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Name | Symbol | Market | Type |
---|---|---|---|
Teva Pharmaceutical Industries Ltd | NYSE:TEVA | NYSE | Depository Receipt |
Price Change | % Change | Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.0572 | 0.41% | 14.1372 | 14.16 | 14.00 | 14.15 | 1,211,002 | 15:36:46 |
☒ |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Israel
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Not Applicable
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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||
American Depositary Shares, each representing one Ordinary Share
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TEVA
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New York Stock Exchange
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Large accelerated filer | ☒ | Accelerated filer | ☐ | |||
Non-accelerated filer
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☐ | Smaller reporting company | ☐ | |||
Emerging growth company | ☐ |
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Page
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1
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1
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PART I
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Item 1.
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2
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Item 1A.
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24
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Item 1B.
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47
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Item 2.
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48
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Item 3.
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48
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Item 4.
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48
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PART II
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Item 5.
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48
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Item 6.
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50
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Item 7.
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52
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Item 7A.
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82
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Item 8.
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85
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Item 9.
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169
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Item 9A.
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169
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Item 9B.
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170
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PART III
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Item 10.
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170
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Item 11.
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170
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Item 12.
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170
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Item 13.
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170
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Item 14.
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170
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PART IV
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Item 15.
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171
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Item 16.
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176
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• |
our ability to successfully compete in the marketplace, including: that we are substantially dependent on our generic products; consolidation of our customer base and commercial alliances among our customers; delays in launches of new generic products; the increase in the number of competitors targeting generic opportunities and seeking U.S. market exclusivity for generic versions of significant products; our ability to develop and commercialize biopharmaceutical products; competition for our specialty products, including AUSTEDO
®
, AJOVY
®
and COPAXONE
®
; our ability to achieve expected results from investments in our product pipeline; our ability to develop and commercialize additional pharmaceutical products; and the effectiveness of our patents and other measures to protect our intellectual property rights;
|
• |
our substantial indebtedness, which may limit our ability to incur additional indebtedness, engage in additional transactions or make new investments, may result in a further downgrade of our credit ratings; and our inability to raise debt or borrow funds in amounts or on terms that are favorable to us;
|
• |
our business and operations in general, including: uncertainty regarding the magnitude, duration, and geographic reach of the
COVID-19
pandemic and its impact on our business, financial condition, operations, cash flows, and liquidity and on the economy in general; our ability to successfully execute and maintain the activities and efforts related to the measures we have taken or may take in response to the
COVID-19
pandemic and associated costs therewith; effectiveness of our optimization efforts; our ability to attract, hire and retain highly skilled personnel; manufacturing or quality control problems; interruptions in our supply chain; disruptions of information technology systems; breaches of our data security; variations in intellectual property laws; challenges associated with conducting business globally, including political or economic instability, major hostilities or terrorism; costs and delays resulting from the extensive pharmaceutical regulation to which we are subject or delays in governmental processing time due to travel and work restrictions caused by the
COVID-19
pandemic;
|
the effects of reforms in healthcare regulation and reductions in pharmaceutical pricing, reimbursement and coverage; significant sales to a limited number of customers; our ability to successfully bid for suitable acquisition targets or licensing opportunities, or to consummate and integrate acquisitions; and our prospects and opportunities for growth if we sell assets;
|
• |
compliance, regulatory and litigation matters, including: failure to comply with complex legal and regulatory environments; increased legal and regulatory action in connection with public concern over the abuse of opioid medications and our ability to reach a final resolution of the remaining opioid-related litigation; scrutiny from competition and pricing authorities around the world, including our ability to successfully defend against the U.S. Department of Justice (“DOJ”) criminal charges of Sherman Act violations; potential liability for patent infringement; product liability claims; failure to comply with complex Medicare and Medicaid reporting and payment obligations; compliance with anti-corruption sanctions and trade control laws; and environmental risks;
|
• |
other financial and economic risks, including: our exposure to currency fluctuations and restrictions as well as credit risks; potential impairments of our intangible assets; potential significant increases in tax liabilities; and the effect on our overall effective tax rate of the termination or expiration of governmental programs or tax benefits, or of a change in our business;
|
• |
AUSTEDO (deutetrabenazine) is a deuterated form of a small molecule inhibitor of vesicular monoamine 2 transporter, or VMAT2, that is designed to regulate the levels of a specific
|
neurotransmitter, dopamine, in the brain. The FDA granted Deutetrabenazine New Chemical Entity exclusivity until April 2022 and Orphan Drug exclusivity for the treatment of chorea associated with Huntington disease until April 2024.
|
• |
AUSTEDO was launched in the U.S. in 2017. It is indicated for the treatment of chorea associated with Huntington disease and for the treatment of tardive dyskinesia in adults, which is a debilitating, often irreversible movement disorder caused by certain medications used to treat mental health or gastrointestinal conditions.
|
• |
AUSTEDO launched in China for the treatment of chorea associated with Huntington disease and for the treatment of tardive dyskinesia in early 2021. We continue with additional submissions in various other countries around the world.
|
• |
AUSTEDO is protected in the United States by five Orange Book patents expiring between 2031 and 2033 and in Europe by two patents expiring in 2029. The first date for expected generic ANDA filings on AUSTEDO is in April 2021.
|
• |
AJOVY (fremanezumab-vfrm) injection is a fully humanized monoclonal antibody that binds to calcitonin gene-related peptide (“CGRP”) and it is indicated for the preventive treatment of migraine in adults. AJOVY was launched in the U.S. in 2018. AJOVY was approved in Canada in April 2020.
|
• |
During 2019, AJOVY was granted a marketing authorization in the European Union by the EMA in a centralized process and began receiving marketing authorizations in various countries in our International Markets segment. By the end of 2020, we launched AJOVY in most European countries and in certain International Markets countries. We are moving forward with plans to launch in other countries around the world.
|
• |
On January 27, 2020, the FDA approved an auto-injector device for AJOVY in the U.S., which became commercially available in April 2020. We have also received approval from the EMA for AJOVY’s auto-injector submission in the EU in October 2019, and we commenced launch in March 2020.
|
• |
AJOVY is protected by patents expiring in 2026 in Europe and in 2027 in the United States. Applications for patent term extensions have been submitted in various markets around the world, and certain extensions in Europe and other countries have already been granted until 2031. Additional patents relating to the use of AJOVY in the treatment of migraine have also been issued in the United States and will expire in 2035 and 2037. Such patents are also pending in other countries. AJOVY will also be protected by regulatory exclusivity of 12 years from marketing approval in the United States and 10 years from marketing approval in Europe.
|
• |
We have filed a lawsuit in the U.S. District Court for the District of Massachusetts alleging that Eli Lilly & Co.’s (“Lilly”) marketing and sale of its galcanezumab product for the treatment of migraine infringes nine Teva patents. Lilly then submitted IPR (inter partes review) petitions to the Patent Trial and Appeal Board, challenging the validity of the nine patents asserted against it in the litigation. The litigation in the district court was stayed pending resolution of the IPR petitions. On February 18, 2020, the Patent Trial and Appeal Board issued decisions on the first six IPRs, finding the six composition of matter patents invalid as being obvious. On April 21, 2020, we filed notices of appeal in connection with these decisions. On March 31, 2020 the Patent Trial and Appeal Board issued a decision upholding the three method of treatment patents and, on June 1, 2020, Lilly filed notices of appeal in connection with the decisions on these three patents. The litigation stay ended following the issuance of the most recent IPR decisions, and the parties are proceeding with the litigation. In addition, in 2018 we entered into separate agreements with Alder Biopharmaceuticals, Inc. and Lilly, resolving the European Patent Office oppositions that they filed against our AJOVY patents. The settlement agreement with Lilly also resolved Lilly’s action to revoke the patent protecting AJOVY in the United Kingdom.
|
• |
COPAXONE (glatiramer acetate injection) is one of the leading MS therapies in the United States (according to IQVIA data as of late 2020). COPAXONE is indicated for the treatment of patients with relapsing forms of MS (“RMS”), including the reduction of the frequency of relapses in relapsing-remitting multiple sclerosis (“RRMS”), including in patients who have experienced a first clinical episode and have MRI features consistent with MS.
|
• |
COPAXONE is believed to have a unique mechanism of action that works with the immune system, unlike many therapies that are believed to rely on general immune suppression or cell sequestration to exert their effect. COPAXONE provides a proven mix of efficacy, safety and tolerability.
|
• |
One European patent protecting COPAXONE 40 mg/mL was found invalid by the Board of Appeal of the European Patent Office in September 2020. Two additional patents expiring in 2030 are currently under opposition at the European Patent Office. In certain countries, Teva remains in litigation against generic companies on an additional COPAXONE 40 mg/mL patent that expires in 2030.
|
• |
The market for MS treatments continues to develop, particularly with the approval of generic versions of COPAXONE. Oral treatments for MS, such as Tecfidera
®
, Gilenya
®
and Aubagio
®
, continue to present significant and increasing competition. COPAXONE also continues to face competition from existing injectable products, as well as from monoclonal antibodies, such as Ocrevus
®
.
|
• |
BENDEKA (bendamustine hydrochloride) injection and TREANDA (bendamustine hydrochloride) for injection are approved in the United States for the treatment of patients with Chronic Lymphocytic Leukemia (“CLL”) and patients with indolent
B-cell
Non-Hodgkin’s Lymphoma (“NHL”) that has progressed during or within six months of treatment with rituximab or a rituximab-containing regimen. We launched BENDEKA in the United States in January 2016. It is a liquid,
low-volume
(50 mL) and short-time
10-minute
infusion formulation of bendamustine hydrochloride that we licensed from Eagle.
|
• |
BENDEKA faces direct competition from Belrapzo
®
ready-to-dilute
R-CHOP
(a combination of cyclophosphamide, vincristine, doxorubicin and prednisone in combination with rituximab) and
CVP-R
(a combination of cyclophosphamide, vincristine and prednisolone in combination with rituximab) for the treatment of NHL, as well as a combination of fludarabine, doxorubicin and rituximab for the treatment of CLL and newer targeted oral therapies, such as ibrutinib, idelilisib and venetoclax.
|
• |
In July 2018, Eagle prevailed in its suit against the FDA to obtain seven years of orphan drug exclusivity in the United States for BENDEKA. On March 13, 2020, this decision was upheld in the appellate court. As things currently stand, drug applications referencing BENDEKA, TREANDA or any other bendamustine product will not be approved by the FDA until the orphan drug exclusivity expires in December 2022. In April 2019, we signed an amendment to the license agreement with Eagle extending the royalty term applicable to the United States to the full period for which we sell BENDEKA and increased the royalty rate. In consideration, Eagle agreed to assume a portion of BENDEKA-related patent litigation expenses.
|
• |
There are 15 patents listed in the U.S. Orange Book for BENDEKA with expiry dates in 2026 and 2031. In September 2019, a patent infringement action against four of six ANDA filers for generic versions of BENDEKA was tried in the United States District Court for the District of Delaware. On April 27, 2020, the District Court upheld the validity of all of the asserted patents and found that all four ANDA filers infringe at least one of the patents. Three of the four ANDA filers have appealed the district court decision, but barring an adverse appellate decision, these ANDA filers should be enjoined until the patents expire in 2031. The litigation against the fifth ANDA filer was dismissed after the withdrawal of its patent challenge, and the case against the sixth ANDA filer is in the early stages of litigation.
|
• |
Additionally, in July 2018, Teva and Eagle filed suit against Hospira, Inc. (“Hospira”) related to its 505(b)(2) new drug application (“NDA”) referencing BENDEKA in the U.S. District Court for the District of Delaware. On December 16, 2019, the Delaware District Court dismissed the case against Hospira on all but one of the asserted patents, which expires in 2031. Trial against Hospira on that patent is scheduled to begin on November 15, 2021.
|
• |
In addition to the settlement with Eagle regarding its bendamustine 505(b)(2) NDA, between 2015 and 2020, we reached final settlements with 22 ANDA filers for generic versions of the lyophilized form of TREANDA and one 505(b)(2) NDA filer for a generic version of the liquid form of TREANDA, providing for the launch of generic versions of TREANDA prior to patent expiration.
|
• |
ProAir HFA
®
|
• |
ProAir RespiClick
dry-powder,
short-acting beta-agonist inhaler for the treatment or prevention of bronchospasm with reversible obstructive airway disease and for the prevention of exercise-induced bronchospasm in patients four years of age and older.
|
• |
QVAR
|
• |
QVAR RediHaler
|
• |
ProAir Digihaler
built-in
sensors which connects to a companion mobile application and provides inhaler use information to people with asthma and COPD.
|
• |
ArmonAir Digihaler
|
• |
AirDuo Digihaler
built-in
sensors which connects to a companion mobile application and provides inhaler use information to people with asthma.
|
• |
BRALTUS
®
inhaler. It was launched in Europe in August 2016.
|
• |
CINQAIR/CINQAERO
interleukin-5
antagonist monoclonal antibody for
add-on
maintenance treatment of adult patients with severe asthma and with an eosinophilic phenotype. This biologic treatment was launched in the U.S. and in certain European countries in 2016 and in Canada in 2017.
|
• |
AirDuo RespiClick
|
Phase 2
|
Phase 3
|
Pre-Submission
|
||||
Novel Biologics
|
Fremanezumab
Fibromyalgia
|
Fremanezumab
Additional indication
|
||||
TEV-48574
Respiratory
|
Fasinumab
Osteoarthritic Pain
(March 2016)
(1)
|
|||||
TEV-53275
Respiratory
|
||||||
Small Molecules
|
Deutetrabenazine
Dyskinesia in Cerebral Palsy
(September 2019)
|
Risperidone LAI
Schizophrenia
(2)
|
||||
Digital Respiratory
|
Digihaler
®
(budesonide and formoterol fumarate dihydrate)
(EU)
|
|||||
QVAR
®
Digihaler
®
(beclomethasone dipropionate HFA)
(U.S.)
|
(1) |
Developed in collaboration with Regeneron Pharmaceuticals, Inc. (“Regeneron”). Results for two phase 3 clinical trials, FACT OA1 and FACT OA2, were released on August 5, 2020, indicating that the
co-primary
endpoints for fasinumab 1 mg monthly were achieved. Fasinumab 1 mg monthly demonstrated significant improvements in pain and physical function over placebo at week 16 and week 24, respectively. Fasinumab 1 mg monthly also showed nominally significant benefits in physical function in two trials and pain in one trial, when compared to the maximum
FDA-approved
prescription doses of
non-steroidal
anti-inflammatory drugs for osteoarthritis. The FACT OA1 trial included an additional treatment arm, fasinumab 1 mg every two months, which showed numerical benefit over placebo, but did not reach statistical significance. In initial safety analyses from the phase 3 trials, there was an increase in arthropathies reported with fasinumab. In a
sub-group
of patients from one phase 3 long-term safety trial, there was an increase in joint replacement with fasinumab 1 mg monthly treatment during the
off-drug
follow-up
period, although this increase was not seen in the other trials to date.
|
(2) |
In January 2021, we announced positive results for a phase 3 clinical trial designed to evaluate the efficacy of risperidone LAI. No new safety signals were identified that are inconsistent with the known safety profile of other risperidone formulations. The second phase 3 study evaluating long-term safety and tolerability is ongoing.
|
• |
AUSTEDO for the treatment of Tourette syndrome in pediatric patients in the U.S., which was being developed under a partnership agreement with Nuvelution Pharma, Inc.; and
|
• |
fremanezumab (anti CGRP) for post-traumatic headache.
|
• |
global R&D facilities that enable us to have a broad global generic pipeline and product line, as well as a focused pipeline of specialty products;
|
• |
pharmaceutical manufacturing facilities approved by the FDA, EMA and other regulatory authorities located around the world, which offer a broad range of production technologies and the ability to concentrate production in order to achieve high quality and economies of scale;
|
• |
API manufacturing capabilities that offer a stable, high-quality supply of key APIs, vertically integrated with our pharmaceutical operations; and
|
• |
high-volume, technologically advanced distribution facilities that allow us to deliver new products to our customers quickly and efficiently, providing a cost-effective, safe and reliable supply.
|
• |
continued the implementation of our global EHS management system, which promotes proactive compliance with applicable EHS requirements, establishes EHS standards throughout our global operations and helps drive continuous improvement in our EHS performance;
|
• |
provided EHS regulatory monitoring tools in all countries where we have significant operations; and
|
• |
proactively evaluated EHS compliance through self-evaluation and an internal and external audit program, addressing
non-conformities
through appropriate corrective and preventative action.
|
December 31,
|
||||||||||||
2020
|
2019
|
2018
|
||||||||||
Full-time
|
37,100 | 38,130 | 40,556 | |||||||||
Part-time
|
1,272 | 1,158 | 621 | |||||||||
Contractor
|
1,844 | 1,497 | 1,756 | |||||||||
Total
|
40,216 | 40,785 | 42,933 | |||||||||
Total full time equivalent
|
39,717 | 40,039 | 42,535 |
December 31,
|
||||||||||||
2020
|
2019
|
2018
|
||||||||||
North America
|
6,918 | 7,336 | 7,752 | |||||||||
Europe
|
18,569 | 18,207 | 19,004 | |||||||||
International Markets (excluding Israel)
|
9,210 | 9,408 | 9,579 | |||||||||
Israel
|
3,675 | 4,337 | 4,843 | |||||||||
Total (excluding contractors)
|
38,372 | 39,288 | 41,177 |
ITEM 1A.
|
RISK FACTORS
|
• |
Our future success depends on our ability to maximize the growth and commercial success of AUSTEDO. If our revenues derived from AUSTEDO do not increase as expected, it may have an adverse effect on our results of operations.
|
• |
AJOVY faces strong competition from two products that were introduced into the market around the same time and are competing for market share in the same space, as well as from other emerging competing therapies. Our auto-injector for AJOVY launched in April 2020, but we may still be at a competitive disadvantage in our ability to sell and market this product compared to competing products that launched earlier with an auto-injector due to our late entry into the market.
|
• |
COPAXONE faces increasing competition from generic versions in the U.S. and competing glatiramer acetate products in Europe, as well as from orally-administered therapies. Following the approval of generic competition, COPAXONE’s revenues and profitability have decreased. We expect this trend to continue in the future, which may have a significant effect on our financial results and cash flow.
|
• |
making it more difficult for us to satisfy our obligations;
|
• |
limiting our ability to borrow additional funds and increasing the cost of any such borrowing;
|
• |
increasing our vulnerability to, and reducing our flexibility to respond to, general adverse economic and industry conditions;
|
• |
limiting our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate;
|
• |
placing us at a competitive disadvantage as compared to our competitors, to the extent that they are not as highly leveraged; and
|
• |
restricting us from pursuing certain business opportunities.
|
• |
some government programs may be discontinued, or the applicable tax rates may increase;
|
• |
we may be unable to meet the requirements for continuing to qualify for some programs and the restructuring plan may lead to the loss of certain tax benefits we currently receive;
|
• |
these programs and tax benefits may be unavailable at their current levels;
|
• |
upon expiration of a particular benefit, we may not be eligible to participate in a new program or qualify for a new tax benefit that would offset the loss of the expiring tax benefit; or
|
• |
we may be required to refund previously recognized tax benefits if we are found to be in violation of the stipulated conditions.
|
ITEM 1B.
|
UNRESOLVED STAFF COMMENTS
|
Business Segment
|
Number of
Facilities |
Square Feet
(in thousands)
|
||||||
North America
|
19 | 5,125 | ||||||
Europe
|
32 | 12,300 | ||||||
International Markets
|
35 | 7,769 | ||||||
|
|
|
|
|||||
Worldwide Total Manufacturing and R&D Facilities
|
86 | 25,194 |
* |
$100 invested on December 31, 2015 in stock or index—including reinvestment of dividends. Indexes calculated on
month-end
basis.
|
For the year ended December 31,
|
||||||||||||||||||||
2020
|
2019
|
2018
|
2017
|
2016
|
||||||||||||||||
(U.S. dollars in millions, except share and per share amounts)
|
||||||||||||||||||||
Income Statement Data:
(a)
|
||||||||||||||||||||
Net revenues
|
16,659 | 16,887 | 18,271 | 21,853 | 21,464 | |||||||||||||||
Cost of sales
|
8,933 | 9,351 | 9,975 | 11,237 | 9,811 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross profit
|
7,726 | 7,537 | 8,296 | 10,615 | 11,653 | |||||||||||||||
Research and development expenses
|
997 | 1,010 | 1,213 | 1,778 | 2,077 | |||||||||||||||
Selling and marketing expenses
|
2,498 | 2,614 | 2,916 | 3,395 | 3,583 | |||||||||||||||
General and administrative expenses
|
1,173 | 1,192 | 1,298 | 1,451 | 1,390 | |||||||||||||||
Intangible assets impairment
|
1,502 | 1,639 | 1,991 | 3,238 | 589 | |||||||||||||||
Goodwill impairment
|
4,628 | — | 3,027 | 17,100 | 900 | |||||||||||||||
Other asset impairments, restructuring and other items
|
479 | 423 | 987 | 1,836 | 830 | |||||||||||||||
Legal settlements and loss contingencies
|
60 | 1,178 | (1,208 | ) | 500 | 899 | ||||||||||||||
Other Income
|
(40 | ) | (76 | ) | (291 | ) | (1,199 | ) | (769 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating income (loss)
|
(3,572 | ) | (443 | ) | (1,637 | ) | (17,484 | ) | 2,154 | |||||||||||
Financial expenses, net
|
834 | 822 | 959 | 895 | 1,330 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income (loss) before income taxes
|
(4,406 | ) | (1,265 | ) | (2,596 | ) | (18,379 | ) | 824 | |||||||||||
Income taxes (benefit)
|
(168 | ) | (278 | ) | (195 | ) | (1,933 | ) | 521 | |||||||||||
Share in (profits) losses of associated companies, net
|
(138 | ) | 13 | 71 | 3 | (8 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income (loss)
|
(4,099 | ) | (1,000 | ) | (2,472 | ) | (16,449 | ) | 311 | |||||||||||
Net income (loss) attributable to
non-controlling
interests
|
(109 | ) | (2 | ) | (322 | ) | (184 | ) | (18 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income (loss) attributable to Teva
|
(3,990 | ) | (999 | ) | (2,150 | ) | (16,265 | ) | 329 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Accrued dividends on preferred shares
|
— | — | 249 | 260 | 261 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income (loss) attributable to ordinary shareholders
|
(3,990 | ) | (999 | ) | (2,399 | ) | (16,525 | ) | 68 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Earnings (loss) per share attributable to ordinary shareholders:
|
||||||||||||||||||||
Basic ($)
|
(3.64 | ) | (0.91 | ) | (2.35 | ) | (16.26 | ) | 0.07 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Diluted ($)
|
(3.64 | ) | (0.91 | ) | (2.35 | ) | (16.26 | ) | 0.07 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted average number of shares (in millions):
|
||||||||||||||||||||
Basic
|
1,095 | 1,091 | 1,021 | 1,016 | 955 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Diluted
|
1,095 | 1,091 | 1,021 | 1,016 | 961 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Dividend per ordinary share
|
— | — | $ | 0.51 | $ | 1.36 | $ | 1.36 |
(a) |
For a discussion of items that affected the comparability of results for the years 2020 and 2019, refer to “Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
|
As at December 31,
|
||||||||||||||||||||
2020
|
2019
|
2018
|
2017
|
2016
|
||||||||||||||||
(U.S. dollars in millions)
|
||||||||||||||||||||
Financial assets (cash, cash equivalents and investment in securities)
|
2,478 | 2,033 | 1,846 | 1,060 | 1,949 | |||||||||||||||
Identifiable intangible assets, net
|
8,923 | 11,232 | 14,005 | 17,640 | 21,487 | |||||||||||||||
Goodwill
|
20,624 | 24,846 | 24,917 | 28,414 | 44,409 | |||||||||||||||
Working capital (operating assets minus liabilities)
|
662 | 74 | (186 | ) | (384 | ) | 303 | |||||||||||||
Total assets
|
50,640 | 57,470 | 60,683 | 70,615 | 93,057 | |||||||||||||||
Short-term debt, including current maturities
|
3,188 | 2,345 | 2,216 | 3,646 | 3,276 | |||||||||||||||
Long-term debt, net of current maturities
|
22,731 | 24,562 | 26,700 | 28,829 | 32,524 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total debt
|
25,919 | 26,908 | 28,916 | 32,475 | 35,800 | |||||||||||||||
Total equity
|
11,061 | 15,063 | 15,794 | 18,745 | 34,993 |
• |
Our revenues in 2020 were $16,659 million, a decrease of 1% in both U.S. dollar and local currency terms, compared to 2019, mainly due to a decline in revenues from certain oncology products, COPAXONE and certain respiratory products, partially offset by higher revenues from AUSTEDO and AJOVY. The decline in revenues was also affected by reduced demand for certain products resulting from the impact of the
COVID-19
pandemic.
|
• |
Our North America segment generated revenues of $8,447 million and profit of $2,421 million in 2020. Revenues decreased by 1% compared to 2019, mainly due to a decline in revenues from COPAXONE, BENDEKA/TREANDA and certain other specialty products, partially offset by higher revenues from AUSTEDO, AJOVY and our U.S. generics business. Our North America segment has experienced some reductions in volume due to less physician and hospital activity during the
COVID-19
pandemic, but has also experienced increase in demand for certain products related to the treatment of
COVID-19
|
and its symptoms. In addition, the ability to promote our new specialty products, primarily AJOVY and AUSTEDO, has been impacted by less physician visits by patients and less physician interactions by our sales personnel. Profit increased by 7%, mainly due to higher gross profit margin and lower R&D expenses. |
• |
Our Europe segment generated revenues of $4,757 million and profit of $1,331 million in 2020. Revenues decreased by 1%, or 2% in local currency terms compared to 2019, mainly due to price declines for our oncology products as a result of generic competition and a decline in COPAXONE revenues due to competing glatiramer acetate products, partially offset by the launch of AJOVY. Revenues from generic products were flat, due to a decline in doctor and hospital visits by patients resulting in fewer prescriptions during the second half of 2020 due to the
COVID-19
pandemic, partially offset by new generic product launches. The
COVID-19
pandemic caused significant fluctuations in customer stocking throughout 2020, which mostly offset each other by
year-end.
Profit increased by 1%, mainly due to lower S&M expenses.
|
• |
Our International Markets segment generated revenues of $2,154 million and profit of $474 million in 2020. Revenues decreased by 4%, or flat in local currency terms compared to 2019, with higher revenues in most markets offsetting the lower sales in Japan and loss of revenues from divested businesses in Israel. Revenues in 2020 were also impacted by reduced demand for certain products and higher demand for other products, resulting from the impact of the
COVID-19
pandemic. In addition, the
COVID-19
pandemic has led to a decline in doctor and hospital visits by patients resulting in fewer prescriptions during 2020. Profit increased by 2%, mainly due to higher revenues in most markets and lower S&M expenses, partially offset by lower sales in Japan.
|
• |
Our revenues from other activities in 2020 were $1,302 million, flat compared to 2019. In local currency terms, revenues decreased by 1%.
|
• |
Impairments of identifiable intangible assets were $1,502 million and $1,639 million in the years ended December 31, 2020 and 2019, respectively. See note 6 to our consolidated financial statements.
|
• |
We recorded a goodwill impairment charge of $4,628 million related to our North America reporting unit in the year ended December 31, 2020. See note 7 to our consolidated financial statements.
|
• |
We recorded expenses of $479 million for other asset impairments, restructuring and other items in 2020, compared to expenses of $423 million in 2019. See note 15 to our consolidated financial statements.
|
• |
In 2020, we recorded an expense of $60 million in legal settlements and loss contingencies, compared to $1,178 million in 2019. See note 11 to our consolidated financial statements.
|
• |
Operating loss was $3,572 million in 2020, compared to an operating loss of $443 million in 2019. The increase in operating loss in 2020 was mainly due to goodwill impairment charges, partially offset by lower provisions in connection with legal settlements and loss contingencies, as well as higher profit in our North America segment.
|
• |
Financial expenses were $834 million in 2020, compared to $822 million in 2019. Financial expenses in 2020 were mainly comprised of interest expenses of $963 million, partially offset by gains on revaluations of marketable securities of $85 million (see note 20 to our consolidated financial statements) as well as a gain of $26 million resulting from our hedging and derivatives activities. Financial expenses in 2019 were mainly comprised of interest expenses of $881 million.
|
• |
In 2020, we recognized a tax benefit of $168 million, or 4%, on a
pre-tax
loss of $4,406 million. In 2019, we recognized a tax benefit of $278 million, or 22%, on a
pre-tax
loss of $1,265 million. Our tax rate for 2020 was lower than in 2019, mainly due to goodwill impairments that did not have a corresponding tax effect.
|
• |
Exchange rate movements during 2020, including hedging effects, in comparison with 2019, negatively impacted revenues by $33 million and operating income (loss) by $56 million.
|
• |
As of December 31, 2020, our debt was $25,919 million, compared to $26,908 million as of December 31, 2019. This decrease was mainly due to senior notes repaid at maturity with cash generated during the year, partially offset by exchange rate fluctuations.
|
• |
Cash flow generated from operating activities was $1,216 million in 2020, compared to $748 million in 2019. This increase was mainly due to higher profit in our North America segment during 2020.
|
• |
During 2020, we generated free cash flow of $2,110 million, which we define as comprising $1,216 million in cash flow generated from operating activities, $1,405 million in beneficial interest collected in exchange for securitized accounts receivables and $67 million in proceeds from sale of property, plant and equipment and intangible assets, partially offset by $578 million in cash used for capital investments. The increase in 2020 compared to 2019, resulted mainly from higher cash flow generated from operating activities, partially offset by less cash generated from sales of assets and higher capital investments.
|
Year ended December 31,
|
||||||||||||||||
2020
|
2019
|
|||||||||||||||
(U.S. $ in millions / % of Segment Revenues)
|
||||||||||||||||
Revenues
|
$ | 8,447 | 100 | % | $ | 8,542 | 100.0 | % | ||||||||
Gross profit
|
4,489 | 53.1 | % | 4,350 | 50.9 | % | ||||||||||
R&D expenses
|
622 | 7.4 | % | 652 | 7.6 | % | ||||||||||
S&M expenses
|
1,013 | 12.0 | % | 1,021 | 12.0 | % | ||||||||||
G&A expenses
|
443 | 5.2 | % | 439 | 5.1 | % | ||||||||||
Other (income) expense
|
(10 | ) | § | (14 | ) | § | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Segment profit*
|
$ | 2,421 | 28.7 | % | $ | 2,252 | 26.4 | % | ||||||||
|
|
|
|
|
|
|
|
* |
Segment profit does not include amortization and certain other items.
|
§ |
Represents an amount less than 0.5%.
|
Year ended December 31,
|
Percentage
Change
2019-2020
|
|||||||||||
2020
|
2019
|
|||||||||||
(U.S. $ in millions)
|
||||||||||||
Generic products
|
$ | 4,010 | $ | 3,963 | 1 | % | ||||||
AJOVY
|
134 | 93 | 45 | % | ||||||||
AUSTEDO
|
637 | 412 | 55 | % | ||||||||
BENDEKA/TREANDA
|
415 | 496 | (16 | %) | ||||||||
COPAXONE
|
884 | 1,017 | (13 | %) | ||||||||
ProAir*
|
241 | 274 | (12 | %) | ||||||||
QVAR
|
179 | 250 | (28 | %) | ||||||||
Anda
|
1,462 | 1,492 | (2 | %) | ||||||||
Other
|
485 | 546 | (11 | %) | ||||||||
|
|
|
|
|||||||||
Total
|
$ | 8,447 | $ | 8,542 | (1 | %) | ||||||
|
|
|
|
* |
Does not include revenues from the ProAir authorized generic, which are included under generic products.
|
Product Name
|
Brand
Name |
Launch
Date |
Total Annual U.S.
Branded Sales at Time of Launch (U.S. $ in millions (IQVIA))
(1)
|
|||||
Doxepin tablets, 3 mg & 6 mg
|
Silenor
®
|
January | $ | 50 | ||||
HERZUMA
®
(trastuzumab-pkrb) for injection, 150 mg/vial & 420 mg/vial
(2)
|
Herceptin
®
|
March | $ | 3,042 | ||||
Deferasirox Tablets, 180mg
|
Jadenu
®
|
April | $ | 53 | ||||
Romidepsin Injection, 27.5mg/5.5 mL (5mg/mL)
(3)
|
(3)
|
April | — | |||||
Vigabatrin for Oral Solution, USP, 500mg
|
Sabril
®
|
May | $ | 254 | ||||
Everolimus Tablets, 2.5mg, 5mg & 7.5mg
|
Anfinitor
®
|
June | $ | 401 | ||||
Imiquimod Cream 3.75%
(4)
|
Zyclara
®
|
July | $ | 24 | ||||
Sildenafil for Oral Suspension
|
Revatio
®
|
August | $ | 121 | ||||
PEG-3350,
Sodium Sulfate, Sodium Chloride, Potassium Chloride, Sodium Ascorbate, and Ascorbic Acid for Oral Solution
|
MoviPrep
®
|
August | $ | 10 | ||||
Tobramycin Inhalation Solution, USP
|
Bethkis
®
|
September | $ | 42 | ||||
Dimethyl Fumarate Delayed-Release Capsules
|
Tecfidera
®
|
September | $ | 3,788 | ||||
Efavirenz, Emtricitabine and Tenofovir Disoproxil Fumarate Tablets
|
Atripla
®
|
September | $ | 578 | ||||
Emtricitabine and Tenofovir Disoproxil Fumarate Tablets, 200mg/300mg
|
Truvada
®
|
September | $ | 2,872 | ||||
Methylphenidate Hydrochloride Extended-Release Capsules
|
Aptensio
XR
®
|
October | $ | 38 | ||||
Alvimopan Capsules
|
Entereg
®
|
December | $ | 92 | ||||
Colchicine Tablets, USP
|
Colcrys
®
|
December | $ | 415 |
(1) |
The figures presented are for the twelve months ended in the calendar quarter immediately prior to our launch or
re-launch.
|
(2) |
Biosimilar.
|
(3) |
Approved via 505(b)(2) regulatory pathway; not equivalent to a brand product.
|
(4) |
Authorized generic.
|
Generic Name
|
Brand Name
|
Total U.S. Annual Branded
Market (U.S. $ in millions (IQVIA))* |
||||
Eliglustat Capsules, 84mg
|
Cerdela
®
|
$ | 111 | |||
Icosapent Capsules, 500mg & 1000mg
|
Vascepa
®
|
$ | 972 | |||
Macitenta Tablets, 10mg
|
Opsumit
®
|
$ | 590 | |||
Pemetrexed Disodium Injection, 100mg vial
|
Alimta
®
|
$ | 255 | |||
Apixaban Tablets, 2.5 mg and 5 mg
|
Eliquisr
®
|
$ | 11,445 | |||
Pirfenidone Tablets
|
Esbriet
®
|
$ | 540 | |||
Micafungin for Injection
|
Mycamine
®
|
$ | 125 |
* |
For the twelve months ended in the calendar quarter immediately prior to the receipt of tentative approval.
|
Year ended December 31,
|
||||||||||||||||
2020
|
2019
|
|||||||||||||||
(U.S. $ in millions / % of Segment Revenues)
|
||||||||||||||||
Revenues
|
$ | 4,757 | 100 | % | $ | 4,795 | 100 | % | ||||||||
Gross profit
|
2,666 | 56.0 | % | 2,704 | 56.4 | % | ||||||||||
R&D expenses
|
247 | 5.2 | % | 262 | 5.5 | % | ||||||||||
S&M expenses
|
830 | 17.4 | % | 890 | 18.6 | % | ||||||||||
G&A expenses
|
261 | 5.5 | % | 239 | 5.0 | % | ||||||||||
Other (income) expense
|
(3 | ) | § | (5 | ) | § | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Segment profit*
|
$ | 1,331 | 28.0 | % | $ | 1,318 | 27.5 | % | ||||||||
|
|
|
|
|
|
|
|
* |
Segment profit does not include amortization and certain other items.
|
§ |
Represents an amount less than 0.5%.
|
Year ended December 31,
|
Percentage
Change
2019-2020
|
|||||||||||
2020
|
2019
|
|||||||||||
(U.S. $ in millions)
|
||||||||||||
Generic products
|
$ | 3,513 | $ | 3,470 | 1 | % | ||||||
AJOVY
|
31 | 3 | 852 | % | ||||||||
COPAXONE
|
400 | 432 | (7 | %) | ||||||||
Respiratory products
|
353 | 354 | § | |||||||||
Other
|
459 | 536 | (14 | %) | ||||||||
|
|
|
|
|||||||||
Total
|
$ | 4,757 | $ | 4,795 | (1 | %) | ||||||
|
|
|
|
§ |
Represents an amount less than 0.5%.
|
2020
|
2019
|
|||||||||||||||
(U.S. $ in millions / % of Segment Revenues)
|
||||||||||||||||
Revenues
|
$ | 2,154 | 100 | % | $ | 2,246 | 100 | % | ||||||||
Gross profit
|
1,096 | 50.9 | % | 1,167 | 51.9 | % | ||||||||||
R&D expenses
|
70 | 3.3 | % | 88 | 3.9 | % | ||||||||||
S&M expenses
|
427 | 19.8 | % | 481 | 21.4 | % | ||||||||||
G&A expenses
|
136 | 6.3 | % | 138 | 6.1 | % | ||||||||||
Other (income) expense
|
(11 | ) | (0.5 | %) | (3 | ) | § | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Segment profit*
|
$ | 474 | 22.0 | % | $ | 464 | 20.6 | % | ||||||||
|
|
|
|
|
|
|
|
* |
Segment profit does not include amortization and certain other items.
|
§ |
Represents an amount less than 0.5%.
|
Year ended
December 31, |
Percentage
Change
2019-2020
|
|||||||||||
2020
|
2019
|
|||||||||||
(U.S. $ in millions)
|
||||||||||||
Generic products
|
$ | 1,792 | $ | 1,893 | (5 | %) | ||||||
COPAXONE
|
53 | 63 | (16 | %) | ||||||||
Other
|
309 | 291 | 6 | % | ||||||||
|
|
|
|
|||||||||
Total
|
$ | 2,154 | $ | 2,246 | (4 | %) | ||||||
|
|
|
|
Year ended
December 31, |
||||||||
2020
|
2019
|
|||||||
(U.S.$ in millions)
|
||||||||
North America profit
|
$ | 2,421 | $ | 2,252 | ||||
Europe profit
|
1,331 | 1,318 | ||||||
International Markets profit
|
474 | 464 | ||||||
|
|
|
|
|||||
Total reportable segments profit
|
4,225 | 4,034 | ||||||
Profit (loss) of other activities
|
163 | 108 | ||||||
|
|
|
|
|||||
Total segments profit
|
4,388 | 4,142 | ||||||
Amounts not allocated to segments:
|
||||||||
Amortization
|
1,020 | 1,113 | ||||||
Other asset impairments, restructuring and other items
|
479 | 423 | ||||||
Goodwill impairment
|
4,628 | — | ||||||
Intangible asset impairments
|
1,502 | 1,639 | ||||||
Gain on divestitures, net of divestitures related costs
|
(8 | ) | (50 | ) | ||||
Other R&D expenses (income)
|
37 | (15 | ) | |||||
Costs related to regulatory actions taken in facilities
|
23 | 45 | ||||||
Legal settlements and loss contingencies
|
60 | 1,178 | ||||||
Other unallocated amounts
|
219 | 252 | ||||||
|
|
|
|
|||||
Consolidated operating income (loss)
|
(3,572 | ) | (443 | ) | ||||
|
|
|
|
|||||
Financial expenses, net
|
834 | 822 | ||||||
|
|
|
|
|||||
Consolidated income (loss) before income taxes
|
$ | (4,406 | ) | $ | (1,265 | ) | ||
|
|
|
|
• |
our management and Board of Directors use the
non-GAAP
measures to evaluate our operational performance, to compare against work plans and budgets, and ultimately to evaluate the performance of management;
|
• |
our annual budgets are prepared on a
non-GAAP
basis; and
|
• |
senior management’s annual compensation is derived, in part, using these
non-GAAP
measures. While qualitative factors and judgment also affect annual bonuses, the principal quantitative element in the determination of such bonuses is performance targets tied to the work plan, which is based on the
non-GAAP
presentation set forth below.
|
• |
amortization of purchased intangible assets;
|
• |
legal settlements and/or loss contingencies, due to the difficulty in predicting their timing and scope;
|
• |
impairments of long-lived assets, including intangibles, property, plant and equipment and goodwill;
|
• |
restructuring expenses, including severance, retention costs, contract cancellation costs and certain accelerated depreciation expenses primarily related to the rationalization of our plants or to certain other strategic activities, such as the realignment of R&D focus or other similar activities;
|
• |
acquisition- or divestment- related items, including changes in contingent consideration, integration costs, banker and other professional fees, inventory
step-up
and
in-process
R&D acquired in development arrangements;
|
• |
expenses related to our equity compensation;
|
• |
significant
one-time
financing costs and valuation gains or losses;
|
• |
unusual tax items;
|
• |
other awards or settlement amounts, either paid or received;
|
• |
other exceptional items that we believe are sufficiently large that their exclusion is important to facilitate an understanding of trends in our financial results, such as impacts due to changes in accounting, significant costs for remediation of plants, such as inventory write-offs or related consulting costs, or other unusual events; and
|
• |
corresponding tax effects of the foregoing items.
|
Year Ended December 31, 2020
(U.S. $ and shares in millions, except per share amounts)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GAAP |
Excluded for
non-GAAP
measurement
|
Non-
GAAP |
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization
of purchased intangible assets |
Legal
settlements and loss contingencies |
Goodwill
impairment |
Impairment
of long- lived assets |
Other
R&D expenses |
Restructuring
costs |
Costs
related to regulatory actions taken in facilities |
Equity
compensation |
Contingent
consideration |
Gain on
sale of business |
Other
non-
GAAP items |
Other
items |
|||||||||||||||||||||||||||||||||||||||||||||
COGS
|
8,933 | 894 | 23 | 27 | 63 | 7,925 | ||||||||||||||||||||||||||||||||||||||||||||||||||
R&D
|
997 | 37 | 20 | — | 941 | |||||||||||||||||||||||||||||||||||||||||||||||||||
S&M
|
2,498 | 126 | 36 | 14 | 2,322 | |||||||||||||||||||||||||||||||||||||||||||||||||||
G&A
|
1,173 | 46 | 12 | 1,115 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income
|
(40 | ) | (8 | ) | (31 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Legal settlements and loss contingencies
|
60 | 60 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other asset impairments, restructuring and other items
|
479 | 416 | 120 | (81 | ) | 24 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Intangible assets impairment
|
1,502 | 1,502 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill impairment
|
4,628 | 4,628 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial expenses
|
834 | (85 | ) | 918 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Income taxes
|
(168 | ) | (745 | ) | 577 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Share in profits (losses) of associated companies, net
|
(138 | ) | (134 | ) | (4 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to
non-controlling
interests
|
(109 | ) | (177 | ) | 68 | |||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
Total reconciled items
|
1,020 | 60 | 4,628 | 1,918 | 37 | 120 | 23 | 129 | (81 | ) | (8 | ) | 114 | (1,140 | ) | |||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
EPS—Basic
|
(3.64 | ) | 6.23 | 2.58 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
EPS—Diluted
|
(3.64 | ) | 6.22 | 2.57 |
Year ended December 31, 2019
(U.S. $ and shares in millions, except per share amounts)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
GAAP |
Excluded for
non-GAAP
measurement
|
Non-
GAAP |
||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization
of purchased intangible assets |
Legal
settlements and loss contingencies |
Impairment
of long- lived assets |
Other
R&D expenses |
Restructuring
costs |
Costs
related to regulatory actions taken in facilities |
Equity
compensation |
Contingent
consideration |
Gain on
sale of
business
|
Other
non-
GAAP items |
Other
items |
||||||||||||||||||||||||||||||||||||||||||
COGS
|
9,351 | 973 | 45 | 26 | 121 | 8,185 | ||||||||||||||||||||||||||||||||||||||||||||||
R&D
|
1,010 | (15 | ) | 20 | 1 | 1,004 | ||||||||||||||||||||||||||||||||||||||||||||||
S&M
|
2,614 | 139 | 35 | 1 | 2,438 | |||||||||||||||||||||||||||||||||||||||||||||||
G&A
|
1,192 | 42 | 5 | 1,145 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other income
|
(76 | ) | (50 | ) | (27 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Legal settlements and loss contingencies
|
1,178 | 1,178 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other asset impairments, restructuring and other items
|
423 | 139 | 199 | 59 | 26 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Intangible assets impairment
|
1,639 | 1,639 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Financial expenses
|
822 | (3 | ) | 824 | ||||||||||||||||||||||||||||||||||||||||||||||||
Income taxes
|
(278 | ) | (875 | ) | 597 | |||||||||||||||||||||||||||||||||||||||||||||||
Share in profits (losses) of associated companies, net
|
13 | — | 13 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to
non-controlling
interests
|
(2 | ) | (82 | ) | 80 | |||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total reconciled items
|
1,113 | 1,178 | 1,778 | (15 | ) | 199 | 45 | 123 | 59 | (50 | ) | 155 | (959 | ) | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
EPS—Basic
|
(0.91 | ) | 3.32 | 2.41 | ||||||||||||||||||||||||||||||||||||||||||||||||
EPS—Diluted
|
(0.91 | ) | 3.32 | 2.40 |
• |
variable demand for certain products in certain markets and changes in physician and hospital activity due to the impact of the
COVID-19
pandemic. For further details, see “—The
COVID-19
Pandemic—Trends” above;
|
• |
continued success of our specialty products AUSTEDO and AJOVY;
|
• |
success of clinical trials and approval of our specialty product fasinumab, which is under development by Regeneron;
|
• |
ability to successfully execute key generic launches in a timely manner;
|
• |
ability to successfully develop and launch new biosimiliar products;
|
• |
a decrease in sales of COPAXONE following the launches of generic versions to the product, and the possibility of additional generic competition in the future;
|
• |
a decrease in sales of other specialty products due to potential loss of exclusivity or generic competition;
|
• |
we expect continued competition for our generic products where multiple similar generic products have been launched, resulting in pricing pressure in the generics markets. We do, however, also see certain generic segments in which opportunities exist to grow our business, our portfolio of new drug applications and our portfolio of approved complex products;
|
• |
our disciplined cash management and debt repayment schedule;
|
• |
our high debt levels and
non-investment
grade credit rating may increase the cost of any new borrowing;
|
• |
continued impact of currency fluctuations on revenues and operating income, as well as on various balance sheet and statements of income line items;
|
• |
ongoing evaluation of opportunities to further optimize our manufacturing and supply network to achieve additional operational efficiencies, which may affect our business and operations; and
|
• |
continued efforts towards achieving our long-term financial goals.
|
Payments Due by Period
|
||||||||||||||||||||
Total
|
Less than
1 year |
1-3 years
|
3-5 years
|
More than
5 years |
||||||||||||||||
(U.S. $ in millions)
|
||||||||||||||||||||
Long-term debt obligations, including estimated interest*
|
$ | 32,187 | $ | 3,563 | $ | 8,254 | $ | 7,902 | $ | 12,468 | ||||||||||
Purchase obligations (including purchase orders)
|
1,766 | 1,465 | 246 | 38 | 17 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
$ | 33,953 | $ | 5,028 | $ | 8,500 | $ | 7,940 | $ | 12,485 | ||||||||||
|
|
|
|
|
|
|
|
|
|
* |
Long-term debt obligations mainly include senior notes and convertible senior debentures as disclosed in note 9 to our consolidated financial statements.
|
• |
Revenue Recognition and SR&A in the United States
|
• |
Income Taxes
|
• |
Contingencies
|
• |
Goodwill
|
• |
Identifiable Intangible Assets
|
• |
Restructuring Costs
|
• |
A projection or forecast that indicates losses or reduced profits associated with an asset. This could result, for example, from a change in the competitive landscape modifying our assumptions about market share or pricing prospectively, a government reimbursement program that results in an inability to sustain projected product revenues and profitability, or lack of acceptance of a product by patients, physicians or payers limiting our projected growth.
|
• |
A significant adverse change in legal factors or in the business climate that could affect the value of the asset. For example, a successful challenge of our patent rights by a competitor would likely result in generic competition earlier than expected. And conversely, a lost challenge of patent rights in connection with our generic file would likely result in delayed entry.
|
• |
A significant adverse change in the extent or manner in which an asset is used. For example, restrictions imposed by the FDA or other regulatory authorities could affect our ability to manufacture or sell a product.
|
• |
For IPR&D projects, this could result from, among other things, a change in outlook affecting assumptions around competition or timing of entry such as approval success or the related timing of approval, clinical trial data results, other delays in the projected launch dates or additional expenditures required to commercialize the product.
|
Net exposure as of
December 31, 2020
|
||||
Liability/Asset
|
(U.S. $ in millions)
|
|||
USD/CHF
|
438 | |||
USD/EUR
|
395 | |||
USD/JPY
|
345 | |||
BGN/EUR
|
302 | |||
HRK/USD
|
118 | |||
CAD/EUR
|
99 | |||
PLN/EUR
|
96 | |||
USD/MXN
|
93 | |||
INR/USD
|
88 | |||
USD/GBP
|
51 |
Currency (sold)
|
Cross
Currency (bought) |
Net Notional Value
|
Fair Value
|
2020 Weighted
Average Cross Currency Prices or Strike Prices |
||||||||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||||||||||
(U.S. $ in millions)
|
||||||||||||||||||||||||
Forward:
|
||||||||||||||||||||||||
CHF
|
USD | 464 | 384 | (12 | ) | (5 | ) | 0.90 | ||||||||||||||||
EUR
|
USD | 400 | 503 | (16 | ) | (6 | ) | 1.18 | ||||||||||||||||
JPY
|
USD | 326 | 302 | (5 | ) | 2 | 104.57 | |||||||||||||||||
USD
|
INR | 145 | 192 | 2 | — | 75.21 | ||||||||||||||||||
GBP
|
USD | 133 | * | (3 | ) | — | 1.33 | |||||||||||||||||
EUR
|
PLN | 103 | 216 | — | 4 | 4.57 | ||||||||||||||||||
EUR
|
CAD | 101 | 96 | (1 | ) | — | 1.55 | |||||||||||||||||
MXN
|
USD | 91 | 68 | (2 | ) | (2 | ) | 20.52 | ||||||||||||||||
CAD
|
USD | 70 | 101 | (2 | ) | — | 1.31 | |||||||||||||||||
PLN
|
USD | 54 | 105 | — | (2 | ) | 3.74 | |||||||||||||||||
EUR
|
GBP | * | 445 | — | 12 | — | ||||||||||||||||||
USD
|
RUB | * | 205 | — | (5 | ) | — | |||||||||||||||||
NIS
|
USD | * | 131 | — | (1 | ) | — | |||||||||||||||||
RUB
|
EUR | * | 92 | — | (2 | ) | — | |||||||||||||||||
Options:
|
||||||||||||||||||||||||
EUR
|
USD | 167 | 381 | (3 | ) | (2 | ) | 1.16 | ||||||||||||||||
JPY
|
USD | 89 | 139 | — | — | 106.23 | ||||||||||||||||||
CHF
|
USD | 84 | 85 | (2 | ) | (1 | ) | 0.93 | ||||||||||||||||
GBP
|
USD | 53 | 63 | (1 | ) | (1 | ) | 1.28 | ||||||||||||||||
EUR
|
GBP | * | 131 | — | — | — |
* |
Represents Net Notional Value of less than $50 million.
|
Currency
|
Total
Amount |
Interest Rate
Ranges |
2021
|
2022
|
2023
|
2024
|
2025
|
2026 &
thereafter |
||||||||||||||||||||||||||||
(U.S. dollars in millions)
|
||||||||||||||||||||||||||||||||||||
Fixed Rate:
|
||||||||||||||||||||||||||||||||||||
USD
|
16,286 | 2.20 | % | 7.13 | % | 2,674 | 853 | 2,996 | 1,250 | 1,000 | 7,513 | |||||||||||||||||||||||||
Euro
|
8,408 | 0.38 | % | 6.00 | % | — | 861 | 1,595 | 1,839 | 2,337 | 1,776 | |||||||||||||||||||||||||
CHF
|
795 | 0.50 | % | 1.00 | % | — | 397 | — | — | 398 | — | |||||||||||||||||||||||||
USD convertible debentures*
|
514 | 0.25 | % | 0.25 | % | — | — | — | — | — | 514 | |||||||||||||||||||||||||
Floating Rate:
|
||||||||||||||||||||||||||||||||||||
Others
|
1 | 1.00 | % | 2.00 | % | — | — | — | — | — | 1 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total:
|
26,004 | $ | 2,674 | $ | 2,111 | $ | 4,591 | $ | 3,089 | $ | 3,735 | $ | 9,804 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Less debt issuance costs
|
(86 | ) | ||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||
Total:
|
$ | 25,918 | ||||||||||||||||||||||||||||||||||
|
|
* |
Classified under short-term debt.
|
Page
|
||||
86 | ||||
Consolidated Financial Statements:
|
||||
90 | ||||
91 | ||||
92 | ||||
93 | ||||
94 | ||||
96 |
Year ended December 31,
|
||||||||||||
2020
|
2019
|
2018
|
||||||||||
Net revenues
|
$ | 16,659 | $ | 16,887 | $ | 18,271 | ||||||
Cost of sales
|
8,933 | 9,351 | 9,975 | |||||||||
|
|
|
|
|
|
|||||||
Gross profit
|
7,726 | 7,537 | 8,296 | |||||||||
Research and development expenses
|
997 | 1,010 | 1,213 | |||||||||
Selling and marketing expenses
|
2,498 | 2,614 | 2,916 | |||||||||
General and administrative expenses
|
1,173 | 1,192 | 1,298 | |||||||||
Intangible assets impairments
|
1,502 | 1,639 | 1,991 | |||||||||
Goodwill impairment
|
4,628 | — | 3,027 | |||||||||
Other asset impairments, restructuring and other items
|
479 | 423 | 987 | |||||||||
Legal settlements and loss contingencies
|
60 | 1,178 | (1,208 | ) | ||||||||
Other income
|
(40 | ) | (76 | ) | (291 | ) | ||||||
|
|
|
|
|
|
|||||||
Operating (loss) income
|
(3,572 | ) | (443 | ) | (1,637 | ) | ||||||
Financial expenses
,
net
|
834 | 822 | 959 | |||||||||
|
|
|
|
|
|
|||||||
Income (loss) before income taxes
|
(4,406 | ) | (1,265 | ) | (2,596 | ) | ||||||
Income taxes (benefit)
|
(168 | ) | (278 | ) | (195 | ) | ||||||
Share in (profits) losses of associated companies
,
net
|
(138 | ) | 13 | 71 | ||||||||
|
|
|
|
|
|
|||||||
Net income (loss)
|
(4,099 | ) | (1,000 | ) | (2,472 | ) | ||||||
Net loss attributable to non-controlling interests
|
(109 | ) | (2 | ) | (322 | ) | ||||||
|
|
|
|
|
|
|||||||
Net income (loss) attributable to Teva
|
(3,990 | ) | (999 | ) | (2,150 | ) | ||||||
|
|
|
|
|
|
|||||||
Accrued dividends on preferred shares
|
—
|
— | 249 | |||||||||
|
|
|
|
|
|
|||||||
Net income (loss) attributable to ordinary shareholders
|
$ | (3,990 | ) | $ | (999 | ) | $ | (2,399 | ) | |||
|
|
|
|
|
|
|||||||
Earnings (loss) per share attributable to ordinary shareholders:
|
||||||||||||
Basic
|
$ | (3.64 | ) | $ | (0.91 | ) | $ | (2.35 | ) | |||
|
|
|
|
|
|
|||||||
Diluted
|
$ | (3.64 | ) | $ | (0.91 | ) | $ | (2.35 | ) | |||
|
|
|
|
|
|
|||||||
Weighted average number of shares (in millions):
|
||||||||||||
Basic
|
1,095 | 1,091 | 1,021 | |||||||||
|
|
|
|
|
|
|||||||
Diluted
|
1,095 | 1,091 | 1,021 | |||||||||
|
|
|
|
|
|
Year ended December 31,
|
||||||||||||
2020
|
2019
|
2018
|
||||||||||
Net income (loss)
|
$ | (4,099 | ) | $ | (1,000 | ) | $ | (2,472 | ) | |||
Other comprehensive income (loss), net of tax:
|
||||||||||||
Currency translation adjustment
|
(69 | ) | 97 | (713 | ) | |||||||
Unrealized gain (loss) on derivative financial instruments, net
|
57 | 84 | 115 | |||||||||
Unrealized gain (loss) on available-for-sale securities, net
|
— |
(1
|
)
|
— | ||||||||
Unrealized gain (loss) on defined benefit plans, net
|
(18 | ) | (20 | ) | 13 | |||||||
|
|
|
|
|
|
|||||||
Total other comprehensive income (loss)
|
(30 | ) | 160 | (585 | ) | |||||||
|
|
|
|
|
|
|||||||
Total comprehensive income (loss)
|
(4,129 | ) | (840 | ) | (3,057 | ) | ||||||
Comprehensive income (loss) attributable to non-controlling interests
|
(53 | ) | 12 | (296 | ) | |||||||
|
|
|
|
|
|
|||||||
Comprehensive income (loss) attributable to Teva
|
$ | (4,076 | ) | $ | (852 | ) | $ | (2,761 | ) | |||
|
|
|
|
|
|
Teva shareholders’ equity
|
||||||||||||||||||||||||||||||||||||||||
Ordinary shares
|
||||||||||||||||||||||||||||||||||||||||
Number of
shares (in millions) |
Stated
value |
MCPS**
|
Additional
paid-in capital
|
Retained
earnings (accumulated deficit) |
Accumulated
other comprehensive income (loss) |
Treasury
shares |
Total Teva
share-holders’
equity |
Non-
controlling interests |
Total
equity |
|||||||||||||||||||||||||||||||
(U.S. dollars in millions)
|
||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2018
|
|
|
1,124 |
|
|
|
54 |
|
|
|
3,631 |
|
|
|
23,479 |
|
|
|
(3,803 |
)
|
|
|
(1,853 |
)
|
|
|
(4,149 |
)
|
|
|
17,359 |
|
|
|
1,386 |
|
|
|
18,745 |
|
Changes during 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative effect of new accounting standard****
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5 |
)
|
|
|
5 |
|
|
|
|
|
|
|
—
|
|
||||||||
Net income (loss)
|
(2,150 | ) | (2,150 | ) | (322 | ) | (2,472 | ) | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(611
|
)
|
|
|
|
|
|
|
(611 |
)
|
|
|
26
|
|
|
|
(585 |
)
|
|
Issuance of Treasury Shares
|
|
|
|
|
|
*
|
|
|
|
|
|
|
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
7
|
|
|
|
4 |
|
|
|
|
|
|
|
4 |
|
||
Stock-based compensation expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
155 |
|
|
|
|
|
|
|
155 |
|
||
Issuance of shares***
|
72 | 2 | (3,880 | ) | 3,826 | (52 | ) | (52 | ) | |||||||||||||||||||||||||||||||
Dividends to preferred shareholders
|
|
|
|
|
|
|
|
|
|
|
249
|
|
|
|
(249 |
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
— |
|
||
Transactions with
non-controlling
interests
|
2 | 2 | (3 | ) | (1 | ) | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2018
|
|
|
1,196 |
|
|
|
56 |
|
|
|
— |
|
|
|
27,210 |
|
|
|
(5,958 |
)
|
|
|
(2,459 |
)
|
|
|
(4,142 |
)
|
|
|
14,707 |
|
|
|
1,087 |
|
|
|
15,794 |
|
Changes during 2019:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
(999 | ) | (999 | ) | (2 | ) | (1,000 | ) | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
147 |
|
|
|
|
|
|
|
147 |
|
|
|
14 |
|
|
|
160 |
|
|
Issuance of Shares
|
2 |
*
|
* | |||||||||||||||||||||||||||||||||||||
Issuance of Treasury Shares
|
|
|
|
|
|
|
*
|
|
|
|
|
|
|
|
(8 |
)
|
|
|
|
|
|
|
|
|
|
|
14
|
|
|
|
6 |
|
|
|
|
|
|
|
6 |
|
Stock-based compensation expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
119 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
119 |
|
|
|
|
|
|
|
119 |
|
Transactions with
non-controlling
interests
|
(8 | ) | (8 | ) | ||||||||||||||||||||||||||||||||||||
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8 |
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8 |
)
|
|
|
|
|
|
|
(8 |
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance at December 31, 2019
|
|
|
1,198 |
|
|
|
56 |
|
|
|
—
|
|
|
|
27,312 |
|
|
|
(6,956 |
)
|
|
|
(2,312 |
)
|
|
|
(4,128 |
)
|
|
|
13,972 |
|
|
|
1,091 |
|
|
|
15,063 |
|
Changes during 2020:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,990
|
)
|
|
|
|
|
|
|
|
|
|
|
(3,990
|
)
|
|
|
(109
|
)
|
|
|
(4,099
|
)
|
Other comprehensive income (loss)
|
(86 | ) |
(86
|
) | 56 | (30 | ) | |||||||||||||||||||||||||||||||||
Issuance of Shares
|
4 |
*
|
|
* | 1 | 1 | ||||||||||||||||||||||||||||||||||
Stock-based compensation expense
|
129 | 129 | 129 | |||||||||||||||||||||||||||||||||||||
Transactions with
non-controlling
interests
|
(2 | ) | (2 | ) | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance at December 31, 2020
|
|
|
1,202 |
|
|
$
|
57 |
|
|
|
—
|
|
|
$
|
27,443 |
|
|
$
|
(10,946 |
)
|
|
$
|
(2,399 |
)
|
|
$
|
(4,128 |
)
|
|
$
|
10,026 |
|
|
$
|
1,035 |
|
|
$
|
11,061 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Represents an amount less than 0.5 million.
|
** |
Mandatory convertible preferred shares.
|
*** |
Mainly MCPS conversion.
|
**** |
Following the adoption of ASU
2016-01,
the Company recorded a $ 5 million opening balance reclassification from accumulated other comprehensive income to retained earnings.
|
Year ended December 31,
|
||||||||||||
2020
|
2019
|
2018
|
||||||||||
Operating activities:
|
||||||||||||
Net income (loss)
|
$ | (4,099 | ) |
$
|
(1,000 | ) |
$
|
(2,472 | ) | |||
Adjustments to reconcile net loss to net cash provided by operations:
|
||||||||||||
Impairment of
goodwill,
|
6,546 | 1,778 | 5,621 | |||||||||
Depreciation and amortization
|
1,557 | 1,722 | 1,842 | |||||||||
Net change in operating assets and liabilities
|
(2,188 | ) | (896 | ) | (1,823 | ) | ||||||
Deferred income taxes
,
net and uncertain tax positions
|
(696 | ) | (985 | ) | (837 | ) | ||||||
Stock-based compensation
|
129 | 119 | 155 | |||||||||
Other items
|
100 | 28 | (135 | ) | ||||||||
Research and development in process
|
80 | — | 114 | |||||||||
Net loss (gain) from investments and from sale of long lived assets
|
(213 | ) | (18 | ) | (19 | ) | ||||||
|
|
|
|
|
|
|||||||
Net cash provided by operating activities
|
1,216 | 748 | 2,446 | |||||||||
|
|
|
|
|
|
|||||||
Investing activities:
|
||||||||||||
Beneficial interest collected in exchange for securitized trade receivables
|
1,405 | 1,487 | 1,735 | |||||||||
Proceeds from sales of long-lived assets and investments
|
67 | 343 | 890 | |||||||||
Purchases of property, plant and equipment
|
(578 | ) | (525 | ) | (651 | ) | ||||||
Purchases of investments and other assets
|
(55 | ) | (8 | ) | (119 | ) | ||||||
Other investing activities
|
24 | 58 | 11 | |||||||||
|
|
|
|
|
|
|||||||
Net cash provided by investing activities
|
863 | 1,355 | 1,866 | |||||||||
|
|
|
|
|
|
|||||||
Financing activities:
|
||||||||||||
Repayment of senior notes and loans and other long
|
(1,871 | ) | (3,944 | ) | (7,446 | ) | ||||||
Proceeds from senior notes and loans, net of issuance costs
|
—
|
2,083 | 4,434 | |||||||||
Proceeds from short term debt
|
550 | 500 | — | |||||||||
Repayment of short term debt
|
(559 | ) |
(502
|
) | (260 | ) | ||||||
Other financing activities
|
(5 | ) | (11 | ) | (57 | ) | ||||||
Tax withholding payments made on shares and dividends
|
— | (52 | ) | (22 | ) | |||||||
|
|
|
|
|
|
|||||||
Net cash used in financing activities
|
(1,885 | ) | (1,926 | ) | (3,351 | ) | ||||||
|
|
|
|
|
|
|||||||
Translation adjustment on cash and cash equivalents
|
8 | 16 | (142 | ) | ||||||||
|
|
|
|
|
|
|||||||
Net change in cash and cash equivalents
|
202 | 193 | 819 | |||||||||
Balance of cash and cash equivalents at beginning of year
|
1,975 | 1,782 | 963 | |||||||||
|
|
|
|
|
|
|||||||
Balance of cash and cash equivalents at end of year
|
$
|
2,177
|
|
|
$
|
1,975
|
|
|
$
|
1,782
|
||
|
|
|
|
|
|
Year ended December 31,
|
||||||||||||
2020
|
2019
|
2018
|
||||||||||
Supplemental cash flow information:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash financing and investing activities:
|
||||||||||||
Beneficial interest obtained in exchange for securitized trade receivables
|
$ | 1,397 | $ | 1,511 | $ | 1,716 | ||||||
Conversion of mandatory convertible preferred shares into ordinary shares
|
— | $ | — |
3,880
|
||||||||
Cash paid during the year for:
|
||||||||||||
Interest
|
$ | 846 | $ | 840 | $ | 815 | ||||||
Income taxes, net of refunds
|
$ | 709 | $ | 552 | $ | 420 |
Year ended December 31,
|
||||||||||||
2020
|
2019
|
2018
|
||||||||||
Other current assets
|
$ | (1,473 | ) | $ | (1,416 | ) | $ | (1,437 | ) | |||
Trade payables, accrued expenses, employee-related obligations and other liabilities
|
(463 | ) | 643 | (500 | ) | |||||||
Trade receivables net of sales reserves and allowances
|
(293 | ) | (394 | ) | 88 | |||||||
Inventories
|
41 |
271
|
26 | |||||||||
|
|
|
|
|
|
|||||||
$ | (2,188 | ) | $ | (896 | ) | $ | (1,823 | ) | ||||
|
|
|
|
|
|
a.
|
General:
|
b.
|
New accounting pronouncements
|
c.
|
Acquisitions:
|
d.
|
Collaborative arrangements:
|
e.
|
Equity investments:
|
f.
|
Fair value measurement:
|
g.
|
Investment in debt securities:
|
h.
|
Cash and cash equivalents:
|
i.
|
Accounts receivables:
|
j.
|
Concentration of credit risks:
|
k.
|
Inventories:
|
l.
|
Long-lived assets:
|
1. |
An initial qualitative assessment may be performed to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount.
|
2. |
If the Company concludes it is more likely than not that the fair value of the reporting unit is less than its carrying mount, a quantitative fair value test is performed. An impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value is recognized.
|
m.
|
Contingencies:
|
n.
|
Treasury shares:
|
o.
|
Stock-based compensation:
|
p.
|
Deferred income taxes:
|
1. |
Taxes that would apply in the event of disposal of investments in subsidiaries, as it is generally the Company’s intention to hold these investments, not to realize them. The determination of the amount of related unrecognized deferred tax liability is not practicable.
|
2. |
Amounts of
tax-exempt
income generated from the Company’s current Approved Enterprises and unremitted earnings from foreign subsidiaries retained for reinvestment in the Group. See note 13 f.
|
q.
|
Uncertain tax positions:
|
r.
|
Derivatives and hedging:
|
s.
|
Revenue recognition:
|
t.
|
Research and development:
|
u.
|
Shipping and handling costs:
|
v.
|
Advertising costs:
|
w.
|
Restructuring:
|
x.
|
Segment reporting:
|
(a) |
North America segment, which includes the United States and Canada.
|
(b) |
Europe segment, which includes the European Union and certain other European countries.
|
(c) |
International Markets segment, which includes all countries in which Teva operates other than those in the North America and Europe segments.
|
y.
|
Earnings per share:
|
z.
|
Securitization
|
aa.
|
Divestitures
|
bb.
|
Debt instruments
|
cc.
|
Leases
|
a.
|
Business acquisitions:
|
b.
|
Other significant agreements:
|
c.
|
Assets and Liabilities Held For Sale:
|
December 31,
2020 |
December 31,
2019 |
|||||||
(U.S. $ in millions)
|
||||||||
Inventories
|
$
|
146 |
$
|
— | ||||
Property, plant and equipment, net and others
|
312 | 98 | ||||||
Goodwill
|
27 | — | ||||||
Adjustments of assets held for sale to fair value
|
(296 | ) | (11 | ) | ||||
|
|
|
|
|||||
Total assets of the disposal group classified as held for sale in the consolidated balance sheets
|
$ | 189 | $ | 87 | ||||
|
|
|
|
|
|
Year ended December 31, 2020
|
|
|||||||||||||||||
|
|
North
America
|
|
|
Europe
|
|
|
International
Markets |
|
|
Other
activities
|
|
|
Total
|
|
|||||
|
|
(U.S.$ in millions)
|
|
|||||||||||||||||
Sale of goods
|
|
|
6,902
|
|
|
|
4,736
|
|
|
|
1,946
|
|
|
|
772
|
|
|
|
14,354
|
|
Licensing arrangements
|
|
|
84
|
|
|
|
32
|
|
|
|
9
|
|
|
|
4
|
|
|
|
129
|
|
Distribution
|
|
|
1,462
|
|
|
|
3
|
|
|
|
30
|
|
|
|
—
|
|
|
|
1,495
|
|
Other
|
|
§
|
|
|
|
(14
|
)
|
|
|
169
|
|
|
|
527
|
|
|
|
680
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
8,447
|
|
|
$
|
4,757
|
|
|
$
|
2,154
|
|
|
$
|
1,302
|
|
|
$
|
16,659
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2019
|
||||||||||||||||||||
North
America
|
Europe
|
International
Markets |
Other
activities
|
Total
|
||||||||||||||||
(U.S.$ in millions)
|
||||||||||||||||||||
Sale of goods
|
6,941 | 4,770 | 2,045 | 754 | 14,510 | |||||||||||||||
Licensing arrangements
|
109 | 29 | 4 | 5 | 147 | |||||||||||||||
Distribution
|
1,492 | 2 | 20 | — | 1,514 | |||||||||||||||
Other
|
§
|
(6 | ) | 177 | 545 | 716 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | 8,542 | $ | 4,795 | $ | 2,246 | $ | 1,304 | $ | 16,887 | |||||||||||
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2018
|
||||||||||||||||||||
North
America
|
Europe
|
International
Markets |
Other
activities
|
Total
|
||||||||||||||||
(U.S.$ in millions)
|
||||||||||||||||||||
Sale of goods
|
7,838 | 5,153 | 2,151 | 739 | 15,881 | |||||||||||||||
Licensing arrangements
|
111 | 23 | 22 | 9 | 165 | |||||||||||||||
Distribution
|
1,347 | 7 | 19 | — | 1,373 | |||||||||||||||
Other
|
1 | 3 | 230 | 618 | 852 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | 9,297 | $ | 5,186 | $ | 2,422 | $ | 1,366 | $ | 18,271 | |||||||||||
|
|
|
|
|
|
|
|
|
|
§ |
Represents an amount less than $1 million.
|
Sales Reserves and Allowances
|
||||||||||||||||||||||||||||||||
Reserves
included in Accounts Receivable, net |
Rebates
|
Medicaid and
other governmental allowances |
Chargebacks
|
Returns
|
Other
|
Total
reserves included in Sales Reserves and Allowances |
Total
|
|||||||||||||||||||||||||
(U.S.$ in millions)
|
||||||||||||||||||||||||||||||||
Balance at January 1, 2019
|
$ | 175 | 3,006 | $ | 1,361 | $ | 1,530 | $ | 638 | $ | 176 | $ | 6,711 | $ | 6,886 | |||||||||||||||||
Provisions related to sales made in current year period
|
383 | 5,552 | 976 | 9,565 | 281 | 394 | 16,767 | $ | 17,150 | |||||||||||||||||||||||
Provisions related to sales made in prior periods
|
— | (92 | ) | (151 | ) |
(17
|
) | 77 | (6 | ) | (189 | ) | $ | (189 | ) | |||||||||||||||||
Credits and payments
|
(471 | ) | (5,570 | ) | (1,076 | ) | (9,736 | ) | (360 | ) | (392 | ) | (17,134 | ) | $ | (17,605 | ) | |||||||||||||||
Translation differences
|
— | (1 | ) | (1 | ) | 1 | 1 | 4 | 4 | $ | 4 | |||||||||||||||||||||
Balance at December 31, 2019
|
$ | 87 | 2,895 | $ | 1,109 | $ | 1,342 | $ | 637 | $ | 176 | $ | 6,159 | $ | 6,246 | |||||||||||||||||
Provisions related to sales made in current year period
|
391 | 4,703 | 744 | 8,438 | 459 | 71 | 14,415 | $ | 14,806 | |||||||||||||||||||||||
Provisions related to sales made in prior periods
|
— | (219 | ) | (184 | ) | (65 | ) | (28 | ) | (1 | ) | (497 | ) | $ | (497 | ) | ||||||||||||||||
Credits and payments
|
(398 | ) | (5,360 | ) | (849 | ) | (8,614 | ) | (386 | ) | (100 | ) | (15,309 | ) | $ | (15,707 | ) | |||||||||||||||
Translation differences
|
— | 35 | 8 | 7 | 4 | 2 | 56 | $ | 56 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance at December 31, 2020
|
$ | 80 | 2,054 | $ | 828 | $ | 1,108 | $ | 686 | $ | 148 | $ | 4,824 | $ | 4,904 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
||||||||
2020
|
2019
|
|||||||
(U.S. $ in millions)
|
||||||||
Finished products
|
$2,378 | $2,504 | ||||||
Raw and packaging materials
|
1,231 | 1,183 | ||||||
Products in process
|
605 | 583 | ||||||
Materials in transit and payments on account
|
189 | 151 | ||||||
|
|
|
|
|||||
$4,403 | $4,422 | |||||||
|
|
|
|
December 31,
|
||||||||
2020
|
2019
|
|||||||
(U.S. $ in millions)
|
||||||||
Machinery and equipment
|
$ | 5,245 | $ | 5,385 | ||||
Buildings
|
2,720 | 2,839 | ||||||
Computer equipment and other assets
|
2,197 | 2,131 | ||||||
Assets under construction and payments on account
|
933 | 672 | ||||||
Land
|
|
|
292 |
|
|
|
323 | |
|
|
|
|
|
|
|
|
|
|
|
|
11,388 |
|
|
|
11,350 | |
Less—accumulated depreciatio
n
|
(5,092 | ) | (4,914 | ) | ||||
|
|
|
|
|||||
$6,296 | $6,436 | |||||||
|
|
|
|
Gross carrying amount
net of impairment |
Accumulated
amortization |
Net carrying amount
|
||||||||||||||||||||||
|
|
December 31,
|
|
|||||||||||||||||||||
2020
|
2019
|
2020
|
2019
|
2020
|
2019
|
|||||||||||||||||||
|
|
(U.S. $ in millions)
|
|
|||||||||||||||||||||
Product rights
|
|
$
|
19,650 |
|
|
$
|
19,663 |
|
|
$
|
12,094 |
|
|
$
|
10,640 |
|
|
$
|
7,556
|
|
|
$
|
9,023 |
|
Trade names
|
|
|
621 |
|
|
|
600 |
|
|
|
165 |
|
|
|
126 |
|
|
|
456 |
|
|
|
474 |
|
In-process research and development (IPR&D)
|
|
|
911 |
|
|
|
1,735 |
|
|
|
—
|
|
|
|
—
|
|
|
|
911 |
|
|
|
1,735 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
21,182 |
|
|
$
|
21,998 |
|
|
$
|
12,259 |
|
|
$
|
10,766 |
|
|
$
|
8,923 |
|
|
$
|
11,232 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
IPR&D assets of $797 million, mainly due to: (i) $300 million related to generic pipeline products acquired from Actavis Generics resulting from development progress and changes in other key valuation indications (e.g., market size, competition assumptions, legal landscape, launch date) in the United States; (ii) $262 million related to lenalidomide (generic equivalent of
Revlimid®),
due to modified competition assumptions as a result of settlements between the innovator and other generic filers; (iii) $211 million related to AUSTEDO for the treatment of Tourette syndrome in pediatric patients in the United States following clinical trial results, received in February 2020, which failed to meet their primary endpoints; and
|
(b) |
Identifiable product rights of
$705
million, mainly due to: (i)
$398
million related to updated market assumptions regarding price and volume of products acquired from Actavis Generics that are primarily marketed in the United States; (ii)
$165
million in Japan in connection with ongoing regulatory pricing reductions and generic competition; and (iii)
$110
million related to a change in the assumptions regarding competition for the expected relaunch of metformin tablets.
|
(a) |
Identifiable product rights of $958 million, mainly due to: (i) $647 million due to updated market assumptions regarding price and volume of certain products acquired from Actavis Generics and primarily marketed in the United States, (ii) $128 million related to a decrease in future expected sales in Japan as a result of generic competition, and (iii) $123 million related to the discontinuation of certain products from Actavis Generics’ portfolio in several international markets; and
|
(b) |
IPR&D assets of $681 million, due to: (i) $497 million related to various generic pipeline products acquired from Actavis Generics due to development progress and changes in other key valuation indications (e.g., market size, competition assumptions, legal landscape, launch date or discount rate) in the United States (ii) $125 million related to lenalidomide (generic equivalent of REVLIMID
®
), due to modified competition assumptions as a result of settlements between the innovator and other generic filers, and (iii) $59 million related to a change in assumptions concerning the future European market share of a number of pipeline products acquired from Actavis Generics.
|
(a) |
Identifiable product rights of $1,068 million, mainly due to: (i) $412 million in connection with updated market assumptions regarding price and volume of products acquired from Actavis Generics currently marketed in the United States and supply constraints; (ii) $290 million in certain international markets, due to a loss of several tenders and termination of products manufacturing lines; and (iii) $222 million in Japan in connection with ongoing regulatory pricing reductions and generic competition.
|
(b) |
IPR&D assets of $923 million, mainly related to revaluation of generic products acquired from Actavis Generics due to development progress and changes in other key valuation indications (e.g., market size, legal landscape, launch date or discount rate).
|
North
America |
Europe
|
International
Markets |
Other
|
Total
|
||||||||||||||||
(U.S. $ in millions)
|
||||||||||||||||||||
Balance as of December 31, 201
8
(1)
|
|
$
|
11,098 |
|
|
$
|
8,653 |
|
|
$
|
2,479 |
|
|
$
|
2,687 |
|
|
$
|
24,917 |
|
Changes during the period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwil
l
disposal
|
|
|
(23
|
)
|
|
|
(5
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(28
|
)
|
Translation differences
|
|
|
16 |
|
|
|
(112 |
)
|
|
|
53 |
|
|
|
—
|
|
|
|
(43 |
)
|
Balance as of December 31, 2019 (1)
|
|
$
|
11,091 |
|
|
$
|
8,536 |
|
|
$
|
2,532 |
|
|
$
|
2,687 |
|
|
$
|
24,846 |
|
Changes during the period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill reclassified as assets held for sale
|
|
|
—
|
|
|
|
(8 |
)
|
|
|
(19 |
)
|
|
|
—
|
|
|
|
(27 |
)
|
Goodwill impairment
|
|
|
(4,628 |
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(4,628 |
)
|
Translation differences
|
|
|
10 |
|
|
|
574 |
|
|
|
(151 |
)
|
|
|
—
|
|
|
|
433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of
December
31
, 2020 (1)
|
|
$
|
6,473 |
|
|
$
|
9,102 |
|
|
$
|
2,362 |
|
|
$
|
2,687 |
|
|
$
|
20,624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Accumulated goodwill impairment as of December 31, 2020, December 31, 2019 and December 31, 2018 was approximately $25.6 billion, $21.0 billion and $21.0 billion, respectively.
|
• |
Management noted a portion of the difference can be attributed to sales projections of AJOVY and AUSTEDO in the International Markets reporting unit. Management continues to believe that the majority of analysts do not focus on these brands in preparing their financial models and, as a result, have not attributed value to the launch potential in this reporting unit.
|
• |
Management noted an additional difference can be attributed to sales projections of AUSTEDO in the North America reporting unit, resulting in higher fair value as analyzed by management compared to Teva’s market capitalization. Management continues to believe that it has more accurate information based on its knowledge of the market and its growth and therefore no adjustment was incorporated to the fair value.
|
• |
Management noted that market concerns regarding the uncertainty related to the opioid and price fixing litigation risks are impacting its market capitalization. Management believes that these concerns led to an acute reaction, which resulted in a decline in Teva’s share price. Management believed developments in the opioids case would clarify the outlook with regards to the opioid litigation, when the proposed settlement framework is finalized, which was expected in the near term.
|
• |
The Company noted a 25% reduction in its market capitalization from the second quarter of 2020 to the third quarter of 2020.
|
• |
With respect to the opioids litigation, as discussions continue with the group of Attorneys General regarding the nationwide framework and trial dates are postponed largely due to the
COVID-19
pandemic, a resolution of this matter is taking longer than anticipated. Accordingly, the Company was and is currently unable to predict the timing of any final settlement or whether the settlement will be finalized based upon the current settlement framework.
|
• |
On August 25, 2020, the Company was indicted by the U.S. Department of Justice for alleged violations of the Sherman Act.
|
• |
On August 18, 2020, the Company was sued by the U.S. Department of Justice alleging violations of the federal Anti-Kickback Statute, and asserting causes of action under the federal False Claims Act and state law.
|
Year ended
December 31, 2020 |
Year ended
December 31, 2019 |
|||||||
(U.S. $ in millions)
|
(U.S. $ in millions)
|
|||||||
Operating lease cost:
|
||||||||
Fixed payments and variable payments that depend on an index or rate
|
$
|
148 |
$
|
166 | ||||
Variable lease payments not included in the lease liability
|
4 | 6 | ||||||
Short-term lease cost
|
3 | 6 | ||||||
|
|
|
|
|||||
|
$155 | $178 |
Year ended
December 31, 2020 |
Year ended
December 31, 2019 |
|||||||
(U.S. $ in millions)
|
(U.S. $ in millions)
|
|||||||
Cash paid for amounts included in the measurement of lease liabilities:
|
||||||||
Operating cash flows from operating leases
|
$
|
151 |
$
|
169 | ||||
Right-of-use
(non-cash):
|
||||||||
Operating leases
|
$
|
211 |
$
|
142 |
December 31,
2020 |
December 31,
2019 |
|||||||
(U.S. $ in millions)
|
(U.S. $ in millions)
|
|||||||
Operating leases:
|
||||||||
Operating lease ROU assets
|
$
|
559 |
$
|
514 | ||||
Other current liabilities
|
116 | 118 | ||||||
Operating lease liabilities
|
479 | 435 | ||||||
|
|
|
|
|||||
Total operating lease liabilities
|
$ | 595 | $ | 553 | ||||
|
|
|
|
|||||
December 31,
|
December 31,
|
|||||||
2020
|
2019
|
|||||||
Weighted average remaining lease term
|
||||||||
Operating leases
|
7.5 years | 7.5 years | ||||||
Weighted average discount rate
|
||||||||
Operating leases
|
5.2
|
% | 6.0 | % |
December 31,
2020 |
||||
(U.S. $ in millions)
|
||||
2021
|
$ | 137 | ||
2022
|
119 | |||
2023
|
91 | |||
2024
|
73 | |||
2025 and thereafter
|
302 | |||
|
|
|||
Total operating lease payments
|
$ | 722 | ||
|
|
|||
Less: imputed interest
|
127 | |||
|
|
|||
Present value of lease liabilities
|
$ | 595 | ||
|
|
a.
|
Short-term debt:
|
b.
|
Long-term debt:
|
Weighted average
interest rate as of December 31, 2020 |
Maturity
|
December 31,
2020 |
December 31,
2019 |
|||||||||||||
%
|
(U.S. $ in millions)
|
|||||||||||||||
Senior notes EUR 1,010
million (1)
|
|
|
0.38 |
%
|
|
2020 | $ |
—
|
$ | 1,131 | ||||||
Senior notes EUR 1,500 million
|
|
|
1.13 |
%
|
|
2024 | 1,839 | 1,673 | ||||||||
Senior notes EUR 1,300 million
|
|
|
1.25 |
%
|
|
2023 | 1,595 | 1,451 | ||||||||
Senior notes EUR 900 million
|
|
|
4.50 |
%
|
|
2025 | 1,107 | 1,008 | ||||||||
Senior notes EUR 750 million
|
|
|
1.63 |
%
|
|
2028 | 916 | 833 | ||||||||
Senior notes EUR 700 million
|
|
|
3.25 |
%
|
|
2022 | 861 | 784 | ||||||||
Senior notes EUR 700 million
|
|
|
1.88 |
%
|
|
2027 | 860 | 782 | ||||||||
Senior notes EUR 1,000 million
|
|
|
6.00 |
%
|
|
2025 | 1,230 |
1,120
|
||||||||
Senior notes USD 1,000 million
|
|
|
7.13 |
%
|
|
2025 | 1,000 |
1,000
|
||||||||
Senior notes USD 3,500 million
|
|
|
3.15 |
%
|
|
2026 | 3,495 | 3,494 | ||||||||
Senior notes USD 1,475 million
|
|
|
2.20 |
%
|
|
2021 | 1,472 | 1,474 | ||||||||
Senior notes USD 3,000 million
|
|
|
2.80 |
%
|
|
2023 | 2,996 | 2,995 | ||||||||
Senior notes USD 2,000 million
|
|
|
4.10 |
%
|
|
2046 | 1,986 | 1,985 | ||||||||
Senior notes USD 1,250 million
|
|
|
6.00 |
%
|
|
2024 | 1,250 | 1,250 | ||||||||
Senior notes USD 1,250 million
|
|
|
6.75 |
%
|
|
2028 | 1,250 | 1,250 | ||||||||
Senior notes USD 844 million
|
|
|
2.95 |
%
|
|
2022 | 853 | 856 | ||||||||
Senior notes USD 789 million
|
|
|
6.15 |
%
|
|
2036 | 783 | 782 | ||||||||
Senior notes USD 700
million (2)
|
|
|
2.25 |
%
|
|
2020 |
—
|
700 | ||||||||
Senior notes USD 613 million
|
|
|
3.65 |
%
|
|
2021 | 616 | 618 | ||||||||
Senior notes USD 588 million
|
|
|
3.65 |
%
|
|
2021 | 586 | 587 | ||||||||
Senior notes CHF 350 million
|
|
|
0.50 |
%
|
|
2022 | 397 | 361 | ||||||||
Senior notes CHF 350 million
|
|
|
1.00 |
%
|
|
2025 | 398 | 362 | ||||||||
Total senior notes
|
|
|
|
|
25,490 | 26,496 | ||||||||||
Other long-term debt
|
|
|
1.08 |
%
|
|
2026 | 1 | 1 | ||||||||
Less current maturities
|
|
|
|
|
(2,674 | ) | (1,831 | ) | ||||||||
Less debt issuance costs
|
|
|
|
|
(86 | ) | (103 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total senior notes and loans
|
|
|
|
|
$ | 22,731 | $ | 24,562 | ||||||||
|
|
|
|
|
|
|
|
(1) |
In July
2020
, Teva repaid at maturity €
1,010
million of its
0.375%
senior notes.
|
(2) |
In March
2020
, Teva repaid at maturity $
700
million of its
2.25%
senior notes.
|
|
|
December 31,
|
|
|
|
|
2020
|
|
|
|
|
(U.S. $ in millions)
|
|
|
2022
|
$
|
2,111 | ||
2023
|
4,591 | |||
2024
|
3,089 | |||
202
5
|
3,735 | |||
2026 and thereafter *
|
9,804 | |||
|
|
|||
$ | 23,330 | |||
|
|
*
|
Including $514
|
a.
|
Foreign exchange risk management:
|
b.
|
Interest risk management:
|
c.
|
Derivative instrument disclosure:
|
December 31,
|
||||||||
2020
|
2019
|
|||||||
(U.S. $ in millions)
|
||||||||
Cross-currency swap
,
net investment hedge
|
— | 1,000 |
d.
|
Derivative instrument outstanding:
|
Fair value
|
||||||||||||||||
Designated as hedging
instruments
|
Not designated as hedging
instruments
|
|||||||||||||||
December 31,
2020
|
December 31,
2019
|
December 31,
2020
|
December 31,
2019
|
|||||||||||||
Reported under
|
(U.S. $ in millions)
|
|||||||||||||||
Asset derivatives:
|
||||||||||||||||
Other current assets:
|
||||||||||||||||
Option and forward contracts
|
$ | — | $ | — | $ | 24 | $ | 32 | ||||||||
Liability derivatives:
|
||||||||||||||||
Other current liabilities:
|
||||||||||||||||
Cross-currency swaps
,
net investment
|
— |
(22)
|
||||||||||||||
Option and forward contracts
|
— | — | (79 | ) | (41 | ) |
Financial expenses, net
|
Other comprehensive
income (loss) |
|||||||||||||||||||||||
Year ended December 31,
|
Year ended December 31,
|
|||||||||||||||||||||||
2020
|
2019
|
2018**
|
2020
|
2019
|
2018**
|
|||||||||||||||||||
Reported under
|
(U.S. $ in millions)
|
|||||||||||||||||||||||
Line items in which effects of hedges are recorded
|
$ | 834 | $ | 822 | $ | 959 | $ | (30 | ) | $ | 160 | $ | (585 | ) | ||||||||||
Cross-currency swaps—cash flow hedge (1)
|
— | (2 | ) | (2 | ) | — | (33 | ) | (35 | ) | ||||||||||||||
Cross-currency swaps
,
net investment hedge (2)
|
(2 | ) | (29 | ) | (31 | ) | (21 | ) | (22 | ) | (51 | ) | ||||||||||||
Interest rate swaps—fair value hedge (3)
|
— | 2 | * | — | — | — |
* |
Represents an amount less than $0.5 million.
|
** |
Comparative figures are based on prior hedge accounting standard.
|
Financial expenses, net
|
Net revenues
|
|||||||||||||||||||||||
Year ended December 31,
|
Year ended December 31,
|
|||||||||||||||||||||||
2020
|
2019
|
2018
|
2020
|
2019
|
2018
|
|||||||||||||||||||
Reported under
|
(U.S. $ in millions)
|
|||||||||||||||||||||||
Line items in which effects of hedges are recorded
|
$ | 834 | $ | 822 | $ | 959 | $ | 16,659 | $ | 16,887 | $ | 18,271 | ||||||||||||
Option and forward contracts (4)
|
130 | (51 | ) | (12 | ) | — | — | — | ||||||||||||||||
Option and forward contracts (5)
|
— | — | — |
*
|
14 | (4 | ) |
* |
Represents an amount less than $0.5 million.
|
(1) |
With respect to cross-currency swap agreements, Teva recognized gains which mainly reflect the differences between the fixed interest rate and the floating interest rate. In the fourth quarter of 2019, Teva terminated $588 million in cross-currency swap agreements against its
outstanding 3.65% senior notes maturing in November 2021. The settlement of these transactions resulted in cash proceeds of $95
million. The cash flow hedge accounting adjustments of these instruments, which are recorded under senior notes and loans, are amortized under financial expenses, net over the life of the debt as additional interest expense.
|
(2) |
In each of the first and second quarters of 2017, Teva entered into a cross currency swap agreement with a notional amount of $500
million maturing in 2020. These cross currency swaps were designated as a net investment hedge of Teva’s foreign subsidiaries euro denominated net assets, in order to reduce the risk of adverse exchange rate fluctuations. With respect to these cross currency swap agreements, Teva recognized gains which mainly reflect the differences between the
float-for-float
|
(3) |
In the fourth quarter of 2016, Teva entered into an interest rate swap agreement designated as fair value hedge relating to its 2.8% senior notes due 2023 with respect to $500 million notional amount of outstanding debt. With respect to this interest rate swap agreement, Teva recognized a loss which mainly reflects the differences between the fixed interest rate and the floating interest rate. In the third quarter of 2019, Teva terminated this interest rate swap agreement. The settlement of these transactions resulted in a gain position of $10 million. The fair value hedge accounting adjustments of these instruments, which are recorded under senior notes and loans, are amortized under financial expenses, net over the life of the debt as additional interest expense.
|
(4) |
Teva uses foreign exchange contracts (mainly option and forward contracts) to hedge balance sheet items from currency exposure. These foreign exchange contracts are not designated as hedging instruments for accounting purposes. In connection with these foreign exchange contracts, Teva recognizes gains or losses that offset the revaluation of the balance sheet items also recorded under financial expenses, net.
|
(5) |
Teva entered into option and forward contracts designed to limit the exposure of foreign exchange fluctuations on projected revenues and expenses recorded in euro, the Swiss franc, the Japanese yen, the British pound, the Russian ruble, the Canadian dollar and some other currencies during the period for which such instruments are transacted. These derivative instruments do not meet the criteria for hedge accounting, however, they are accounted for as an economic hedge. These derivative instruments, which may include hedging transactions against future projected revenues and expenses, are recognized on the balance sheet at their fair value on a quarterly basis, while the foreign exchange impact on the underlying revenues and expenses may occur in subsequent quarters. Changes in the fair value of the derivative instruments are recognized in the same line item in the statements of income as the underlying exposure being hedged. During 2019 and 2020, Teva entered into hedging instruments to hedge part of the projected 2020 operating results. In 2020, Teva recognized a gain of $27 million in relation with the 2020 hedging program. During the second half of 2020, Teva entered into hedging instruments to hedge part of the projected operating results for 2021. As part of the economic hedge treatment, Teva recorded a loss of $27 million in relation to the 2021 hedging instruments in the second half of 2020, while the positive foreign exchange impact on the underlying revenues and expenses, may occur upon their maturity in 2021. The cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows.
|
e.
|
Amortizations due to terminated derivative instruments:
|
f.
|
Securitization:
|
As of and for the year ended
December 31, |
||||||||
2020
|
2019
|
|||||||
(U.S. $ in millions)
|
||||||||
Sold receivables at the beginning of the year
|
$ | 690 | $ | 686 | ||||
Proceeds from sale of receivables
|
4,606 | 4,852 | ||||||
Cash collections (remitted to the owner of the receivables)
|
(4,607 | ) | (4,849 | ) | ||||
Effect of currency exchange rate changes
|
45 | 1 | ||||||
|
|
|
|
|||||
Sold receivables at the end of the year
|
$ | 734 | $ | 690 | ||||
|
|
|
|
a.
|
Commitments:
|
b.
|
Contingencies:
|
a.
|
Income (loss) before income taxes:
|
Year ended December 31,
|
||||||||||||
2020
|
2019
|
2018
|
||||||||||
(U.S. $ in millions)
|
||||||||||||
Parent Company and its Israeli subsidiaries
|
$ | 947 | $ | 542 | $ | 1,022 | ||||||
Non-Israeli subsidiaries
|
(5,353 | ) | (1,807 | ) | (3,618 | ) | ||||||
|
|
|
|
|
|
|||||||
$ | (4,406 | ) | $ | (1,265 | ) | $ | (2,596 | ) | ||||
|
|
|
|
|
|
b.
|
Income taxes:
|
2020
|
2019
|
2018
|
||||||||||
(U.S. $ in millions)
|
||||||||||||
Income (Loss) before income taxes
|
$
|
(4,406 | ) | $ | (1,265 | ) | $ | (2,596 | ) | |||
Statutory tax rate in Israel
|
23.0 | % | 23.0 | % | 23.0 | % | ||||||
|
|
|
|
|
|
|||||||
Theoretical provision for income taxes
|
$ | (1,013 | ) | $ | (291 | ) | $ | (597 | ) | |||
Increase (decrease) in the provision for income taxes due to:
|
||||||||||||
The Parent Company and its Israeli subsidiaries - Mainly tax benefits arising from reduced tax rates under benefit programs
|
(183 | ) | (44 | ) | (134 | ) | ||||||
Non-Israeli subsidiaries, including impairments *
|
1,369 | (115 | ) | 381 | ||||||||
U.S. Tax Cuts and Jobs Act effect
|
97 | |||||||||||
Increase (decrease) in other uncertain tax positions—net
|
(341 | ) | 172 | 58 | ||||||||
|
|
|
|
|
|
|||||||
Effective consolidated income taxes
|
$ | (168 | ) | $ | (278 | ) | $ | (195 | ) | |||
|
|
|
|
|
|
* |
In 2020 and 2018, income before income taxes includes goodwill impairment in
non-Israeli
subsidiaries that did
|
c.
|
Deferred income taxes:
|
December 31,
|
||||||||
2020
|
2019
|
|||||||
(U.S. $ in millions)
|
||||||||
Long-term deferred tax assets (liabilities), net:
|
||||||||
Inventory related
|
$ | 212 | $ | 144 | ||||
Sales reserves and allowances
|
173 | 198 | ||||||
Provision for legal settlements
|
235 | 260 | ||||||
Intangible assets (*)
|
(1,064 | ) | (1,733 | ) | ||||
Carryforward losses and deductions and credits (**)
|
2,176 | 1,689 | ||||||
Property, plant and equipment
|
(142 | ) | (170 | ) | ||||
Deferred interest
|
527 | 648 | ||||||
Provisions for employee related obligations
|
107 | 106 | ||||||
Other
|
54 | 122 | ||||||
|
|
|
|
|||||
2,278 | 1,264 | |||||||
Valuation allowance—in respect of carryforward losses and deductions that may not be utilized
|
(2,547 | ) | (1,974 | ) | ||||
|
|
|
|
|||||
$ | (269 | ) | $ | (710 | ) | |||
|
|
|
|
(*) |
The decrease in deferred tax liability is mainly due to impairment and amortization.
|
(**) |
The amounts are shown after reduction for unrecognized tax benefits of $ 63 million and $115 million as of December 31,
2020
and
2019
, respectively.
|
This amount represents the tax effect of gross carryforward losses and deductions with the following expirations:
2021
-
2022
—$79 million;
2023
-
2029
—$663 million;
2030
and thereafter—$171 million. The remaining balance—$1,327 million—can be utilized with no expiration date.
|
December 31,
|
||||||||
2020
|
2019
|
|||||||
(U.S. $ in millions)
|
||||||||
Long-term assets—deferred income taxes
|
695 | 386 | ||||||
Long-term liabilities—deferred income taxes
|
(964 | ) | (1,096 | ) | ||||
|
|
|
|
|||||
$ | (269 | ) | $ | (710 | ) | |||
|
|
|
|
d.
|
Uncertain tax positions:
|
Year ended December 31,
|
||||||||||||
2020
|
2019
|
2018
|
||||||||||
(U.S. $ in millions)
|
||||||||||||
Balance at the beginning of the year
|
$ | 1,223 | $ | 1,072 | $ | 1,034 | ||||||
Increase
(decrease)
related to prior year tax positions, net
|
(238 | ) | 23 | 76 | ||||||||
Increase related to current year tax positions
|
10 | 246 | 11 | |||||||||
Decrease related to settlements with tax authorities and lapse of applicable statutes of limitations
|
(105 | ) | (118 | ) | (49 | ) | ||||||
Other
|
(2 | ) | — | — | ||||||||
|
|
|
|
|
|
|||||||
Balance at the end of the year
|
$ | 888 | $ | 1,223 | $ | 1,072 | ||||||
|
|
|
|
|
|
e.
|
Tax assessments:
|
f.
|
Basis of taxation:
|
a. |
Investment of at least 7% of income, or at least NIS 75 million (approximately $22 million) in R&D activities; and
|
b. |
One of the following:
|
a. |
At least 20% of the workforce (or at least 200 employees) are employed in R&D;
|
b. |
A venture capital investment approximately equivalent to at least $2 million was previously made in the company; or
|
c. |
Growth in sales or workforce by an average of 25% over the three years preceding the tax year.
|
a.
|
Ordinary shares and ADSs
|
b.
|
Mandatory convertible preferred shares
|
c.
|
Stock-based compensation plans
|
Year ended December 31,
|
||||||||||||||||||||||||
2020
|
2019
|
2018
|
||||||||||||||||||||||
Number
(in thousands)
|
Weighted
average exercise price |
Number
(in thousands)
|
Weighted
average exercise price |
Number
(in thousands)
|
Weighted
average exercise price |
|||||||||||||||||||
Balance outstanding at beginning of year
|
40,064 | $ | 37.90 | 48,393 | $ | 38.62 | 43,121 | $ | 44.32 | |||||||||||||||
Changes during the year:
|
||||||||||||||||||||||||
Granted
|
— | — | — | — | 12,401 | 19.12 | ||||||||||||||||||
Exercised
|
— | — | (11 | ) | 16.99 | (84 | ) | 17.01 | ||||||||||||||||
Forfeited
|
(3,610 | ) | 40.24 | (8,318 | ) | 42.12 | (7,040 | ) | 39.38 | |||||||||||||||
Expired
|
(1,220 | ) | 49.35 | — | — | (5 | ) | 50.65 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance outstanding at end of year
|
35,234 | 37.27 | 40,064 | 37.90 | 48,393 | 38.62 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance exercisable at end of year
|
28,556 | 40.56 | 26,601 | 43.41 | 24,086 | 46.89 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31,
|
||||||||||||
2020
|
2019
|
2018
|
||||||||||
Weighted average fair value
|
— | — | $ | 7.4 |
Year ended December 31,
|
||||||||||||
2020
|
2019
|
2018
|
||||||||||
Expected volatility
|
— | — | 40 | % | ||||||||
Risk-free interest rate
|
— | — | 2.6 | % | ||||||||
Expected term
|
|
|
—
|
|
|
|
—
|
|
|
|
5 years
|
|
Year ended December 31,
|
||||||||||||||||||||||||
2020
|
2019
|
2018
|
||||||||||||||||||||||
Number
(in thousands)
|
Weighted
average grant date fair value |
Number
(in thousands)
|
Weighted
average grant date fair value |
Number
(in thousands)
|
Weighted
average grant date fair value |
|||||||||||||||||||
Balance outstanding at beginning of year
|
15,977 |
$
|
16.49
|
10,403 | $ | 20.93 | 7,468 | $ | 27.95 | |||||||||||||||
Granted
|
10,848 |
11.42
|
9,303 | 15.36 | 5,900 | 18.80 | ||||||||||||||||||
Vested
|
(4,324 | ) |
19.49
|
(2,435 | ) | 30.24 | (1,638 | ) | 37.30 | |||||||||||||||
Forfeited
|
(1,781 | ) |
18.18
|
(1,294 | ) | 18.74 | (1,327 | ) | 32.50 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Balance outstanding at end of year
|
20,720 |
13.81
|
15,977 | 16.49 | 10,403 | 20.93 | ||||||||||||||||||
|
|
|
|
|
|
Year ended December 31,
|
||||||||||||
2020
|
2019
|
2018
|
||||||||||
(U.S. $ in millions)
|
||||||||||||
Employee stock options
|
$ | 30 | $ | 46 | $ | 74 | ||||||
RSUs and PSUs
|
99 | 73 | 81 | |||||||||
|
|
|
|
|
|
|||||||
Total stock-based compensation expense
|
129 | 119 | 155 | |||||||||
Tax effect on stock-based compensation expense
|
14 | 14 | 18 | |||||||||
|
|
|
|
|
|
|||||||
Net effect
|
$ | 115 | $ | 105 | $ | 137 | ||||||
|
|
|
|
|
|
d.
|
Dividends
|
e.
|
Accumulated other comprehensive los
s
|
Net Unrealized Gains/(Losses)
|
Benefit Plans
|
|||||||||||||||||||
Foreign
currency translation adjustments |
Available-
for-sale
securities |
Derivative
financial instruments |
Actuarial
gains/(losses) and prior service (costs)/credits |
Total
|
||||||||||||||||
(U.S. $ in millions)
|
||||||||||||||||||||
Balance as of January 1, 2018
|
$ | (1,139 | ) | $ | (4 | ) |
$
|
(619 | ) | $ | (91 | ) | $ | (1,853 | ) | |||||
Cumulative effect of new accounting standard**
|
— | 5 | — | — | 5 | |||||||||||||||
Other comprehensive income/(loss) before reclassifications
|
(729 | ) | (1 | ) | 87 | 4 | (639 | ) | ||||||||||||
Amounts reclassified to the statements of income
|
— | 1 | 28 | 13 | 42 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net other comprehensive income/(loss) before tax
|
(729
|
)
|
— |
115
|
17 | (597 | ) | |||||||||||||
Corresponding income tax
|
(10
|
)
|
— | — | (4 | ) | (14 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net other comprehensive income/(loss) after tax*
|
(739 | ) | — | 115 | 13 | (611 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance as of December 31, 2018
|
(1,878
|
)
|
1 |
(504
|
)
|
(78
|
)
|
(2,459 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Other comprehensive income/(loss) before reclassifications
|
100 | (1 | ) | 54 | (11 | ) | 142 | |||||||||||||
Amounts reclassified to the statements of income
|
— | — | 30 | (10 | ) | 20 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net other comprehensive income/(loss) before tax
|
100 |
(1
|
)
|
84 | (21 | ) | 162 | |||||||||||||
Corresponding income tax
|
(16
|
)
|
—
|
— | 1 | (15 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net other comprehensive income/(loss) after tax*
|
84 |
(1
|
)
|
84 | (20 | ) | 147 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance as of December 31, 2019
|
(1,794 | ) | — | (420 | ) | (98 | ) | (2,312 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Other comprehensive income/(loss) before reclassifications
|
(190 | ) | — | 22 | (7 | ) | (175 | ) | ||||||||||||
Amounts reclassified to the statements of income
|
— | — | 35 | (12 | ) | 23 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net other comprehensive income/(loss) before tax
|
(190 | ) | — | 57 | (19 | ) | (152 | ) | ||||||||||||
Corresponding income tax
|
65
|
— | — | 1 | 66 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net other comprehensive income/(loss) after tax*
|
(125 | ) | — | 57 | (18 | ) | (86 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance as of December 31, 2020
|
$ | (1,919 | ) | — | $ | (363 | ) | $ | (117 | ) | $ | (2,399 | ) | |||||||
|
|
|
|
|
|
|
|
|
|
* |
Amounts do not include foreign currency translation adjustments attributable to non-controlling interests of $56 million gain in
2020
, $14 million gain in
2019
and $26
million gain in 2018.
|
** |
Following the adoption of ASU 2016-01, the Company recorded a $5
|
Year ended December 31,
|
||||||||||||
2020
|
2019
|
2018
|
||||||||||
(U.S. $ in millions)
|
||||||||||||
Impairment of long-lived tangible assets
(1)
|
$ | 416 | $ | 139 | $ | 500 | ||||||
Contingent consideration (see note 2)
|
(81 | ) | 59 | 57 | ||||||||
Restructuring
|
120 | 199 | 488 | |||||||||
Other
|
24 |
26
|
(58 | ) | ||||||||
|
|
|
|
|
|
|||||||
Total
|
$ | 479 | $ | 423 | $ | 987 | ||||||
|
|
|
|
|
|
(1) |
Including impairments related to exit and disposal activities.
|
Year ended December 31,
|
||||||||||||
2020
|
2019
|
2018
|
||||||||||
(U.S. $ in millions)
|
||||||||||||
Restructuring
|
||||||||||||
Employee termination
|
$ | 71 | $ | 159 | $ | 410 | ||||||
Other
|
49 | 40 | 78 | |||||||||
|
|
|
|
|
|
|||||||
Total
|
$ | 120 | $ | 199 | $ | 488 | ||||||
|
|
|
|
|
|
Employee
termination costs |
Other
|
Total
|
||||||||||
(U.S. $ in millions )
|
||||||||||||
Balance as of January 1, 2019
|
$ | (204 | ) | $ | (29 | ) | $ | (233 | ) | |||
Provision
|
(159 | ) | (40 | ) | (199 | ) | ||||||
Utilization and other*
|
155 | 62 | 217 | |||||||||
|
|
|
|
|
|
|||||||
Balance as of December 31, 2019
|
$ | (208 | ) | $ | (7 | ) | $ | (215 | ) | |||
Provision
|
|
|
(71
|
)
|
|
|
(49
|
)
|
|
|
(120
|
)
|
Utilization and other
*
|
|
|
164
|
|
|
|
49
|
|
|
|
213
|
|
Balance as of December 31, 2020
|
|
$
|
(115
|
)
|
|
$
|
(7
|
)
|
|
$
|
(122
|
)
|
|
|
|
|
|
|
* |
Includes adjustments for foreign currency translation.
|
(1) |
Mainly related to the divestment of several activities in the International Markets segment.
|
(2) |
Section 8 of the Patented Medicines (Notice of Compliance) Regulation relates to recoveries of lost revenue related to patent infringement proceedings in Canada.
|
Year ended December, 31
|
||||||||||||
2020
|
2019
|
2018
|
||||||||||
(U.S. $ in millions)
|
||||||||||||
Interest expenses and other bank charges
|
963 | 881 | 920 | |||||||||
Income from investments (1)
|
(104 | ) | (41 | ) | (39 | ) | ||||||
Foreign exchange (gains) losses, net
|
(26 | ) | (15 | ) | 13 | |||||||
Other, net (2)
|
— | (4 | ) | 65 | ||||||||
|
|
|
|
|
|
|||||||
Total finance expense, net
|
$ | 834 | $ | 822 | $ | 959 | ||||||
|
|
|
|
|
|
(1) |
In 2020, Income from investments comprised mainly of revaluation gain of Teva’s investment in American Well Corporation (“American Well”). See note 20.
|
(2) |
In 2018, Other, net comprised mainly of a make-whole payment of $46 million following early redemption of senior notes during 2018.
|
Year ended December, 31
|
||||||||||||
2020
|
2019
|
2018
|
||||||||||
(U.S. $ in millions, except share data)
|
||||||||||||
Net income (loss) used for the computation of
basic and
diluted
earnings (loss)
per share
|
(3,990 | ) | $ | (999 | ) | $ | (2,399 | ) | ||||
|
|
|
|
|
|
|||||||
Weighted average number of shares used in the computation of basic
earnings (loss)
per share
|
1,095 | 1,091 | 1,021 | |||||||||
|
|
|
|
|
|
|||||||
Weighted average number of shares used in the computation of diluted
earnings (loss)
per share
|
1,095 | 1,091 | 1,021 | |||||||||
|
|
|
|
|
|
(a) |
North America segment, which includes the United States and Canada.
|
(b) |
Europe segment, which includes the European Union and certain other European countries.
|
(c) |
International Markets segment, which includes all countries other than those in the North America and Europe segments.
|
a.
|
Segment information:
|
Year ended December 31,
|
||||||||||||
2020
|
||||||||||||
North America
|
Europe
|
International Markets
|
||||||||||
(U.S. $ in millions)
|
||||||||||||
Revenues
|
$ | 8,447 | $ | 4,757 | $ | 2,154 | ||||||
Gross profit
|
4,489 | 2,666 | 1,096 | |||||||||
R&D expenses
|
622 | 247 | 70 | |||||||||
S&M expenses
|
1,013 | 830 | 427 | |||||||||
G&A
expenses
|
443 | 261 | 136 | |||||||||
Other income
|
(10 | ) | (3 | ) | (11 | ) | ||||||
Segment profit
|
$ | 2,421 | $ | 1,331 | $ | 474 | ||||||
|
|
|
|
|
|
|
|
Year ended December 31,
|
|
|||||||||
|
|
2019
|
|
|||||||||
|
|
North America
|
|
|
Europe
|
|
|
International Markets
|
|
|||
|
|
(U.S. $ in millions)
|
|
|||||||||
Revenues
|
|
$
|
8,542
|
|
|
$
|
4,795
|
|
|
$
|
2,246
|
|
Gross profit
|
|
|
4,350
|
|
|
|
2,704
|
|
|
|
1,167
|
|
R&D expenses
|
|
|
652
|
|
|
|
262
|
|
|
|
88
|
|
S&M expenses
|
|
|
1,021
|
|
|
|
890
|
|
|
|
481
|
|
G&A expenses
|
|
|
439
|
|
|
|
239
|
|
|
|
138
|
|
Other income
|
|
|
(14
|
)
|
|
|
(5
|
)
|
|
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit
|
|
$
|
2,252
|
|
|
$
|
1,318
|
|
|
$
|
464
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31,
|
||||||||||||
2018
|
||||||||||||
North America
|
Europe
|
International Markets
|
||||||||||
(U.S. $ in millions)
|
||||||||||||
Revenues
|
|
$
|
9,297
|
|
|
$
|
5,186
|
|
|
$
|
2,422
|
|
Gross profit
|
|
|
4,979
|
|
|
|
2,884
|
|
|
|
1,254
|
|
R&D expenses
|
|
|
713
|
|
|
|
283
|
|
|
|
96
|
|
S&M expenses
|
|
|
1,154
|
|
|
|
1,003
|
|
|
|
518
|
|
G&A expenses
|
|
|
484
|
|
|
|
325
|
|
|
|
153
|
|
Other income
|
|
|
(209
|
)
|
|
|
—
|
|
|
|
(11
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit
|
|
$
|
2,837
|
|
|
$
|
1,273
|
|
|
$
|
498
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
|
||||||||||||
December 31,
|
||||||||||||
2020
|
2019
|
2018
|
||||||||||
(U.S.$ in millions)
|
||||||||||||
North America profit
|
|
$
|
2,421
|
|
|
$
|
2,252
|
|
|
$
|
2,837
|
|
Europe profit
|
|
|
1,331
|
|
|
|
1,318
|
|
|
|
1,273
|
|
International Markets profit
|
|
|
474
|
|
|
|
464
|
|
|
|
498
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total reportable segments profit
|
|
|
4,225
|
|
|
|
4,034
|
|
|
|
4,608
|
|
Profit (loss) of other activities
|
|
|
163
|
|
|
|
108
|
|
|
|
115
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total segments profit
|
|
|
4,388
|
|
|
|
4,142
|
|
|
|
4,723
|
|
Amounts not allocated to segments:
|
|
|
|
|||||||||
Amortization
|
|
|
1,020
|
|
|
|
1,113
|
|
|
|
1,166
|
|
Other asset impairments, restructuring and other items
|
|
|
479
|
|
|
|
423
|
|
|
|
987
|
|
Goodwill impairment
|
|
|
4,628
|
|
|
|
—
|
|
|
|
3,027
|
|
Intangible asset impairments
|
|
|
1,502
|
|
|
|
1,639
|
|
|
|
1,991
|
|
Gain on divestitures, net of divestitures related costs
|
|
|
(8
|
)
|
|
|
(50
|
)
|
|
|
(66
|
)
|
Other R&D expenses (income)
|
|
|
37
|
|
|
|
(15
|
)
|
|
|
83
|
|
Costs related to regulatory actions taken in facilities
|
|
|
23
|
|
|
|
45
|
|
|
|
14
|
|
Legal settlements and loss contingencies
|
|
|
60
|
|
|
|
1,178
|
|
|
|
(1,208
|
)
|
Other unallocated amounts
|
|
|
219
|
|
|
|
252
|
|
|
|
366
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated operating income (loss)
|
|
|
(3,572
|
)
|
|
|
(443
|
)
|
|
|
(1,637
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses, net
|
|
|
834
|
|
|
|
822
|
|
|
|
959
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated income (loss) before income taxes
|
|
$
|
(4,406
|
)
|
|
$
|
(1,265
|
)
|
|
$
|
(2,596
|
)
|
|
|
|
|
|
|
b.
|
Segment revenues by major products and activities:
|
|
Year ended December 31,
|
||||||||||||
2020
|
2019
|
2018
|
|||||||||||
(U.S. $ in millions)
|
|||||||||||||
Generic products
|
$ | 4,010 | $ | 3,963 | $ | 4,056 | |||||||
AJOVY
|
134 | 93 | 3 | ||||||||||
AUSTEDO
|
637 | 412 | 204 | ||||||||||
BENDEKA/TREANDA
|
415 | 496 | 642 | ||||||||||
COPAXONE
|
884 | 1,017 | 1,759 | ||||||||||
ProAir*
|
241 | 274 | 397 | ||||||||||
QVAR
|
179 | 250 | 182 | ||||||||||
Anda
|
1,462 | 1,492 | 1,347 | ||||||||||
Other
|
485 | 546 | 708 | ||||||||||
|
|
|
|
|
|
||||||||
Total
|
$ | 8,447 | $ | 8,542 | $ | 9,297 | |||||||
|
|
|
|
|
|
* |
Does not include revenues from the ProAir authorized generic, which are included under generic products.
|
Year ended December 31,
|
||||||||||||
2020
|
2019
|
2018
|
||||||||||
(U.S. $ in millions)
|
||||||||||||
Generic products
|
$ | 3,513 | $ | 3,470 | $ | 3,593 | ||||||
AJOVY
|
|
|
31
|
|
|
|
3
|
|
|
|
—
|
|
COPAXONE
|
400 | 432 | 535 | |||||||||
Respiratory products
|
353 | 354 | 402 | |||||||||
Other
|
459 | 536 | 656 | |||||||||
|
|
|
|
|
|
|||||||
Total
|
$ | 4,757 | $ | 4,795 | $ | 5,186 | ||||||
|
|
|
|
|
|
Year ended December 31,
|
||||||||||||
2020
|
2019
|
2018
|
||||||||||
(U.S. $ in millions)
|
||||||||||||
Generic products
|
$ | 1,792 | $ | 1,893 | $ | 2,022 | ||||||
COPAXONE
|
53 | 63 | 72 | |||||||||
Other
|
309 | 291 | 328 | |||||||||
|
|
|
|
|
|
|||||||
Total
|
$ | 2,154 | $ | 2,246 | $ | 2,422 | ||||||
|
|
|
|
|
|
c.
|
Supplemental data—major customers:
|
Percentage of Third Party Net Sales
|
||||||||||||
2020
|
2019
|
2018
|
||||||||||
McKesson Corporation
|
12 |
%
|
13 | % | 12 | % | ||||||
AmerisourceBergen Corporation
|
12 |
%
|
12 | % | 14 | % |
d.
|
Property, plant and equipment—by geographical location were as follows:
|
December 31,
|
||||||||
2020
|
2019
|
|||||||
(U.S. $ in millions)
|
||||||||
Israel
|
$ | 1,611 | $ | 1,670 | ||||
United States
|
790 | 864 | ||||||
Croatia
|
539 | 517 | ||||||
Germany
|
933 | 665 | ||||||
Czech republic
|
330 | 343 | ||||||
Hungary
|
325 | 330 | ||||||
Ireland
|
267 | 271 | ||||||
Other
|
1,501 | 1,776 | ||||||
|
|
|
|
|||||
Total property, plant and equipment
|
$ | 6,296 | $ | 6,436 | ||||
|
|
|
|
December 31, 2020
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
(U.S. $ in millions)
|
||||||||||||||||
Cash and cash equivalents:
|
||||||||||||||||
Money markets
|
$ | 367 | $ |
—
|
$ |
—
|
$ | 367 | ||||||||
Cash, deposits and other
|
1,810 |
—
|
—
|
1,810 | ||||||||||||
Investment in securities:
|
||||||||||||||||
Equity securities*
|
25 |
259
|
—
|
284 | ||||||||||||
Other, mainly debt securities
|
5 |
—
|
10 | 15 | ||||||||||||
Derivatives:
|
||||||||||||||||
Asset derivatives—options and forward contracts
|
—
|
24 |
—
|
24 | ||||||||||||
Liabilities derivatives—options and forward contracts
|
—
|
(79 | ) |
—
|
(79 | ) | ||||||||||
Contingent consideration**
|
—
|
—
|
(268 | ) | (268 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total
|
$ | 2,207 | $ | 204 | $ | (258 | ) | $ | 2,153 | |||||||
|
|
|
|
|
|
|
|
December 31, 2019
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
(U.S. $ in millions)
|
||||||||||||||||
Cash and cash equivalents:
|
||||||||||||||||
Money markets
|
$ | 577 | $ | — | $ | — | $ | 577 | ||||||||
Cash, deposits and other
|
1,398 | — | — | 1,398 | ||||||||||||
Investment in securities:
|
||||||||||||||||
Equity securities
|
42 | — | — | 42 | ||||||||||||
Other, mainly debt securities
|
2 | — | 12 | 14 | ||||||||||||
Derivatives:
|
||||||||||||||||
Asset derivatives—options and forward contracts
|
— | 32 | — | 32 | ||||||||||||
Liability derivatives—options and forward contracts
|
— | (41 | ) | — | (41 | ) | ||||||||||
Liabilities derivatives—interest rate and cross-currency swaps
|
— | (22 | ) | — | (22 | ) | ||||||||||
Contingent consideration**
|
— | — | (460 | ) | (460 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total
|
$ | 2,019 | $ |
(31
|
)
|
$ | (448 | ) | $ | 1,540 | ||||||
|
|
|
|
|
|
|
|
* |
During the third quarter of 2020, Teva recorded a gain of $134 million under share in profits of associated companies, net, reflecting the difference between the book value of Teva’s investment in American Well and its fair value as of the date it completed its initial public offering in September 2020. The investment was reclassified from “investment in associated companies” to “investment in marketable securities,” since Teva no longer ha
d
significant influence in American Well.
This represented a transfer into Level 3 measurement within fair value hierarchy. By
December 31, 2020, Teva recorded an additional gain of $80
million under financial expenses, net, reflecting the revaluation gain of this security as of December 31, 2020 and transferred it to Level 2 measurement within fair value hierarchy due to a change in discount rate.
|
|
Due to management’s intention and ability to sell this security in the next twelve months, the balance as of December 31, 2020 was reclassified to short term investments.
|
**
|
Contingent consideration represents liabilities recorded at fair value in connection with acquisitions.
|
December 31,
2020 |
December 31,
2019 |
|||||||
(U.S. $ in millions)
|
||||||||
Fair value at the beginning of the period
|
$ | (448 | ) | $ | (497 | ) | ||
Transfer into Level 3- equity securities
|
179 | |||||||
Revaluation of equity securities
|
80
|
|||||||
Revaluation of debt securities
|
(2 | ) |
2
|
|||||
Reclassification to Level 2- equity securities
|
|
|
(259
|
) |
|
|
|
|
Adjustments to provisions for contingent consideration:
|
||||||||
Actavis Generics transaction
|
156 | 92 | ||||||
Eagle transactio
n
|
(75
|
)
|
(151
|
) | ||||
Settlement of contingent consideration:
|
||||||||
Eagle transaction
|
111 | 106 | ||||||
|
|
|
|
|||||
Fair value at the end of the period
|
$ | (258 | ) | $ | (448 | ) | ||
|
|
|
|
Estimated fair value*
|
||||||||
December 31,
|
||||||||
2020
|
2019
|
|||||||
(U.S. $ in millions)
|
||||||||
Senior notes included under long-term liabilities
|
$ | 22,684 | $ | 22,686 | ||||
Senior notes and convertible senior debentures included under short-term liabilities
|
3,207 | 2,318 | ||||||
|
|
|
|
|||||
Fair value at the end of the period
|
$ | 25,891 | $ | 25,004 | ||||
|
|
|
|
* |
The fair value was estimated based on quoted market prices.
|
a.
|
Long-term employee-related obligations consisted of the following:
|
December 31,
|
||||||||
2020
|
2019
|
|||||||
(U.S. $ in millions)
|
||||||||
Accrued severance obligations
|
$ | 82 | $ | 76 | ||||
Defined benefit plans
|
192 | 165 | ||||||
|
|
|
|
|||||
Total
|
$ | 275 | $ | 241 | ||||
|
|
|
|
b.
|
Terms of arrangements:
|
2020
|
||||||||||||||||
4th quarter
|
|
|
3rd quarter
|
|
|
2nd quarter
|
|
|
1st quarter
|
|||||||
U.S $ in millions (except per share amounts)
|
||||||||||||||||
Net revenues
|
4,454 | 3,978 | 3,870 | 4,357 | ||||||||||||
Gross profit
|
2,048 | 1,852 | 1,763 | 2,063 | ||||||||||||
Net income (loss)
|
162 | (4,340 | ) | 53 | 25 | |||||||||||
Net income (loss) attributable to Teva
|
150 | (4,349 | ) | 140 | 69 | |||||||||||
Net income (loss) attributable to ordinary shareholders
|
150 | (4,349 | ) | 140 | 69 | |||||||||||
Earnings per share attributable to ordinary shareholders:
|
||||||||||||||||
Basic
|
0.14 | (3.97 | ) | 0.13 | 0.06 | |||||||||||
Diluted
|
0.14 | (3.97 | ) | 0.13 | 0.06 | |||||||||||
2019
|
|
|||||||||||||||
4th quarter
|
|
|
3rd quarter
|
|
|
2nd quarter
|
|
|
1st quarter
|
|
||||||
U.S $ in millions (except per share amounts)
|
||||||||||||||||
Net revenues
|
4,468 | 4,093 | 4,177 | 4,149 | ||||||||||||
Gross profit
|
1,958 | 1,830 | 1,893 | 1,856 | ||||||||||||
Net income (loss)
|
75 | (307 | ) | (671 | ) | (97 | ) | |||||||||
Net income (loss) attributable to Teva
|
110 | (314 | ) | (689 | ) | (105 | ) | |||||||||
Net income (loss) attributable to ordinary shareholders
|
110 | (314 | ) | (689 | ) | (105 | ) | |||||||||
Earnings per share attributable to ordinary shareholders:
|
||||||||||||||||
Basic
|
0.10 | (0.29 | ) | (0.63 | ) | (0.10 | ) | |||||||||
Diluted
|
0.10 | (0.29 | ) | (0.63 | ) | (0.10 | ) |
Column A
|
Column B
|
Column C
|
Column D
|
Column E
|
||||||||||||||||
Balance at
beginning of period |
Charged to costs
and expenses |
Charged to other
accounts |
Deductions
|
Balance at end
of period |
||||||||||||||||
Allowance for doubtful accounts:
|
||||||||||||||||||||
Year ended December 31, 2020
|
$ | 209 | $ | (11 | ) | $ | 2 | $ | $ | 200 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Year ended December 31, 2019
|
$ | 232 | $ | (16 | ) | $ | — | $ | (7 | ) | $ | 209 | ||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Year ended December 31, 2018
|
$ | 232 | $ | 13 | $ | (9 | ) | $ | (4 | ) | $ | 232 | ||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Allowance in respect of carryforward tax losses and deductions that may not be utilized:
|
||||||||||||||||||||
Year ended December 31, 2020
|
$ | 1,974 | $ | 670 | $ | — | $ | (97 | ) | $ | 2,547 | |||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Year ended December 31, 2019
|
$ | 1,633 | $ | 555 | $ | — | $ | (214 | ) | $ | 1,974 | |||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Year ended December 31, 2018
|
$ | 1,504 | $ | 407 | $ | 5 | $ | (283 | ) | $ | 1,633 | |||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
The following financial statements are filed as part of this Annual Report on Form
10-K:
|
page
|
||||
86 | ||||
Consolidated Financial Statements:
|
||||
90 | ||||
91 | ||||
92 | ||||
93 | ||||
94 | ||||
96 | ||||
Financial Statement Schedule:
|
||||
168 |
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | Inline XBRL Taxonomy Extension Labels Linkbase Document | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* |
Filed herewith
|
1. |
English translation or summary from Hebrew original, which is the official version.
|
2. |
Incorporated by reference to Exhibit 3.1 to Registration Statement on Form
F-1(Reg.
No. 33-15736).
|
3. |
Incorporated by reference to Exhibit 3.1 to Current Report on Form
8-K
filed on December 14, 2018.
|
4. |
Incorporated by reference to Exhibit 3.1 to Current Report on Form
8-K
filed on June 9, 2020.
|
5. |
Incorporated by reference to Exhibit 4.1 to Current Report on Form
8-K
filed on December 4, 2018.
|
6. |
Incorporated by reference to Exhibit 4.1 to Form
6-K
filed on January 31, 2006.
|
7. |
Incorporated by reference to Exhibit 4.2 to Form
6-K
filed on January 31, 2006.
|
8. |
Incorporated by reference to Exhibit 4.3 to Form
6-K
filed on January 31, 2006.
|
9. |
Incorporated by reference to Exhibit 4.1 to Form
6-K
filed on May 4, 2010.
|
10. |
Incorporated by reference to Exhibit 4.1 to Form
6-K
filed on November 10, 2011.
|
11. |
Incorporated by reference to Exhibit 4.2 to Form
6-K
filed on December 18, 2012.
|
12. |
Incorporated by reference to Exhibit 4.3 to Form
6-K
filed on November 10, 2011.
|
13. |
Incorporated by reference to Exhibit 4.4 to Form
6-K
filed on November 10, 2011.
|
14. |
Incorporated by reference to Exhibit 4.4 to Form
6-K
filed on December 18, 2012.
|
15. |
Incorporated by reference to Exhibit 4.5 to Form
6-K
filed on November 10, 2011.
|
16. |
Incorporated by reference to Exhibit 4.6 to Form
6-K
filed on November 10, 2011.
|
17. |
Incorporated by reference to Exhibit 4.1 to Form
6-K
filed on March 31, 2015.
|
18. |
Incorporated by reference to Exhibit 4.2 to Form
6-K
filed on March 31, 2015.
|
19. |
Incorporated by reference to Exhibit 4.2 to Form
6-K
filed on July 25, 2016.
|
20. |
Incorporated by reference to Exhibit 4.1 to Form
6-K
filed on July 21, 2016.
|
21. |
Incorporated by reference to Exhibit 4.2 to Form
6-K
filed on July 21, 2016.
|
22. |
Incorporated by reference to Exhibit 4.2 to Form
6-K
filed on July 28, 2016.
|
23. |
Incorporated by reference to Exhibit 4.3 to Form
6-K
filed on July 28, 2016.
|
24. |
Incorporated by reference to Exhibit 4.5 to Form
6-K
filed on July 28, 2016.
|
25. |
Incorporated by reference to Exhibit 4.6 to Form
6-K
filed on July 28, 2016.
|
26. |
Incorporated by reference to Exhibit 4.1 to Current Report on Form
8-K
filed on March 14, 2018.
|
27. |
Incorporated by reference to Exhibit 4.2 to Current Report on Form
8-K
filed on March 14, 2018.
|
28. |
Incorporated by reference to Exhibit 4.5 to Current Report on Form
8-K
filed on March 14, 2018.
|
29. |
Incorporated by reference to Exhibit 4.6 to Current Report on Form
8-K
filed on March 14, 2018.
|
30. |
Incorporated by reference to Exhibit 4.2 to Current Report on Form
8-K
filed on November 25, 2019.
|
31. |
Incorporated by reference to Exhibit 4.6 to Current Report on Form
8-K
filed on November 25, 2019.
|
32. |
Incorporated by reference to Exhibit 4.33 to Annual Report on Form
10-K
filed on February 21, 2020.
|
33. |
Incorporated by reference to Exhibit 10.1 to Current Report on Form
8-K
filed on April 10, 2019.
|
34. |
Incorporated by reference to Exhibit 10.20 to Annual Report on Form
10-K
filed on February 12, 2018.
|
35. |
Incorporated by reference to Exhibit 10.1 to Current Report on Form
8-K
filed on June 9, 2020.
|
36. |
Incorporated by reference to Exhibit 10.32 to Annual Report on Form
10-K
filed on February 12, 2018.
|
37. |
Incorporated by reference to Exhibit 10.26 to Annual Report on Form
10-K
filed on February 19, 2019.
|
38. |
Incorporated by reference to Exhibit 10.10 to Annual Report on Form
10-K
filed on February 21, 2020.
|
39. |
Incorporated by reference to Exhibit 10.13 to Annual Report on Form
10-K
filed on February 21, 2020.
|
40. |
Incorporated by reference to Exhibit 10.32 to Annual Report on Form
10-K
filed on February 21, 2020.
|
41. |
Incorporated by reference to Exhibit A to Proxy Statement filed on June 8, 2017.
|
42. |
Incorporated by reference to Exhibit 10.49 to Annual Report on Form
10-K
filed on February 12, 2018.
|
43. |
Incorporated by reference to Exhibit 10.50 to Annual Report on Form
10-K
filed on February 12, 2018.
|
44. |
Incorporated by reference to Exhibit 10.51 to Annual Report on Form
10-K
filed on February 12, 2018.
|
45. |
Incorporated by reference to Exhibit 10.52 to Annual Report on Form
10-K
filed on February 12, 2018.
|
46. |
Incorporated by reference to Exhibit 10.53 to Annual Report on Form
10-K
filed on February 12, 2018.
|
47. |
Incorporated by reference to Exhibit 10.54 to Annual Report on Form
10-K
filed on February 12, 2018.
|
48. |
Incorporated by reference to Exhibit 10.56 to Annual Report on Form
10-K
filed on February 12, 2018.
|
49. |
Incorporated by reference to Exhibit 10.61 to Annual Report on Form
10-K
filed on February 12, 2018.
|
50. |
Incorporated by reference to Exhibit 10.60 to Annual Report on Form
10-K
filed on February 12, 2018.
|
51. |
Incorporated by reference to Exhibit Appendix A to our Definitive Proxy Statement filed on April 22, 2020.
|
52. |
Incorporated by reference to Exhibit 10.63 to Annual Report on Form
10-K
filed on February 12, 2018.
|
53. |
Incorporated by reference to Exhibit 10.64 to Annual Report on Form
10-K
filed on February 12, 2018.
|
54. |
Incorporated by reference to Exhibit 10.2 to Quarterly Report on Form
10-Q
filed on November 5, 2020.
|
55. |
Incorporated by reference to Exhibit 10.30 to Annual Report on Form
10-K
filed on February 21, 2020.
|
56. |
Incorporated by reference to Exhibit 10.31 to Annual Report on Form
10-K
filed on February 21, 2020.
|
57. |
Incorporated by reference to Exhibit 10.3 to Quarterly Report on Form
10-Q
filed on November 5, 2020.
|
58. |
Incorporated by reference to Exhibit 18 to Quarterly Report on Form
10-Q
filed on August 5, 2020.
|
TEVA PHARMACEUTICAL INDUSTRIES LIMITED
|
||
By: |
/s/ Kåre Schultz
|
|
Name: | Kåre Schultz | |
Title: | President and Chief Executive Officer | |
Dated: | February 10, 2021 |
Name
|
Title
|
Date
|
||||
By: |
/s/ Dr. Sol J. Barer
Dr. Sol J. Barer
|
Chairman of the Board of Directors | February 10, 2021 | |||
By: |
/s/ Kåre Schultz
Kåre Schultz
|
President and Chief Executive Officer and Director | February 10, 2021 | |||
By: |
/s/ Eli Kalif
Eli Kalif
|
Executive Vice President, Chief Financial Officer
(Principal Financial Officer) |
February 10, 2021 | |||
By: |
/s/ Deborah A. Griffin
Deborah A. Griffin
|
Senior Vice President, Chief Accounting Officer
(Principal Accounting Officer) |
February 10, 2021 | |||
By: |
/s/ Rosemary A. Crane
Rosemary A. Crane
|
Director | February 10, 2021 | |||
By: |
/s/ Amir Elstein
Amir Elstein
|
Director | February 10, 2021 |
Name
|
Title
|
Date
|
||||
By: |
/s/ Jean-Michel Halfon
Jean-Michel Halfon
|
Director | February 10, 2021 | |||
By: |
/s/ Abbas Hussain
Abbas Hussain
|
Director | February 10, 2021 | |||
By: |
/s/ Gerald M. Lieberman
Gerald M. Lieberman
|
Director | February 10, 2021 | |||
By: |
/s/ Roberto A. Mignone
Roberto A. Mignone
|
Director | February 10, 2021 | |||
By: |
/s/ Dr. Perry D. Nisen
Dr. Perry D. Nisen
|
Director | February 10, 2021 | |||
By: |
/s/ Nechemia (Chemi) J. Peres
Nechemia (Chemi) J. Peres
|
Director | February 10, 2021 | |||
By: |
/s/ Prof. Ronit Satchi-Fainaro
Prof. Ronit Satchi-Fainaro
|
Director | February 10, 2021 | |||
By: |
/s/ Janet Vergis
Janet Vergis
|
Director | February 10, 2021 |
1 Year Teva Pharmaceutical Indu... Chart |
1 Month Teva Pharmaceutical Indu... Chart |
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