Generics business trends
In its fourth-quarter earnings presentation, Teva Pharmaceutical (TEVA) guided for a small fall in revenue in its North American generics business from $4.1 billion in 2018. While the company reported a stabilization in revenue in its North American generics business in 2018, it’s expected to be unfavorably affected by generic erosion and falls in sales volumes partly offset by new product launches in 2019. The company plans to launch a generic version of Forteo in the second half of 2019.
According to the company’s fourth-quarter earnings investor presentation, Teva Pharmaceutical expects portfolio optimization, the dissolution of its over-the-counter joint venture with Procter & Gamble (PG), and foreign currency fluctuations to affect its European generics business. This business reported sales of $3.6 billion in 2018.
According to the company’s fourth-quarter earnings investor presentation, Teva Pharmaceutical expects revisions in national health insurance premiums in Japan and ongoing generic erosion of long-listed products to adversely affect its international generics business revenue in 2019. International generics reported sales of $2.0 billion in 2018.
Projections for 2019
In its fourth-quarter earnings investor presentation, Teva Pharmaceutical guided for global revenue of $1.5 billion, a YoY fall of 37.5%, for Copaxone. The company has also guided for a generic erosion of revenue for the company’s bronchodilator inhaler, ProAir HFA, in 2019 mainly due to the entry of the generic albuterol. In 2018, ProAir HFA reported revenue of $397 million.
According to Teva’s fourth-quarter earnings conference call, it expects single-digit YoY growth in its revenue and operating profit in 2020. The company also expects uncertainty related to Bendeka’s growth trajectory in 2020 as a result of the probable entry of generics in late 2019.