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
For an accessible version of this Press Release, please visit
www.tevapharm.com
- Q3 2024 revenues of $4.3 billion
reflect an increase of 13% in U.S. dollars, or 15% in local
currency terms, compared to Q3 2023.
- AUSTEDO® – shows
continued growth, U.S. revenues of $435 million in Q3 2024, an
increase of 28% compared to Q3 2023; reaffirming 2024 revenue
outlook of ~$1.6 billion.
- AJOVY® – global revenues
of $137 million in Q3 2024, an increase of 21% 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 and 13% 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
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 $4.3 billion, an increase of 15% in
local currency terms compared to the third quarter of 2023. Our
innovative portfolio and generics business drove strong performance
in the third quarter of 2024, reflecting the successful execution
of our Pivot to Growth Strategy. Due to our effort and commitment,
we are consistently delivering on our growth strategy, executing on
our ambitious targets by following our strategic framework, as we
remain laser focused on its four key pillars.”
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
$4,332 million, an increase of 13% in U.S. dollars or 15% in local
currency terms, compared to the third quarter of 2023. This
increase was mainly due to higher revenues from generic products in
all our segments, from AUSTEDO in our United States segment and
from sale of product rights in our Europe and International Markets
segments.
Exchange rate movements during the third
quarter of 2024, including hedging effects, negatively impacted
revenues by $88 million, compared to the third quarter of 2023.
Gross profit in the third quarter of 2024 was
$2,148 million, an increase of 16% compared to $1,851 million in
the third quarter of 2023. Gross profit margin was
49.6% in the third quarter of 2024, compared to 48.1% in the third
quarter of 2023. Non-GAAP gross profit was $2,327
million in in the third quarter of 2024, an increase of 13%
compared to $2,060 million in the third quarter of 2023.
Non-GAAP gross profit margin was 53.7% in the
third quarter of 2024, compared to 53.5% in the third quarter of
2023. The increase in both gross profit margin and non-GAAP gross
profit margin was mainly due to a favorable mix of products,
primarily AUSTEDO, partially offset by a negative impact from
foreign exchange rate movements including hedging effects.
Research and Development (R&D)
expenses, net in the third quarter of 2024 were
$240 million, a decrease of 5% compared to $253 million in the
third quarter of 2023. Our lower R&D expenses, net in the third
quarter of 2024 were largely driven by reimbursements from our
strategic partnerships, reflecting a decrease related to our
late-stage innovative pipeline, partially offset by an increase in
R&D expenses relating to immunology projects. As we continue to
execute on our Pivot to Growth strategy, we see a higher R&D
spend in some of our late-stage innovative pipeline assets.
Selling and Marketing (S&M) expenses in the
third quarter of 2024 were $626 million, an increase of 9% compared
to the third quarter of 2023. This increase was mainly to support
revenue growth in generic products, AUSTEDO and AJOVY.
General and Administrative (G&A) expenses
in the third quarter of 2024 were $298 million, an increase of 11%
compared to the third quarter of 2023.
Other income in the third quarter of 2024 was
$21 million, compared to $9 million in the third quarter of 2023.
Other income in the third quarter of 2024 included a capital gain
from the sale of a business in our International Markets
segment.
Operating loss in the third
quarter of 2024 was $51 million, compared to an operating income of
$344 million in the third quarter of 2023. Operating loss as a
percentage of revenues was 1.2% in the third quarter of 2024,
compared to an operating income as a percentage of revenues 8.9% in
the third quarter of 2023. This decrease was mainly due to a
goodwill impairment charge and higher legal settlements and loss
contingencies, partially offset by higher gross profit during the
third quarter of 2024. Non-GAAP operating income
in the third quarter of 2024 was $1,214 million representing a
non-GAAP operating margin of 28.0% compared to non-GAAP operating
income of $1,020 million representing a non-GAAP operating margin
of 26.5% in the third quarter of 2023. The increase in non-GAAP
operating margin in the third quarter of 2024 was mainly due to
lower operating expenses as a percentage of revenues.
Exchange rate movements during the third
quarter of 2024, including hedging effects, negatively impacted our
operating loss by $57 million and non-GAAP operating income by $58
million compared to the third quarter of 2023.
Financial expenses, net in the third quarter of
2024 were $272 million, mainly comprised of net-interest expenses
of $225 million and a negative exchange rate impact driven mainly
from currencies which we were unable to hedge. In the third quarter
of 2023, financial expenses, net were $280 million, mainly
comprised of net-interest expenses of $247 million and a negative
exchange rate impact driven mainly from currencies which we were
unable to hedge.
In the third quarter of 2024, we recognized a tax
expense of $69 million, on a pre-tax loss of $324 million.
In the third quarter of 2023, we recognized a tax benefit of $12
million, on a pre-tax income of $64 million. Our tax rate for the
third quarter of 2024 was mainly impacted by impairment charges
with no corresponding tax effects, an adjustment to Teva's
corporate tax rate in Israel on losses related to non-qualified tax
incentive activities in Israel, legal expenses with no
corresponding tax effect related to the fine issued by the European
Commission in connection with its antitrust investigation into
COPAXONE, and recording of valuation allowance with respect to
certain carry over credits outside of Israel. Teva’s tax rate for
the third quarter for 2023 was mainly affected by deferred tax
benefits resulting from intellectual property related integration
plans, which have been adopted, among others, in an effort of
addressing the global adoption of the Organization for Economic
Co-operation and Development (OECD) Pillar Two minimum effective
corporate tax.
Non-GAAP tax rate in the third
quarter of 2024 was 16.0%, compared to 9.0% in the third quarter of
2023. Our non-GAAP tax rate in the third quarter of 2024 was mainly
impacted by the generation of profits in various jurisdictions with
different tax rates, an adjustment to Teva’s corporate tax rate in
Israel on losses related to non-qualified tax incentive activities
in Israel, recording of valuation allowance with respect to certain
carry over credits outside of Israel, as well as infrequent or
non-recurring items. Our non-GAAP tax rate in the third quarter of
2023 was mainly impacted by the generation of profits in various
jurisdictions with different tax rates, tax benefits, deferred tax
benefits resulting from intellectual property related integration
plans, as well as infrequent or non-recurring items.
We expect our annual non-GAAP tax rate for 2024 to be between
14%-17%, slightly higher than our non-GAAP tax rate for 2023, which
was 13%, mainly due to a lower net tax benefit related to deferred
tax assets resulting from intellectual property-related integration
plans in 2023.
Net loss attributable to Teva
and loss per share in the third
quarter of 2024were $437 million and $0.39, respectively, compared
to net income attributable to Teva and diluted earnings per share
$69 million and $0.06, respectively, in the third quarter of 2023.
This decrease was mainly due to the changes in operating (income)
loss discussed above.
Non-GAAP net income attributable to Teva and
non-GAAP diluted earnings per
share in the third quarter of 2024 were $798 million and
$0.69, respectively, compared to $677 million and $0.60,
respectively, in the third quarter of 2023.
Adjusted EBITDA was $1,327 million in the third
quarter of 2024, an increase of 17%, compared to $1,134 million in
the third quarter of 2023.
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 $1,235 million. Non-GAAP net
income attributable to Teva and non-GAAP diluted EPS for the third
quarter of 2024 were adjusted to exclude the following items:
- 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 $693 million, compared to $5
million in the third quarter of 2023. The higher cash flow
generated from operating activities in the third quarter of 2024
resulted mainly from higher profit in our United States segment, as
well as changes in working capital items, including a positive
impact from accounts receivables, net of SR&A, and from
accounts payables and inventory levels, partially offset by higher
legal payments during the third quarter of 2024.
During the third quarter of 2024, we generated free cash
flow of $922 million, which we define as comprising $693
million in cash flow generated from operating activities, $339
million in beneficial interest collected in exchange for
securitized accounts receivables (under our EU securitization
program), and $38 million in divestitures of businesses and other
assets, partially offset by $148 million in cash used for capital
investment. During the third quarter of 2023, we generated free
cash flow of $229 million, which we define as comprising $5 million
in cash flow generated from operating activities, $362 million in
beneficial interest collected in exchange for securitized accounts
receivables (under our EU securitization program), and $10 million
in proceeds from divestitures of businesses and other assets,
partially offset by $149 million in cash used for capital
investment. The increase in the third quarter of 2024 resulted
mainly from higher cash flow generated from operating
activities.
As of September 30, 2024, our debt was $18,980
million, compared to $19,833 million as of December 31, 2023. This
decrease was mainly due to repayment at maturity of $956 million of
6% senior notes due in 2024, partially offset by $88 million of
exchange rate fluctuations. The portion of total debt classified as
short-term as of September 30, 2024 was 14% compared to 8% as of
December 31, 2023.
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
|
100%
|
$
|
1,896
|
100%
|
|
Gross profit
|
|
1,265
|
56.9%
|
|
1,060
|
55.9%
|
|
R&D expenses
|
|
151
|
6.8%
|
|
156
|
8.2%
|
|
S&M expenses
|
|
259
|
11.6%
|
|
243
|
12.8%
|
|
G&A expenses
|
|
107
|
4.8%
|
|
93
|
4.9%
|
|
Other loss (income)
|
|
§
|
§
|
|
(2)
|
§
|
|
Segment profit*
|
$
|
748
|
33.6%
|
$
|
571
|
30.1%
|
| |
|
|
|
|
|
|
|
* Segment profit does not include amortization and certain other
items.
§ Represents an amount less than $0.5 million or 0.5%, as
applicable.
|
Revenues from our United States segment in the
third quarter of 2024 were $2,225 million, an increase of $329
million, or 17%, compared to the third quarter of 2023. This
increase was mainly due to higher revenues from generic products,
AUSTEDO and UZEDY, partially offset by lower revenues from certain
innovative products, primarily COPAXONE and BENDEKA® and
TREANDA®.
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
September 30,
|
|
Percentage
Change
|
| |
|
2024
|
|
2023
|
|
2024-2023
|
| |
|
(U.S. $ in millions)
|
|
|
|
Generic
products
|
|
$
|
1,094
|
|
$
|
839
|
|
30%
|
|
AJOVY
|
|
|
58
|
|
|
56
|
|
4%
|
|
AUSTEDO
|
|
|
435
|
|
|
339
|
|
28%
|
|
BENDEKA and
TREANDA
|
|
|
40
|
|
|
56
|
|
(28%)
|
|
COPAXONE
|
|
|
69
|
|
|
98
|
|
(30%)
|
|
UZEDY
|
|
|
35
|
|
|
2
|
|
N/A
|
|
Anda
|
|
|
380
|
|
|
367
|
|
3%
|
|
Other
|
|
|
115
|
|
|
140
|
|
(18%)
|
|
Total
|
|
$
|
2,225
|
|
$
|
1,896
|
|
17%
|
| |
|
|
|
|
|
|
|
|
Generic products revenues in our United States
segment (including biosimilars) in the third quarter of 2024 were
$1,094 million, an increase of 30% compared to the third quarter of
2023, the majority of which was driven by higher revenues from
lenalidomide capsules (the generic version of
Revlimid®), and the remaining, primarily by the launch
of liraglutide injection 1.8mg (an authorized generic of
Victoza®) and higher revenues from epinephrine
injectable solution (the generic equivalent of EpiPen®
and EpiPen Jr®).
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 7.6% of total U.S. generic
prescriptions, compared to approximately 320 million (based on
trailing twelve months), representing 8.4% of total U.S. generic
prescriptions in the third quarter of 2023, all according to IQVIA
data.
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 $58 million, an increase of 4%
compared to the third quarter of 2023, mainly due to growth in
volume. In the third quarter of 2024, AJOVY’s exit market share in
the United States in terms of total number of prescriptions was
29.1% compared to 24.9% in the third quarter of 2023.
AUSTEDO revenues in our United States
segment in the third quarter of 2024 increased by 28% to $435
million, compared to $339 million in the third quarter of 2023,
mainly due to growth in volume and expanded access for
patients.
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 $35 million. UZEDY was approved by the FDA on
April 28, 2023 for the treatment of schizophrenia in adults, and
was launched in the U.S. in May 2023. UZEDY is a subcutaneous,
long-acting formulation of risperidone that controls the steady
release of risperidone. UZEDY is protected by nine Orange Book
patents expiring between 2025 and 2033. We are moving forward with
plans to launch UZEDY in other countries around the world. UZEDY
faces competition from multiple other products.
BENDEKA and
TREANDA combined revenues in our United
States segment in the third quarter of 2024 were $40 million, a
decrease of 28% compared to the third quarter of 2023, mainly due
to competition from alternative therapies, as well as the entry of
generic bendamustine products into the market. The orphan drug
exclusivity that had attached to bendamustine products expired in
December 2022.
COPAXONE revenues in our United States segment
in the third quarter of 2024 were $69 million, a decrease of 30%
compared to the third quarter of 2023, mainly due to market share
erosion and competition.
Anda revenues from third-party products in our
United States segment in the third quarter of 2024 increased by 3%
to $380 million, compared to $367 million in the third quarter of
2023, mainly due to higher volumes. Anda, our distribution business
in the United States, distributes generic and innovative medicines
and OTC pharmaceutical products from Teva and various third-party
manufacturers to independent retail pharmacies, pharmacy retail
chains, hospitals and physician offices in the United States. Anda
is able to compete in the distribution market by maintaining a
broad portfolio of products, competitive pricing and delivery
throughout the United States.
United States Gross Profit
Gross profit from our United States segment in
the third quarter of 2024 was $1,265 million, an increase of 19%,
compared to $1,060 million in the third quarter of 2023.
Gross profit margin for our United States
segment in the third quarter of 2024 increased to 56.9%, compared
to 55.9% in the third quarter of 2023. This increase was mainly due
to a favorable mix of products primarily driven by higher revenues
from lenalidomide capsules (the generic version of
Revlimid®) and AUSTEDO.
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 $748 million, an increase of 31% compared
to $571 million in the third quarter of 2023. This increase was
mainly due to higher gross profit, partially offset by higher
S&M and G&A expenses, as discussed above.
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
|
100%
|
$
|
1,146
|
100%
|
|
Gross profit
|
|
698
|
55.2%
|
|
648
|
56.6%
|
|
R&D
expenses
|
|
55
|
4.3%
|
|
62
|
5.4%
|
|
S&M
expenses
|
|
203
|
16.0%
|
|
184
|
16.0%
|
|
G&A
expenses
|
|
67
|
5.3%
|
|
66
|
5.7%
|
|
Other loss
(income)
|
|
1
|
§
|
|
§
|
§
|
|
Segment
profit*
|
$
|
373
|
29.5%
|
$
|
338
|
29.5%
|
|
___________
|
|
|
|
|
|
|
|
* Segment profit does not include amortization and certain other
items.
§ Represents an amount less than $0.5 million or 0.5%, as
applicable.
|
Revenues from our Europe segment in the third
quarter of 2024 were $1,265 million, an increase of 10%, or $119
million, compared to the third quarter of 2023. In local currency
terms, revenues increased by 11% compared to the third quarter of
2023, mainly due to higher revenues from generic and OTC products
as well as from AJOVY. Our higher revenues in the third quarter of
2024 were also partly driven by the sale of certain product
rights.
In the third quarter of 2024, revenues were negatively impacted
by exchange rate fluctuations of $6 million, net of hedging
effects, compared to the third quarter of 2023. Revenues in the
third quarter of 2024, included $10 million from a negative hedging
impact, which is included in “Other” in the table below. Revenues
in the third quarter of 2023 included $15 million from a positive
hedging impact, which is included in “Other” in the table
below.
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
September 30,
|
|
Percentage
Change
|
| |
|
2024
|
|
2023
|
|
2024-2023
|
| |
|
(U.S. $ in millions)
|
|
|
|
Generic
products
|
|
$
|
973
|
|
$
|
886
|
|
10%
|
|
AJOVY
|
|
|
56
|
|
|
41
|
|
37%
|
|
COPAXONE
|
|
|
53
|
|
|
55
|
|
(5%)
|
|
Respiratory
products
|
|
|
60
|
|
|
61
|
|
(1%)
|
|
Other*
|
|
|
124
|
|
|
104
|
|
19%
|
|
Total
|
|
$
|
1,265
|
|
$
|
1,146
|
|
10%
|
| |
|
|
|
|
|
|
|
|
|
* 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 $973 million, an increase of 10% compared to the third
quarter of 2023. In local currency terms, revenues increased by 8%,
mainly due to price increases as a result of market conditions such
as inflationary pressures in certain markets, as well as higher
revenues from recently launched products.
AJOVY revenues in our Europe segment in the
third quarter of 2024 increased by 37% to $56 million, compared to
$41 million in the third quarter of 2023. In local currency terms,
revenues increased by 36%, due to growth in volume.
COPAXONE revenues in our Europe segment in the
third quarter of 2024 were $53 million, a decrease of 5%. in both
U.S. dollars and local currency terms compared to the third quarter
of 2023, due to price reductions and a decline in volume resulting
from the availability of alternative therapies and competing
glatiramer acetate products.
Respiratory products revenues in our Europe
segment in the third quarter of 2024 were $60 million, a decrease
of 1% compared to the third quarter of 2023. In local currency
terms, revenues decreased by 3% compared to the third quarter of
2023, mainly due to net price reductions and lower volumes.
Europe Gross Profit
Gross profit from our Europe segment in the
third quarter of 2024 was $698 million, an increase of 8% compared
to $648 million in the third quarter of 2023.
Gross profit margin for our Europe segment in
the third quarter of 2024 decreased to 55.2%, compared to 56.6% in
the third quarter of 2023. This decrease was mainly due to negative
exchange rate impact from hedging activities.
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 $373 million, an increase of 10%,
compared to $338 million in the third quarter of 2023. This
increase was mainly due to higher gross profit resulting mainly
from proceeds from the sale of certain product rights, partially
offset by S&M expenses.
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
|
100%
|
$
|
591
|
100%
|
|
Gross profit
|
|
306
|
49.9%
|
|
293
|
49.6%
|
|
R&D
expenses
|
|
27
|
4.4%
|
|
30
|
5.1%
|
|
S&M
expenses
|
|
134
|
21.9%
|
|
116
|
19.6%
|
|
G&A
expenses
|
|
36
|
5.8%
|
|
33
|
5.5%
|
|
Other loss
(income)
|
|
§
|
§
|
|
(2)
|
§
|
|
Segment
profit*
|
$
|
109
|
17.8%
|
$
|
117
|
19.7%
|
|
|
|
|
|
|
|
|
|
* Segment profit does not include amortization and certain other
items.
§ Represents an amount less than $0.5 million or 0.5%, as
applicable.
|
Revenues from our International Markets segment
in the third quarter of 2024 were $613 million, an increase of 4%
compared to the third quarter of 2023. In local currency terms,
revenues increased by 18% compared to the third quarter of 2023,
mainly due to higher revenues from generic products in most
markets, partially offset by regulatory price reductions and
generic competition to off-patented products in Japan. Our higher
revenues in the third quarter of 2024 were also partly driven by
the sale of certain product rights.
In the third quarter of 2024, revenues were negatively impacted
by exchange rate fluctuations of $84 million, including hedging
effects, compared to the third quarter of 2023. Revenues in the
third quarter of 2024 included $1 million from a positive hedging
impact, compared to a positive hedging impact of $7 million in the
third quarter of 2023, which are included in “Other” in the table
below.
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
September 30,
|
|
Percentage
Change
|
| |
|
2024
|
|
2023
|
|
2024-2023
|
| |
|
(U.S. $ in millions)
|
|
|
|
Generic
products
|
|
$
|
477
|
|
$
|
470
|
|
1%
|
|
AJOVY
|
|
|
24
|
|
|
18
|
|
35%
|
|
COPAXONE
|
|
|
13
|
|
|
16
|
|
(18%)
|
|
Other*
|
|
|
99
|
|
|
87
|
|
14%
|
|
Total
|
|
$
|
613
|
|
$
|
591
|
|
4%
|
| |
|
* 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 $477
million in the third quarter of 2024, an increase of 1% compared to
the third quarter of 2023. In local currency terms, revenues
increased by 13% compared to the third quarter of 2023, mainly due
to higher revenues in most markets, largely driven by price
increases as a result of higher costs due to inflationary pressure
in certain markets and higher volumes, partially offset by
regulatory price reductions and generic competition to off-patented
products in Japan.
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 $24 million, compared to $18 million in the third quarter of
2023, due to growth in existing markets in which AJOVY was
launched.
COPAXONE revenues in our International Markets
segment in the third quarter of 2024 were $13 million compared to
$16 million in the third quarter of 2023.
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 $306 million, an increase
of 4% compared to $293 million in the third quarter of 2023.
Gross profit margin for our International
Markets segment in the third quarter of 2024 increased to 49.9%,
compared to 49.6% in the third quarter of 2023. This increase was
mainly due to price increases largely as a result of inflationary
pressures in certain markets, the sale of certain product rights
and a favorable mix of products, partially offset by regulatory
price reductions and generic competition to off-patented products
in Japan, as well as higher costs due to inflationary and other
macroeconomic pressures.
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 $109 million, a decrease of 7%, compared to
$117 million in the third quarter of 2023. This decrease was mainly
due to higher S&M expenses in the third quarter of 2024.
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 $229 million, an increase of 6% in U.S.
dollars or 5% in local currency terms, compared to the third
quarter of 2023.
API sales to third parties in the third quarter of 2024 were
$130 million, reflecting an increase of 4% in both U.S. dollars and
local currency terms, compared to the third quarter of 2023,
following a reallocation of an immaterial business within our other
activities, in line with our intention to divest our API
business.
Outlook for 2024
Non-GAAP Results
|
$ billions, except EPS or as
noted
|
November 2024 Outlook
|
July 2024 Outlook
|
February 2024 Outlook
|
|
Revenues*
|
$16.1 - $16.5
|
$16.0 - $16.4
|
$15.7 - $16.3
|
|
AUSTEDO ($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
|
14% - 17%
|
14% - 17%
|
14% - 17%
|
|
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.
http://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 $0.5 million. |
|
|
|
|
|
|
|
|
|
| * 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 $91
million and $95 million as of September 30, 2024 and December 31,
2023 |
|
|
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 $495 million relating to taxes payable
for the years 2008 through 2020. |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Amounts may
not add up due to rounding |
| The
accompanying notes are an integral part of the financial
statements. |
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Reconciliation of net income (loss) attributable to
Teva |
| to Non-GAAP
net income (loss) attributable to Teva |
| |
|
|
|
|
|
|
|
|
|
| |
|
|
Three months
ended |
|
|
Nine months
ended |
| |
|
|
September 30, |
|
|
September 30, |
|
($ 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) |
|
16.0% |
9.0% |
|
|
15.5% |
|
13.0% |
|
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 $350
million recorded in connection with a decision by the European
Commission in its antitrust investigation into
COPAXONE®, 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). Adjustments for legal settlements and loss contingencies
in the third quarter of 2023 were mainly related to a provision of
$270 million in connection with the U.S. DOJ patient assistance
program litigation. Adjustments for legal settlements and loss
contingencies in the nine months ended September 30, 2024 were
mainly related to a provision of $350 million recorded in
connection with a decision by the European Commission in its
antitrust investigation into COPAXONE, and to an update to the
estimated settlement provision of $239 million for the opioid cases
(mainly the effect of the passage of time on the net present value
of the discounted payments and the settlement agreement with the
city of Baltimore). Adjustments for legal settlements and loss
contingencies in the nine months ended September 30, 2023 were
mainly related to an update to the estimated provision of $370
million related to the DOJ patient assistance program litigation,
an update to the estimated settlement provision of $248 million
related to the remaining opioid cases, the provision of $204
million relating to the U.S. DOJ criminal antitrust charges on the
marketing and pricing of certain Teva USA generic products and the
provision of $100 million related to the settlement of the
reverse-payment antitrust litigation over certain HIV
medicines. |
|
(3) |
Goodwill impairment charges of $600 million and $1,000 million
related to Teva’s API reporting unit were recorded in the three and
nine months ended September 30, 2024, respectively. A goodwill
impairment charge of $700 million related to our International
Markets reporting unit was recorded in the nine months ended
September 30, 2023. |
|
(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 $561 million and $275
million, respectively, related to the classification of the
business venture in Japan as held for sale. Adjustments for
impairment of long-lived assets, for the first nine months of 2023
primarily consisted of $206 million related to impairments of
identifiable product rights and $83 million related to impairments
of IPR&D assets. |
|
(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 $28 million and $266 million,
respectively for the three and nine months ended September 30,
2024, and of $23 million and $111 million, respectively for the
three and nine months ended September 30, 2023. |
|
(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 $495 million related to the settlement agreement with the
ITA to settle certain litigation with respect to taxes payable for
the Company’s taxable years 2008 through 2020. |
|
(8) |
Non-GAAP tax rate is tax expenses (benefit) excluding the impact of
non-GAAP tax adjustments presented above as a percentage of income
(loss) before income taxes excluding the impact of non-GAAP
adjustments presented above. GAAP tax rate for the three and nine
months ended September 30, 2024 was 21% and 62% respectively and
for the three and nine months ended September 30, 2023 was 19% and
4% respectively. |
|
(9) |
EPS difference and diluted non-GAAP EPS are calculated by dividing
our non-GAAP net income attributable to Teva by our non-GAAP
diluted weighted average number of shares. |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of gross profit to Non-GAAP gross
profit |
| (Unaudited) |
| |
|
|
Three months
ended |
|
|
Nine months
ended |
| |
|
|
September 30, |
|
|
September 30, |
|
($ in millions) |
|
2024 |
2023 |
|
|
2024 |
2023 |
|
Gross profit |
$ |
2,148 |
1,851 |
|
$ |
5,943 |
5,230 |
|
Gross profit margin |
|
49.6% |
48.1% |
|
|
48.3% |
45.9% |
|
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) |
|
53.7% |
53.5% |
|
|
52.7% |
51.6% |
|
|
|
|
|
|
|
|
|
|
(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 |
|
(1.2%) |
8.9% |
|
|
(2.2%) |
(2.8%) |
|
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) |
($) |
28.0% |
26.5% |
|
($) |
25.7% |
24.7% |
| |
|
|
|
|
|
|
|
|
|
(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 $0.5 million. |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
(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 $0.5 million. |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
30% |
| AJOVY |
|
|
58 |
|
|
56 |
|
4% |
| AUSTEDO |
|
|
435 |
|
|
339 |
|
28% |
|
BENDEKA/TREANDA |
|
|
40 |
|
|
56 |
|
(28%) |
|
COPAXONE |
|
|
69 |
|
|
98 |
|
(30%) |
| UZEDY |
|
|
35 |
|
|
2 |
|
N/A |
| Anda |
|
|
380 |
|
|
367 |
|
3% |
| Other |
|
|
115 |
|
|
140 |
|
(18%) |
|
Total |
|
|
2,225 |
|
|
1,896 |
|
17% |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
Three months ended |
|
|
| |
|
September 30, |
|
Percentage Change |
| |
|
2024 |
|
2023 |
|
2023-2024 |
| |
|
(U.S.$ in
millions) |
|
|
|
Europe segment |
|
|
|
|
|
|
|
|
| Generic
products |
|
$ |
973 |
|
$ |
886 |
|
10% |
| AJOVY |
|
|
56 |
|
|
41 |
|
37% |
|
COPAXONE |
|
|
53 |
|
|
55 |
|
(5%) |
| Respiratory
products |
|
|
60 |
|
|
61 |
|
(1%) |
| Other* |
|
|
124 |
|
|
104 |
|
19% |
|
Total |
|
|
1,265 |
|
|
1,146 |
|
10% |
| |
|
|
|
|
|
|
|
|
|
* 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 |
|
1% |
| AJOVY |
|
|
24 |
|
|
18 |
|
35% |
|
COPAXONE |
|
|
13 |
|
|
16 |
|
(18%) |
| Other* |
|
|
99 |
|
|
87 |
|
14% |
|
Total |
|
|
613 |
|
|
591 |
|
4% |
| |
|
|
|
|
|
|
|
|
|
* 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 |
|
18% |
| AJOVY |
|
|
144 |
|
|
154 |
|
(6%) |
| AUSTEDO |
|
|
1,124 |
|
|
817 |
|
38% |
| BENDEKA /
TREANDA |
|
|
127 |
|
|
185 |
|
(31%) |
|
COPAXONE |
|
|
179 |
|
|
224 |
|
(20%) |
| UZEDY |
|
|
75 |
|
|
14 |
|
433% |
| Anda |
|
|
1,134 |
|
|
1,183 |
|
(4%) |
| Other |
|
|
352 |
|
|
417 |
|
(16%) |
|
Total |
|
|
6,060 |
|
|
5,465 |
|
11% |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
Nine months ended |
|
|
| |
|
September 30, |
|
Percentage Change |
| |
|
2024 |
|
2023 |
|
2024-2023 |
| |
|
(U.S.$ in
millions) |
|
|
|
Europe segment |
|
|
|
|
|
|
|
|
| Generic
products |
|
$ |
2,947 |
|
$ |
2,727 |
|
8% |
| AJOVY |
|
|
158 |
|
|
115 |
|
37% |
|
COPAXONE |
|
|
163 |
|
|
174 |
|
(6%) |
| Respiratory
products |
|
|
183 |
|
|
195 |
|
(6%) |
| Other* |
|
|
299 |
|
|
282 |
|
6% |
|
Total |
|
|
3,749 |
|
|
3,493 |
|
7% |
| |
|
|
|
|
|
|
|
|
|
* 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 |
|
1% |
| AJOVY |
|
|
63 |
|
|
45 |
|
39% |
|
COPAXONE |
|
|
38 |
|
|
50 |
|
(23%) |
| Other* |
|
|
261 |
|
|
229 |
|
14% |
|
Total |
|
|
1,802 |
|
|
1,750 |
|
3% |
| |
|
|
|
|
|
|
|
|
|
* 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
Teva Pharmaceutical Indu... (TG:TEV)
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