Teva’s fiscal 2018 guidance
Teva Pharmaceutical (TEVA) provided fiscal 2018 guidance during its fiscal 2017 earnings release on February 8, 2018. The company is expecting a significant fall in its revenue in fiscal 2018 due to the divestiture of some of its businesses (including the women’s health business), its Venezuelan business deconsolidation, pricing pressures in the generics space, and Copaxone sales falling due to intensifying generic competition.
Teva expects to report sales in the range of $18.3 billion–$18.8 billion in fiscal 2018.
Major factors impacting fiscal 2018 sales
Teva’s sales in fiscal 2018 will mainly be affected by its Copaxone sales, US generics trends, and ProAir sales. The company expects to generate Copaxone sales of $1.8 billion worldwide in fiscal 2018. This estimate takes into account the negative impact of the increasing generic competition to Copaxone from generic versions recently launched by a number of companies, including Mylan (MYL), Novartis (NVS), and Momenta (MNTA).
Dr. Reddy’s Laboratories (RDY) is also awaiting FDA approval for its generic version of Copaxone, and it expects to launch the drug within a year. In terms of revenue, Teva’s three biggest contributors are Copaxone, US generics, and ProAir.
Global Copaxone sales are expected to be ~$1.8 billion in 2018. This estimate includes the ongoing erosion of the franchise due to recent generic competition and assumes a second generic launch of 40 milligrams in the United States as early as April.