Teva Gets Actavis Boost, Q4 Results Top Estimates

Teva Pharmaceutical Industries Ltd (ADR) TEVA reported better-than-expected results for its fourth quarter, driven by the acquisition of Actavis Generics business. The company also reaffirmed its 2017 outlook, which also came in above consensus expectations.

• Teva Q4 EPS $1.38 vs $1.35 Est, Revenue $6.49B vs $6.25B Est
• Teva Sees FY 2017 EPS $4.90 to $5.30 vs $4.83 Est, Revenue $23.8B to $24.5B vs $23.7B Est

For the fourth quarter, Generic medicines revenues rose 44 percent to $3.7 billion and Specialty medicines revenues grew 4 percent to $2.2 billion.

On a GAAP basis, however, Teva reported a net loss attributable to ordinary shareholders of $1.0 billion, or $1.10 a share, compared to a profit of $500 million, $0.55 a share, in the fourth quarter of 2015.

Among others, the GAAP results included an impairment of goodwill of $900 million related to the acquisition of Rimsa; $500 million in Venezuela exchange rate and $225 million towards the ciprofloxacin (Cipro) settlement.

“In 2017, our main focus will be extracting synergies related to the Actavis Generics transaction, driving additional efficiencies throughout the organization, supporting cash generation and paying down our debt to maintain a strong balance sheet and delivering on the promise of the specialty pipeline and key generic launches,” Yitzhak Peterburg, Interim President and CEO of Teva, said in a press release.

Peterburg noted he is conducting a thorough review of the business to find additional opportunities to enhance value.

ADRs of Teva closed Friday at $32.19. In Monday's pre-market hours, the stock was up 3.88 percent to $33.44.