Teva Announces Strong Financial Results for the Third Quarter of 2024, led by Generics Performance and Innovative Portfolio Growth; Raises 2024 Financial Outlook including on Revenues, Adjusted EBITDA and Non-GAAP EPS
Teva Pharmaceutical reported strong Q3 2024 results with revenues of $4.3 billion, up 13% year-over-year. Key highlights include AUSTEDO U.S. revenues reaching $435 million (+28%), AJOVY global revenues of $137 million (+21%), and UZEDY U.S. revenues of $35 million. The generics business showed significant growth across all regions. Based on strong performance, Teva raised its 2024 outlook, projecting revenues of $16.1-$16.5 billion, Adjusted EBITDA of $4.7-$5.0 billion, and Non-GAAP EPS of $2.40-$2.50.
Teva Pharmaceutical ha riportato risultati forti per il Q3 2024 con ricavi di 4,3 miliardi di dollari, in aumento del 13% rispetto all'anno precedente. I punti salienti includono i ricavi U.S. di AUSTEDO che hanno raggiunto i 435 milioni di dollari (+28%), ricavi globali di AJOVY pari a 137 milioni di dollari (+21%), e ricavi U.S. di UZEDY ammontanti a 35 milioni di dollari. Il settore generico ha mostrato una crescita significativa in tutte le regioni. Basandosi su questa forte performance, Teva ha alzato le stime per il 2024, prevedendo ricavi tra 16,1 e 16,5 miliardi di dollari, un EBITDA rettificato tra 4,7 e 5,0 miliardi di dollari, e un EPS non-GAAP tra 2,40 e 2,50 dollari.
Teva Pharmaceutical reportó resultados sólidos para el tercer trimestre de 2024 con ingresos de 4.3 mil millones de dólares, un aumento del 13% en comparación con el año anterior. Los aspectos destacados incluyen ingresos de AUSTEDO en EE. UU. alcanzando 435 millones de dólares (+28%), ingresos globales de AJOVY de 137 millones de dólares (+21%), e ingresos de UZEDY en EE. UU. de 35 millones de dólares. El negocio de genéricos mostró un crecimiento significativo en todas las regiones. Basándose en un rendimiento sólido, Teva elevó sus perspectivas para 2024, proyectando ingresos de entre 16.1 y 16.5 mil millones de dólares, un EBITDA ajustado de entre 4.7 y 5.0 mil millones de dólares, y un EPS no-GAAP de entre 2.40 y 2.50 dólares.
테바 제약은 2024년 3분기 실적을 발표하며 수익 43억 달러를 기록했으며, 이는 전년 대비 13% 증가한 수치입니다. 주요 내용으로는 미국에서의 AUSTEDO 수익이 4억 3천5백만 달러(+28%), AJOVY의 글로벌 수익이 1억 3천7백만 달러(+21%), 그리고 미국에서의 UZEDY 수익이 3천5백만 달러에 달했습니다. 제네릭 사업은 모든 지역에서 상당한 성장을 보였습니다. 강력한 실적을 바탕으로, 테바는 2024년 전망을 상향 조정하였으며, 수익을 161억-165억 달러, 조정된 EBITDA를 47억-50억 달러, 비 GAAP EPS를 2.40-2.50 달러로 예상하고 있습니다.
Teva Pharmaceutical a annoncé de solides résultats pour le T3 2024 avec des revenus de 4,3 milliards de dollars, en hausse de 13 % par rapport à l'année précédente. Les points forts incluent les revenus U.S. de AUSTEDO, atteignant 435 millions de dollars (+28 %), des revenus mondiaux de AJOVY de 137 millions de dollars (+21 %), et des revenus U.S. de UZEDY s'élevant à 35 millions de dollars. L'activité des génériques a montré une croissance significative dans toutes les régions. Sur la base de cette forte performance, Teva a relevé ses prévisions pour 2024, projetant des revenus compris entre 16,1 et 16,5 milliards de dollars, un EBITDA ajusté entre 4,7 et 5,0 milliards de dollars, et un bénéfice par action non-GAAP entre 2,40 et 2,50 dollars.
Teva Pharmaceutical berichtete über starke Ergebnisse im 3. Quartal 2024 mit einem Umsatz von 4,3 Milliarden Dollar, was einem Anstieg von 13 % im Vergleich zum Vorjahr entspricht. Zu den wichtigen Highlights gehören die U.S. Umsätze von AUSTEDO, die 435 Millionen Dollar (+28%) erreichten, die globalen Umsätze von AJOVY in Höhe von 137 Millionen Dollar (+21%) sowie die U.S. Umsätze von UZEDY, die 35 Millionen Dollar betrugen. Das Generika-Geschäft zeigte in allen Regionen ein signifikantes Wachstum. Basierend auf dieser starken Leistung hat Teva seine Prognose für 2024 angehoben und erwartet Einnahmen von 16,1 bis 16,5 Milliarden Dollar, bereinigtes EBITDA von 4,7 bis 5,0 Milliarden Dollar und Non-GAAP EPS von 2,40 bis 2,50 Dollar.
- Q3 2024 revenues increased 13% to $4.3 billion
- AUSTEDO U.S. revenues grew 28% to $435 million
- Generics business grew 30% in U.S., 8% in Europe, 13% in International Markets
- Raised 2024 financial outlook for revenues, Adjusted EBITDA, and Non-GAAP EPS
- Free cash flow increased to $922 million from $229 million YoY
- Operating loss of $51 million compared to operating income of $344 million in Q3 2023
- Net loss of $437 million compared to net income of $69 million in Q3 2023
- Goodwill impairment charge of $600 million related to API unit
- Legal settlements and loss contingencies of $450 million
- Total debt of $18,980 million as of September 30, 2024
Insights
The Q3 2024 results demonstrate significant financial strength with
The financial health is further evidenced by
Teva's market position is strengthening through its diversified portfolio strategy. AJOVY's market share increase to
The successful launch of octreotide acetate and progress in biosimilars, including the Prolia® candidate acceptance by FDA and EMA, indicate strong pipeline execution. The planned Teva api divestiture aligns with strategic focus on core growth areas, potentially unlocking additional value for shareholders.
For an accessible version of this Press Release, please visit www.tevapharm.com
- Q3 2024 revenues of
$4.3 billion reflect an increase of13% in U.S. dollars, or15% in local currency terms, compared to Q3 2023. - AUSTEDO® – shows continued growth, U.S. revenues of
$435 million in Q3 2024, an increase of28% compared to Q3 2023; reaffirming 2024 revenue outlook of ~$1.6 billion . - AJOVY® – global revenues of
$137 million in Q3 2024, an increase of21% in local currency terms compared to Q3 2023. - UZEDY® is gaining momentum – U.S. revenues of
$35 million in Q3 2024; raising 2024 revenues outlook from ~$80 million to ~$100 million . - Early and late-stage innovative pipeline continues to progress, with duvakitug (Anti-TL1A) top-line results expected in Q4 2024, and TEV-‘749 (olanzapine LAI) achieving phase III target injections without PDSS.
- Generics business grows across all regions – increased by
30% in the U.S.,8% in Europe and13% in International Markets, in local currency terms compared to Q3 2023. - Teva’s biosimilar candidate to Prolia® (denosumab) accepted for review by the U.S. FDA and the European Medicines Agency (EMA).
- Intention to divest Teva api on track, targeting completion in the first half of 2025.
Q3 2024 Highlights:
- Revenues of
$4.3 billion - GAAP loss per share of
$0.39 - Non-GAAP diluted EPS of
$0.69 - Cash flow generated from operating activities of
$693 million - Free cash flow of
$922 million - Building on Teva's strong performance in the first nine months of 2024 and expected developments in the fourth quarter, Teva's full year 2024 business outlook is raised to:
- Revenues of
$16.1 -$16.5 billion - UZEDY revenues of ~
$100 million - COPAXONE® revenues of ~
$500 million - Operating income of
$4.2 -$4.5 billion - Adjusted EBITDA of
$4.7 -$5.0 billion - Non-GAAP diluted EPS of
$2.40 -$2.50
- Revenues of
TEL AVIV, Israel, Nov. 06, 2024 (GLOBE NEWSWIRE) -- Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) today reported results for the quarter ended September 30, 2024.
Mr. Richard Francis, Teva's President and CEO, said, “The third quarter of 2024 marks our seventh consecutive quarter of growth, with global revenues reaching
Mr. Francis continued, “I am confident that with our newly accelerated innovative pipeline, both early- and late-stage, we are well-positioned to provide meaningful access to medicines for patients who need them, while also delivering continued growth for our shareholders.
“With these strong results, we are raising our 2024 financial outlook, including on revenues, Adjusted EBITDA, and Non-GAAP EPS.”
Pivot to Growth Strategy
In May 2023, we introduced our “Pivot to Growth” strategy, which is based on four key pillars: (i) delivering on our growth engines, mainly AUSTEDO, AJOVY, UZEDY and our late-stage pipeline of biosimilars; (ii) stepping up innovation through delivering on our late-stage innovative pipeline assets as well as building up our early-stage pipeline organically and potentially through business development activities; (iii) sustaining our generics medicines powerhouse with a global commercial footprint, focused portfolio, pipeline and manufacturing footprint; and (iv) focusing our business by optimizing our portfolio and global manufacturing footprint to enable strategic capital deployment to accelerate our near and long-term growth engines and reorganizing certain of our business units to a more optimal structure, while also reorganizing key business units to enhance operational efficiency.
Third Quarter 2024 Consolidated Results
The data presented in this press release with respect to operating income (loss), income (loss) before income taxes, income taxes (benefit), net income (loss) attributable to Teva and earnings (loss) per share for prior period has been revised to reflect a revision in relation to a contingent consideration and related expenses. For additional information, see note 1b to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023 and note 1c to our consolidated financial statements included in our Quarterly Report on Form 10-Q for the period ended September 30, 2024.
Revenues in the third quarter of 2024 were
Exchange rate movements during the third quarter of 2024, including hedging effects, negatively impacted revenues by
Gross profit in the third quarter of 2024 was
Research and Development (R&D) expenses, net in the third quarter of 2024 were
Selling and Marketing (S&M) expenses in the third quarter of 2024 were
General and Administrative (G&A) expenses in the third quarter of 2024 were
Other income in the third quarter of 2024 was
Operating loss in the third quarter of 2024 was
Exchange rate movements during the third quarter of 2024, including hedging effects, negatively impacted our operating loss by
Financial expenses, net in the third quarter of 2024 were
In the third quarter of 2024, we recognized a tax expense of
Non-GAAP tax rate in the third quarter of 2024 was
We expect our annual non-GAAP tax rate for 2024 to be between
Net loss attributable to Teva and loss per share in the third quarter of 2024were
Non-GAAP net income attributable to Teva and non-GAAP diluted earnings per share in the third quarter of 2024 were
Adjusted EBITDA was
As of September 30, 2024 and 2023, the fully diluted share count for purposes of calculating our market capitalization was approximately 1,167 million shares and 1,157 million shares, respectively.
Non-GAAP information: net non-GAAP adjustments in the third quarter of 2024 were
- Amortization of purchased intangible assets of
$146 million , of which$136 million is included in cost of sales and the remaining$10 million in S&M expenses; - An adjustment to impairment of long-lived assets in an amount of
$51 million ; - Goodwill impairment charge of
$600 million related to the Teva's API reporting unit; - Legal settlements and loss contingencies of
$450 million mainly related to a provision of$350 million recorded in connection with a decision by the European Commission in its antitrust investigation into COPAXONE (which we intend to appeal), and to an update to the estimated settlement provision of$121 million for the opioid cases (mainly related to the settlement agreement with the city of Baltimore and the effect of the passage of time on the net present value of the discounted payments); - Contingent consideration expenses of
$34million ; - Equity compensation expenses of
$29 million ; - Restructuring expenses of
$21 million ; - Financial expenses of
$11 million ; - Gain on sale of business of
$20 million ; - Other non-GAAP items of 56 million;
- Items attributable to non-controlling interests of
$41 million ; and - Corresponding tax effects and unusual tax items of
$83 million
We believe that excluding such items facilitates investors’ understanding of our business including underlying performance trends, thereby improving the comparability of our business performance results between reporting periods.
For a reconciliation of the U.S. GAAP results to the adjusted non-GAAP figures and for additional information, see the tables below and the information included under “Non-GAAP Financial Measures.” Investors should consider non-GAAP financial measures in addition to, and not as replacement for, or superior to, measures of financial performance prepared in accordance with GAAP.
Cash flow generated from operating activities during the third quarter of 2024 was
During the third quarter of 2024, we generated free cash flow of
As of September 30, 2024, our debt was
Our average debt maturity was approximately 5.5 years as of September 30, 2024, compared to 6.0 years as of December 31, 2023.
Segment Results for the Third Quarter of 2024
United States Segment
As part of a recent shift in executive management responsibilities and in line with our Pivot to Growth strategy, commencing January 1, 2024, Canada is reported as part of our International Markets segment. Prior period amounts were recast to reflect this change.
The following table presents revenues, expenses and profit for our United States segment for the three months ended September 30, 2024 and 2023:
Three months ended September 30, | ||||||
2024 | 2023 | |||||
(U.S. $ in millions / % of Segment Revenues) | ||||||
Revenues | $ | 2,225 | | $ | 1,896 | |
Gross profit | 1,265 | | 1,060 | | ||
R&D expenses | 151 | | 156 | | ||
S&M expenses | 259 | | 243 | | ||
G&A expenses | 107 | | 93 | | ||
Other loss (income) | § | § | (2) | § | ||
Segment profit* | $ | 748 | | $ | 571 | |
* Segment profit does not include amortization and certain other items. |
Revenues from our United States segment in the third quarter of 2024 were
Revenues by Major Products and Activities
The following table presents revenues for our United States segment by major products and activities for the three months ended September 30, 2024 and 2023:
Three months ended | Percentage | |||||||
2024 | 2023 | 2024-2023 | ||||||
(U.S. $ in millions) | ||||||||
Generic products | $ | 1,094 | $ | 839 | | |||
AJOVY | 58 | 56 | | |||||
AUSTEDO | 435 | 339 | | |||||
BENDEKA and TREANDA | 40 | 56 | ( | |||||
COPAXONE | 69 | 98 | ( | |||||
UZEDY | 35 | 2 | N/A | |||||
Anda | 380 | 367 | | |||||
Other | 115 | 140 | ( | |||||
Total | $ | 2,225 | $ | 1,896 | | |||
Generic products revenues in our United States segment (including biosimilars) in the third quarter of 2024 were
Among the most significant generic products we sold in the United States in the third quarter of 2024 were lenalidomide capsules (the generic version of Revlimid®), epinephrine injectable solution (the generic equivalent of EpiPen® and EpiPen Jr®), Truxima® (the biosimilar to Rituxan®) and liraglutide 1.8 mg injection (an authorized generic of Victoza®). In the third quarter of 2024, our total prescriptions were approximately 292 million (based on trailing twelve months), representing
On October 1, 2024, Teva launched octreotide acetate for injectable suspension, the first generic version of Sandostatin® LAR Depot. Octreotide acetate for injectable suspension is indicated for the treatment of acromegaly and severe diarrhea associated with carcinoid syndrome, and is available to patients in the U.S.
AJOVY revenues in our United States segment in the third quarter of 2024 were
AUSTEDO revenues in our United States segment in the third quarter of 2024 increased by
AUSTEDO XR (deutetrabenazine) extended-release tablets was approved by the FDA on February 17, 2023, in three doses of 6, 12 and 24 mg, and became commercially available in the U.S. in May 2023. In May 2024, the FDA approved AUSTEDO XR as a one pill, once-daily treatment option in doses of 30, 36, 42, and 48 mg. In July 2024, the FDA approved the 18 mg dosage for AUSTEDO XR, making it a one pill, once-daily option for all available doses. AUSTEDO XR is a once-daily formulation indicated in adults for tardive dyskinesia and chorea associated with Huntington’s disease, which is additional to the currently marketed twice-daily AUSTEDO. AUSTEDO XR is protected by 11 Orange Book patents expiring between 2031 and 2041.
UZEDY (risperidone) extended-release injectable suspension revenues in our United States segment in the third quarter of 2024 were
BENDEKA and TREANDA combined revenues in our United States segment in the third quarter of 2024 were
COPAXONE revenues in our United States segment in the third quarter of 2024 were
Anda revenues from third-party products in our United States segment in the third quarter of 2024 increased by
United States Gross Profit
Gross profit from our United States segment in the third quarter of 2024 was
Gross profit margin for our United States segment in the third quarter of 2024 increased to
United States Profit
Profit from our United States segment consists of gross profit less R&D expenses, S&M expenses, G&A expenses and any other income related to this segment. Segment profit does not include amortization and certain other items.
Profit from our United States segment in the third quarter of 2024 was
Europe Segment
Our Europe segment includes the European Union, the United Kingdom and certain other European countries.
The following table presents revenues, expenses and profit for our Europe segment for the three months ended September 30, 2024 and 2023:
Three months ended September 30, | ||||||
2024 | 2023 | |||||
(U.S. $ in millions / % of Segment Revenues) | ||||||
Revenues | $ | 1,265 | | $ | 1,146 | |
Gross profit | 698 | | 648 | | ||
R&D expenses | 55 | | 62 | | ||
S&M expenses | 203 | | 184 | | ||
G&A expenses | 67 | | 66 | | ||
Other loss (income) | 1 | § | § | § | ||
Segment profit* | $ | 373 | | $ | 338 | |
___________ | ||||||
* Segment profit does not include amortization and certain other items. |
Revenues from our Europe segment in the third quarter of 2024 were
In the third quarter of 2024, revenues were negatively impacted by exchange rate fluctuations of
Revenues by Major Products and Activities
The following table presents revenues for our Europe segment by major products and activities for the three months ended September 30, 2024 and 2023:
Three months ended | Percentage | |||||||
2024 | 2023 | 2024-2023 | ||||||
(U.S. $ in millions) | ||||||||
Generic products | $ | 973 | $ | 886 | | |||
AJOVY | 56 | 41 | | |||||
COPAXONE | 53 | 55 | ( | |||||
Respiratory products | 60 | 61 | ( | |||||
Other* | 124 | 104 | | |||||
Total | $ | 1,265 | $ | 1,146 | | |||
* Other revenues in the third quarter of 2024 include the sale of certain product rights. | ||||||||
Generic products revenues (including OTC and biosimilar products) in our Europe segment in the third quarter of 2024, were
AJOVY revenues in our Europe segment in the third quarter of 2024 increased by
COPAXONE revenues in our Europe segment in the third quarter of 2024 were
Respiratory products revenues in our Europe segment in the third quarter of 2024 were
Europe Gross Profit
Gross profit from our Europe segment in the third quarter of 2024 was
Gross profit margin for our Europe segment in the third quarter of 2024 decreased to
Europe Profit
Profit from our Europe segment consists of gross profit less R&D expenses, S&M expenses, G&A expenses and any other income related to this segment. Segment profit does not include amortization and certain other items.
Profit from our Europe segment in the third quarter of 2024 was
International Markets Segment
Our International Markets segment includes all countries in which we operate other than the United States and the countries included in our Europe segment. The International Markets segment includes more than 35 countries, covering a substantial portion of the global pharmaceutical industry.
As part of a recent shift in executive management responsibilities, commencing January 1, 2024, Canada is reported under our International Markets segment and is no longer included as part of our United States segment. Prior period amounts were recast to reflect this change.
The following table presents revenues, expenses and profit for our International Markets segment for the three months ended September 30, 2024 and 2023:
Three months ended September 30, | ||||||
2024 | 2023 | |||||
(U.S. $ in millions / % of Segment Revenues) | ||||||
Revenues | $ | 613 | | $ | 591 | |
Gross profit | 306 | | 293 | | ||
R&D expenses | 27 | | 30 | | ||
S&M expenses | 134 | | 116 | | ||
G&A expenses | 36 | | 33 | | ||
Other loss (income) | § | § | (2) | § | ||
Segment profit* | $ | 109 | | $ | 117 | |
| ||||||
* Segment profit does not include amortization and certain other items. |
Revenues from our International Markets segment in the third quarter of 2024 were
In the third quarter of 2024, revenues were negatively impacted by exchange rate fluctuations of
Revenues by Major Products and Activities
The following table presents revenues for our International Markets segment by major products and activities for the three months ended September 30, 2024 and 2023:
Three months ended | Percentage | |||||||
2024 | 2023 | 2024-2023 | ||||||
(U.S. $ in millions) | ||||||||
Generic products | $ | 477 | $ | 470 | | |||
AJOVY | 24 | 18 | | |||||
COPAXONE | 13 | 16 | ( | |||||
Other* | 99 | 87 | | |||||
Total | $ | 613 | $ | 591 | | |||
* Other revenues in the third quarter of 2024 include the sale of certain product rights. | ||||||||
Generic products revenues (including OTC and biosimilar products) in our International Markets segment were
AJOVY was launched in certain markets in our International Markets segment, including in Canada, Japan, Australia, Israel, South Korea, Brazil and others. AJOVY revenues in our International Markets segment in the third quarter of 2024 were
COPAXONE revenues in our International Markets segment in the third quarter of 2024 were
AUSTEDO was launched in China and Israel in 2021 and in Brazil in 2022, for the treatment of chorea associated with Huntington’s disease and for the treatment of tardive dyskinesia. In February 2024, we announced a strategic partnership for the marketing and distribution of AUSTEDO in China. We continue with additional submissions in various other markets.
International Markets Gross Profit
Gross profit from our International Markets segment in the third quarter of 2024 was
Gross profit margin for our International Markets segment in the third quarter of 2024 increased to
International Markets Profit
Profit from our International Markets segment consists of gross profit less R&D expenses, S&M expenses, G&A expenses and any other income related to this segment. Segment profit does not include amortization and certain other items.
Profit from our International Markets segment in the third quarter of 2024 was
Other Activities
We have other sources of revenues, primarily the sale of APIs to third parties, certain contract manufacturing services and an out-licensing platform offering a portfolio of products to other pharmaceutical companies through our affiliate Medis. Our other activities are not included in our United States, Europe or International Markets segments described above.
On January 31, 2024, we announced that we intend to divest our API business (including its R&D, manufacturing and commercial activities) through a sale, which divestment is expected to be completed in the first half of 2025. The intention to divest is in alignment with our Pivot to Growth strategy. However, there can be no assurance regarding the ultimate timing or structure of a potential divestiture or that a divestiture will be agreed or completed at all.
Revenues from other activities in the third quarter of 2024 were
API sales to third parties in the third quarter of 2024 were
Outlook for 2024 Non-GAAP Results
$ billions, except EPS or as noted | November 2024 Outlook | July 2024 Outlook | February 2024 Outlook |
Revenues* | | | |
AUSTEDO ($m)* | ~1,600 | ~1,600 | ~1,500 |
AJOVY ($m)* | ~500 | ~500 | ~500 |
UZEDY ($m)* | ~100 | ~80 | ~80 |
COPAXONE ($m)* | ~500 | ~450 | ~400 |
Operating Income | 4.2 - 4.5 | 4.1 - 4.5 | 4.0 - 4.5 |
Adjusted EBITDA | 4.7 - 5.0 | 4.6 - 5.0 | 4.5 - 5.0 |
Finance Expenses ($m) | ~1,000 | ~1,000 | ~1,000 |
Tax Rate | | | |
Diluted EPS ($) | 2.40 - 2.50 | 2.30 - 2.50 | 2.20 - 2.50 |
Free Cash Flow** | 1.7 - 2.0 | 1.7 - 2.0 | 1.7 - 2.0 |
CAPEX* | ~0.5 | ~0.5 | ~0.5 |
Foreign Exchange | Volatile swings in FX can negatively impact revenue and income |
* Revenues and CAPEX presented on a GAAP basis.
** Free Cash Flow includes cash flow generated from operating activities net of capital expenditures and deferred purchase price cash component collected for securitized trade receivables
Conference Call
Teva will host a conference call and live webcast including a slide presentation on November 6, 2024, at 8:00 a.m. ET to discuss its third quarter 2024 results and overall business environment. A question & answer session will follow.
In order to participate, please register in advance here to obtain a local or toll-free phone number and your personal pin.
A live webcast of the call will be available on Teva’s website at https://ir.tevapharm.com/Events-and-Presentations/events-and-presentations/default.aspx
Following the conclusion of the call, a replay of the webcast will be available within 24 hours on Teva's website.
About Teva
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is a global pharmaceutical leader with a category-defying portfolio, harnessing our generics expertise and stepping up innovation to continue the momentum behind the discovery, delivery, and expanded development of modern medicine. For over 120 years, Teva's commitment to bettering health has never wavered. Today, the company’s global network of capabilities enables its 37,000 employees across 58 markets to push the boundaries of scientific innovation and deliver quality medicines to help improve health outcomes of millions of patients every day. To learn more about how Teva is all in for better health, visit www.tevapharm.com.
Some amounts in this press release may not add up due to rounding. All percentages have been calculated using unrounded amounts.
Non-GAAP Financial Measures
This press release contains certain financial information that differs from what is reported under accounting principles generally accepted in the United States ("GAAP"). These non-GAAP financial measures, including, but not limited to, non-GAAP operating income, non-GAAP operating margin, non-GAAP gross profit, non-GAAP gross profit margin, Adjusted EBITDA, free cash flow, non-GAAP tax rate, non-GAAP net income (loss) attributable to Teva and non-GAAP diluted EPS, are presented in order to facilitate investors' understanding of our business. We utilize certain non-GAAP financial measures to evaluate performance, in conjunction with other performance metrics. The following are examples of how we utilize the non-GAAP measures: our management and board of directors use the non-GAAP measures to evaluate our operational performance, to compare against work plans and budgets, and ultimately to evaluate the performance of management; our annual budgets are prepared on a non-GAAP basis; and senior management’s annual compensation is derived, in part, using these non-GAAP measures. See the attached tables for a reconciliation of the GAAP results to the adjusted non-GAAP measures. Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP. We are not providing forward looking guidance for GAAP reported financial measures or a quantitative reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP measure because we are unable to predict with reasonable certainty the ultimate outcome of certain significant items including, but not limited to, the amortization of purchased intangible assets, legal settlements and loss contingencies, impairment of long-lived assets and goodwill impairment, without unreasonable effort. These items are uncertain, depend on various factors, and could be material to our results computed in accordance with GAAP.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management’s current beliefs and expectations and are subject to substantial risks and uncertainties, both known and unknown, that could cause our future results, performance or achievements to differ significantly from that expressed or implied by such forward-looking statements. You can identify these forward-looking statements by the use of words such as “should,” “expect,” “anticipate,” “estimate,” “target,” “may,” “project,” “guidance,” “intend,” “plan,” “believe” and other words and terms of similar meaning and expression in connection with any discussion of future operating or financial performance. Important factors that could cause or contribute to such differences include risks relating to:
- our ability to successfully compete in the marketplace, including: that we are substantially dependent on our generic products; concentration of our customer base and commercial alliances among our customers; delays in launches of new generic products; our ability to develop and commercialize biopharmaceutical products; competition for our innovative medicines; our ability to achieve expected results from investments in our product pipeline; our ability to develop and commercialize additional pharmaceutical products; our ability to successfully execute our Pivot to Growth strategy, including to expand our innovative and biosimilar medicines pipeline and profitably commercialize the innovative medicines and biosimilar portfolio, whether organically or through business development, and to sustain and focus our portfolio of generics medicines; and the effectiveness of our patents and other measures to protect our intellectual property rights, including any potential challenges to our Orange Book patent listings in the U.S.;
- our substantial indebtedness, which may limit our ability to incur additional indebtedness, engage in additional transactions or make new investments, may result in a future downgrade of our credit ratings; and our inability to raise debt or borrow funds in amounts or on terms that are favorable to us;
- our business and operations in general, including: the impact of global economic conditions and other macroeconomic developments and the governmental and societal responses thereto; the widespread outbreak of an illness or any other communicable disease, or any other public health crisis; effectiveness of our optimization efforts; our ability to attract, hire, integrate and retain highly skilled personnel; interruptions in our supply chain or problems with internal or third party manufacturing; disruptions of information technology systems; breaches of our data security; challenges associated with conducting business globally, including political or economic instability, major hostilities or terrorism, such as the ongoing conflict between Russia and Ukraine and the state of war declared in Israel; costs and delays resulting from the extensive pharmaceutical regulation to which we are subject; our ability to successfully bid for suitable acquisition targets or licensing opportunities, or to consummate and integrate acquisitions; and our prospects and opportunities for growth if we sell assets or business units and close or divest plants and facilities, as well as our ability to successfully and cost-effectively consummate such sales and divestitures, including our planned divestiture of our API business;
- compliance, regulatory and litigation matters, including: failure to comply with complex legal and regulatory environments; the effects of governmental and civil proceedings and litigation which we are, or in the future become, party to; the effects of reforms in healthcare regulation and reductions in pharmaceutical pricing, reimbursement and coverage; increased legal and regulatory action in connection with public concern over the abuse of opioid medications; our ability to timely make payments required under our nationwide opioids settlement agreement and provide our generic version of Narcan® (naloxone hydrochloride nasal spray) in the amounts and at the times required under the terms of such agreement; scrutiny from competition and pricing authorities around the world, including our ability to comply with and operate under our deferred prosecution agreement (DPA) with the U.S. Department of Justice; potential liability for intellectual property right infringement; product liability claims; failure to comply with complex Medicare, Medicaid and other governmental programs reporting and payment obligations; compliance with anti-corruption, sanctions and trade control laws; environmental risks; and the impact of sustainability issues;
- the impact of the state of war declared in Israel and the military activity in the region, including the risk of disruptions to our operations and facilities, such as our manufacturing and R&D facilities, located in Israel, the impact of our employees who are military reservists being called to active military duty, and the impact of the war on the economic, social and political stability of Israel;
- other financial and economic risks, including: our exposure to currency fluctuations and restrictions as well as credit risks; potential impairments of our long-lived assets; the impact of geopolitical conflicts including the state of war declared in Israel and the conflict between Russia and Ukraine; potential significant increases in tax liabilities; the effect on our overall effective tax rate of the termination or expiration of governmental programs or tax benefits, or of a change in our business and our ability to remediate an existing material weakness in our internal control over financial reporting;
and other factors discussed in this press release, in our Quarterly Report on Form 10-Q for the third quarter of 2024 and in our Annual Report on Form 10-K for the year ended December 31, 2023, including in the sections captioned "Risk Factors.” Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statements or other information contained herein, whether as a result of new information, future events or otherwise. You are cautioned not to put undue reliance on these forward-looking statements.
Consolidated Statements of Income | |||||||||
(U.S. dollars in millions, except share and per share data) | |||||||||
(Unaudited) | |||||||||
Three months ended | Nine months ended | ||||||||
September 30, | September 30, | ||||||||
2024 | 2023 | 2024 | 2023 | ||||||
Net revenues | 4,332 | 3,850 | 12,315 | 11,389 | |||||
Cost of sales | 2,183 | 1,999 | 6,372 | 6,159 | |||||
Gross profit | 2,148 | 1,851 | 5,943 | 5,230 | |||||
Research and development expenses | 240 | 253 | 751 | 726 | |||||
Selling and marketing expenses | 626 | 576 | 1,891 | 1,726 | |||||
General and administrative expenses | 298 | 268 | 859 | 870 | |||||
Intangible assets impairments | 28 | 47 | 169 | 289 | |||||
Goodwill impairment | 600 | - | 1,000 | 700 | |||||
Other asset impairments, restructuring and other items | (23) | 57 | 931 | 276 | |||||
Legal settlements and loss contingencies | 450 | 314 | 638 | 1,009 | |||||
Other loss (income) | (21) | (9) | (22) | (43) | |||||
Operating income (loss) | (51) | 344 | (274) | (323) | |||||
Financial expenses, net | 272 | 280 | 763 | 808 | |||||
Income (loss) before income taxes | (324) | 64 | (1,037) | (1,131) | |||||
Income taxes (benefit) | 69 | (12) | 648 | (48) | |||||
Share in (profits) losses of associated companies, net | (3) | § | (1) | (1) | |||||
Net income (loss) | (390) | 77 | (1,684) | (1,082) | |||||
Net income (loss) attributable to non-controlling interests | 47 | 8 | (262) | (60) | |||||
Net income (loss) attributable to Teva | (437) | 69 | (1,422) | (1,022) | |||||
Earnings (loss) per share attributable to Teva: | Basic ($) | (0.39) | 0.06 | (1.26) | (0.91) | ||||
Diluted ($) | (0.39) | 0.06 | (1.26) | (0.91) | |||||
Weighted average number of shares (in millions): | Basic | 1,133 | 1,121 | 1,130 | 1,119 | ||||
Diluted | 1,133 | 1,135 | 1,130 | 1,119 | |||||
Non-GAAP net income attributable to Teva for diluted earnings per share:* | 798 | 677 | 2,043 | 1,762 | |||||
Non-GAAP earnings per share attributable to Teva:* | Diluted ($) | 0.69 | 0.60 | 1.78 | 1.56 | ||||
Non-GAAP average number of shares (in millions): | Diluted | 1,155 | 1,135 | 1,148 | 1,131 | ||||
Amounts may not add up due to rounding. | |||||||||
§ Represents an amount less than | |||||||||
* See reconciliation attached. | |||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||
(U.S. dollars in millions, except for share data) | |||||||||
(Unaudited) | |||||||||
September 30, | December 31, | ||||||||
2024 | 2023 | ||||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 3,319 | $ | 3,226 | |||||
Accounts receivables, net of allowance for credit losses of | 3,462 | 3,408 | |||||||
Inventories | 3,959 | 4,021 | |||||||
Prepaid expenses | 1,127 | 1,255 | |||||||
Other current assets | 445 | 504 | |||||||
Assets held for sale | 2 | 70 | |||||||
Total current assets | 12,314 | 12,485 | |||||||
Deferred income taxes | 2,070 | 1,812 | |||||||
Other non-current assets | 459 | 470 | |||||||
Property, plant and equipment, net | 5,672 | 5,750 | |||||||
Operating lease right-of-use assets, net | 364 | 397 | |||||||
Identifiable intangible assets, net | 4,756 | 5,387 | |||||||
Goodwill | 16,124 | 17,177 | |||||||
Total assets | $ | 41,758 | $ | 43,479 | |||||
LIABILITIES AND EQUITY | |||||||||
Current liabilities: | |||||||||
Short-term debt | $ | 2,580 | $ | 1,672 | |||||
Sales reserves and allowances | 3,785 | 3,535 | |||||||
Accounts payables | 2,371 | 2,602 | |||||||
Employee-related obligations | 619 | 611 | |||||||
Accrued expenses | 2,984 | 2,771 | |||||||
Other current liabilities | 1,241 | 1,044 | |||||||
Liabilities held for sale | 216 | 13 | |||||||
Total current liabilities | 13,797 | 12,247 | |||||||
Long-term liabilities: | |||||||||
Deferred income taxes | 538 | 606 | |||||||
Other taxes and long-term liabilities | 4,344 | 4,019 | |||||||
Senior notes and loans | 16,400 | 18,161 | |||||||
Operating lease liabilities | 295 | 320 | |||||||
Total long-term liabilities | 21,578 | 23,106 | |||||||
Equity: | |||||||||
Teva shareholders’ equity: | 6,065 | 7,506 | |||||||
Non-controlling interests | 319 | 620 | |||||||
Total equity | 6,383 | 8,126 | |||||||
Total liabilities and equity | $ | 41,758 | $ | 43,479 | |||||
Amounts may not add up due to rounding. | |||||||||
TEVA PHARMACEUTICAL INDUSTRIES LIMITED | ||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
(U.S. dollars in millions) | ||||||
(Unaudited) | ||||||
Three months ended | Nine months ended | |||||
September 30, | September 30, | |||||
2024 | 2023 | 2024 | 2023 | |||
Operating activities: | ||||||
Net income (loss) | $ | (390) | 77 | $ | (1,684) | (1,082) |
Adjustments to reconcile net income (loss) to net cash provided by operations: | ||||||
Depreciation and amortization | 259 | 283 | 790 | 887 | ||
Impairment of goodwill | 600 | - | 1,000 | 700 | ||
Impairment of long-lived assets and assets held for sale | (51) | 48 | 758 | 310 | ||
Net change in operating assets and liabilities | 317 | (227) | (190) | (364) | ||
Deferred income taxes – net and uncertain tax positions | (53) | (199) | (666) | (349) | ||
Stock-based compensation | 29 | 31 | 89 | 93 | ||
Other items * | 2 | (5) | 597 | 18 | ||
Net loss (gain) from sale of business and long-lived assets | (21) | (3) | (22) | (29) | ||
Net cash provided by (used in) operating activities | 693 | 5 | 672 | 184 | ||
Investing activities: | ||||||
Beneficial interest collected in exchange for securitized account receivables | 339 | 362 | 951 | 1,056 | ||
Purchases of property, plant and equipment and intangible assets | (148) | (149) | (369) | (407) | ||
Proceeds from sale of business and long-lived assets | 38 | 10 | 39 | 68 | ||
Acquisition of businesses, net of cash acquired | - | - | (15) | - | ||
Purchases of investments and other assets . | (1) | (38) | (56) | (44) | ||
Proceeds from sale of investments | 40 | - | 40 | - | ||
Other investing activities | - | (1) | - | (6) | ||
Net cash provided by (used in) investing activities | 268 | 184 | 590 | 667 | ||
Financing activities: | ||||||
Repayment of senior notes and loans and other long term liabilities | - | (1,000) | (956) | (4,152) | ||
Purchase of shares from non-controlling interests | - | - | (64) | - | ||
Dividends paid to non-controlling interests | - | - | (78) | - | ||
Proceeds from senior notes, net of issuance costs | - | - | - | 2,451 | ||
Proceeds from short term debt | - | 700 | - | 700 | ||
Repayment of short term debt | - | (200) | - | (200) | ||
Other financing activities | - | (76) | (19) | (136) | ||
Net cash provided by (used in) financing activities | - | (576) | (1,117) | (1,337) | ||
Translation adjustment on cash and cash equivalents | 100 | (33) | (53) | (98) | ||
Net change in cash, cash equivalents and restricted cash | 1,061 | (420) | - | 92 | (584) | |
Balance of cash, cash equivalents and restricted cash at beginning of period | 2,258 | 2,670 | 3,227 | 2,834 | ||
Balance of cash, cash equivalents and restricted cash at end of period | $ | 3,319 | 2,250 | 3,319 | 2,250 | |
Cash and cash equivalents | 3,319 | 2,249 | 3,319 | 2,249 | ||
Restricted cash included in other current assets | — | 1 | — | 1 | ||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | 3,319 | 2,250 | 3,319 | 2,250 | ||
Non-cash financing and investing activities: | ||||||
Beneficial interest obtained in exchange for securitized accounts receivables | $ | 332 | 376 | $ | 964 | 1,090 |
Dividend declared to non-controlling interests | $ | - | 67 | $ | - | 67 |
* Adjustment in the nine-months period ended September 30, 2024 mainly relates to an agreement with the Israeli Tax Authorities to settle certain litigation in an amount of | ||||||
Amounts may not add up due to rounding | ||||||
The accompanying notes are an integral part of the financial statements. | ||||||
Reconciliation of net income (loss) attributable to Teva | |||||||||
to Non-GAAP net income (loss) attributable to Teva | |||||||||
Three months ended | Nine months ended | ||||||||
September 30, | September 30, | ||||||||
($ in millions except per share amounts) | 2024 | 2023 | 2024 | 2023 | |||||
Net income (Loss) attributable to Teva(1) | ($) | (437) | 69 | ($) | (1,422) | (1,022) | |||
Increase (decrease) for excluded items: | |||||||||
Amortization of purchased intangible assets | 146 | 145 | 444 | 471 | |||||
Legal settlements and loss contingencies(2) | 450 | 314 | 638 | 1,009 | |||||
Goodwill impairment(3) | 600 | - | 1,000 | 700 | |||||
Impairment of long-lived assets(4) | (51) | 48 | 758 | 310 | |||||
Restructuring costs | 21 | 27 | 52 | 93 | |||||
Equity compensation | 29 | 31 | 89 | 93 | |||||
Contingent consideration(1)(5) | 34 | 27 | 305 | 140 | |||||
Loss (Gain) on sale of business | (20) | (5) | (21) | (3) | |||||
Accelerated depreciation | 1 | 25 | 8 | 74 | |||||
Financial expenses | 11 | 14 | 35 | 53 | |||||
Items attributable to non-controlling interests(4) | 41 | (1) | (276) | (91) | |||||
Other non-GAAP items(6) | 56 | 64 | 162 | 252 | |||||
Corresponding tax effects and unusual tax items(7) | (83) | (80) | 270 | (315) | |||||
Non-GAAP net income attributable to Teva | ($) | 798 | 677 | ($) | 2,043 | 1,762 | |||
Non-GAAP tax rate(8) | |||||||||
GAAP diluted earnings (loss) per share attributable to Teva | ($) | (0.39) | 0.06 | ($) | (1.26) | (0.91) | |||
EPS difference(9) | 1.08 | 0.54 | 3.04 | 2.47 | |||||
Non-GAAP diluted EPS attributable to Teva(9) | ($) | 0.69 | 0.60 | ($) | 1.78 | 1.56 | |||
Non-GAAP average number of shares (in millions)(9) | 1,155 | 1,135 | 1,148 | 1,131 | |||||
(1) | The data presented for the prior period have been revised to reflect a revision in the presentation of these items in the consolidated financial statements. For additional information see note 1c to our consolidated financial statements included in our 2023 Annual Report on Form 10-K. | ||||||||
(2) | Adjustments for legal settlements and loss contingencies in the third quarter of 2024 were mainly related to a provision of | ||||||||
(3) | Goodwill impairment charges of | ||||||||
(4) | Adjustments for impairment of long-lived assets and items attributable to non-controlling interests, for the first nine months of 2024 primarily consisted of | ||||||||
(5) | Adjustments for contingent consideration primarily related to a change in the estimated future royalty payments to Allergan in connection with lenalidomide capsules (the generic version of Revlimid®), of | ||||||||
(6) | Other non-GAAP items include other exceptional items that we believe are sufficiently large that their exclusion is important to facilitate an understanding of trends in our financial results, primarily related to the rationalization of our plants, certain inventory write-offs, material litigation fees and other unusual events. | ||||||||
(7) | Adjustments for corresponding tax effects and unusual tax items for the nine months ended September 30, 2024, include a tax item in an amount of | ||||||||
(8) | Non-GAAP tax rate is tax expenses (benefit) excluding the impact of non-GAAP tax adjustments presented above as a percentage of income (loss) before income taxes excluding the impact of non-GAAP adjustments presented above. GAAP tax rate for the three and nine months ended September 30, 2024 was | ||||||||
(9) | EPS difference and diluted non-GAAP EPS are calculated by dividing our non-GAAP net income attributable to Teva by our non-GAAP diluted weighted average number of shares. | ||||||||
Reconciliation of gross profit to Non-GAAP gross profit | ||||||||
(Unaudited) | ||||||||
Three months ended | Nine months ended | |||||||
September 30, | September 30, | |||||||
($ in millions) | 2024 | 2023 | 2024 | 2023 | ||||
Gross profit | $ | 2,148 | 1,851 | $ | 5,943 | 5,230 | ||
Gross profit margin | ||||||||
Increase (decrease) for excluded items: (1) | ||||||||
Amortization of purchased intangible assets | 136 | 130 | 409 | 420 | ||||
Equity compensation | 5 | 5 | 17 | 15 | ||||
Accelerated depreciation | 1 | 25 | 8 | 74 | ||||
Other non-GAAP items | 37 | 48 | 117 | 140 | ||||
Non-GAAP gross profit | $ | 2,327 | 2,060 | $ | 6,495 | 5,878 | ||
Non-GAAP gross profit margin (2) | ||||||||
(1) For further explanations, refer to the footnotes under the "Reconciliation of net income (loss) attributable to Teva to Non-GAAP net income (loss) attributable to Teva" table. | ||||||||
(2) Non-GAAP gross profit margin is non-GAAP gross profit as a percentage of revenue. | ||||||||
Reconciliation of operating income (loss) to Non-GAAP operating income (loss) | ||||||||
(Unaudited) | ||||||||
Three months ended | Nine months ended | |||||||
September 30, | September 30, | |||||||
($ in millions) | 2024 | 2023 | 2024 | 2023 | ||||
Operating income (loss)(1) | ($) | (51) | 344 | ($) | (274) | (323) | ||
Operating margin | ( | ( | ( | |||||
Increase (decrease) for excluded items: (2) | ||||||||
Amortization of purchased intangible assets | 146 | 145 | 444 | 471 | ||||
Legal settlements and loss contingencies | 450 | 314 | 638 | 1,009 | ||||
Goodwill impairment | 600 | - | 1,000 | 700 | ||||
Impairment of long-lived assets | (51) | 48 | 758 | 310 | ||||
Restructuring costs | 21 | 27 | 52 | 93 | ||||
Equity compensation | 29 | 31 | 89 | 93 | ||||
Contingent consideration(1) | 34 | 27 | 305 | 140 | ||||
Loss (gain) on sale of business | (20) | (5) | (21) | (3) | ||||
Accelerated depreciation | 1 | 25 | 8 | 74 | ||||
Other non-GAAP items | 56 | 64 | 162 | 252 | ||||
Non-GAAP operating income (loss) | ($) | 1,214 | 1,020 | ($) | 3,162 | 2,816 | ||
Non-GAAP operating margin(3) | ($) | ($) | ||||||
(1) The data presented for the prior period have been revised to reflect a revision in the presentation of these items in the consolidated financial statements. For additional information see note 1c to our consolidated financial statements included in our 2023 Annual Report on Form 10-K. | ||||||||
(2) For further explanations, refer to the footnotes under the "Reconciliation of net income (loss) attributable to Teva to Non-GAAP net income (loss) attributable to Teva" table. | ||||||||
(3) Non-GAAP operating margin is Non-GAAP operating income as a percentage of revenues. | ||||||||
Reconciliation of net income (loss) to adjusted EBITDA | ||||||||
(Unaudited) | ||||||||
Three months ended | Nine months ended | |||||||
September 30, | September 30, | |||||||
($ in millions) | 2024 | 2023 | 2024 | 2023 | ||||
Net income (loss)(1) | $ | (390) | 77 | $ | (1,684) | (1,082) | ||
Increase (decrease) for excluded items:(2) | ||||||||
Financial expenses | 272 | 280 | 763 | 808 | ||||
Income taxes | 69 | (12) | 648 | (48) | ||||
Share in profits (losses) of associated companies –net | (3) | § | (1) | (1) | ||||
Depreciation | 113 | 138 | 346 | 416 | ||||
Amortization | 146 | 145 | 444 | 471 | ||||
EBITDA | 208 | 628 | 515 | 565 | ||||
Legal settlements and loss contingencies | 450 | 314 | 638 | 1,009 | ||||
Goodwill impairment | 600 | - | 1,000 | 700 | ||||
Impairment of long lived assets | (51) | 48 | 758 | 310 | ||||
Restructuring costs | 21 | 27 | 52 | 93 | ||||
Equity compensation | 29 | 31 | 89 | 93 | ||||
Contingent consideration(1) | 34 | 27 | 305 | 140 | ||||
Loss (Gain) on sale of Business | (20) | (5) | (21) | (3) | ||||
Other non-GAAP items | 56 | 64 | 162 | 252 | ||||
Adjusted EBITDA | $ | 1,327 | 1,134 | $ | 3,500 | 3,158 | ||
§ Represents an amount less than | ||||||||
(1) The data presented for the prior period have been revised to reflect a revision in the presentation of these items in the consolidated financial statements. For additional information see note 1c to our consolidated financial statements included in our 2023 Annual Report on Form 10-K. | ||||||||
(2) For further explanations, refer to the footnotes under the "Reconciliation of net income (loss) attributable to Teva to Non-GAAP net income (loss) attributable to Teva" table. | ||||||||
Segment Information | |||||||||||||||||
(Unaudited) | |||||||||||||||||
United States | Europe | International Markets | |||||||||||||||
Three months ended September 30, | Three months ended September 30, | Three months ended September 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||
(U.S. $ in millions) | (U.S. $ in millions) | (U.S. $ in millions) | |||||||||||||||
Revenues | $ | 2,225 | $ | 1,896 | $ | 1,265 | $ | 1,146 | $ | 613 | $ | 591 | |||||
Gross profit | 1,265 | 1,060 | 698 | 648 | 306 | 293 | |||||||||||
R&D expenses | 151 | 156 | 55 | 62 | 27 | 30 | |||||||||||
S&M expenses | 259 | 243 | 203 | 184 | 134 | 116 | |||||||||||
G&A expenses | 107 | 93 | 67 | 66 | 36 | 33 | |||||||||||
Other loss (income) | § | (2) | 1 | § | § | (2) | |||||||||||
Segment profit | $ | 748 | $ | 571 | $ | 373 | $ | 338 | $ | 109 | $ | 117 | |||||
§ Represents an amount less than | |||||||||||||||||
Segment Information | |||||||||||||||||
Unaudited | |||||||||||||||||
United States | Europe | International Markets | |||||||||||||||
Nine months ended September 30, | Nine months ended September 30, | Nine months ended September 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||
(U.S. $ in millions) | (U.S. $ in millions) | (U.S. $ in millions) | |||||||||||||||
Revenues | $ | 6,060 | $ | 5,465 | $ | 3,749 | $ | 3,493 | $ | 1,802 | $ | 1,750 | |||||
Gross profit | 3,291 | 2,866 | 2,113 | 1,943 | 889 | 861 | |||||||||||
R&D expenses | 475 | 460 | 173 | 168 | 85 | 81 | |||||||||||
S&M expenses | 789 | 700 | 605 | 565 | 397 | 353 | |||||||||||
G&A expenses | 300 | 289 | 197 | 196 | 109 | 105 | |||||||||||
Other loss (income) | (1) | (3) | 1 | (2) | (1) | (34) | |||||||||||
Segment profit | $ | 1,727 | $ | 1,421 | $ | 1,137 | $ | 1,017 | $ | 299 | $ | 356 | |||||
Reconciliation of our segment profit | ||||||
to consolidated income (loss) before income taxes | ||||||
Three months ended | ||||||
September 30, | ||||||
2024 | 2023 | |||||
(U.S.$ in millions) | ||||||
United States profit | $ | 748 | $ | 571 | ||
Europe profit | 373 | 338 | ||||
International Markets profit | 109 | 117 | ||||
Total reportable segment profit | 1,230 | 1,025 | ||||
Profit (loss) of other activities | (16) | (5) | ||||
1,214 | 1,020 | |||||
Amounts not allocated to segments: | ||||||
Amortization | 146 | 145 | ||||
Other asset impairments, restructuring and other items* | (23) | 57 | ||||
Goodwill impairment | 600 | - | ||||
Intangible asset impairments | 28 | 47 | ||||
Legal settlements and loss contingencies | 450 | 314 | ||||
Other unallocated amounts | 64 | 112 | ||||
Consolidated operating income (loss) | (51) | 344 | ||||
Financial expenses - net | 272 | 280 | ||||
Consolidated income (loss) before income taxes* | $ | (324) | $ | 64 | ||
*The data presented for the prior period have been revised to reflect a revision in the presentation of these items in the consolidated financial statements. For additional information see note 1b to our consolidated financial statements included in our 2023 Annual Report on Form 10-K. | ||||||
Reconciliation of our segment profit | ||||||
to consolidated income (loss) before income taxes | ||||||
Nine months ended | ||||||
September 30, | ||||||
2024 | 2023 | |||||
(U.S.$ in millions) | ||||||
United States profit | $ | 1,727 | $ | 1,421 | ||
Europe profit | 1,137 | 1,017 | ||||
International Markets profit | 299 | 356 | ||||
Total reportable segment profit | 3,163 | 2,794 | ||||
Profit (loss) of other activities | (1) | 22 | ||||
Total segment profit | 3,162 | 2,816 | ||||
Amounts not allocated to segments: | ||||||
Amortization | 444 | 471 | ||||
Other asset impairments, restructuring and other items* | 931 | 276 | ||||
Goodwill impairment | 1,000 | 700 | ||||
Intangible asset impairments | 169 | 289 | ||||
Legal settlements and loss contingencies | 638 | 1,009 | ||||
Other unallocated amounts | 254 | 394 | ||||
Consolidated operating income (loss)* | (274) | (323) | ||||
Financial expenses - net | 763 | 808 | ||||
Consolidated income (loss) before income taxes | $ | (1,037) | $ | (1,131) | ||
*The data presented for the prior period have been revised to reflect a revision in the presentation of these items in the consolidated financial statements. For additional information see note 1b to our consolidated financial statements included in our 2023 Annual Report on Form 10-K. | ||||||
Segment revenues by major products and activities | ||||||||
(Unaudited) | ||||||||
Three months ended | ||||||||
September 30, | Percentage Change | |||||||
2024 | 2023 | 2023-2024 | ||||||
(U.S.$ in millions) | ||||||||
United States segment | ||||||||
Generic products | $ | 1,094 | $ | 839 | ||||
AJOVY | 58 | 56 | ||||||
AUSTEDO | 435 | 339 | ||||||
BENDEKA/TREANDA | 40 | 56 | ( | |||||
COPAXONE | 69 | 98 | ( | |||||
UZEDY | 35 | 2 | N/A | |||||
Anda | 380 | 367 | ||||||
Other | 115 | 140 | ( | |||||
Total | 2,225 | 1,896 | ||||||
Three months ended | ||||||||
September 30, | Percentage Change | |||||||
2024 | 2023 | 2023-2024 | ||||||
(U.S.$ in millions) | ||||||||
Europe segment | ||||||||
Generic products | $ | 973 | $ | 886 | ||||
AJOVY | 56 | 41 | ||||||
COPAXONE | 53 | 55 | ( | |||||
Respiratory products | 60 | 61 | ( | |||||
Other* | 124 | 104 | ||||||
Total | 1,265 | 1,146 | ||||||
* Other revenues in the third quarter of 2024 include the sale of certain product rights. | ||||||||
Three months ended | ||||||||
September 30, | Percentage Change | |||||||
2024 | 2023 | 2023-2024 | ||||||
(U.S.$ in millions) | ||||||||
International Markets segment | ||||||||
Generic products | $ | 477 | $ | 470 | ||||
AJOVY | 24 | 18 | ||||||
COPAXONE | 13 | 16 | ( | |||||
Other* | 99 | 87 | ||||||
Total | 613 | 591 | ||||||
* Other revenues in the third quarter of 2024 include the sale of certain product rights. | ||||||||
Segment revenues by major products and activities | ||||||||
(Unaudited) | ||||||||
Nine months ended | ||||||||
September 30, | Percentage Change | |||||||
2024 | 2023 | 2024-2023 | ||||||
(U.S.$ in millions) | ||||||||
United States segment | ||||||||
Generic products | $ | 2,924 | $ | 2,471 | ||||
AJOVY | 144 | 154 | ( | |||||
AUSTEDO | 1,124 | 817 | ||||||
BENDEKA / TREANDA | 127 | 185 | ( | |||||
COPAXONE | 179 | 224 | ( | |||||
UZEDY | 75 | 14 | ||||||
Anda | 1,134 | 1,183 | ( | |||||
Other | 352 | 417 | ( | |||||
Total | 6,060 | 5,465 | ||||||
Nine months ended | ||||||||
September 30, | Percentage Change | |||||||
2024 | 2023 | 2024-2023 | ||||||
(U.S.$ in millions) | ||||||||
Europe segment | ||||||||
Generic products | $ | 2,947 | $ | 2,727 | ||||
AJOVY | 158 | 115 | ||||||
COPAXONE | 163 | 174 | ( | |||||
Respiratory products | 183 | 195 | ( | |||||
Other* | 299 | 282 | ||||||
Total | 3,749 | 3,493 | ||||||
* Other revenues in the first nine months ended 2024 include the sale of certain product rights. | ||||||||
Nine months ended | ||||||||
September 30, | Percentage Change | |||||||
2024 | 2023 | 2024-2023 | ||||||
(U.S.$ in millions) | ||||||||
International Markets segment | ||||||||
Generic products | $ | 1,440 | $ | 1,425 | ||||
AJOVY | 63 | 45 | ||||||
COPAXONE | 38 | 50 | ( | |||||
Other* | 261 | 229 | ||||||
Total | 1,802 | 1,750 | ||||||
* Other revenues in the first nine months ended 2024 include the sale of certain product rights. | ||||||||
Free cash flow reconciliation | |||||
(Unaudited) | |||||
Three months ended September 30, | |||||
2024 | 2023 | ||||
(U.S. $ in millions) | |||||
Net cash provided by (used in) operating activities | 693 | 5 | |||
Beneficial interest collected in exchange for securitized account receivables | 339 | 362 | |||
Purchases of property, plant and equipment and intangible assets | (148) | (149) | |||
Proceeds from divestitures of businesses and other assets | 38 | 10 | |||
Free cash flow | $ | 922 | $ | 229 | |
Free cash flow reconciliation | |||||
(Unaudited) | |||||
Nine months ended September 30, | |||||
2024 | 2023 | ||||
(U.S. $ in millions) | |||||
Net cash provided by (used in) operating activities | 672 | 184 | |||
Beneficial interest collected in exchange for securitized account receivables | 951 | 1,056 | |||
Purchases of property, plant and equipment and intangible assets | (369) | (407) | |||
Proceeds from sale of business and long lived assets | 39 | 68 | |||
Acquisition of subsidiary, net of cash acquired | (15) | - | |||
Free cash flow | $ | 1,278 | $ | 902 | |
IR Contacts
Ran Meir (215) 591-8912
Yael Ashman +972 (3) 914 8262
Sanjeev Sharma (267) 658-2700
Media Contacts
Kelley Dougherty (973) 832-2810
Eden Klein +972 (3) 906 2645
A PDF accompanying this announcement is available at http://ml-eu.globenewswire.com/Resource/Download/1ac2fc55-a186-4921-b2c9-dbec0de606f0
FAQ
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