Generic Drug Maker Teva Clocks 13% Jump In Q3 Revenues, Tightens Annual Forecast

Teva Pharmaceutical Industries Ltd TEVA reported third-quarter 2024 sales of $4.33 billion on Wednesday. It beat the consensus of $4.12 billion.

Revenues increased 13% year-over-year and 15% on constant currency. This was mainly due to higher revenues from generic products in all segments (i.e., Austedo in the U.S. segment), and the sale of product rights in Europe and International Markets segments.

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Generics business grows across all regions — increased by 30% in the U.S., 8% in Europe, and 13% in International Markets, in local currency terms compared to Q3 2023.

Generic products revenues in the U.S. segment (including biosimilars) were $1.09 billion, up 30% year over year, the majority of which was driven by higher revenues from lenalidomide capsules (the generic version of Bristol Myers Squibb & Co’s BMY Revlimid), and the remaining, primarily by the launch of liraglutide injection 1.8mg — an authorized generic of Novo Nordisk A/S’ NVO Victoza — and higher revenues from epinephrine injectable solution (the generic equivalent of EpiPen and EpiPen Jr).

• Austedo U.S. revenues increased 28% to $435 million. Ajovy's global revenues increased by 21% to $137 million.
• Uzedy’s U.S. revenues of $35 million.
• Teva says its intention to divest Teva API is on track, targeting completion in the first half of 2025.
• Adjusted EPS of 69 cents, higher than 60 cents a year ago, beating the consensus of 66 cents.
• Adjusted gross profit margin was 53.7% in the third quarter of 2024, compared to 53.5% in the third quarter of 2023.
• Adjusted operating margin reached 28%, down from 26.5% a year ago.
• Adjusted EBITDA was $1.34 billion in the third quarter of 2024, an increase of 17%.

Outlook: Teva expects fiscal year 2024 revenues of $16.1 billion-$16.5 billion versus prior guidance of $16.0 billion—$16.4 billion and consensus of $16.256 billion.

The generic pharma player expects 2024 adjusted EPS of $2.40-$2.50 versus prior guidance of $2.30-$2.50 and consensus of $2.45.

The company raised 2024 Uzedy sales guidance from around $80 million to approximately $100 million.

Price Action: Teva stock is up 1.76% at $19.10 during the premarket session at last check Wednesday.

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