Teva Pharmaceutical Lifts Revenue Forecast - Huntington's And Migraine Drugs Help Q3 Performance

Teva Pharmaceutical Industries Ltd TEVA reported Q3 sales of $3.85 billion, beating the consensus of $3.72 billion.

The 7% Y/Y increase was mainly due to higher revenues from generic products in all segments, Austedo (Huntington's Disease treatment) in the North America segment and Ajovy (migraine drug) in all segments, partially offset by lower revenues from Bendeka and Treanda in the North America segment as well as from API sales to third parties.

The company reported Q3 adjusted EPS of $0.60, higher than $0.59 a year ago, missing the consensus of $0.61.

Also Read: Migraine Medication Battle: Eli Lilly Prevails in Patent Infringement Case Against Teva.

The adjusted gross profit margin was 53.5% compared to 53.0% a year ago, mainly due to a favorable mix of products in the North America segment primarily driven by increased revenues from Austedo, partially offset by higher costs due to inflationary and other macroeconomic pressures.

Adjusted operating margin reached 26.5% from 27.2% a year ago.

Adjusted EBITDA increased to $1.134 billion from $1.089 billion a year ago.

"Continued solid performance of Austedo, Ajovy and our generics business delivered growth across all geographies," said Chief Executive Officer Richard Francis. "Based on these strong and consistent results, we are increasing our revenue outlook for 2023 for the second consecutive quarter."

Outlook: Teva revised its FY23 revenue forecast to $15.1 billion–$15.5 billion versus the prior range of $15.0 billion -$15.4 billion and the consensus of $15.17 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 billion-$4.9 billion.

Price Action: TEVA shares are up 3.21% at $9.33 on the last check Wednesday.