Teva Pharmaceutical Industries Reports Strong Q3 Revenue Growth

Teva Pharmaceutical Industries Ltd (TEVA) announced its third-quarter sales for 2024, revealing revenue of $4.33 billion. This figure exceeded analyst expectations, which were set at $4.12 billion.

The company's revenue showed a 13% increase compared to the same quarter last year, and on a constant currency basis, revenues climbed by 15%. This growth was primarily driven by improved sales from generic products across all regions, particularly in the U.S. with notable contributions from drugs such as Austedo.

Key Factors in Revenue Growth:

Teva's generics business exhibited robust growth in different markets, with a 30% increase in the United States, an 8% increase in Europe, and a 13% rise in other international markets when assessed in local currency.

In the U.S. segment alone, sales of generic products (including biosimilars) reached $1.09 billion, marking a significant 30% year-over-year growth. This surge was largely due to increased sales of lenalidomide capsules, a generic version of Bristol Myers Squibb & Co’s (BMY) Revlimid. The boost in sales was further supported by the launch of liraglutide injection 1.8mg, an authorized generic of Novo Nordisk A/S’ (NVO) Victoza, alongside higher revenues from epinephrine injectable solutions, the generic equivalent of EpiPen.

• Sales of Austedo in the U.S. increased by 28%, totaling $435 million.
• Global revenues for Ajovy rose by 21% to $137 million.
• Uzedy generated $35 million in U.S. sales.
• Teva reiterated its plan to divest its API segment, targeting completion in the first half of 2025.
• The adjusted earnings per share (EPS) reached 69 cents, an increase from 60 cents the previous year, surpassing the consensus estimate of 66 cents.
• Adjusted gross profit margin for the third quarter was reported at 53.7%, up from 53.5% a year ago.
• The adjusted operating margin improved to 28%, compared to 26.5% last year.
• Adjusted EBITDA increased by 17% to $1.34 billion in the third quarter of 2024.

Future Outlook:

Looking ahead, Teva expects total revenues for the fiscal year 2024 to fall between $16.1 billion and $16.5 billion, up from the previous guidance of $16.0 billion to $16.4 billion, which aligns closely with the consensus estimate of $16.256 billion.

The company also adjusted its EPS guidance for 2024 to a range of $2.40 to $2.50, slightly optimistic compared to the prior guidance of $2.30 to $2.50 and the consensus forecast of $2.45.

Additionally, Teva raised its sales expectations for Uzedy from approximately $80 million to around $100 million.

Stock Market Reaction:

Teva's stock rose by 1.76%, reaching $19.10 during the premarket trading session on Wednesday.

Teva, Pharmaceuticals, Investments