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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 | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 14.08 | 0 | 09:34:17 |
☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Israel
|
|
No
t Applicable
|
(State or other jurisdiction of
incorporation or organization)
|
|
(IRS Employer
Identification Number)
|
5 Basel Street, Petach Tikva, ISRAEL
|
|
4951033
|
(Address of principal executive offices)
|
|
(Zip code)
|
Title of each class
|
|
Trading
Symbol(s)
|
|
Name of each exchange
on which registered
|
American Depositary Shares, each representing one Ordinary Share
|
|
TEVA
|
|
New York Stock Exchange
|
Large accelerated filer
|
|
☒
|
|
Accelerated filer
|
|
☐
|
Non-accelerated filer
|
|
☐
|
|
Smaller reporting company
|
|
☐
|
Emerging growth company
|
|
☐
|
|
|
PART I.
|
|
|
||||
Item 1.
|
|
|
|
5
|
|
|
|
|
|
5
|
|
||
|
|
|
6
|
|
||
|
|
|
7
|
|
||
|
|
|
8
|
|
||
|
|
|
10
|
|
||
|
|
|
11
|
|
||
Item 2.
|
|
|
|
46
|
|
|
Item 3.
|
|
|
|
76
|
|
|
Item 4.
|
|
|
|
76
|
|
|
PART II.
|
|
|
|
77
|
|
|
Item 1.
|
|
|
|
77
|
|
|
Item 1A.
|
|
|
|
77
|
|
|
Item 2.
|
|
|
|
77
|
|
|
Item 3.
|
|
|
|
77
|
|
|
Item 4.
|
|
|
|
77
|
|
|
Item 5.
|
|
|
|
77
|
|
|
Item 6.
|
|
|
|
78
|
|
|
|
|
|
79
|
|
• |
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
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 (including as a result of potential tax reform in the United States); 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;
|
ITEM 1.
|
FINANCIAL STATEMENTS
|
June 30,
|
December 31,
|
|||||||
2021
|
2020
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 2,436 | $ | 2,177 | ||||
Accounts receivables, net of allowance for credit losses of $120 million and $126 million as of June 30, 2021 and December 31, 2020
|
4,488 | 4,581 | ||||||
Inventories
|
4,362 | 4,403 | ||||||
Prepaid expenses
|
1,022 | 945 | ||||||
Other current assets
|
484 | 710 | ||||||
Assets held for sale
|
29 | 189 | ||||||
|
|
|
|
|||||
Total current assets
|
12,822 | 13,005 | ||||||
Deferred income taxes
|
645 | 695 | ||||||
Other
non-current
assets
|
530 | 538 | ||||||
Property, plant and equipment, net
|
6,127 | 6,296 | ||||||
Operating lease
right-of-use
|
531 | 559 | ||||||
Identifiable intangible assets, net
|
8,120 | 8,923 | ||||||
Goodwill
|
20,421 | 20,624 | ||||||
|
|
|
|
|||||
Total assets
|
$ | 49,195 | $ | 50,640 | ||||
|
|
|
|
|||||
LIABILITIES AND EQUITY
|
||||||||
Current liabilities:
|
||||||||
Short-term debt
|
$ | 3,530 | $ | 3,188 | ||||
Sales reserves and allowances
|
4,453 | 4,824 | ||||||
Accounts payables
|
1,551 | 1,756 | ||||||
Employee-related obligations
|
511 | 685 | ||||||
Accrued expenses
|
1,807 | 1,780 | ||||||
Other current liabilities
|
838 | 933 | ||||||
|
|
|
|
|||||
Total current liabilities
|
12,691 | 13,164 | ||||||
Long-term liabilities:
|
||||||||
Deferred income taxes
|
932 | 964 | ||||||
Other taxes and long-term liabilities
|
2,215 | 2,240 | ||||||
Senior notes and loans
|
21,602 | 22,731 | ||||||
Operating lease liabilities
|
444 | 479 | ||||||
|
|
|
|
|||||
Total long-term liabilities
|
25,193 | 26,414 | ||||||
|
|
|
|
|||||
Commitments and contingencies
|
||||||||
Total liabilities
|
37,884 | 39,579 | ||||||
|
|
|
|
|||||
Equity:
|
||||||||
Teva shareholders’ equity:
|
||||||||
Ordinary shares of NIS 0.10 par value per share; June 30, 2021 and December 31, 2020: authorized 2,495 million shares; issued 1,209 million shares and 1,202 million shares, respectively
|
57 | 57 | ||||||
Additional
paid-in
capital
|
27,503 | 27,443 | ||||||
Accumulated deficit
|
(10,662 | ) | (10,946 | ) | ||||
Accumulated other comprehensive loss
|
(2,446 | ) | (2,399 | ) | ||||
Treasury shares as of June 30, 2021 and December 31, 2020 — 106 million ordinary shares
|
(4,128 | ) | (4,128 | ) | ||||
|
|
|
|
|||||
10,324 | 10,026 | |||||||
|
|
|
|
|||||
Non-controlling
interests
|
987 | 1,035 | ||||||
|
|
|
|
|||||
Total equity
|
11,311 | 11,061 | ||||||
|
|
|
|
|||||
Total liabilities and equity
|
$ | 49,195 | $ | 50,640 | ||||
|
|
|
|
Three months ended
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Net revenues
|
$ | 3,910 | $ | 3,870 | $ | 7,892 | $ | 8,227 | ||||||||
Cost of sales
|
2,037 | 2,107 | 4,141 | 4,402 | ||||||||||||
Gross profit
|
1,873 | 1,763 | 3,750 | 3,826 | ||||||||||||
Research and development expenses
|
248 | 225 | 501 | 446 | ||||||||||||
Selling and marketing expenses
|
615 | 597 | 1,200 | 1,210 | ||||||||||||
General and administrative expenses
|
242 | 264 | 532 | 567 | ||||||||||||
Intangible assets impairments
|
195 | 120 | 274 | 768 | ||||||||||||
Other assets impairments, restructuring and other items
|
28 | 381 | 165 | 502 | ||||||||||||
Legal settlements and loss contingencies
|
6 | 13 | 110 | (12 | ) | |||||||||||
Other income
|
(43 | ) | (9 | ) | (48 | ) | (22 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating income (loss)
|
582 | 173 | 1,015 | 364 | ||||||||||||
Financial expenses, net
|
274 | 223 | 564 | 448 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income (loss) before income taxes
|
308 | (51 | ) | 451 | (84 | ) | ||||||||||
Income taxes (benefit)
|
98 | (104 | ) | 159 | (163 | ) | ||||||||||
Share in (profits) losses of associated companies, net
|
(11 | ) | — | (14 | ) | 0 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss)
|
221 | 53 | 306 | 78 | ||||||||||||
Net income (loss) attributable to
non-controlling
interests
|
14 | (87 | ) | 21 | (131 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) attributable to Teva
|
207 | 140 | 284 | 209 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Earnings (loss) per share attributable to ordinary shareholders:
|
||||||||||||||||
Basic
|
$ | 0.19 | $ | 0.13 | $ | 0.26 | $ | 0.19 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Diluted
|
$ | 0.19 | $ | 0.13 | $ | 0.26 | $ | 0.19 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average number of shares (in millions):
|
||||||||||||||||
Basic
|
1,103 | 1,096 | 1,101 | 1,095 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Diluted
|
1,109 | 1,100 | 1,108 | 1,098 | ||||||||||||
|
|
|
|
|
|
|
|
Three months ended
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Net income (loss)
|
$ | 221 | $ | 53 | $ | 306 | $ | 78 | ||||||||
Other comprehensive income (loss), net of tax:
|
||||||||||||||||
Currency translation adjustment
|
79 | 144 | (130 | ) | (416 | ) | ||||||||||
Unrealized gain (loss) from derivative financial instruments, net
|
7 | 7 | 14 | 37 | ||||||||||||
Unrealized loss on defined benefit plans
|
1 | — | 1 | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total other comprehensive income (loss)
|
87 | 151 | (115 | ) | (379 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total comprehensive income (loss)
|
308 | 204 | 191 | (301 | ) | |||||||||||
Comprehensive income (loss) attributable to
non-controlling
interests
|
13 | (85 | ) | (47 | ) | (119 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income (loss) attributable to Teva
|
$ | 295 | $ | 289 | $ | 238 | $ | (182 | ) | |||||||
|
|
|
|
|
|
|
|
Teva shareholders’ equity
|
||||||||||||||||||||||||||||||||||||
Ordinary shares
|
||||||||||||||||||||||||||||||||||||
Number of
shares (in
millions)
|
Stated
value
|
Additional
paid-in
capital
|
Retained
earnings
(accumulated
deficit)
|
Accumulated other
comprehensive
(loss)
|
Treasury
shares
|
Total Teva
shareholders’
equity
|
Non-controlling
interests
|
Total
equity
|
||||||||||||||||||||||||||||
(U.S. dollars in millions)
|
||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021
|
|
1,208
|
|
|
57
|
|
|
27,474
|
|
|
(10,869
|
)
|
|
(2,534
|
)
|
|
(4,128
|
)
|
|
10,000
|
|
|
975
|
|
|
10,975
|
|
|||||||||
Net Income (loss)
|
|
207
|
|
|
207
|
|
|
14
|
|
|
221
|
|
||||||||||||||||||||||||
Other comprehensive income (loss)
|
|
88
|
|
|
88
|
|
|
(1
|
)
|
|
87
|
|
||||||||||||||||||||||||
Issuance of Shares
|
|
1
|
|
|
*
|
|
|
*
|
|
|
*
|
|
||||||||||||||||||||||||
Stock-based compensation expense
|
|
29
|
|
|
29
|
|
|
29
|
|
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Balance at June 30, 2021
|
|
1,209
|
|
$
|
57
|
|
$
|
27,503
|
|
$
|
(10,662
|
)
|
$
|
(2,446
|
)
|
$
|
(4,128
|
)
|
$
|
10,324
|
|
$
|
987
|
|
$
|
11,311
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Represents an amount less than $0.5 million.
|
Teva shareholders’ equity
|
||||||||||||||||||||||||||||||||||||
Ordinary shares
|
||||||||||||||||||||||||||||||||||||
Number of
shares (in millions) |
Stated
value |
Additional
paid-in
capital |
Retained
earnings (accumulated deficit) |
Accumulated other
comprehensive (loss) |
Treasury
shares |
Total Teva
shareholders’ equity |
Non-controlling
interests |
Total
equity |
||||||||||||||||||||||||||||
(U.S. dollars in millions)
|
||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020
|
1,201 | 56 | 27,342 | (6,887 | ) | (2,852 | ) | (4,128 | ) | 13,531 | 1,057 | 14,588 | ||||||||||||||||||||||||
Net Income (loss)
|
140 | 140 | (87 | ) | 53 | |||||||||||||||||||||||||||||||
Other comprehensive income (loss)
|
149 | 149 | 2 | 151 | ||||||||||||||||||||||||||||||||
Issuance of Shares
|
1 | * | * | |||||||||||||||||||||||||||||||||
Stock-based compensation expense
|
32 | 32 | 32 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Balance at June 30, 2020
|
1,202 | $ | 57 | $ | 27,374 | $ | (6,747 | ) | $ | (2,703 | ) | $ | (4,128 | ) | $ | 13,852 | $ | 972 | $ | 14,824 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Represents an amount less than $0.5 million.
|
Teva shareholders’ equity
|
||||||||||||||||||||||||||||||||||||
Ordinary shares
|
||||||||||||||||||||||||||||||||||||
Number of
shares (in millions) |
Stated
value |
Additional
paid-in
capital |
Retained
earnings (accumulated deficit) |
Accumulated other
comprehensive (loss) |
Treasury
shares |
Total Teva
shareholders’ equity |
Non-controlling
interests |
Total
equity |
||||||||||||||||||||||||||||
(U.S. dollars in millions)
|
||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020
|
|
1,202
|
|
|
57
|
|
|
27,443
|
|
|
(10,946
|
)
|
|
(2,399
|
)
|
|
(4,128
|
)
|
|
10,026
|
|
|
1,035
|
|
|
11,061
|
|
|||||||||
Net Income (loss)
|
|
284
|
|
|
284
|
|
|
21
|
|
|
306
|
|
||||||||||||||||||||||||
Other comprehensive income (loss)
|
|
(47
|
)
|
|
(47
|
)
|
|
(68
|
)
|
|
(115
|
)
|
||||||||||||||||||||||||
Issuance of Shares
|
|
6
|
|
|
*
|
|
|
*
|
|
|
*
|
|
||||||||||||||||||||||||
Stock-based compensation expense
|
|
60
|
|
|
60
|
|
|
60
|
|
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Balance at June 30, 2021
|
|
1,209
|
|
$
|
57
|
|
$
|
27,503
|
|
$
|
(10,662
|
)
|
$
|
(2,446
|
)
|
$
|
(4,128
|
)
|
$
|
10,324
|
|
$
|
987
|
|
$
|
11,311
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Represents an amount less than $0.5 million.
|
Teva shareholders’ equity
|
||||||||||||||||||||||||||||||||||||
Ordinary shares
|
||||||||||||||||||||||||||||||||||||
Number of
shares (in millions) |
Stated
value
|
Additional
paid-in
capital
|
Retained
earnings (accumulated deficit) |
Accumulated other
comprehensive
(loss)
|
Treasury
shares |
Total Teva
shareholders’ equity |
Non-controlling
interests |
Total
equity
|
||||||||||||||||||||||||||||
(U.S. dollars in millions)
|
||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019
|
|
1,198
|
|
|
56
|
|
|
27,312
|
|
|
(6,956
|
)
|
|
(2,312
|
)
|
|
(4,128
|
)
|
|
13,972
|
|
|
1,091
|
|
|
15,063
|
|
|||||||||
Net Income (loss)
|
|
209
|
|
|
209
|
|
|
(131
|
)
|
|
78
|
|
||||||||||||||||||||||||
Other comprehensive income (loss)
|
|
(391
|
)
|
|
(391
|
)
|
|
12
|
|
|
(379
|
)
|
||||||||||||||||||||||||
Issuance of shares
|
|
4
|
|
|
*
|
|
|
*
|
|
|
*
|
|
||||||||||||||||||||||||
Stock-based compensation expense
|
|
62
|
|
|
62
|
|
|
62
|
|
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Balance at June 30, 2020
|
|
1,202
|
|
$
|
57
|
|
$
|
27,374
|
|
$
|
(6,747
|
)
|
$
|
(2,703
|
)
|
$
|
(4,128
|
)
|
$
|
13,852
|
|
$
|
972
|
|
$
|
14,824
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Represents an amount less than $0.5 million.
|
Six months ended
|
||||||||
June 30,
|
||||||||
2021
|
2020
|
|||||||
Operating activities:
|
||||||||
Net income (loss)
|
$ | 306 | $ | 78 | ||||
Adjustments to reconcile net income (loss) to net cash provided by operations:
|
||||||||
Depreciation and amortization
|
681 | 781 | ||||||
Impairment of long-lived assets and assets held for sale
|
354 | 1,120 | ||||||
Net change in operating assets and liabilities
|
(1,679 | ) | (1,002 | ) | ||||
Deferred income taxes – net and uncertain tax positions
|
5 | (502 | ) | |||||
Stock-based compensation
|
60 | 62 | ||||||
Net loss (gain) from investments and from sale of long lived assets
|
93 | 24 | ||||||
Other items
|
(7 | ) | 17 | |||||
|
|
|
|
|||||
Net cash provided by (used in) operating activities
|
(187 | ) | 578 | |||||
|
|
|
|
|||||
Investing activities:
|
||||||||
Beneficial interest collected in exchange for securitized accounts receivables
|
881 | 769 | ||||||
Purchases of property, plant and equipment
|
(263 | ) | (259 | ) | ||||
Proceeds from sale of business and long lived assets
|
254 | 45 | ||||||
Proceeds from sale of investments
|
153 | 9 | ||||||
Other investing activities
|
|
|
(36
|
)
|
|
|
1
|
|
|
|
|
|
|||||
Net cash provided by investing activities
|
989 | 565 | ||||||
|
|
|
|
|||||
Financing activities:
|
||||||||
Repayment of senior notes and loans and other long-term liabilities
|
— | (700 | ) | |||||
Redemption of convertible senior notes
|
(491 | ) | — | |||||
Other financing activities
|
(3 | ) | (3 | ) | ||||
|
|
|
|
|||||
Net cash used in financing activities
|
(494 | ) | (703 | ) | ||||
|
|
|
|
|||||
Translation adjustment on cash and cash equivalents
|
(49 | ) | (13 | ) | ||||
|
|
|
|
|||||
Net change in cash and cash equivalents
|
259 | 427 | ||||||
Balance of cash and cash equivalents at beginning of period
|
2,177 | 1,975 | ||||||
|
|
|
|
|||||
Balance of cash and cash equivalents at end of period
|
$ | 2,436 | $ | 2,402 | ||||
|
|
|
|
|||||
Non-cash
financing and investing activities:
|
||||||||
Beneficial interest obtained in exchange for securitized accounts receivables
|
$ | 878 | $ | 728 |
a.
|
Basis of presentation
|
b.
|
Significant accounting policies
|
June 30,
|
December 31,
|
|||||||
2021
|
2020
|
|||||||
(U.S. $ in millions)
|
||||||||
Inventories
|
7 | 146 | ||||||
Property, plant and equipment, net and others
|
55 | 312 | ||||||
Goodwill
|
9 | 27 | ||||||
Adjustments of assets held for sale to fair value
|
(42 | ) | (296 | ) | ||||
|
|
|
|
|||||
Total assets of the disposal group classified as held for sale in the consolidated balance sheets
|
$ | 29 | $ | 189 | ||||
|
|
|
|
Three months ended June 30, 2021
|
||||||||||||||||||||
North
America
|
Europe
|
International
Markets |
Other
activities |
Total
|
||||||||||||||||
(U.S. $ in millions)
|
||||||||||||||||||||
Sale of goods
|
1,621 | 1,185 | 462 | 198 | 3,465 | |||||||||||||||
Licensing arrangements
|
9 | 7 | 2 | 1 | 19 | |||||||||||||||
Distribution
|
316 | § | 15 | — | 330 | |||||||||||||||
Other
|
(2) | (8 | ) | 7 | 99 | 96 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | 1,943 | $ | 1,184 | $ | 485 | $ | 298 | $ | 3,910 | |||||||||||
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, 2020
|
||||||||||||||||||||
North
America |
Europe
|
International
Markets |
Other
activities |
Total
|
||||||||||||||||
(U.S. $ in millions)
|
||||||||||||||||||||
Sale of goods
|
|
1,658
|
|
|
1,000
|
|
|
457
|
|
|
211
|
|
|
3,326
|
|
|||||
Licensing arrangements
|
|
17
|
|
|
3
|
|
|
1
|
|
|
1
|
|
|
22
|
|
|||||
Distribution
|
|
374
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
381
|
|
|||||
Other
|
|
(2)
|
|
|
(2
|
)
|
|
23
|
|
|
123
|
|
|
141
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$
|
2,047
|
|
$
|
1,001
|
|
$
|
488
|
|
$
|
335
|
|
$
|
3,870
|
|
||||||
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2021
|
||||||||||||||||||||
North
America
|
Europe
|
International
Markets |
Other
activities
|
Total
|
||||||||||||||||
(U.S. $ in millions)
|
||||||||||||||||||||
Sale of goods
|
3,289 | 2,363 | 902 | 374 | 6,928 | |||||||||||||||
Licensing arrangements
|
40 | 21 | 5 | 2 | 68 | |||||||||||||||
Distribution
|
605 | § | 34 | — | 639 | |||||||||||||||
Other
|
(2) | 14 | 35 | 210 | 257 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | 3,932 | $ | 2,398 | $ | 975 | $ | 587 | $ | 7,892 | |||||||||||
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2020
|
||||||||||||||||||||
North
America |
Europe
|
International
Markets |
Other
activities |
Total
|
||||||||||||||||
(U.S. $ in millions)
|
||||||||||||||||||||
Sale of goods
|
3,283 | 2,370 | 939 | 388 | 6,981 | |||||||||||||||
Licensing arrangements
|
42 | 15 | 4 | 2 | 63 | |||||||||||||||
Distribution
|
800 | 2 | 13 | — | 815 | |||||||||||||||
Other
|
4 | 17 | 97 | 252 | 369 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | 4,129 | $ | 2,404 | $ | 1,053 | $ | 642 | $ | 8,227 | |||||||||||
|
|
|
|
|
|
|
|
|
|
Sales Reserves and Allowances
|
||||||||||||||||||||||||||||||||
Reserves
included in Accounts Receivable, net |
Rebates
|
Medicaid and
other governmental allowances |
Chargebacks
|
Returns
|
Other
|
Total reserves
included in SR&A |
Total
|
|||||||||||||||||||||||||
(U.S. $ in millions)
|
||||||||||||||||||||||||||||||||
Balance at December 31, 2020
|
$ | 80 | $ | 2,054 | $ | 828 | $ | 1,108 | $ | 686 | $ | 148 | $ | 4,824 | $ | 4,904 | ||||||||||||||||
Provisions related to sales made in current year
|
192
|
|
391
|
3,995
|
143
|
177
|
6,845 | 7,037 | ||||||||||||||||||||||||
Provisions related to sales made in prior periods
|
(5
|
)
|
(82
|
)
|
(35
|
)
|
(11
|
)
|
(40
|
)
|
(23
|
)
|
(191 | ) | (196 | ) | ||||||||||||||||
Credits and payments
|
(196
|
)
|
(2,355
|
)
|
(362
|
)
|
(3,934
|
)
|
(186
|
)
|
(176
|
)
|
(7,013 | ) | (7,209 | ) | ||||||||||||||||
Translation differences
|
—
|
(8
|
)
|
(3
|
)
|
(1
|
)
|
(1
|
)
|
1
|
(12 | ) | (12 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance at June 30, 2021
|
$ | 71 | 1,748 | $ | 819 | $ | 1,157 | $ | 602 | $ | 127 | $ | 4,453 | $ | 4,524 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserves
included in Accounts Receivable, net |
Rebates
|
Medicaid and
other governmental allowances |
Chargebacks
|
Returns
|
Other
|
Total reserves
included in SR&A |
Total
|
|||||||||||||||||||||||||
(U.S.$ in millions)
|
||||||||||||||||||||||||||||||||
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
|
193 | 2,588 | 434 | 4,325 | 216 | 50 | 7,613 | 7,806 | ||||||||||||||||||||||||
Provisions related to sales made in prior periods
|
— | (191 | ) | (105 | ) | (15 | ) | 18 | — | (293 | ) | (293 | ) | |||||||||||||||||||
Credits and payments
|
(206 | ) | (3,064 | ) | (505 | ) | (4,416 | ) | (211 | ) | (64 | ) | (8,260 | ) | (8,466 | ) | ||||||||||||||||
Translation differences
|
— | (9 | ) | — | (2 | ) | (2 | ) | (5 | ) | (18 | ) | (18 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance at June 30, 2020
|
$ | 74 | 2,219 | $ | 933 | $ | 1,234 | $ | 658 | $ | 157 | $ | 5,201 | $ | 5,275 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2021
|
December 31,
2020
|
|||||||
(U.S. $ in millions)
|
||||||||
Finished products
|
$ | 2,223 | $ | 2,378 | ||||
Raw and packaging materials
|
1,333 | 1,231 | ||||||
Products in process
|
642 | 605 | ||||||
Materials in transit and payments on account
|
164 | 189 | ||||||
|
|
|
|
|||||
Total
|
$ | 4,362 | $ | 4,403 | ||||
|
|
|
|
Gross carrying amount net
of impairment
|
Accumulated
amortization
|
Net carrying amount
|
||||||||||||||||||||||
June 30,
|
December 31,
|
June 30,
|
December 31,
|
June 30,
|
December 31,
|
|||||||||||||||||||
2021
|
2020
|
2021
|
2020
|
2021
|
2020
|
|||||||||||||||||||
(U.S. $ in millions)
|
||||||||||||||||||||||||
Product rights
|
$ | 19,226 | $ | 19,650 | $ | 12,171 | $ | 12,094 | $ | 7,055 | $ | 7,556 | ||||||||||||
Trade names
|
648 | 621 | 219 | 165 | 429 | 456 | ||||||||||||||||||
In process research and development
|
636 | 911 | — | — | 636 | 911 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total
|
$ | 20,510 | $ | 21,182 | $ | 12,390 | $ | 12,259 | $ | 8,120 | $ | 8,923 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Identifiable product rights of $168 million due to: (i) $30 million related to lenalidomide (generic equivalent of Revlimid
®
), resulting from modified competition assumptions as a result of settlements between the innovator and other generic filers, and (ii) $138 million, mainly related to updated market assumptions regarding price and volume of products acquired from Actavis Generics that are primarily marketed in the United States; and
|
(b) |
IPR&D assets of $27 million due 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.
|
(a) |
Identifiable product rights of $103 million, mainly due to updated market assumptions regarding price and volume of products acquired from Actavis Generics; and
|
(b) |
IPR&D assets of
$17
million, mainly due 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 or discount rate).
|
(a) |
Identifiable product rights of $196 million due to: (i) $30 million related to lenalidomide (generic equivalent of Revlimid
®
), resulting from modified competition assumptions as a result of settlements between the innovator and other generic filers, and (ii) $166 million, mainly related to updated market assumptions regarding price and volume of products acquired from Actavis Generics that are primarily marketed in the United States; and
|
(b) |
IPR&D assets of
$78
million, due 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.
|
(a) |
Identifiable product rights of $420 million, mainly due to: (i) $232
million due to updated market assumptions regarding price and volume of products acquired from Actavis Generics; and (ii)
$165
million in Japan in connection with ongoing regulatory pricing reductions and generic competition; and
|
|
(b)
|
IPR&D assets of $348 million, primarily due to: (i) $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 (ii) $117 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.
|
North America
|
Europe
|
International
Markets |
Other
|
Total
|
||||||||||||||||
(U.S. $ in millions)
|
||||||||||||||||||||
Balance as of December 31, 2020 (1)
|
$ |
6,473
|
$ |
9,102
|
$ |
2,362
|
$ |
2,687
|
$ |
20,624
|
||||||||||
Changes during the period:
|
||||||||||||||||||||
Goodwill reclassified as assets held for sale
|
(7
|
) |
(7
|
) | ||||||||||||||||
Translation differences
|
12
|
(198
|
) |
(10
|
) |
(196
|
) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance as of June 30, 2021 (1)
|
$ |
6,485
|
$ |
8,897
|
$ |
2,352
|
$ |
2,687
|
$ |
20,421
|
||||||||||
|
|
|
|
|
|
|
|
|
|
(1) |
Accumulated goodwill impairment as of June 30, 2021 and December 31, 2020 was approximately $25.6 billion.
|
Weighted average interest
rate as of June 30, 2021 |
Maturity
|
June 30,
2021
|
December 31,
2020
|
|||||||||||||
(U.S. $ in millions)
|
||||||||||||||||
Convertible senior debentures
|
0.25
|
% |
2026
|
$
|
23
|
$
|
514
|
|||||||||
Current maturities of long-term liabilities (1)
|
|
3,507
|
2,674
|
|||||||||||||
|
|
|
|
|||||||||||||
Total short-term debt
|
|
$ |
3,530
|
$ |
3,188
|
|||||||||||
|
|
|
|
(1) |
In July 2021, Teva
repaid $
1,475 million of its 2.2
% senior notes at maturity.
|
Weighted average interest
rate as of June 30, 2021 |
Maturity
|
June 30,
2021
|
December 31,
2020 |
|||||||||||||
(U.S. $ in millions)
|
||||||||||||||||
Senior notes EUR 1,500 million
|
1.13
|
% |
2024
|
$
|
1,780
|
$
|
1,839
|
|||||||||
Senior notes EUR 1,300 million
|
1.25
|
% |
2023
|
1,544
|
1,595
|
|||||||||||
Senior notes EUR 1,000 million
|
6.00
|
% |
2025
|
1,190
|
1,230
|
|||||||||||
Senior notes EUR 900 million
|
4.50
|
% |
2025
|
1,071
|
1,107
|
|||||||||||
Senior notes EUR 750 million
|
1.63
|
% |
2028
|
885
|
916
|
|||||||||||
Senior notes EUR 700 million
|
3.25
|
% |
2022
|
832
|
861
|
|||||||||||
Senior notes EUR 700 million
|
1.88
|
% |
2027
|
832
|
860
|
|||||||||||
Senior notes USD 3,500 million
|
3.15
|
% |
2026
|
3,495
|
3,495
|
|||||||||||
Senior notes USD 1,475 million (1)
|
2.20
|
% |
2021
|
1,474
|
1,472
|
|||||||||||
Senior notes USD 3,000 million
|
2.80
|
% |
2023
|
2,997
|
2,996
|
|||||||||||
Senior notes USD 2,000 million
|
4.10
|
% |
2046
|
1,986
|
1,986
|
|||||||||||
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 1,000 million
|
7.13
|
% |
2025
|
1,000
|
1,000
|
|||||||||||
Senior notes USD 844 million
|
2.95
|
% |
2022
|
851
|
853
|
|||||||||||
Senior notes USD 789 million
|
6.15
|
% |
2036
|
783
|
783
|
|||||||||||
Senior notes USD 613 million
|
3.65
|
% |
2021
|
614
|
616
|
|||||||||||
Senior notes USD 588 million
|
3.65
|
% |
2021
|
588
|
586
|
|||||||||||
Senior notes CHF 350 million
|
0.50
|
% |
2022
|
380
|
397
|
|||||||||||
Senior notes CHF 350 million
|
1.00
|
% |
2025
|
381
|
398
|
|||||||||||
|
|
|
|
|||||||||||||
Total senior notes
|
|
25,183
|
25,490
|
|||||||||||||
Other long-term debt
|
1.10
|
% |
2026
|
1
|
1
|
|||||||||||
Less current maturities
|
|
(3,507
|
) |
(2,674
|
) | |||||||||||
Less debt issuance costs
|
|
(75
|
) |
(86
|
) | |||||||||||
|
|
|
|
|||||||||||||
Total senior notes and loans
|
|
$ |
21,602
|
$ |
22,731
|
|||||||||||
|
|
|
|
(
1)
|
In July 2021, Teva repaid
$
1,475 million of its 2.2
% senior notes at maturity.
|
Fair value
|
||||||||
Not designated as hedging
instruments
|
||||||||
June 30,
2021
|
December 31,
2020
|
|||||||
Reported under
|
(U.S. $ in millions)
|
|||||||
Asset derivatives:
|
||||||||
Other current assets:
|
||||||||
Option and forward contracts
|
$ | 30 | $ | 24 | ||||
Liability derivatives:
|
||||||||
Other current liabilities:
|
||||||||
Option and forward contracts
|
(25 | ) | (79 | ) |
Financial expenses, net
|
Other comprehensive income
(loss)
|
|||||||||||||||
Three months ended,
|
Three months ended,
|
|||||||||||||||
June 30,
2021
|
June 30,
2020 |
June 30,
2021
|
June 30,
2020
|
|||||||||||||
Reported under
|
(U.S. $ in millions)
|
|||||||||||||||
Line items in which effects of hedges are recorded
|
$ | 274 | $ | 223 | $ | 87 | $ | 151 | ||||||||
Cross-currency swaps - net investment hedge (1)
|
— | — | — | — |
|
|
Financial expenses, net
|
|
|
Other comprehensive income (loss)
|
|
||||||||||
|
|
Six months ended,
|
|
|
Six months ended,
|
|
||||||||||
|
|
June 30,
2021
|
|
|
June 30,
2020
|
|
|
June 30,
2021
|
|
|
June 30,
2020
|
|
||||
Reported under
|
|
(U.S. $ in millions)
|
|
|||||||||||||
Line items in which effects of hedges are r
e
corde
d
|
|
$
|
564
|
|
|
$
|
448
|
|
|
$
|
(115
|
)
|
|
$
|
(379
|
)
|
Cross-currency swaps - net investment hedge (1)
|
|
|
—
|
|
|
|
(2
|
)
|
|
|
—
|
|
|
|
(21
|
)
|
Financial expenses, net
|
Net revenues
|
|||||||||||||||
Three months ended,
|
Three months ended,
|
|||||||||||||||
June 30,
2021
|
June 30,
2020 |
June 30,
2021
|
June 30,
2020 |
|||||||||||||
Reported under
|
(U.S. $ in millions)
|
|||||||||||||||
Line items in which effects of hedges are recorded
|
$ | 274 | $ | 223 | $ | (3,910 | ) | $ | (3,870 | ) | ||||||
Option and forward contracts (2)
|
27 | 13 | — | — | ||||||||||||
Option and forward contracts economic hedge (3)
|
— | — | 15 | 20 |
|
|
Financial expenses, net
|
|
|
Net revenues
|
|
||||||||||
|
|
Six months ended,
|
|
|
Six months ended,
|
|
||||||||||
June 30,
2021
|
June 30,
2020
|
June 30,
2021
|
June 30,
2020
|
|||||||||||||
Reported under
|
|
(U.S. $ in millions)
|
|
|||||||||||||
Line items in which effects of hedges are recorded
|
|
$
|
564 |
|
|
$
|
448 |
|
|
$
|
(7,892 |
)
|
|
$
|
(8,227 |
)
|
Option and forward contracts (2)
|
|
|
(43 |
)
|
|
|
37 |
|
|
|
—
|
|
|
|
—
|
|
Option and forward contracts economic hedge (3
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(13 |
)
|
|
|
(40 |
)
|
(1) |
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
|
(2) |
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
.
|
|
(3) |
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 to protect its projected operating results for 2021. 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. In 2020, Teva recognized a loss of $27
million in relation with the 2021 hedging program Teva entered into in the second half of 2020. In the first six months of 2021, the positive impact from these derivatives recognized under revenues was
$13 million. 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. The cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows.
|
Three months ended
June 30, |
Six months ended
June 30, |
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(U.S. $ in millions)
|
(U.S. $ in millions)
|
|||||||||||||||
Impairments of long-lived tangible assets (1)
|
$ | 32 | $ | 277 | $ | 80 | $ | 352 | ||||||||
Contingent consideration
|
(19 | ) | 76 | (16 | ) | 83 | ||||||||||
Restructuring
|
(13 | ) | 33 | 69 | 73 | |||||||||||
Other
|
28 | (6 | ) | 33 | (5 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total
|
$ | 28 | $ | 381 | $ | 165 | $ | 502 | ||||||||
|
|
|
|
|
|
|
|
(1)
|
Including impairments related to exit and disposal activities
|
Three months ended June 30,
|
||||||||
2021
|
2020
|
|||||||
(U.S. $ in millions)
|
||||||||
Restructuring
|
||||||||
Employee termination
|
$ | (19 | ) | $ | 3 | |||
Other
|
6 | 30 | ||||||
|
|
|
|
|||||
Total
|
$ | (13 | ) | $ | 33 | |||
|
|
|
|
|
|
Six months ended June 30,
|
|
|||||
|
|
2021
|
|
|
2020
|
|
||
|
|
(U.S. $ in millions)
|
|
|||||
Restructuring
|
|
|
||||||
Employee termination
|
|
$
|
61
|
|
|
$
|
36
|
|
Other
|
|
|
8
|
|
|
|
36
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
69
|
|
|
$
|
73
|
|
|
|
|
|
|
|
|
|
Employee termination
costs |
Other
|
Total
|
||||||||||
(U.S. $ in millions )
|
||||||||||||
Balance as of January 1, 2021
|
$ | (115 | ) | $ | (7 | ) | $ | (122 | ) | |||
Provision
|
(61 | ) | (8 | ) | (69 | ) | ||||||
Utilization and other*
|
56 | 8 | 64 | |||||||||
|
|
|
|
|
|
|||||||
Balance as of June 30, 2021
|
$ | (120 | ) | $ | (7 | ) | $ | (127 | ) | |||
|
|
|
|
|
|
Employee termination
costs |
Other
|
Total
|
||||||||||
(U.S. $ in millions )
|
||||||||||||
Balance as of January 1, 2020
|
$ | (208 | ) | $ | (7 | ) | $ | (215 | ) | |||
Provision
|
(36 | ) | (36 | ) | (73 | ) | ||||||
Utilization and other*
|
114 | 36 | 150 | |||||||||
|
|
|
|
|
|
|||||||
Balance as of June 30, 2020
|
$ | (130 | ) | $ | (7 | ) | $ | (137 | ) | |||
|
|
|
|
|
|
* |
Includes adjustments for foreign currency translation.
|
Net Unrealized Gains (Losses)
|
Benefit Plans
|
|||||||||||||||
Foreign
currency translation adjustments |
Derivative
financial instruments |
Actuarial gains
(losses) and prior service (costs) credits |
Total
|
|||||||||||||
(U.S. $ in millions)
|
||||||||||||||||
Balance as of December 31, 2020, net of taxes
|
|
$
|
(1,919 |
)
|
|
$
|
(363 |
)
|
|
$
|
(117 |
)
|
|
$
|
(2,399 |
)
|
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive income (loss) before reclassifications
|
|
|
(77 |
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(77 |
)
|
Amounts reclassified to the statements of income
|
—
|
18 | 1 | 19 |
|
|||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net other comprehensive income (loss) before tax
|
|
|
(77 |
)
|
|
|
18 |
|
|
|
1 |
|
|
|
(58 |
)
|
|
|
|
|
|
|
|
|
|||||||||
Corresponding income tax
|
|
|
15 |
|
|
|
(4 |
)
|
|
|
—
|
|
|
|
11 |
|
|
|
|
|
|
|
|
|
|||||||||
Net other comprehensive income (loss) after tax*
|
|
|
(62 |
)
|
|
|
14 |
|
|
|
1 |
|
|
|
(47 |
)
|
|
|
|
|
|
|
|
|
|||||||||
Balance as of June 30, 2021, net of taxes
|
|
$
|
(1,981 |
)
|
|
$
|
(349 |
)
|
|
$
|
(116 |
)
|
|
$
|
(2,446 |
)
|
|
|
|
|
|
|
|
|
* |
Amounts do not include a $68 million loss from foreign currency translation adjustments attributable to
non-controlling
interests.
|
Net Unrealized Gains (Losses)
|
Benefit Plans
|
|||||||||||||||
Foreign
currency translation adjustments |
Derivative
financial instruments |
Actuarial gains
(losses) and prior service (costs) credits |
Total
|
|||||||||||||
(U.S. $ in millions)
|
||||||||||||||||
Balance as of December 31, 2019, net of taxes
|
$ | (1,794 | ) | $ | (420 | ) | $ | (98 | ) | $ | (2,312 | ) | ||||
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive income (loss) before reclassifications
|
(432 | ) | 19 | — | (413 | ) | ||||||||||
Amounts reclassified to the statements of income
|
— | 18 | — | 18 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net other comprehensive income (loss) before tax
|
(432 | ) | 37 | — | (395 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Corresponding income tax
|
4 | — | — | 4 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net other comprehensive income (loss) after tax*
|
(428 | ) | 37 | — | (391 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Balance as of June 30, 2020, net of taxes
|
$ | (2,222 | ) | $ | (383 | ) | $ | (98 | ) | $ | (2,703 | ) | ||||
|
|
|
|
|
|
|
|
* |
Amounts do not include a $12
million gain
from foreign currency translation adjustments attributable to
non-controlling
interests.
|
|
(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 Amer
i
ca and Europe segments.
|
Three months ended June 30,
|
||||||||||||
2021
|
||||||||||||
North America
|
Europe
|
International Markets
|
||||||||||
(U.S. $ in millions)
|
||||||||||||
Revenues
|
$
|
1,943
|
|
$
|
1,184
|
|
$
|
485
|
|
|||
Gross profit
|
|
1,040
|
|
|
661
|
|
|
270
|
|
|||
R&D expenses
|
|
162
|
|
|
63
|
|
|
18
|
|
|||
S&M expenses
|
|
255
|
|
209
|
|
|
105
|
|
||||
G&A expenses
|
|
106
|
|
|
47
|
|
|
25
|
|
|||
Other income
|
|
(5
|
)
|
§
|
|
|
(1
|
)
|
||||
|
|
|
|
|
|
|||||||
Segment profit
|
$
|
521
|
|
$
|
343
|
|
$
|
123
|
|
|||
|
|
|
|
|
|
Three months ended June 30,
|
||||||||||||
2020
|
||||||||||||
North America
|
Europe
|
International Markets
|
||||||||||
(U.S. $ in millions)
|
||||||||||||
Revenues
|
$ | 2,047 | $ | 1,001 | $ | 488 | ||||||
Gross profit
|
1,090 | 548 | 247 | |||||||||
R&D expenses
|
154 | 65 | 19 | |||||||||
S&M expenses
|
254 | 188 | 105 | |||||||||
G&A expenses
|
110 | 52 | 29 | |||||||||
Other income
|
(2 | ) | (1 | ) | (2 | ) | ||||||
|
|
|
|
|
|
|||||||
Segment profit
|
$ | 573 | $ | 244 | $ | 97 | ||||||
|
|
|
|
|
|
|
|
Six months ended June 30,
|
|
|||||||||
|
|
2021
|
|
|||||||||
|
|
North America
|
|
|
Europe
|
|
|
International Markets
|
|
|||
|
|
(U.S. $ in millions)
|
|
|||||||||
Revenues
|
|
$
|
3,932
|
|
|
$
|
2,398
|
|
|
$
|
975
|
|
Gross profit
|
|
|
2,114
|
|
|
|
1,349
|
|
|
|
530
|
|
R&D expenses
|
|
|
322
|
|
|
|
129
|
|
|
|
35
|
|
S&M expenses
|
|
|
483
|
|
|
|
424
|
|
|
|
201
|
|
G&A expenses
|
|
|
218
|
|
|
|
117
|
|
|
|
51
|
|
Other income
|
|
|
(7
|
)
|
|
|
(1
|
)
|
|
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit
|
|
$
|
1,098
|
|
|
$
|
680
|
|
|
$
|
245
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30,
|
||||||||||||
2020
|
||||||||||||
North America
|
Europe
|
International Markets
|
||||||||||
(U.S. $ in millions)
|
||||||||||||
Revenues
|
$ | 4,129 | $ | 2,404 | $ | 1,053 | ||||||
Gross profit
|
2,152 | 1,371 | 552 | |||||||||
R&D expenses
|
300 | 120 | 34 | |||||||||
S&M expenses
|
505 | 390 | 211 | |||||||||
G&A expenses
|
228 | 118 | 63 | |||||||||
Other income
|
(4 | ) | (2 | ) | (8 | ) | ||||||
|
|
|
|
|
|
|||||||
Segment profit
|
$ | 1,123 | $ | 746 | $ | 253 | ||||||
|
|
|
|
|
|
.
|
Three months ended
|
Six months ended
|
||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(U.S. $ in millions)
|
(U.S. $ in millions)
|
|||||||||||||||
North America profit
|
$ | 521 | $ | 573 | $ | 1,098 | $ | 1,123 | ||||||||
Europe profit
|
343 | 244 | 680 | 746 | ||||||||||||
International Markets profit
|
123 | 97 | 245 | 253 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total reportable segments profit
|
987 | 914 | 2,023 | 2,121 | ||||||||||||
Profit of other activities
|
47 | 66 | 87 | 102 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total segments profit
|
1,034 | 979 | 2,111 | 2,223 | ||||||||||||
Amounts not allocated to segments:
|
||||||||||||||||
Amortization
|
173 | 249 | 414 | 507 | ||||||||||||
Other assets impairments, restructuring and other items
|
28 | 381 | 165 | 502 | ||||||||||||
Goodwill impairment
|
— | — | — | — | ||||||||||||
Intangible asset impairments
|
195 | 120 | 274 | 768 | ||||||||||||
Legal settlements and loss contingencies
|
6 | 13 | 110 | (12 | ) | |||||||||||
Other unallocated amounts
|
50 | 44 | 132 | 93 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Consolidated operating income (loss)
|
582 | 173 | 1,015 | 364 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Financial expenses, net
|
274 | 223 | 564 | 448 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Consolidated income (loss) before income taxes
|
$ | 308 | $ | (51 | ) | $ | 451 | $ | (84 | ) | ||||||
|
|
|
|
|
|
|
|
North America
|
Three months ended
June 30,
|
|||||||
2021
|
2020
|
|||||||
(U.S. $ in millions)
|
||||||||
Generic products
|
$
|
951 |
$
|
923 | ||||
AJOVY
|
46 | 34 | ||||||
AUSTEDO
|
174 | 161 | ||||||
BENDEKA
®
/TREANDA
®
|
106 | 103 | ||||||
COPAXONE
|
152 | 238 | ||||||
ProAir
®
*
|
55 | 66 | ||||||
Anda
|
316 | 374 | ||||||
Other
|
144 | 147 | ||||||
|
|
|
|
|||||
Total
|
$
|
1,943 | $ | 2,047 | ||||
|
|
|
|
* |
Does not include revenues from the ProAir authorized generic, which are included under generic products.
|
North America
|
Six months ended
June 30, |
|||||||
2021
|
2020
|
|||||||
(U.S. $ in millions)
|
||||||||
Generic products
|
$
|
2,004 |
$
|
1,875 | ||||
AJOVY
|
77 | 63 | ||||||
AUSTEDO
|
320 | 283 | ||||||
BENDEKA/TREANDA
|
197 | 208 | ||||||
COPAXONE
|
315 | 435 | ||||||
ProAir*
|
109 | 125 | ||||||
Anda
|
605 | 800 | ||||||
Other
|
305 | 338 | ||||||
|
|
|
|
|||||
Total
|
$
|
3,932 |
$
|
4,129 | ||||
|
|
|
|
* |
Does not include revenues from the ProAir authorized generic, which are included under generic products.
|
Europe
|
|
Three months ended
June 30,
|
|
|||||
|
|
2021
|
|
|
2020
|
|
||
|
|
(U.S. $ in millions)
|
|
|||||
Generic products
|
|
$
|
878
|
|
|
$
|
737
|
|
AJOVY
|
|
|
19
|
|
|
|
5
|
|
COPAXONE
|
|
|
100
|
|
|
|
84
|
|
Respiratory products
|
|
|
85
|
|
|
|
80
|
|
Other
|
|
|
102
|
|
|
|
95
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
1,184
|
|
|
$
|
1,001
|
|
|
|
|
|
|
|
|
|
Europe
|
Six months ended
June 30, |
|||||||
2021
|
2020
|
|||||||
(U.S. $ in millions)
|
||||||||
Generic products
|
$ | 1,742 | $ | 1,769 | ||||
AJOVY
|
35 | 9 | ||||||
COPAXONE
|
201 | 193 | ||||||
Respiratory products
|
179 | 186 | ||||||
Other
|
242 | 246 | ||||||
|
|
|
|
|||||
Total
|
$ | 2,398 | $ | 2,404 | ||||
|
|
|
|
International markets
|
Three months ended
June 30,
|
|||||||
2021
|
2020
|
|||||||
(U.S. $ in
|
||||||||
Generic products
|
$ | 407 | $ | 426 | ||||
COPAXONE
|
7 | 12 | ||||||
Other
|
71 | 50 | ||||||
|
|
|
|
|||||
Total
|
$ | 485 | $ | 488 | ||||
|
|
|
|
International markets
|
Six months ended
June 30, |
|||||||
2021
|
2020
|
|||||||
(U.S. $ in
|
||||||||
Generic products
|
$ | 799 | $ | 875 | ||||
COPAXONE
|
19 | 23 | ||||||
Other
|
157 | 154 | ||||||
|
|
|
|
|||||
Total
|
$ | 975 | $ | 1,053 | ||||
|
|
|
|
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 | ||||||||||||
Liability derivatives—options and forward contracts
|
— | (79 | ) | — | (79 | ) | ||||||||||
Contingent consideration**
|
— | — | (268 | ) | (268 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total
|
$ | 2,207 | $ | 204 | $ | (258 | ) | $ | 2,153 | |||||||
|
|
|
|
|
|
|
|
* |
During the first quarter of 2021, Teva’s shares in American Well Corporation (“American Well”) moved from a Level 2 measurement to a Level 1 measurement within the fair value hierarchy, since they are no longer subject to a sale restriction. As of June 30, 2021, Teva sold most of its holdings in American Well, and subsequently sold its remaining holdings.
|
** |
Contingent consideration represents liabilities recorded at fair value in connection with acquisitions.
|
Six months ended
June 30, 2021 |
Six months ended
June 30, 2020 |
|||||||
(U.S. $ in millions)
|
||||||||
Fair value at the beginning of the period
|
$ | (258 | ) | (448 | ) | |||
Redemption of debt securities
|
(9 | ) | — | |||||
Revaluation of debt securities
|
— | 1 | ||||||
Adjustments to provisions for contingent consideration:
|
||||||||
Actavis Generics transaction
|
22 | (15 | ) | |||||
Eagle transaction
|
(7 | ) | (67 | ) | ||||
Settlement of contingent consideration:
|
||||||||
Eagle transaction
|
48 | 58 | ||||||
|
|
|
|
|||||
Fair value at the end of the period
|
$ | (204 | ) | $ | (471 | ) |
Estimated fair value*
|
||||||||
June 30,
|
December 31,
|
|||||||
2021
|
2020
|
|||||||
(U.S. $ in millions)
|
||||||||
Senior notes included under senior notes and loans
|
$
|
21,449
|
|
$
|
22,684
|
|
||
Senior notes and convertible senior debentures included under short-term debt
|
|
3,548
|
|
|
3,207
|
|
||
|
|
|
|
|||||
Total
|
$
|
24,997
|
|
$
|
25,891
|
|
||
|
|
|
|
* |
The fair value was estimated based on quoted market prices.
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
• |
Revenues in the second quarter of 2021 were $3,910 million, an increase of 1%, or a decrease of 2% in local currency terms, compared to the second quarter of 2020, mainly due to lower revenues in our North America segment, mainly related to COPAXONE and Anda, partially offset by positive foreign currency impacts as well as higher revenues from generic products, OTC, AJOVY and COPAXONE in our Europe segment. Revenues were also affected by changes in demand for certain products resulting from the impact of the
COVID-19
pandemic.
|
• |
Our North America segment generated revenues of $1,943 million and profit of $521 million in the second quarter of 2021. Revenues decreased by 5% compared to the second quarter of 2020, mainly due to a decrease in revenues from COPAXONE and Anda, partially offset by higher revenues from generic products, AUSTEDO and AJOVY. 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 certain specialty products has been impacted by less physician visits by patients and less physician interactions by our sales personnel. Profit decreased by 9% compared to the second quarter of 2020, mainly due to lower gross profit, as well as higher R&D expenses.
|
• |
Our Europe segment generated revenues of $1,184 million and profit of $343 million in the second quarter of 2021. Revenues increased by 18%, or 8% in local currency terms, compared to the second quarter of 2020. This increase was mainly due to changed buying patterns in the second quarter of 2020 as a result of significant customer stocking due to the
COVID-19
pandemic in March 2020, and a decline in doctor and hospital visits by patients resulting in fewer prescriptions during the second quarter of 2020. Profit increased by 41%, mainly due to higher revenues.
|
• |
Our International Markets segment generated revenues of $485 million and profit of $123 million in the second quarter of 2021. Revenues decreased by 1%, or 3% in local currency terms, compared to the second quarter of 2020, mainly due to lower revenues in Japan resulting from the divestment of the majority of the generic and operational assets of our Japanese business venture, as well as regulatory price reductions and generic competition to
off-patented
products in Japan and a negative impact from hedging activity, partially offset by higher revenues in most other markets as well as lower revenues in certain markets in the second quarter of 2020 resulting from reduced demand due to the impact the
COVID-19
pandemic had on purchasing patterns. Profit increased by 27%, mainly due to the divestment in Japan mentioned above and a change in product portfolio mix.
|
• |
Impairments of identifiable intangible assets were $195 million in the second quarter of 2021, compared to $120 million in the second quarter of 2020. See note 5 to our consolidated financial statements.
|
• |
No goodwill impairments were recorded in the second quarters of both 2021 and 2020.
|
• |
We recorded other asset impairments, restructuring and other items expenses of $28 million in the second quarter of 2021, compared to expenses of $381 million in the second quarter of 2020. See note 12 to our consolidated financial statements.
|
• |
Legal settlements and loss contingencies expenses were $6 million in the second quarter of 2021, compared to $13 million in the second quarter of 2020. See note 9 to our consolidated financial statements.
|
• |
Operating income was $582 million in the second quarter of 2021, compared to $173 million in the second quarter of 2020. This increase was mainly due to lower other assets impairments, restructuring and other items charges and higher profit in our Europe segment, partially offset by higher intangible asset impairment charges.
|
• |
Financial expenses were $274 million in the second quarter of 2021, compared to $223 million in the second quarter of 2020. Financial expenses in the second quarter of 2021 were mainly comprised of interest expenses of $240 million and loss on revaluations of marketable securities of $34 million (see note 16 to our consolidated financial statements). Financial expenses in the second quarter of 2020 were mainly comprised of interest expenses of $241 million.
|
• |
In the second quarter of 2021, we recognized a tax expense of $98 million, on
pre-tax
income of $308 million. In the second quarter of 2020, we recognized a tax benefit of $104 million, on
pre-tax
loss of $51 million. Our tax rate for the second quarter of 2021 was mainly affected by impairments, amortization and interest expense disallowance.
|
• |
Exchange rate movements during the second quarter of 2021, including hedging effects, positively impacted revenues by $135 million and operating income by $26 million, compared to the second quarter of 2020.
|
• |
As of June 30, 2021, our debt was $25,132 million, compared to $24,986 million as of March 31, 2021. This increase was mainly due to exchange rate fluctuations. In July 2021, we repaid $1,475 million of our 2.2% senior notes at maturity. During July 2021, $500 million was drawn down under the RCF.
|
• |
Cash flow generated from operating activities during the second quarter of 2021 was $218 million, compared to $273 million in the second quarter of 2020. The decrease in the second quarter of 2021 was mainly due to favorable collection of payments from customers in the second quarter of 2020, which resulted from increased sales in the first quarter of 2020.
|
• |
During the second quarter of 2021, we generated free cash flow of $625 million, which we define as comprising $218 million in cash flow generated from operating activities, $405 million in beneficial interest collected in exchange for securitized accounts receivables and $115 million in proceeds from divestitures of businesses and other assets, partially offset by $113 million in cash used for capital investment. During the second quarter of 2020, we generated free cash flow of $582 million, comprising $273 million in cash flow generated from operating activities, $401 million in beneficial interest collected in exchange for securitized accounts receivables and $39 million in proceeds from sale of property, plant and equipment and intangible assets, partially offset by $131 million in cash used for capital investment. The increase in the second quarter of 2021, resulted mainly from higher proceeds from divestitures of businesses and other assets, partially offset by lower cash flow from operating activities.
|
Three months ended June 30,
|
||||||||||||||||
2021
|
2020
|
|||||||||||||||
(U.S. $ in millions / % of Segment
Revenues)
|
||||||||||||||||
Revenues
|
$ | 1,943 | 100 | % | $ | 2,047 | 100 | % | ||||||||
Gross profit
|
1,040 | 53.5 | % | 1,090 | 53.3 | % | ||||||||||
R&D expenses
|
162 | 8.4 | % | 154 | 7.5 | % | ||||||||||
S&M expenses
|
255 | 13.1 | % | 254 | 12.4 | % | ||||||||||
G&A expenses
|
106 | 5.5 | % | 110 | 5.4 | % | ||||||||||
Other income
|
(5 | ) | § | (2 | ) | § | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Segment profit*
|
$ | 521 | 26.8 | % | $ | 573 | 28.0 | % | ||||||||
|
|
|
|
|
|
|
|
* |
Segment profit does not include amortization and certain other items.
|
§ |
Represents an amount less than 0.5%.
|
Three months
ended
June 30,
|
Percentage
Change
|
|||||||||||
2021
|
2020
|
2020-2021
|
||||||||||
(U.S. $ in millions)
|
||||||||||||
Generic products
|
$ | 951 | $ | 923 | 3 | % | ||||||
AJOVY
|
46 | 34 | 32 | % | ||||||||
AUSTEDO
|
174 | 161 | 8 | % | ||||||||
BENDEKA/TREANDA
|
106 | 103 | 3 | % | ||||||||
COPAXONE
|
152 | 238 | (36 | %) | ||||||||
ProAir*
|
55 | 66 | (16 | %) | ||||||||
Anda
|
316 | 374 | (16 | %) | ||||||||
Other
|
144 | 147 | (2 | %) | ||||||||
|
|
|
|
|||||||||
Total
|
$ | 1,943 | $ | 2,047 | (5 | %) | ||||||
|
|
|
|
* |
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))
*
|
|||||||
Mesalamine Suppositories
|
Canasa
®
|
April | $ | 66 | ||||||
Isotretinoin Capsules, USP
|
Absorica
®
|
April | $ | 156 | ||||||
Erythromycin Tablets, USP
|
n/a | May | $ | 45 | ||||||
Tiopronin Tablets
|
Thiola
®
|
May | $ | 81 |
**
|
|||||
Ivermectin Cream, 1%
|
Soolantra
®
|
June | $ | 111 | ||||||
Formoterol Fumarate Inhalation Solution
|
Perforomist |
®
|
June | $ | 300 |
* |
The figures presented are for the twelve months ended in the calendar quarter immediately prior to our launch or
re-launch.
|
** |
Limited data is available for this product in IQVIA and as a result Teva estimated the brand market based on data available in Travere Therapeutic’s
10-K
for the year ended December 31, 2020.
|
Generic Name
|
Brand Name
|
Total Annual U.S.
Branded Market
(U.S. $ in millions
(IQVIA))
*
|
||||||
Lenalidomide Capsules, 2.5 mg and 20 mg
|
Revlimid |
®
|
$ | 179 | ||||
Pimavanserin Capsules, 34 mg
|
Nuplazid |
®
|
$ | 173 |
* |
The figures presented are for the twelve months ended in the calendar quarter immediately prior to our launch or
re-launch.
|
Phase 2
|
Phase 3
|
Pre-Submission
|
||||
Novel Biologics
|
Fremanezumab
Fibromyalgia
|
Fasinumab
Osteoarthritic Pain
(March 2016)
(1)
|
||||
TEV-48574
Respiratory
|
||||||
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.
|
Three months ended June 30,
|
||||||||||||||||
2021
|
2020
|
|||||||||||||||
(U.S. $ in millions / % of Segment
Revenues) |
||||||||||||||||
Revenues
|
$ | 1,184 | 100% | $1,001 | 100% | |||||||||||
Gross profit
|
661 | 55.8% | 548 | 54.7% | ||||||||||||
R&D expenses
|
63 | 5.3% | 65 | 6.5% | ||||||||||||
S&M expenses
|
209 | 17.7% | 188 | 18.8% | ||||||||||||
G&A expenses
|
47 | 4.0% | 52 | 5.2% | ||||||||||||
Other income
|
§ | § | (1) | § | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Segment profit*
|
$ | 343 | 28.9% | $244 | 24.3% | |||||||||||
|
|
|
|
|
|
|
|
* |
Segment profit does not include amortization and certain other items.
|
§ |
Represents an amount less than $1 million or 0.5%, as applicable.
|
Three months ended
June 30,
|
Percentage
Change
|
|||||||||||
2021
|
2020
|
2020-2021
|
||||||||||
(U.S. $ in millions)
|
||||||||||||
Generic products
|
$ | 878 | $ | 737 | 19 | % | ||||||
AJOVY
|
19 | 5 | 302 | % | ||||||||
COPAXONE
|
100 | 84 | 19 | % | ||||||||
Respiratory products
|
85 | 80 | 7 | % | ||||||||
Other
|
102 | 95 | 7 | % | ||||||||
|
|
|
|
|||||||||
Total
|
$ | 1,184 | $ | 1,001 | 18 | % | ||||||
|
|
|
|
Three months ended June 30,
|
||||||||||||||||
2021
|
2020
|
|||||||||||||||
(U.S. $ in millions / % of Segment Revenues)
|
||||||||||||||||
Revenues
|
$ | 485 | 100% | $ | 488 | 100% | ||||||||||
Gross profit
|
270 | 55.7% | 247 | 50.8% | ||||||||||||
R&D expenses
|
18 | 3.6% | 19 | 3.9% | ||||||||||||
S&M expenses
|
105 | 21.7% | 105 | 21.4% | ||||||||||||
G&A expenses
|
25 | 5.1% | 29 | 6.0% | ||||||||||||
Other income
|
(1 | ) | § | (2 | ) | § | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Segment profit*
|
$ | 123 | 25.5% | $ | 97 | 19.9% | ||||||||||
|
|
|
|
|
|
|
|
* |
Segment profit does not include amortization and certain other items.
|
§ |
Represents an amount less than 0.5%.
|
Three months ended
June 30,
|
Percentage
Change
|
|||||||||||
2021
|
2020
|
2020-2021
|
||||||||||
(U.S. $ in millions)
|
||||||||||||
Generic products
|
$ | 407 | $ | 426 | (5 | %) | ||||||
COPAXONE
|
7 | 12 | (35 | %) | ||||||||
Other
|
71 | 50 | 42 | % | ||||||||
|
|
|
|
|||||||||
Total
|
$ | 485 | $ | 488 | (1 | %) | ||||||
|
|
|
|
.
|
Three months
ended
|
|||||||
June 30,
|
||||||||
2021
|
2020
|
|||||||
(U.S. $ in millions)
|
||||||||
North America profit
|
$ | 521 | $ | 573 | ||||
Europe profit
|
343 | 244 | ||||||
International Markets profit
|
123 | 97 | ||||||
|
|
|
|
|||||
Total reportable segments profit
|
987 | 914 | ||||||
Profit of other activities
|
47 | 66 | ||||||
|
|
|
|
|||||
Total segments profit
|
1,034 | 979 | ||||||
Amounts not allocated to segments:
|
||||||||
Amortization
|
173 | 249 | ||||||
|
|
|
|
|||||
Other assets impairments, restructuring and other items
|
28 | 381 | ||||||
|
|
|
|
|||||
Goodwill impairment
|
— | — | ||||||
|
|
|
|
|||||
Intangible asset impairments
|
195 | 120 | ||||||
Legal settlements and loss contingencies
|
6 | 13 | ||||||
Other unallocated amounts
|
50 | 44 | ||||||
Consolidated operating income (loss)
|
582 | 173 | ||||||
|
|
|
|
|||||
Financial expenses, net
|
274 | 223 | ||||||
|
|
|
|
|||||
Consolidated income (loss) before income taxes
|
$ | 308 | $ | (51 | ) | |||
|
|
|
|
Six months ended June 30,
|
||||||||||||||||
2021
|
2020
|
|||||||||||||||
(U.S. $ in millions / % of Segment Revenues)
|
||||||||||||||||
Revenues
|
$ | 3,932 | 100 | % | $ | 4,129 | 100 | % | ||||||||
Gross profit
|
2,114 | 53.8 | % | 2,152 | 52.1 | % | ||||||||||
R&D expenses
|
322 | 8.2 | % | 300 | 7.3 | % | ||||||||||
S&M expenses
|
483 | 12.3 | % | 505 | 12.2 | % | ||||||||||
G&A expenses
|
218 | 5.5 | % | 228 | 5.5 | % | ||||||||||
Other income
|
(7 | ) | § | (4 | ) | § | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Segment profit*
|
$ | 1,098 | 27.9 | % | $ | 1,123 | 27.2 | % | ||||||||
|
|
|
|
|
|
|
|
* |
Segment profit does not include amortization and certain other items.
|
§ |
Represents an amount less than 0.5%.
|
Six months ended June 30,
|
Percentage
Change
|
|||||||||||
2021
|
2020
|
2020-2021
|
||||||||||
(U.S. $ in millions)
|
||||||||||||
Generic products
|
$ | 2,004 | $ | 1,875 | 7 | % | ||||||
AJOVY
|
77 | 63 | 21 | % | ||||||||
AUSTEDO
|
320 | 283 | 13 | % | ||||||||
BENDEKA/TREANDA
|
197 | 208 | (6 | %) | ||||||||
COPAXONE
|
315 | 435 | (28 | %) | ||||||||
ProAir*
|
109 | 125 | (13 | %) | ||||||||
Anda
|
605 | 800 | (24 | %) | ||||||||
Other
|
305 | 338 | (10 | %) | ||||||||
|
|
|
|
|
|
|||||||
Total
|
$ | 3,932 | $ | 4,129 | (5 | %) | ||||||
|
|
|
|
|
|
* |
Does not include revenues from the ProAir authorized generic, which are included under generic products.
|
Six months ended June 30,
|
||||||||||||||||
2021
|
2020
|
|||||||||||||||
(U.S. $ in millions / % of Segment Revenues)
|
||||||||||||||||
Revenues
|
$ | 2,398 | 100 | % | $ | 2,404 | 100 | % | ||||||||
Gross profit
|
1,349 | 56.2 | % | 1,371 | 57.0 | % | ||||||||||
R&D expenses
|
129 | 5.4 | % | 120 | 5.0 | % | ||||||||||
S&M expenses
|
424 | 17.7 | % | 390 | 16.2 | % | ||||||||||
G&A expenses
|
117 | 4.9 | % | 118 | 4.9 | % | ||||||||||
Other (income) expense
|
(1 | ) | § | (2 | ) | § | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Segment profit*
|
$ | 680 | 28.4 | % | $ | 746 | 31.0 | % | ||||||||
|
|
|
|
|
|
|
|
* |
Segment profit does not include amortization and certain other items.
|
§ |
Represents an amount less than 0.5%.
|
Six months ended June 30,
|
||||||||
2021
|
2020
|
|||||||
(U.S. $ in millions)
|
||||||||
Generic products
|
$ | 1,742 | $ | 1,769 | ||||
AJOVY
|
35 | 9 | ||||||
COPAXONE
|
201 | 193 | ||||||
Respiratory products
|
179 | 186 | ||||||
Other
|
242 | 246 | ||||||
|
|
|
|
|||||
Total
|
$ | 2,398 | $ | 2,404 | ||||
|
|
|
|
2021
|
2020
|
|||||||||||||||
(U.S. $ in millions / % of Segment Revenues)
|
||||||||||||||||
Revenues
|
$ | 975 | 100 | % | $ | 1,053 | 100 | % | ||||||||
Gross profit
|
530 | 54.4 | % | 552 | 52.5 | % | ||||||||||
R&D expenses
|
35 | 3.6 | % | 34 | 3.3 | % | ||||||||||
S&M expenses
|
201 | 20.7 | % | 211 | 20.0 | % | ||||||||||
G&A expenses
|
51 | 5.2 | % | 63 | 6.0 | % | ||||||||||
Other (income) expense
|
(3 | ) | § | (8 | ) | (0.8 | %) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Segment profit*
|
$ | 245 | 25.2 | % | $ | 253 | 24.0 | % | ||||||||
|
|
|
|
|
|
|
|
* |
Segment profit does not include amortization and certain other items.
|
§ |
Represents an amount less than 0.5%.
|
Six months ended June 30,
|
Percentage
Change
|
|||||||||||
2021
|
2020
|
2020-2021
|
||||||||||
(U.S. $ in millions)
|
||||||||||||
Generic products
|
$ | 799 | $ | 875 | (9 | %) | ||||||
COPAXONE
|
19 | 23 | (18 | %) | ||||||||
Other
|
157 | 154 | 2 | % | ||||||||
|
|
|
|
|||||||||
Total
|
$ | 975 | $ | 1,053 | (7 | %) | ||||||
|
|
|
|
.
|
Six months ended
June 30, |
|||||||
2021
|
2020
|
|||||||
(U.S. $ in millions)
|
||||||||
North America profit
|
$ | 1,098 | $ | 1,123 | ||||
Europe profit
|
680 | 746 | ||||||
International Markets profit
|
245 | 253 | ||||||
|
|
|
|
|||||
Total reportable segments profit
|
2,023 | 2,121 | ||||||
Profit of other activities
|
87 | 102 | ||||||
|
|
|
|
|||||
Total segments profit
|
2,111 | 2,223 | ||||||
Amounts not allocated to segments:
|
||||||||
Amortization
|
414 | 507 | ||||||
Other assets impairments, restructuring and other items
|
165 | 502 | ||||||
Goodwill impairment
|
— | — | ||||||
Intangible asset impairments
|
274 | 768 | ||||||
Legal settlements and loss contingencies
|
110 | (12 | ) | |||||
Other unallocated amounts
|
132 | 93 | ||||||
|
|
|
|
|||||
Consolidated operating income (loss)
|
1,015 | 364 | ||||||
|
|
|
|
|||||
Financial expenses, net
|
564 | 448 | ||||||
|
|
|
|
|||||
Consolidated income (loss) before income taxes
|
$ | 451 | $ | (84 | ) | |||
|
|
|
|
• |
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 marketable securities investment valuation gains/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.
|
Three Months Ended June 30, 2021
|
||||||||||||||||||||||||||||||||||||||||||||
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
|
Restructuring
costs
|
Costs
related to
regulatory
actions
taken in
facilities
|
Equity
compensation
|
Contingent
consideration |
Other
non-GAAP
items*
|
Other
items
|
||||||||||||||||||||||||||||||||||||
Net revenues
|
3,910 | 3,910 | ||||||||||||||||||||||||||||||||||||||||||
Cost of sales
|
2,037 | 148 | 8 | 6 | 50 | 1,826 | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Gross profit
|
1,873 | 148 | 8 | 6 | 50 | 2,084 | ||||||||||||||||||||||||||||||||||||||
Gross profit margin
|
47.9 | % | 53.3 | % | ||||||||||||||||||||||||||||||||||||||||
R&D expenses
|
248 | 5 | 243 | |||||||||||||||||||||||||||||||||||||||||
S&M expenses
|
615 | 25 | 8 | 582 | ||||||||||||||||||||||||||||||||||||||||
G&A expenses
|
242 | 11 | 231 | |||||||||||||||||||||||||||||||||||||||||
Other income
|
(43 | ) | (37 | ) | (6 | ) | ||||||||||||||||||||||||||||||||||||||
Legal settlements and loss contingencies
|
6 | 6 | — | |||||||||||||||||||||||||||||||||||||||||
Other assets impairments, restructuring and other items
|
28 | 32 | (13 | ) | (19 | ) | 28 | — | ||||||||||||||||||||||||||||||||||||
Intangible assets impairments
|
195 | 195 | — | |||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Operating income (loss)
|
582 | 173 | 6 | 226 | (13 | ) | 8 | 29 | (19 | ) | 42 | 1,034 | ||||||||||||||||||||||||||||||||
Financial expenses, net
|
274 | 34 | 240 | |||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Income (loss) before income taxes
|
308 | 173 | 6 | 226 | (13 | ) | 8 | 29 | (19 | ) | 42 | 34 | 794 | |||||||||||||||||||||||||||||||
Income taxes
|
98 | (36 | ) | 133 | ||||||||||||||||||||||||||||||||||||||||
Share in (profits) losses of associated companies – net
|
(11 | ) | (3 | ) | (8 | ) | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Net income (loss)
|
221 | 173 | 6 | 226 | (13 | ) | 8 | 29 | (19 | ) | 42 | (5 | ) | 669 | ||||||||||||||||||||||||||||||
Net income (loss) attributable to
non-controlling
interests
|
14 | (3 | ) | 18 | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Net income (loss) attributable to Teva
|
207 | 173 | 6 | 226 | (13 | ) | 8 | 29 | (19 | ) | 42 | (8 | ) | 651 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
EPS - Basic
|
0.19 | 0.40 | 0.59 | |||||||||||||||||||||||||||||||||||||||||
EPS - Diluted
|
0.19 | 0.40 | 0.59 |
* |
Other
non-GAAP
items include 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 certain accelerated depreciation expenses and inventory write offs, primarily related to the rationalization of our plants and other unusual events.
|
Three Months Ended June 30, 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 |
Impairment
of long
lived
assets
|
Other
R&D
expenses
|
Restructuring
costs
|
Costs
related to
regulatory
actions
taken in
facilities
|
Equity
compensation
|
Contingent
consideration
|
Other
non-GAAP
items*
|
Other
items
|
|||||||||||||||||||||||||||||||||||||||
Net revenues
|
3,870 | 3,870 | ||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales
|
2,107 | 219 | 6 | 6 | 16 | 1,859 | ||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Gross profit
|
1,763 | 219 | 6 | 6 | 16 | 2,011 | ||||||||||||||||||||||||||||||||||||||||||
Gross profit margin
|
45.5 | % | 52.0 | % | ||||||||||||||||||||||||||||||||||||||||||||
R&D expenses
|
225 | (13 | ) | 5 | 233 | |||||||||||||||||||||||||||||||||||||||||||
S&M expenses
|
597 | 30 | 8 | 559 | ||||||||||||||||||||||||||||||||||||||||||||
G&A expenses
|
264 | 11 | 8 | 245 | ||||||||||||||||||||||||||||||||||||||||||||
Other income
|
(9 | ) | (4 | ) | (6 | ) | ||||||||||||||||||||||||||||||||||||||||||
Legal settlements and loss contingencies
|
13 | 13 | — | |||||||||||||||||||||||||||||||||||||||||||||
Other assets impairments, restructuring and other items
|
381 | 277 | 33 | 76 | (6 | ) | — | |||||||||||||||||||||||||||||||||||||||||
Intangible assets impairments
|
120 | 120 | — | |||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Operating income (loss)
|
173 | 249 | 13 | 396 | (13 | ) | 33 | 6 | 30 | 76 | 14 | 979 | ||||||||||||||||||||||||||||||||||||
Financial expenses, net
|
223 | (5 | ) | 229 | ||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Income (loss) before income taxes
|
(51 | ) | 249 | 13 | 396 | (13 | ) | 33 | 6 | 30 | 76 | 14 | (5 | ) | 751 | |||||||||||||||||||||||||||||||||
Income taxes
|
(104 | ) | (231 | ) | 128 | |||||||||||||||||||||||||||||||||||||||||||
Net income (loss)
|
53 | 249 | 13 | 396 | (13 | ) | 33 | 6 | 30 | 76 | 14 | (237 | ) | 623 | ||||||||||||||||||||||||||||||||||
Net income (loss) attributable to
non-controlling
interests
|
(87 | ) | (105 | ) | 19 | |||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Net income (loss) attributable to Teva
|
140 | 249 | 13 | 396 | (13 | ) | 33 | 6 | 30 | 76 | 14 | (342 | ) | 605 | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
EPS - Basic
|
0.13 | 0.42 | 0.55 | |||||||||||||||||||||||||||||||||||||||||||||
EPS - Diluted
|
0.13 | 0.42 | 0.55 |
* |
Other
non-GAAP
items include 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 certain accelerated depreciation expenses and inventory write offs, primarily related to the rationalization of our plants and other unusual events.
|
Six Months Ended June 30, 2021
|
||||||||||||||||||||||||||||||||||||||||||||
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
|
Restructuring
costs
|
Costs
related to
regulatory
actions
taken in
facilities
|
Equity
compensation
|
Contingent
consideration
|
Other
non-GAAP
items*
|
Other
items
|
||||||||||||||||||||||||||||||||||||
Net revenue
|
7,892 | 7,892 | ||||||||||||||||||||||||||||||||||||||||||
Cost of sales
|
4,141 | 363 | 13 | 12 | 91 | 3,663 | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Gross profit
|
3,750 | 363 | 13 | 12 | 91 | 4,228 | ||||||||||||||||||||||||||||||||||||||
Gross profit margin
|
47.5 | % | 53.6 | % | ||||||||||||||||||||||||||||||||||||||||
R&D expenses
|
501 | 10 | 5 | 487 | ||||||||||||||||||||||||||||||||||||||||
S&M expenses
|
1,200 | 52 | 18 | — | 1,131 | |||||||||||||||||||||||||||||||||||||||
G&A expenses
|
532 | 21 | 0 | 510 | ||||||||||||||||||||||||||||||||||||||||
Other (income) expense
|
(48 | ) | (37 | ) | (11 | ) | ||||||||||||||||||||||||||||||||||||||
Legal settlements and loss contingencies
|
110 | 110 | — | |||||||||||||||||||||||||||||||||||||||||
Other assets impairments, restructuring and other items
|
165 | 80 | 69 | (16 | ) | 33 | — | |||||||||||||||||||||||||||||||||||||
Intangible assets impairment
|
274 | 274 | — | |||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Operating income (loss)
|
1,015 | 414 | 110 | 354 | 69 | 13 | 60 | (16 | ) | 92 | 2,111 | |||||||||||||||||||||||||||||||||
Financial expenses, net
|
564 | 98 | 467 | |||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Income (loss) before income taxes
|
451 | 414 | 110 | 354 | 69 | 13 | 60 | (16 | ) | 92 | 98 | 1,644 | ||||||||||||||||||||||||||||||||
Income taxes
|
159 | (120 | ) | 280 | ||||||||||||||||||||||||||||||||||||||||
Share in (profits) losses of associated companies – net
|
(14 | ) | (1 | ) | (13 | ) | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Net income (loss)
|
306 | 414 | 110 | 354 | 69 | 13 | 60 | (16 | ) | 92 | (24 | ) | 1,377 | |||||||||||||||||||||||||||||||
Net income (loss) attributable to
non-controlling
interests
|
21 | (6 | ) | 28 | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Net income (loss) attributable to Teva
|
284 | 414 | 110 | 354 | 69 | 13 | 60 | (16 | ) | 92 | (30 | ) | 1,350 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
EPS - Basic
|
0.26 | 0.97 | 1.23 | |||||||||||||||||||||||||||||||||||||||||
EPS - Diluted
|
0.26 | 0.96 | 1.22 |
* |
Other
non-GAAP
items include 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 certain accelerated depreciation expenses and inventory write offs, primarily related to the rationalization of our plants and other unusual events.
|
Six months ended June 30, 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 |
Impairment
of long-
lived
assets
|
Restructuring
costs |
Costs
related to
regulatory
actions
taken in
facilities
|
Equity
compensation |
Contingent
consideration |
Other
non-GAAP
items*
|
Other
items |
||||||||||||||||||||||||||||||||||||
Net revenue
|
8,227 | 8,227 | ||||||||||||||||||||||||||||||||||||||||||
Cost of sales
|
4,402 | 443 | 11 | 12 | 32 | 3,905 | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Gross profit
|
3,826 | 443 | 11 | 12 | 32 | 4,322 | ||||||||||||||||||||||||||||||||||||||
Gross profit margin
|
46.5 | % | 52.5 | % | ||||||||||||||||||||||||||||||||||||||||
R&D expenses
|
446 | 9 | (17 | ) | 454 | |||||||||||||||||||||||||||||||||||||||
S&M expenses
|
1,210 | 64 | 17 | 1,129 | ||||||||||||||||||||||||||||||||||||||||
G&A expenses
|
567 | 21 | 12 | 535 | ||||||||||||||||||||||||||||||||||||||||
Other (income) expense
|
(22 | ) | (3 | ) | (19 | ) | ||||||||||||||||||||||||||||||||||||||
Legal settlements and loss contingencies
|
(12 | ) | (12 | ) | — | |||||||||||||||||||||||||||||||||||||||
Other assets impairments, restructuring and other items
|
502 | 352 | 73 | 83 | (5 | ) | — | |||||||||||||||||||||||||||||||||||||
Intangible assets impairment
|
768 | 768 | — | |||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Operating income (loss)
|
364 | 507 | (12 | ) | 1,121 | 73 | 11 | 60 | 83 | 18 | — | 2,223 | ||||||||||||||||||||||||||||||||
Financial expenses, net
|
448 | 6 | 442 | |||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Income (loss) before income taxes
|
(84 | ) | 507 | (12 | ) | 1,121 | 73 | 11 | 60 | 83 | 18 | 6 | 1,781 | |||||||||||||||||||||||||||||||
Income taxes
|
(163 | ) | (465 | ) | 303 | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Net income (loss) attributtible to Teva
|
78 | 507 | (12 | ) | 1,121 | 73 | 11 | 60 | 83 | 18 | (460 | ) | 1,478 | |||||||||||||||||||||||||||||||
Net income (loss) attributable to
non-controlling
interests
|
(131 | ) | (169 | ) | 38 | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Net income (loss)
|
209 | 507 | (12 | ) | 1,121 | 73 | 11 | 60 | 83 | 18 | (629 | ) | 1,440 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
EPS - Basic
|
0.19 | 1.32 | ||||||||||||||||||||||||||||||||||||||||||
EPS - Diluted
|
0.19 | 1.31 |
* |
Other
non-GAAP
items include 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 certain accelerated depreciation expenses and inventory write offs, primarily related to the rationalization of our plants and other unusual events.
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 1A.
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RISK FACTORS
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ITEM 2.
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UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
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ITEM 3.
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DEFAULTS UPON SENIOR SECURITIES
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ITEM 4.
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MINE SAFETY DISCLOSURES
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ITEM 5.
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OTHER INFORMATION
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ITEM 6.
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EXHIBITS
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31.1 | Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 * | |
31.2 | Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 * | |
32 | Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 * | |
101.INS | XBRL Taxonomy Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Labels Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* |
Filed herewith.
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TEVA PHARMACEUTICAL INDUSTRIES LIMITED | ||||||
Date: July 28, 2021 | By: |
/s/ Eli Kalif
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||||
Name: |
Eli Kalif
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|||||
Title: |
Executive Vice President,
Chief Financial Officer
(Duly Authorized Officer)
|
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