TEVA(US:TEVA)2025-07-30 13:02Financial 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]