Teva Pharmaceutical Industries TEVA reported fourth-quarter 2024 adjusted earnings of 71 cents per share, which beat the Zacks Consensus Estimate of 70 cents. Adjusted earnings declined 29% 12 months over 12 months.
See the Zacks Earnings Calendar to remain forward of market-making information.
Revenues for the fourth quarter had been $4.23 billion, beating the Zacks Consensus Estimate of $4.10 billion. Nevertheless, whole revenues declined 5% from the year-ago quarter on each reported and fixed foreign money foundation. The decline is especially because of the absence of the one-time $500 million upfront cost obtained within the prior-year quarter from companion Sanofi SNY for the collaboration settlement for its anti-TL1A asset, duvakitug. The decline was partially offset by larger revenues from generic merchandise globally and powerful progress from branded medicine, Austedo, Ajovy and Uzedy, together with the sale of sure product rights.
Teva Pharmaceutical Industries Ltd. Worth, Consensus and EPS Shock
Teva Pharmaceutical Industries Ltd. price-consensus-eps-surprise-chart | Teva Pharmaceutical Industries Ltd. Quote
Poor Generics Gross sales Harm TEVA’s United States Unit
Gross sales in the USA phase (beforehand the North America phase) had been $1.98 billion, down 13% 12 months over 12 months. The decline was primarily because of the upfront cost from Sanofi as mentioned above, partially offset by larger revenues from Austedo, Uzedy and product rights gross sales. The phase’s revenues missed the Zacks Consensus Estimate of $2.01 billion in addition to our mannequin estimate of $2.03 billion.
Generic/biosimilar product revenues rose 1% from the year-ago interval to $674 million in the USA, pushed primarily by the launch of a generic model of Novo Nordisk’s diabetes drug, Victoza (in late June), and better revenues from a generic model of Roche’s Rituxan. The gross sales progress was partially offset by decrease revenues from generic variations of Revlimid and ProAir. Generic revenues missed the Zacks Consensus Estimate of $840 million in addition to our mannequin estimate of $893.5 million.
Teva has an honest pipeline of biosimilars, with some being developed in partnership with Alvotech. A biosimilar model of AbbVie’s ABBV Humira referred to as Simlandi was authorized in February 2024 and launched in Might. Selarsdi, a biosimilar model of J&J’s JNJ Stelara, was authorized in April 2024, and per a settlement with J&J, Teva is predicted to launch the biosimilar within the first quarter of 2025. In October 2024, the FDA accepted Teva’s utility searching for approval for TVB-009P, a biosimilar candidate to Amgen’s bone drug, Prolia (denosumab). The FDA’s determination is predicted within the second half of 2025.
Huntington’s illness drug, Austedo, recorded gross sales of $518 million in the USA, up 27% 12 months over 12 months. Gross sales had been primarily pushed by quantity progress as prescription tendencies continued to develop. Austedo gross sales beat the Zacks Consensus Estimate of $484 million and our mannequin estimate of $476.5 million.
Ajovy recorded gross sales of $63 million for the quarter, up 11% 12 months over 12 months, pushed by quantity progress. Ajovy gross sales beat the Zacks Consensus Estimate of $60 million in addition to our mannequin estimate of $59.1 million.
Ajovy’s market share in the USA elevated when it comes to the whole variety of prescriptions from 25.7% within the year-ago quarter to 29.6% within the reported quarter.
Uzedy (risperidone), a long-acting subcutaneous atypical antipsychotic injection for the therapy of schizophrenia, generated gross sales of $43 million within the fourth quarter in contrast with $9 million within the year-ago quarter.
Copaxone recorded gross sales of $63 million in the USA, down 13% 12 months over 12 months attributable to generic erosion and elevated competitors. Copaxone gross sales beat the Zacks Consensus Estimate of $53 million in addition to our mannequin estimate of $55.5 million.
Mixed gross sales of Bendeka and Treanda declined 21% from the year-ago quarter to $41 million. Gross sales of Bendeka and Treanda had been damage by generic erosion. Teva misplaced orphan drug exclusivity for bendamustine merchandise in December 2022.
Distribution revenues generated by Anda rose 2% 12 months over 12 months within the quarter to $402 million attributable to quantity progress.
TEVA’s Europe and Worldwide Markets Section Efficiency
The Europe phase recorded revenues of $1.35 billion, up 1% 12 months over 12 months on a reported foundation. Gross sales had been down 2% on a relentless foreign money foundation, primarily attributable to larger gross sales of sure product rights within the year-ago quarter. Europe revenues beat the Zacks Consensus Estimate of $1.26 billion in addition to our mannequin estimate of $1.18 billion.
Generic product revenues in Europe rose 5% in fixed foreign money phrases to $979 million. Copaxone gross sales declined 11% to $50 million. Revenues from Ajovy gross sales elevated 28% on a relentless foreign money foundation to $58 million.
Within the Worldwide Markets phase, gross sales rose 10% 12 months over 12 months to $661 million. In fixed foreign money phrases, gross sales elevated 17% from a 12 months in the past, pushed primarily by revenues from the sale of sure product rights and better generic revenues, partially offset by regulatory value reductions and generic competitors to off-patented merchandise in Japan. Worldwide Markets revenues beat the Zacks Consensus Estimate of $604 million in addition to our mannequin estimate of $615.9 million.
The Different phase (comprising the gross sales of energetic pharmaceutical elements to 3rd events and sure contract manufacturing companies) recorded revenues of $241 million, down 2% 12 months over 12 months on each reported and fixed foreign money foundation.
TEVA’s Margin Dialogue
Adjusted gross margin was 54.8% for the quarter, down 340 foundation factors (bps) 12 months over 12 months. The decline is especially because of the upfront cost obtained in 2023 for the duvakitug collaboration with Sanofi in addition to decrease revenues from Copaxone, partially offset by larger revenues from Austedo and sure different product rights.
Adjusted analysis & improvement bills elevated 9% 12 months over 12 months to $248 million. Promoting and advertising expenditure rose 7% from the year-ago degree to $650 million. Basic and administrative bills elevated 4% from the prior-year degree to $302 million.
Adjusted working earnings fell 24% 12 months over 12 months within the reported quarter to $1.17 billion. Adjusted working margin declined 710 bps to 27.6% within the quarter attributable to elevated working prices and decrease adjusted gross margin.
FY24 Outcomes
Revenues in 2024 had been clocked at $16.54 billion, representing a 4% year-over-year enhance on a reported foundation and a 6% enhance on a relentless foreign money foundation in contrast with 2023 outcomes. Gross sales beat the guided vary of $16.1-$16.5 billion.
Adjusted diluted earnings per share (EPS) for the total 12 months was $2.49, which was throughout the steering vary of $2.40-$2.50 per share.
TEVA’s Steerage for 2025
Rolling into 2025, Teva expects whole revenues in 2025 to be within the vary of $16.8–$17.4 billion. The Zacks Consensus Estimate for whole gross sales in 2025 is $16.94 billion.
Teva expects Austedo gross sales to be within the $1.90-$2.05 billion band and Ajovy gross sales of roughly $600 million in 2025. TEVA anticipates Copaxone revenues in 2025 to be roughly $370 million. The income steering for Uzedy is roughly $160 million in 2025, reflecting strong rising demand for the product.
Teva expects adjusted EPS to be within the vary of $2.35-$2.65 per share in 2025. The steering vary was decrease than the Zacks Consensus Estimate of $2.76 per share. The adjusted tax fee is predicted to be within the vary of 15-18%.
The corporate expects adjusted working earnings within the band of $4.1-$4.6 billion in 2025. Teva expects adjusted EBITDA within the vary of $4.5-$5 billion. Free money movement is predicted to be within the vary of $1.7-$2.1 billion, whereas capital expenditures are anticipated to be roughly $500 million.
Teva’s shares misplaced 13.9% on Wednesday, regardless of fourth-quarter earnings and revenues beat, because the gross sales and revenue steering for 2025 was beneath expectations.
Previously three months, shares of TEVA have gained 0.5% in contrast with the industry’s progress of 1%.
Picture Supply: Zacks Funding Analysis
TEVA’s Zacks Rank
Teva at present has a Zacks Rank #3 (Maintain). You possibly can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Shares Set to Double
Every was handpicked by a Zacks skilled because the #1 favourite inventory to realize +100% or extra in 2024. Whereas not all picks will be winners, earlier suggestions have soared +143.0%, +175.9%, +498.3% and +673.0%.
Many of the shares on this report are flying underneath Wall Road radar, which gives an important alternative to get in on the bottom ground.
Today, See These 5 Potential Home Runs >>
Sanofi (SNY) : Free Stock Analysis Report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
Teva Pharmaceutical Industries Ltd. (TEVA) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.
