TEVA(US:TEVA)2025-07-30 13:00Financial 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]