESTY, a treatment for congenital adrenal hyperplasia (CAH), which has exceeded internal expectations due to pre-launch disease state education efforts [6][10] - KRONESTY's uptake has been strong among healthcare providers, with a focus on patient identification and education to ensure ongoing treatment adherence [11][12] - The reimbursement rate for KRONESTY was reported at 76% in Q2, indicating strong market access compared to previous products [15][16] Financial Performance - Q2 revenue for INGREZZA reached $624 million, reflecting a 15% quarter-over-quarter growth and an 8% year-over-year increase [24] - The company narrowed its sales guidance for INGREZZA to between $2.5 billion and $2.55 billion for the year, anticipating double-digit growth [27][28] Pipeline and Research Development - Neurocrine aims to initiate four new Phase I trials and two new Phase II trials annually, with a goal of introducing one new medicine every two years [8] - The company is advancing its lead muscarinic program, dereclidine, in Phase III trials for schizophrenia and plans to explore bipolar mania later this year [39][46] - The company is also investigating opportunities in Alzheimer's disease psychosis, leveraging its diverse muscarinic portfolio [47] Competitive Landscape - Neurocrine acknowledges competition in the CAH space but emphasizes its history of being first in various disease states and its commitment to patient safety and tolerability [17][18] - The company is preparing for potential impacts from the Inflation Reduction Act (IRA) on its competitors, particularly regarding pricing negotiations starting in 2027 [30][33] Future Outlook - The focus remains on the U.S. market for KRONESTY, with plans for international expansion being evaluated but not imminent [23] - The company is optimistic about the long-term growth potential of INGREZZA, supported by a strong intellectual property position extending to 2038 [34] Additional Insights - Neurocrine's approach to patient engagement and education is critical for the success of its products, particularly in rare diseases where awareness is low [12][13] - The company is committed to maintaining high standards in its research and development efforts, ensuring a balanced portfolio of validated and unvalidated targets [7][8] This summary encapsulates the key insights from the Neurocrine Biosciences FY Conference Call, highlighting the company's strategic focus, financial performance, and future growth potential in the biopharmaceutical landscape.

Financial Data and Key Metrics Changes - Revenues increased to $4.2 billion, up 1%, marking the tenth consecutive quarter of growth [8][10] - Adjusted EBITDA rose by 7%, and non-GAAP EPS increased by 10% [9] - Net debt to EBITDA ratio is just over 3 times [9][46] Business Line Data and Key Metrics Changes - AUSTEDO revenue reached approximately $495 million, up 22% [13] - ECETI revenue surged by 120% to $54 million [12] - AJOVY revenue grew by 31% to $155 million [12] - Global Generics business declined by 2%, reflecting strong prior year comparisons [21] - TAPI revenue decreased by 11%, attributed to seasonality and timing of shipments [12] Market Data and Key Metrics Changes - U.S. generics business showed a decline due to tough prior year comparisons and timing of shipments [22][24] - EU generics business grew by 8% in the prior year, but growth has slowed due to product launches and competitive stockouts [24] Company Strategy and Development Direction - The company is focused on a "pivot to growth" strategy initiated in 2023, emphasizing innovative products and generics stability [6][27] - A target of $700 million in net savings by 2027 has been set, with 20% of this already achieved [27][40] - The company aims to achieve a 30% operating margin by 2027 [40][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 guidance despite uncertainties around U.S. tariffs on pharmaceuticals [41][52] - The innovative portfolio is expected to over-deliver, with raised guidance for AUSTEDO, YEUSEDI, and AJOVY [30][51] - The company anticipates a flat to low single-digit growth in generics for the full year [25][52] Other Important Information - The company has divested its Japanese business, which is consistent with its strategy to focus on profitable growth [42] - Free cash flow grew by 47% to $476 million, driven by higher net income and working capital improvements [45] Q&A Session Summary Question: Insights on AUSTEDO and IRA negotiations - Management refrained from commenting on IRA negotiations due to ongoing discussions with CMS [63][64] Question: Impact of tariffs announced in Europe - Management is assessing the details of the tariffs and believes they have mitigated potential impacts on the business [65][66] Question: AUSTEDO BID to XR conversion timeline - Management indicated that while new patients are converting to XR, it will take time for the majority of patients to transition [72][75] Question: Clarification on tariff impacts and exclusions - Management acknowledged uncertainty regarding the specifics of tariff exclusions and is awaiting further clarity [81][84] Question: Updates on DUVAKITU and Phase II data - Management confirmed that Phase III studies for DUVAKITU are on track and Phase II data will be presented in 2026 [90][91] Question: Revenue guidance related to generic Revlimid - Management clarified that revenue guidance is influenced by the performance of generic Revlimid, particularly in Q4 [103]

Financial Data and Key Metrics Changes - Revenues increased to $4.2 billion, up 1%, marking the tenth consecutive quarter of growth [7][8] - Adjusted EBITDA rose by 7%, and non-GAAP EPS increased by 10% [7][41] - Net debt to EBITDA ratio is just over 3 times [7][44] Business Line Data and Key Metrics Changes - AUSTEDO revenue reached approximately $495 million, up 22% [11] - YUCEDDI revenue increased by 120% to $190 million to $200 million [12] - AJOVY revenue guidance raised to $630 million to $640 million, reflecting a strong 31% growth [16] - Global Generics business declined by 2%, impacted by strong prior year comparisons [10][20] Market Data and Key Metrics Changes - U.S. generics business growth was hindered by prior year comparisons and timing of shipments [21][22] - EU generics business grew by 8% in the prior year, but growth has slowed due to product launches and competitive stockouts [22] Company Strategy and Development Direction - The company is focused on a pivot to growth strategy, emphasizing innovation and a strong pipeline [5][25] - A transformation program aims to generate $700 million in net savings by 2027 [25][46] - The company is transitioning to a biopharma model, with a target of achieving a 30% operating margin by 2027 [37][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 guidance despite uncertainties around U.S. tariffs on pharmaceuticals [38][50] - The innovative portfolio is expected to over-deliver, with combined revenue guidance for AUSTEDO, YUCEDDI, and AJOVY raised by approximately $95 million [28][49] - Management remains optimistic about the long-term growth trajectory, driven by innovative products and a stable generics business [55][58] Other Important Information - The company has seen a significant improvement in its balance sheet, with credit rating upgrades from major agencies [37][44] - Free cash flow grew by 47% to $476 million, driven by higher net income and working capital improvements [43] Q&A Session Summary Question: Insights on AUSTEDO and IRA negotiations - Management declined to comment on IRA negotiations due to ongoing discussions with CMS [62][63] Question: Impact of tariffs announced in Europe - Management indicated that they are assessing the details of the tariffs and have prepared mitigation plans [64][66] Question: AUSTEDO's BID to XR conversion - Management noted that while new patients are converting to XR, it will take time for the majority of patients to switch [72][75] Question: Clarification on tariff impacts and generics - Management stated that they do not foresee a meaningful short-term impact from tariffs due to their flexible supply chain [79][80] Question: Updates on DUVAKITU and Phase II data - Management confirmed that the Phase III studies for DUVAKITU are on track and that Phase II data will be presented in 2026 [90][91] Question: Revenue guidance for generic Revlimid - Management acknowledged that revenue guidance is fluid and will depend on the performance of generic Revlimid in the latter half of the year [103]

Financial Performance - Teva's Q2 2025 revenues remained flat at $4176 million compared to Q2 2024, but excluding Japan BV, revenues increased by 2%[87] - Non-GAAP EPS increased by 10% to $066 in Q2 2025 compared to $061 in Q2 2024[87] - Free cash flow increased significantly by 47% to $476 million in Q2 2025 from $324 million in Q2 2024[87] - The company is on track to achieve a 30% operating profit margin (OPM) by 2027 through its transformation program[85, 91] Product Performance - AUSTEDO U S revenues grew by 22% year-over-year to $495 million in Q2 2025[26] - UZEDY revenues increased significantly by 120% year-over-year to $54 million in Q2 2025[22, 31] - AJOVY global revenues increased by 31% year-over-year to $155 million in Q2 2025[22, 34] - Global generics revenues declined by 2%[22], and in local currency, global generics revenues decreased 5% vs Q2'24 including Japan BV[23] Pipeline and Strategy - The company expects to submit olanzapine LAI for U S NDA in Q4 2025[36, 55, 62] - Teva is targeting peak sales of $15-2 billion for the LAI franchise (UZEDY and olanzapine LAI)[102] - The company anticipates the start of Phase 3 trials for duvakitug in ulcerative colitis (UC) and Crohn's disease (CD) by Sanofi in Q4 2025[68] - Teva transformation in '25 well on track to deliver annualized ~20% of total $700 million savings[105]