Against the backdrop of growth in the generic market in the US and an increase in revenues in all geographic areas, the pharmaceutical company nature Ended the first quarter of 2024 with revenues of $3.81 billion, a growth of 4.3% compared to the same quarter last year, and higher than analysts’ forecasts that expected revenues of $3.73 billion.
Teva recorded a net loss attributable to shareholders in the amount of $139 million according to generally accepted accounting rules (GAAP), compared to a loss of $220 million in the corresponding quarter. Non-GAAP net profit, excluding various accounting items, was $548 million, a 20% increase compared to the corresponding quarter. Net profit per share amounted to 48 cents, compared to analysts’ forecasts of 51 cents.
The free flow in the first quarter amounted to 32 million dollars, and the amount of debt amounted to 19.6 billion dollars, a slight decrease compared to the previous quarter.
Teva confirmed the annual forecast it gave in the previous quarter, and continues to expect revenues of $15.7-16.3 billion, Non-GAAP operating profit of $4-4.5 billion, EBITDA (earnings excluding interest, tax, depreciation and amortization) of $4.5-5 billion, Free flow of $1.7-2 billion and Non-GAAP net profit of $2.2-2.5 per share.
Teva is traded on the New York and Tel Aviv Stock Exchanges. Teva’s share is in a positive trend and has increased since the beginning of the year by 33.6% to a price that reflects its market value of 15.8 billion dollars.
A year to launch a return to growth strategy
Teva CEO Richard Francis said that the company started the year in a good way, with a 5% increase in revenues in local currency terms, in light of solid growth in generic drugs and continued growth in the originator drugs Ostedo and Ajobi.
Francis added: “We mark a year since the launch of a strategy to return to the path of growth, and I am proud of the significant steps we have taken in realizing the goals and milestones we have set for ourselves on the way to growth.”
Teva began to report separately on its results in the US, which is its main market (in contrast to the previous reporting on North America, which also included Canada). Teva’s revenues in the US amounted to approximately 1.7 billion dollars, a growth of 2.9%, with a profitability of 350 million dollars , an increase of 3.6%. Ustedo sales grew in the US by 67% to $282 million, while Ajobi sales fell by 3% to $45 million. Generic drug sales grew by 8% to $808 million.
In Europe, sales grew by 7.4% to $1.27 billion, and profitability increased by 22.6% to $423 million. In international markets, sales increased by 2.8% to $597 million with a profit of $117 million.
Positive results in a trial for the treatment of schizophrenia
At the same time, Teva also announced positive results in a phase 3 trial of the original drug TEV-749 (olanzapine) that it is developing with Medinsal, a medication for the treatment of schizophrenia that is given once a month. According to estimates, the drug may be sold in the future for hundreds of millions of dollars.
Let’s recall that Teva put its raw materials division up for sale, a deal that was previously valued in the market at $2 billion. The company repeats and estimates that the move will be completed in the first half of 2025.
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