Teva profit plummets, stock slides
Teva profit plummets, stock slides
Teva plans to unveil a new strategy next week which CEO Francis said would "build on Teva's strong foundations, key strengths, and sets the stage for long-term growth"
Israel-based Teva Pharmaceutical Industries on Wednesday reported first-quarter profit that fell way short of estimates, but maintained its full-year outlook, citing a belief new product launches would help boost earnings throughout 2023.
Teva continued to project adjusted earnings per share (EPS) of $2.25-$2.55 and revenue of $14.8-$15.4 billion this year, compared with adjusted EPS of $2.52 and revenue of $14.9 billion in 2022.
"We are growing in our innovative (drugs segment) and we'll see more growth, also in our generics outside of the United States, in Europe and international markets," Chief Financial Officer Eli Kalif told an analysts' conference call.
Later this week, Teva expects to launch UZEDY (risperidone), an extended-release injectable for the treatment of schizophrenia in adults.
"It's a $4 billion market," said CEO Richard Francis. "We see ourselves getting between 10% and 20% of the market."
The world's largest generic drugmaker said it earned 40 cents per diluted share excluding one-time items in the January to March period, down from 55 cents a year earlier. Revenue was flat at $3.7 billion.
Analysts had forecast Teva would earn 56 cents a share ex-items on revenue of $3.63 billion, according to I/B/E/S data from Refinitiv.
"While we are seeing some positive tailwinds, we are also taking decisive actions to address some headwinds, mainly through improved portfolio mix driven by our innovative products and supply chain enhancements," said Francis.
"We expect these actions will improve our gross profit margin in the coming quarters."
North American sales of generic products fell 8% in the first quarter, but the group's branded Huntington's disease treatment Austedo gained 10% to $170 million, while migraine product Ajovy rose 36% to $49 million.
Teva plans to unveil a new strategy next week which Francis said would "build on Teva's strong foundations, key strengths, and sets the stage for long-term growth.”
