Teva released its 1Q18 results
Today, Teva Pharmaceutical Industries (TEVA) released its 1Q18 earnings results for the quarter that ended on March 31. The company reported better-than-expected earnings results and announced that its restructuring plan is on track. Teva also increased its fiscal 2018 outlook during its 1Q18 earnings release. The stock rose more than 7% following the news during the pre-market trading session.
Teva reported revenues of $5.1 billion in fiscal 1Q18. The YoY (year-over-year) sales decline came in at ~10% due to the continued negative impact of intense competition in the US generics market, generics competition with Copaxone, and the loss of sales from divested and discontinued businesses as part of the restructuring program.
Teva’s adjusted diluted EPS (earnings per share) in fiscal 1Q18 were reported at $0.94. The company’s GAAP (generally accepted accounting principles) diluted EPS came in at $1.03.
The company stated that its restructuring plan is on track and that it will be able to achieve its debt reduction targets. Teva aims to pay down an additional $1.3 billion to $1.5 billion of debt in fiscal 2018. The company plans to achieve $1.5 billion savings in fiscal 2018 and $3 billion in fiscal 2019.
Copaxone and other products’ sales performance in 1Q18
Teva’s blockbuster generic Copaxone generated sales of $476 million, a decline of ~40% in the company’s North America region. In Europe, Copaxone sales came in at $153 million, up ~1%. Austedo generated sales of $30 million in fiscal 1Q18.
In the North America segment, Teva’s generics products sales declined ~23% to $1.1 billion. In Europe, the company’s generics products sales registered a YoY rise of 17% to $997 million. Growth market sales for Teva’s generic products were $488 million, up ~0.5%.
The highly anticipated Fremanezumab drug isn’t expected to get FDA (U.S. Food and Drug Administration) approval on BLA (biologics license applications) in mid-June, as expected earlier. However, Teva expects pre-approval inspection by the FDA in the coming months and expects to receive approval and launch the drug by the end of 2018.
Also, the company stated that the migraine drug is likely to get approval for quarterly dosage and is in a close race with its competitor Eli Lilly (LLY).
Teva increased its 2018 guidance
During the company’s 1Q18 earnings release today, Teva increased its fiscal 2018 guidance. In fiscal 2018, Teva expects to register sales of $18.5 billion to $19 billion. The company raised its fiscal 2018 adjusted diluted EPS guidance range from $2.25–$2.50 to $2.40–$2.65. For fiscal 2018, Teva expects to generate free cash flows of $3 billion to $3.2 billion, compared to its previous guidance of $2.6 billion to $2.8 billion.
The company stated that it’s witnessing a certain level of stabilization in the US generics market. It expects to sell generics drug worth $4 billion in the United States in fiscal 2018.
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