Teva swings back to profit in first quarter as sales top forecasts

Headline results for the first quarter:


$4.4 billion (forecasts of $4.2 billion)



$69 million

Versus loss of $105 million

Note: All changes are versus the prior-year period unless otherwise stated

What the company said:

"Our very strong results during the first quarter of 2020 were impacted by greater demand in our major markets for generic and [over-the-counter] products and respiratory products," remarked CEO Kåre Schultz. The executive added "stronger revenues across these categories, along with growth in our operating and net profit, contributed to strong free cash flow and a further reduction in our net debt to $24.3 billion."

Other results:

  • North America: $2.1 billion, up 2% 
    • Generic drug sales: $952 million, down 1%, mainly due to price erosion and lower royalty income, offset by revenues from launches of new products, including Truxima and the ProAir authorised generic triggered by higher demand related to COVID-19
    • Copaxone: $198 million, down 5%, hit by generic competition in the US
    • Austedo: $122 million, up 64%, with volume growth driving sales
    • Bendeka/Treanda: $105 million, down 14%, due to the emergence of alternative novel therapies and continued competition from Eagle Pharmaceuticals' ready-to-dilute bendamustine formulation Belrapzo
    • QVAR: $45 million, down 29%, largely attributed to increased price competition and lower volumes
    • Ajovy: $29 million, up 44%, mainly due to growth in volume
  • Europe: $1.4 billion, up 11% 
    • Generic drug sales: $1 billion, up 12%, boosted by higher demand for certain products, with Teva estimating that the impact of COVID-19 on advanced buying patterns was roughly $100 million.
    • Copaxone: $109 million, down 4%, mainly due to price reductions and volume decline as a result of competing products, countered by higher demand as the pandemic impacted purchasing patterns
    • Respiratory products: $106 million, up 16%, due to higher demand attributed to the impact of the COVID-19 pandemic
    • Ajovy: $4 million
  • International markets: $565 million, up 8% 
    • Generic drug sales: $449 million, up 2%, with higher sales in Latin America, Asia-Pacific, Ukraine and Russia, partially offset by lower revenues in Japan resulting from generic competition
    • Copaxone: $12 million, down 11%

Looking ahead:

Teva said it is sticking with its previously announced guidance for the year, with revenues anticipated to be between $16.6 billion and $17 billion, while earnings are predicted to range from $2.30 per share to $2.55 per share.

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