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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