Teva Pharmaceutical raises 2024 outlook as Q3 profit beats estimates
Adds CEO comments, financial details, company background, paragraphs 2-3, 7-9 and 14
Teva raises 2024 revenue and earnings guidance after strong Q3 results
CEO Richard Francis expects continued growth in 2025, including biosimilar business
Teva fined over $500 million by European Commission, plans to appeal
By Steven Scheer
JERUSALEM, Nov 6 (Reuters) -Teva Pharmaceutical Industries TEVA.TA raised its 2024 revenue and earnings guidance on Wednesday after beating third-quarter profit forecasts, boosted by strong sales of copycat medicines and its branded drugs to treat migraines and Huntington's disease.
Teva TEVA.N recorded double-digit sales growth in generic drugs as well as in sales of its trio of key branded medicines.
"2025 will be a bit of more of the same - more innovative growth, the ability to continue our generics performance, but also then start to add up our biosimilar business," Chief Executive Richard Francis told Reuters after the results were issued. He did not provide specific numbers.
The world's largest generic drugmaker said it earned 69 cents per diluted share, excluding one-time items, in the July-September quarter, up from 60 cents per share a year earlier. Revenue rose 15% to $4.33 billion.
Analysts had forecast earnings of 66 cents per share ex-items for the Israel-based company on revenue of $4.12 billion, LSEG I/B/E/S data showed.
The results excluded more than $1.2 billion of one-time costs including a legal settlement and a goodwill impairment for its API business, for which Teva said it would complete a divestment in the first half of 2025.
Last week, the European Commissionfined Teva more than $500 million for improperly seeking to protect the patent for its multiple sclerosis drug and for disparaging a rival company's development of a competing medicine. Francis said Teva disagrees and believes there is a good case for an appeal.
Teva, which has lowered its net debt to $15.7 billion, raised its 2024 revenue estimate to $16.1 billion to $16.5 billion from $16.0 billion to $16.4 billion, expecting higher sales from its Uzedy treatment of schizophrenia.
It now projects 2024 adjusted earnings per diluted share of $2.40-2.50, up from its previous estimate of $2.30-$2.50.
U.S. sales of Uzedy rose to $35 million in the third quarter from $2 million a year earlier and were on track for $100 million in 2024.
Sales of migraine treatment Ajovy rose 21% to $137 million, while Huntington's disease drug Austedo jumped 28% to $435 million, with an expected $1.6 billion in 2024.
Generic drug sales in the United States climbed 30% to $1.09 billion, led by a copycat version of Revlimid that treats multiple myeloma. Generic sales in Europe grew 10% to $973 million.
Francis also said he was ready to work with the incoming Trump administration in the U.S.
Reporting by Steven Scheer in Jerusalem; Editing by Louise Heavens, Mark Potter and Matthew Lewis
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
