Teva Posts Mixed Q1 Earnings, Cuts FY22 Sales Guidance Citing Copaxone Competition, Yet Shares Rise

Teva Pharmaceutical Industries Ltd's TEVA Q1 sales reached $3.66 billion, shrinking 8% Y/Y, missing the consensus of $3.75 billion.
The decrease is mainly due to lower revenues from generic products in North America and Copaxone, partially offset by higher revenues from Anda and generic products in the Europe segment.
The adjusted gross margin was 54.2% compared to 53.8% a year ago. The adjusted operating margin was almost stagnant at 27.7%.
Adjusted EBITDA decreased 6% to $1.34 billion. The company reported a free cash flow of $117 million.
Adjusted EPS of $0.55 came in line with the Wall Street estimate and down from $0.63 a year ago.
Outlook: Teva anticipates FY22 sales of $15.4 billion - $16 billion, down from prior guidance of $15.6 billion - $16.2 billion, compared to the consensus of $15.97 billion.
It reaffirms adjusted EPS of $2.40 - $2.60, compared to the consensus of $2.51.
Teva forecasts Copaxone revenues of approximately $750 million vs. the previous outlook of about $850 million to reflect increased competition and foreign exchange fluctuations.
It expects a Free cash flow of $1.9 billion - $2.2 billion, with an adjusted EBITDA of $4.7 billion - $5.0 billion.
Price Action: TEVA shares are down 3.75% at $8.85 during the market session on the last check Tuesday.

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