Teva Pharma's Stock Soars On Q2 Profit Beat, Highlights Strong Growth From Austedo

Teva Pharmaceutical Industries Ltd's TEVA Q2 sales reached $3.88 billion, up 2% Y/Y (4% on constant currency), slightly beating the consensus of $3.70 billion. 

Austedo sales are up 51% in North America to $308 million. Migraine treatment Ajovy's sales rose 16% to $57 million.

Sales of generic drugs dipped 6% to $969 million in North America but grew 4% to $909 million in Europe, where Ajovy rose 32%.

The adjusted gross profit margin was 52.2% in Q2, compared to 54.4% a year ago, mainly driven by rising costs due to inflationary and other macroeconomic pressures.

Adjusted operating margin reached 26.1% from 26.9% a year ago.

Adjusted EBITDA declined to $1.125 billion from $1.134 billion a year ago.

Adjusted EPS of $0.56 came ahead of the Wall Street estimate of $0.54, down from $0.68 a year ago.

Also Read: Teva's Strategic Evaluation: Israeli Pharma Company Mulls Divesting $2B Active Ingredients Unit.

Outlook: Teva revised its FY23 revenue forecast to $15.0-$15.4 billion from $14.8-$15.4 billion compared to the consensus of $15.02 billion.

It maintained its adjusted earnings per share forecast of $2.25-$2.55 versus the consensus of $2.27 and adjusted EBITDA of $4.5 - $4.9 billion and free cash flow of $1.7 - $2.1 billion.

"With this solid performance, we are slightly increasing the midpoint of our revenue guidance for the year," Richard Francis, Teva's President and CEO, said.

"As we remain determined to execute on our growth strategy, we are continuing to focus on our late-stage innovative pipeline delivery and early-stage pipeline development, both organically and through collaborations."

Price Action: TEVA shares are up 10% at $9.12 on the last check Wednesday.