We could not find any results for:
Make sure your spelling is correct or try broadening your search.
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 | |
---|---|---|---|---|---|---|---|---|
-0.03 | -0.21% | 14.07 | 14.19 | 13.94 | 13.99 | 8,541,680 | 01:00:00 |
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) today reported results for the quarter ended September 30, 2021.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20211027005516/en/
Mr. Kåre Schultz, Teva's President and CEO, said, "I am very happy with our solid performance in the third quarter of 2021, especially our strong cash flow and continued momentum with key brands. Our results were driven by robust performance of AJOVY® in the U.S., Europe and Japan as well as U.S. sales of AUSTEDO®, our novel therapy for the treatment of patients with Huntington’s disease and tardive dyskinesia. We are also very enthusiastic about expanding our pipeline with additional movement disorder products in clinical development for multiple system atrophy (MSA) and Parkinson’s disease, through the strategic collaboration announced yesterday with MODAG GmbH."
Mr. Schultz continued, "We are also proud to be launching a Sustainability-Linked Bond (SLB) today, which further demonstrates our commitment to the environment and to securing access to medicines in low and middle-income countries, two of the greatest challenges of our time. Teva is the first generics company to issue an SLB, furthering our leadership in accessible medicines for patients throughout the world."
Third Quarter 2021 Consolidated Results
Revenues in the third quarter of 2021 were $3,887 million, a decrease of 2%, or 3% in local currency terms, compared to the third quarter of 2020. This decrease was mainly due to lower revenues in our North America segment, mainly due to COPAXONE® and generic products, partially offset by higher revenues from generic and OTC products in our Europe segment, AJOVY® and AUSTEDO®. Revenues continued to be affected by the ongoing impact of the COVID-19 pandemic on markets and on customer stocking and purchasing patterns.
Exchange rate movements during the third quarter of 2021, including hedging effects, positively impacted our revenues by $42 million and our GAAP and non-GAAP operating income by $22 million and $23 million, respectively.
GAAP gross profit was $1,794 million in the third quarter of 2021, a decrease of 3% compared to the third quarter of 2020. GAAP gross profit margin was 46.2% in the third quarter of 2021, compared to 46.6% in the third quarter of 2020. The decrease in gross profit margin was mainly driven by a change in the mix of products sold, resulting from lower sales of specialty products that have higher profitability, mainly COPAXONE and lower profitability from Anda, partially offset by improved profitability from generic products, mainly in our North America segment. Non-GAAP gross profit was $2,083 million in the third quarter of 2021, flat compared to the third quarter of 2020. Non-GAAP gross profit margin was 53.6% in the third quarter of 2021, compared to 52.4% in the third quarter of 2020.
GAAP Research and Development (R&D) expenses in the third quarter of 2021 were $222 million, a decrease of 14% compared to the third quarter of 2020. Non-GAAP R&D expenses were $217 million, or 5.6% of quarterly revenues, in the third quarter of 2021, compared to $233 million, or 5.8%, in the third quarter of 2020. In the third quarter of 2021, our R&D expenses related primarily to specialty product candidates in the respiratory, pain, migraine and headache therapeutic areas, with additional activities in selected other areas and generic products including biosimilars. Our lower R&D expenses in the third quarter of 2021, compared to the third quarter of 2020, were mainly due to a decrease in the pain and neuropsychiatry therapeutic areas as well as various generics projects.
GAAP Selling and Marketing (S&M) expenses in the third quarter of 2021 were $597 million, a decrease of 1% compared to the third quarter of 2020. Non-GAAP S&M expenses were $567 million, or 14.6% of quarterly revenues, in the third quarter of 2021, compared to $566 million, or 14.2%, in the third quarter of 2020.
GAAP General and Administrative (G&A) expenses in the third quarter of 2021 were $291 million, an increase of 4% compared to the third quarter of 2020. Non-GAAP G&A expenses were $275 million, or 7.1% of quarterly revenues, in the third quarter of 2021, compared to $269 million, or 6.8%, in the third quarter of 2020.
GAAP operating income in the third quarter of 2021 was $623 million, compared to a loss of $4,342 million in the third quarter of 2020. The operating loss in the third quarter of 2020 was mainly due to a goodwill impairment charge and higher intangible asset impairment charges. Non-GAAP operating income in the third quarter of 2021 was $1,042 million, an increase of 2%, compared to $1,025 million in the third quarter of 2020. Non-GAAP operating margin was 26.8% in the third quarter of 2021, compared to 25.8% in the third quarter of 2020. The increase was mainly due to higher profit in our Europe and International Markets segments, partially offset by lower profit in our North America segment.
EBITDA (defined as operating income, excluding amortization and depreciation expenses) was $954 million in the third quarter of 2021, compared to negative EBITDA of $3,961 million in the third quarter of 2020. Adjusted EBITDA (defined as non-GAAP operating income excluding depreciation expenses) was $1,170 million in the third quarter of 2021, an increase of 1% compared to $1,153 million in the third quarter of 2020.
GAAP financial expenses were $241 million in the third quarter of 2021, compared to $117 million in the third quarter of 2020. Non-GAAP financial expenses were $235 million in the third quarter of 2021, compared to $241 million in the third quarter of 2020. Financial expenses in the third quarter of 2021, were mainly comprised of interest expenses of $232 million. Financial expenses in the third quarter of 2020 were mainly comprised of interest expenses of $241 million, partially offset by gains on revaluations of marketable securities of $124 million.
In the third quarter of 2021, we recognized a GAAP tax expense of $76 million, on pre-tax income of $382 million. In the third quarter of 2020, we recognized a tax expense of $16 million, on pre-tax loss of $4,459 million. Our tax rate for the third quarter of 2021 was mainly affected by amortization and interest expense disallowance. Non-GAAP income taxes in the third quarter of 2021 were $137 million, or 17%, on pre-tax non-GAAP income of $807 million. Non-GAAP income taxes in the third quarter of 2020 were $133 million, or 17%, on pre-tax non-GAAP income of $784 million. Our non-GAAP tax rate in the third quarter of 2021 was mainly affected by the mix of products we sold and interest expense disallowance.
We expect our annual non-GAAP tax rate for 2021 to be 17%-18%, unchanged from our outlook provided in February 2021.
GAAP net income attributable to Teva and GAAP EPS were $292 million and $0.26, respectively, in the third quarter of 2021, compared to net loss of $4,349 million and a loss per share of $3.97 in the third quarter of 2020. The loss in the third quarter of 2020 was mainly due to a goodwill impairment charge and intangible asset impairment charges. Non-GAAP net income attributable to Teva and non-GAAP diluted EPS in the third quarter of 2021 were $651 million and $0.59, respectively, compared to $637 million and $0.58 in the third quarter of 2020.
The weighted average diluted shares outstanding used for the fully diluted share calculation for the three months ended September 30, 2021 and 2020 was 1,109 million shares and 1,096 million shares, respectively. The weighted average diluted shares outstanding used for the fully diluted share calculation on a non-GAAP basis for the three months ended September 30, 2021 and 2020 was 1,109 million and 1,100 million shares, respectively.
As of September 30, 2021 and 2020, the fully diluted share count for purposes of calculating our market capitalization was approximately 1,128 million and 1,118 million, respectively.
Non-GAAP information: Net non-GAAP adjustments in the third quarter of 2021 were $360 million. Non-GAAP net income and non-GAAP EPS for the third quarter of 2021 were adjusted to exclude the following items:
Teva believes that excluding such items facilitates investors’ understanding of its business. For further information, see the tables below for a reconciliation of the U.S. GAAP results to the adjusted non-GAAP figures and the information under “Non-GAAP Financial Measures.” Investors should consider non-GAAP financial measures in addition to, and not as replacement for, or superior to, measures of financial performance prepared in accordance with GAAP.
Cash flow generated from operating activities during the third quarter of 2021 was $529 million, compared to $307 million in the third quarter of 2020. The increase in the third quarter of 2021 was mainly due to favorable collection of payments from customers in North America.
Free cash flow (defined as cash flow from operating activities, cash used for capital investments, beneficial interest collected in exchange for securitized accounts receivables and proceeds from divestitures of businesses and other assets) was $795 million in the third quarter of 2021, compared to $506 million in the third quarter of 2020. The increase in the third quarter of 2021 resulted mainly from higher cash flow from operating activities.
As of September 30, 2021, our debt was $23,746 million, compared to $25,132 million as of June 30, 2021. This decrease was mainly due to repayment of our $1,475 million 2.2% senior notes at maturity in July 2021 and exchange rate fluctuations, partially offset by $300 million borrowed under our unsecured syndicated revolving credit facility (“RCF”). During the third quarter of 2021, we borrowed $500 million under our RCF, of which $200 million was repaid during the quarter and the remaining $300 million was repaid subsequently. As of the date hereof, no amounts are outstanding under the RCF. Our debt as of September 30, 2021 was effectively denominated in the following currencies: 63% in U.S. dollars, 34% in euros and 3% in Swiss francs. The portion of total debt classified as short-term as of September 30, 2021 was 11%, compared to 14% as of June 30, 2021. Our financial leverage was 67% as of September 30, 2021, compared to 69% as of June 30, 2021. Our average debt maturity was approximately 5.4 years as of September 30, 2021, compared to 5.3 years as of June 30, 2021.
Segment Results for the Third Quarter of 2021
North America Segment
Our North America segment includes the United States and Canada.
The following table presents revenues, expenses and profit for our North America segment for the three months ended September 30, 2021 and 2020:
Three months ended September 30,
2021
2020
(U.S. $ in millions / % of Segment Revenues)
Revenues
$
1,875
100
%
$
2,017
100
%
Gross profit
967
51.6
%
1,056
52.4
%
R&D expenses
146
7.8
%
155
7.7
%
S&M expenses
250
13.3
%
250
12.4
%
G&A expenses
121
6.4
%
97
4.8
%
Other income
(7
)
§
(5
)
§
Segment profit*
$
458
24.4
%
$
560
27.7
%
* Segment profit does not include amortization and certain other items.
§ Represents an amount less than 0.5%.
Revenues from our North America segment in the third quarter of 2021 were $1,875 million, a decrease of $142 million, or 7%, compared to the third quarter of 2020, mainly due to a decrease in revenues from COPAXONE and generic products. 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.
Revenues in the United States, our largest market, were $1,754 million in the third quarter of 2021, a decrease of $134 million, or 7%, compared to the third quarter of 2020.
Revenues by Major Products and Activities
The following table presents revenues for our North America segment by major products and activities for the three months ended September 30, 2021 and 2020:
Three months ended September 30,
Percentage Change
2021
2020
2020-2021
(U.S. $ in millions)
Generic products
$
859
$
928
(7
%)
AJOVY
46
35
31
%
AUSTEDO
201
168
19
%
BENDEKA®/TREANDA®
95
105
(9
%)
COPAXONE
133
236
(44
%)
ProAir®*
31
50
(37
%)
Anda
363
341
7
%
Other
146
155
(5
%)
Total
$
1,875
$
2,017
(7
%)
* Does not include revenues from our ProAir authorized generic, which are included under generic products.
Generic products revenues in our North America segment (including biosimilars) in the third quarter of 2021 were $859 million, a decrease of 7% compared to the third quarter of 2020, mainly due to increased competition and lower volumes.
In the third quarter of 2021, our total prescriptions were approximately 305 million (based on trailing twelve months), representing 8.2% of total U.S. generic prescriptions according to IQVIA data.
AJOVY revenues in our North America segment in the third quarter of 2021 increased by 31% to $46 million, compared to the third quarter of 2020, mainly due to growth in volume.
AUSTEDO revenues in our North America segment in the third quarter of 2021 increased by 19%, to $201 million, compared to $168 million in the third quarter of 2020, mainly due to growth in volume.
BENDEKA and TREANDA combined revenues in our North America segment in the third quarter of 2021 decreased by 9% to $95 million, compared to the third quarter of 2020, mainly due to the availability of alternative therapies and continued competition from Belrapzo® (a ready-to-dilute bendamustine hydrochloride product from Eagle).
COPAXONE revenues in our North America segment in the third quarter of 2021 decreased by 44% to $133 million, compared to the third quarter of 2020, mainly due to generic competition in the United States.
ProAir (HFA and RespiClick) revenues in our North America segment in the third quarter of 2021 were $31 million, a decrease of 37% compared to the third quarter of 2020, mainly due to generic competition. In January 2019, we launched our own ProAir authorized generic in the United States, following the launch of a generic version of Ventolin® HFA, another albuterol inhaler. Revenues from our ProAir authorized generic are included in “generic products” above. During the third quarter of 2021, the exit market share of our overall albuterol product, including our ProAir authorized generic was 38%, making it the second largest in the market, compared to 44% in the third quarter of 2020. Other generic versions of ProAir were launched in 2020.
Anda revenues in our North America segment in the third quarter of 2021 increased by 7% to $363 million, compared to $341 million in the third quarter of 2020, mainly due to higher demand.
North America Gross Profit
Gross profit from our North America segment in the third quarter of 2021 was $967 million, a decrease of 8%, compared to $1,056 million in the third quarter of 2020. This decrease was mainly due to lower gross profit from COPAXONE.
Gross profit margin for our North America segment in the third quarter of 2021 decreased to 51.6%, compared to 52.4% in the third quarter of 2020. This decrease was mainly due to a change in the mix of products.
North America Profit
Profit from our North America segment consists of gross profit less R&D expenses, S&M expenses, G&A expenses and any other income related to this segment. Segment profit does not include amortization and certain other items.
Profit from our North America segment in the third quarter of 2021 was $458 million, a decrease of 18% compared to $560 million in the third quarter of 2020, mainly due to lower gross profit.
Europe Segment
Our Europe segment includes the European Union and certain other European countries.
The following table presents revenues, expenses and profit for our Europe segment for the three months ended September 30, 2021 and 2020:
Three months ended September 30,
2021
2020
(U.S. $ in millions / % of Segment Revenues)
Revenues
$
1,220
100
%
$
1,116
100
%
Gross profit
714
58.6
%
637
57.1
%
R&D expenses
55
4.5
%
60
5.4
%
S&M expenses
204
16.7
%
200
17.9
%
G&A expenses
64
5.2
%
66
5.9
%
Other income
(2
)
§
(1
)
§
Segment profit*
$
394
32.3
%
$
312
28.0
%
* Segment profit does not include amortization and certain other items.
§ Represents an amount less than $1 million or 0.5%, as applicable.
Revenues from our Europe segment in the third quarter of 2021 were $1,220 million, an increase of 9% or $104 million, compared to the third quarter of 2020. In local currency terms, revenues increased by 6%, mainly due to the impact the COVID-19 pandemic had on markets and on customer stocking and purchasing patterns.
Revenues by Major Products and Activities
The following table presents revenues for our Europe segment by major products and activities for the three months ended September 30, 2021 and 2020:
Three months ended September 30,
Percentage Change
2021
2020
2020-2021
(U.S. $ in millions)
Generic products
$
895
$
824
9
%
AJOVY
23
8
180
%
COPAXONE
95
101
(6
%)
Respiratory products
85
77
10
%
Other
122
106
15
%
Total
$
1,220
$
1,116
9
%
Generic products revenues in our Europe segment in the third quarter of 2021, including OTC products, increased by 9% to $895 million, compared to the third quarter of 2020. In local currency terms, revenues increased by 7%, mainly due to the impact the COVID-19 pandemic had on markets and on customer stocking and purchasing patterns.
AJOVY revenues in our Europe segment in the third quarter of 2021 increased to $23 million, compared to $8 million in the third quarter of 2020, mainly due to launches and reimbursements in additional European countries as well as growth in existing countries.
COPAXONE revenues in our Europe segment in the third quarter of 2021 decreased by 6% to $95 million, compared to the third quarter of 2020. In local currency terms, revenues decreased by 7%, due to price reductions and a decline in volume resulting from competing glatiramer acetate products.
Respiratory products revenues in our Europe segment in the third quarter of 2021 increased by 10% to $85 million compared to the third quarter of 2020. In local currency terms, revenues increased by 7%, mainly due to the impact the COVID-19 pandemic had on markets and on customer stocking and purchasing patterns.
Europe Gross Profit
Gross profit from our Europe segment in the third quarter of 2021 was $714 million, an increase of 12% compared to $637 million in the third quarter of 2020, mainly due to the impact the COVID-19 pandemic had on markets and on customer stocking and purchasing patterns.
Gross profit margin for our Europe segment in the third quarter of 2021 increased to 58.6%, compared to 57.1% in the third quarter of 2020.
Europe Profit
Profit from our Europe segment consists of gross profit less R&D expenses, S&M expenses, G&A expenses and any other income related to this segment. Segment profit does not include amortization and certain other items.
Profit from our Europe segment in the third quarter of 2021 was $394 million, an increase of 26%, compared to $312 million in the third quarter of 2020. This increase was mainly due to higher revenues, as discussed above.
International Markets Segment
Our International Markets segment includes all countries in which we operate other than those in our North America and Europe segments. The key markets in this segment are Japan, Russia and Israel.
On February 1, 2021, we completed the sale of the majority of the generic and operational assets of our business venture in Japan.
The following table presents revenues, expenses and profit for our International Markets segment for the three months ended September 30, 2021 and 2020:
Three months ended September 30,
2021
2020
(U.S. $ in millions / % of Segment Revenues)
Revenues
$
530
100
%
$
529
100
%
Gross profit
296
55.9
%
275
52.0
%
R&D expenses
16
3.0
%
17
3.2
%
S&M expenses
102
19.2
%
101
19.1
%
G&A expenses
29
5.4
%
33
6.3
%
Other income
(2
)
§
(1
)
§
Segment profit*
$
152
28.8
%
$
125
23.6
%
* Segment profit does not include amortization and certain other items.
§ Represents an amount less than 0.5%.
Revenues from our International Markets segment in the third quarter of 2021 were $530 million, flat compared to the third quarter of 2020. In local currency terms, revenues increased by 1% compared to the third quarter of 2020, mainly due to higher revenues in most markets and a milestone payment of $35 million from Otsuka related to the launch of AJOVY in Japan, partially offset by lower revenues in Japan resulting from the divestment mentioned above, as well as regulatory price reductions and generic competition to off-patented products. Revenues continued to be affected by the ongoing impact of the COVID-19 pandemic on markets and on customer stocking and purchasing patterns.
Revenues by Major Products and Activities
The following table presents revenues for our International Markets segment by major products and activities for the three months ended September 30, 2021 and 2020:
Three months ended September 30,
Percentage Change
2021
2020
2020-2021
(U.S. $ in millions)
Generic products
$
412
$
429
(4
%)
AJOVY
39
16
145
%
COPAXONE
10
14
(30
%)
Other
69
71
(3
%)
Total
$
530
$
529
§
____________________________
§ Represents an amount less than 0.5%.
Generic products revenues in our International Markets segment in the third quarter of 2021, which include OTC products, decreased by 4% in U.S. dollar or 3% in local currency terms, to $412 million, compared to the third quarter of 2020. This decrease was mainly due to lower sales in Japan resulting from the divestment mentioned above, as well as regulatory price reductions and generic competition to off-patented products in Japan, partially offset by higher revenues in most other markets.
AJOVY was launched in certain markets in our International Markets segment, including in Japan during the third quarter of 2021. We are moving forward with plans to launch AJOVY in other markets. AJOVY revenues in our International Markets segment in the third quarter of 2021 were $39 million, compared to $16 million in the third quarter of 2020. Revenues in the third quarter of 2021 included milestone payment of $35 million received from Otsuka related to the launch of AJOVY in Japan. Revenues in the third quarter of 2020 included a milestone payment of $15 million received from Otsuka.
COPAXONE revenues in our International Markets segment in the third quarter of 2021 were $10 million, compared to $14 million in the third quarter of 2020.
AUSTEDO was 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 markets.
International Markets Gross Profit
Gross profit from our International Markets segment in the third quarter of 2021 was $296 million, an increase of 8% compared to $275 million in the third quarter of 2020.
Gross profit margin for our International Markets segment in the third quarter of 2021 increased to 55.9%, compared to 52.0% in the third quarter of 2020. This increase was mainly due to the divestment in Japan mentioned above, the Otsuka milestone payment for AJOVY and a change in product portfolio mix, partially offset by regulatory price reductions and generic competition to off-patented products in Japan.
International Markets Profit
Profit from our International Markets segment consists of gross profit less R&D expenses, S&M expenses, G&A expenses and any other income related to this segment. Segment profit does not include amortization and certain other items.
Profit from our International Markets segment in the third quarter of 2021 was $152 million, an increase of 22%, compared to $125 million in the third quarter of 2020. This increase was mainly due to higher gross profit.
Other Activities
We have other sources of revenues, primarily the sale of active pharmaceutical ingredients ("APIs") to third parties, certain contract manufacturing services and an out-licensing platform offering a portfolio of products to other pharmaceutical companies through our affiliate Medis. Our other activities are not included in our North America, Europe or International Markets segments described above.
Our revenues from other activities in the third quarter of 2021 were $262 million, a decrease of 17% compared to the third quarter of 2020 in both U.S dollar and local currency terms, mainly due to a decrease in volumes from API and Medis resulting from the COVID-19 pandemic, as well as lower revenues from contract manufacturing services.
API sales to third parties in the third quarter of 2021 were $161 million, a decrease of 8% in both U.S. dollar and local currency terms, compared to the third quarter of 2020.
Conference Call
Teva will host a conference call and live webcast including a slide presentation on Wednesday, October 27, 2021, at 8:00 a.m. ET to discuss its third quarter 2021 results and overall business environment. A question & answer session will follow.
In order to participate, please dial the following numbers:
United States:
1 (877) 870-9135
International:
+44 (0) 2071 928338
Israel:
1 (809) 213-985
Passcode:
6466787
A live webcast of the call will be available on Teva’s website at: ir.tevapharm.com.
Following the conclusion of the call, a replay of the webcast will be available within 24 hours on the Company's website or by calling the following numbers: United States 1-866-331-1332; International +44 (0) 3333 009785; passcode: 6466787.
About Teva
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) has been developing and producing medicines to improve people’s lives for more than a century. We are a global leader in generic and specialty medicines with a portfolio consisting of over 3,500 products in nearly every therapeutic area. Around 200 million people around the world take a Teva medicine every day, and are served by one of the largest and most complex supply chains in the pharmaceutical industry. Along with our established presence in generics, we have significant innovative research and operations supporting our growing portfolio of specialty and biopharmaceutical products. Learn more at http://www.tevapharm.com.
Some amounts in this press release may not add up due to rounding. All percentages have been calculated using unrounded amounts.
Non-GAAP Financial Measures
This press release contains certain financial information that differs from what is reported under accounting principles generally accepted in the United States ("GAAP"). These non-GAAP financial measures, including, but not limited to, non-GAAP EPS, non-GAAP operating income, non-GAAP gross profit, non-GAAP gross profit margin, EBITDA, Adjusted EBITDA, non-GAAP R&D expenses, non-GAAP S&M expenses, non-GAAP G&A expenses, non-GAAP financial expenses, non-GAAP income taxes, non-GAAP income (loss) before income taxes, non-GAAP tax rate, non-GAAP net income (loss), non-GAAP net income (loss) attributable to Teva and non-GAAP diluted EPS are presented in order to facilitates investors' understanding of our business. We utilize certain non-GAAP financial measures to evaluate performance, in conjunction with other performance metrics. The following are examples of how we utilize the non-GAAP measures: 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. See the attached tables for a reconciliation of the GAAP results to the adjusted non-GAAP figures. Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP. We are not providing forward looking guidance for GAAP reported financial measures or a quantitative reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP measure because we are unable to predict with reasonable certainty the ultimate outcome of certain significant items without unreasonable effort.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management’s current beliefs and expectations and are subject to substantial risks and uncertainties, both known and unknown, that could cause our future results, performance or achievements to differ significantly from that expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to:
and other factors discussed in this press release, in our Quarterly Report on Form 10-Q for the third quarter of 2021 and in our Annual Report on Form 10-K for the year ended December 31, 2020, including in the sections captioned "Risk Factors” and “Forward Looking Statements.” Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statements or other information contained herein, whether as a result of new information, future events or otherwise. You are cautioned not to put undue reliance on these forward-looking statements.
Consolidated Statements of Income (U.S. dollars in millions, except share and per share data) Three months ended Nine months ended September 30, September 30,2021
2020
2021
2020
(Unaudited) (Unaudited) (Unaudited) (Unaudited) Net revenues3,887
3,978
11,778
12,206
Cost of sales
2,093
2,126
6,234
6,528
Gross profit
1,794
1,852
5,544
5,678
Research and development expenses
222
258
723
704
Selling and marketing expenses
597
605
1,798
1,815
General and administrative expenses
291
279
822
846
Intangible assets impairments
21
509
295
1,278
Goodwill impairment
4,628
4,628
Other asset impairments, restructuring and other items
62
(98
)
227
404
Legal settlements and loss contingencies
3
21
113
10
Other income
(25
)
(8
)
(73
)
(30
)
Operating (loss) income623
(4,342
)
1,638
(3,978
)
Financial expenses, net241
117
805
565
Income (loss) before income taxes
382
(4,459
)
833
(4,543
)
Income taxes (benefit)76
16
235
(147
)
Share in (profits) losses of associated companies, net5
(136
)
(9
)
(135
)
Net income (loss)302
(4,340
)
608
(4,261
)
Net income (loss) attributable to non-controlling interests11
10
32
(121
)
Net income (loss) attributable to Teva292
(4,349
)
576
(4,140
)
Earnings (loss) per share attributable to Teva: Basic ($)0.26
(3.97
)
0.52
(3.78
)
Diluted ($)0.26
(3.97
)
0.52
(3.78
)
Weighted average number of shares (in millions): Basic1,103
1,096
1,102
1,095
Diluted
1,109
1,096
1,109
1,095
Non-GAAP net income attributable to Teva:*
651
637
2,001
2,077
Non-GAAP net income attributable to Teva for diluted earnings per share:
651
637
2,001
2,077
Non-GAAP earnings per share attributable to Teva:* Basic ($)
0.59
0.58
1.82
1.90
Diluted ($)
0.59
0.58
1.81
1.89
Non-GAAP average number of shares (in millions): Basic
1,103
1,096
1,102
1,095
Diluted
1,109
1,100
1,109
1,099
* See reconciliation attached.
Condensed Consolidated Balance Sheets
(U.S. dollars in millions) September 30, December 31,2021
2020
ASSETS (Unaudited) (Audited) Current assets: Cash and cash equivalents2,045
2,177
Accounts receivables, net of allowance for credit losses of $119 million and $126 million as of September 30, 2021 and December 31, 2020.4,046
4,581
Inventories4,167
4,403
Prepaid expenses1,066
945
Other current assets805
710
Assets held for sale25
189
Total current assets12,154
13,005
Deferred income taxes622
695
Other non-current assets518
538
Property, plant and equipment, net6,040
6,296
Operating lease right-of-use assets507
559
Identifiable intangible assets, net7,832
8,923
Goodwill20,179
20,624
Total assets47,851
50,640
LIABILITIES & EQUITY Current liabilities: Short-term debt2,709
3,188
Sales reserves and allowances4,241
4,824
Accounts payables1,514
1,756
Employee-related obligations555
685
Accrued expenses2,035
1,780
Other current liabilities770
933
Total current liabilities11,825
13,164
Long-term liabilities: Deferred income taxes910
964
Other taxes and long-term liabilities2,203
2,240
Senior notes and loans21,037
22,731
Operating lease liabilities425
479
Total long-term liabilities24,575
26,414
Equity: Teva shareholders’ equity10,467
10,026
Non-controlling interests984
1,035
Total equity11,451
11,061
Total liabilities and equity47,851
50,640
TEVA PHARMACEUTICAL INDUSTRIES LIMITED CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in millions) (Unaudited) Nine months ended Three months ended September 30, September 30,2021
2020
2021
2020
Operating activities: Net income (loss) $
608
$
(4,261
)
$302
$
(4,339
)
Adjustments to reconcile net income (loss) to net cash provided by operations: Depreciation and amortization1,010
1,162
329
381
Impairment of long-lived assets and assets held for sale
401
6,314
47
5,194
Net change in operating assets and liabilities
(1,881
)
(1,627
)
(202
)
(625
)
Deferred income taxes – net and uncertain tax positions13
(656
)
8
(154
)
Stock-based compensation86
91
26
29
Net loss (gain) from investments and from sale of long lived assets
109
(232
)
16
(256
)
Research and development in process-
40
-
40
Other items
(4
)
54
3
37
Net cash provided by (used in) operating activities
342
885
529
307
Investing activities: Beneficial interest collected in exchange for securitized accounts receivables
1,278
1,102
397
333
Purchases of property, plant and equipment
(409
)
(402
)
(146
)
(143
)
Proceeds from sale of business and long-lived assets269
54
15
9
Proceeds from sale of investments
172
12
19
3
Other investing activities
(33
)
(44
)
3
(45
)
Net cash provided by investing activities1,277
722
288
157
Financing activities: Repayment of senior notes and loans and other long-term liabilities
(1,475
)
(1,871
)
(1,475
)
(1,171
)
Proceeds from short term debt500
231
500
231
Repayment of short term debt
(200
)
(116
)
(200
)
(116
)
Redemption of convertible senior notes(491
)
-
-
-
Other financing activities
(5
)
(4
)
(2
)
(1
)
Net cash used in financing activities(1,671
)
(1,760
)
(1,177
)
(1,057
)
Translation adjustment on cash and cash equivalents(80
)
5
(31
)
18
Net change in cash and cash equivalents
(132
)
(148
)
(391
)
(575
)
Balance of cash and cash equivalents at beginning of period2,177
1,975
2,436
2,402
Balance of cash and cash equivalents at end of period $
2,045
1,827
2,045
$
1,827
Non-cash financing and investing activities: Beneficial interest obtained in exchange for securitized accounts receivables $
1,310
488
$1,055
1,055
$432
$
327
Three Months Ended September 30, 2021 U.S. $ and shares in millions (except per share amounts) GAAP Excluded for non-GAAP measurement Non-GAAP Amortization ofpurchasedintangible assets Legal settlementsand losscontingencies Impairment oflong livedassets Restructuringcosts Costs relatedto regulatoryactions takenin facilities Equitycompensation Contingentconsideration Other non-GAAPitems* Other items Net revenues
3,887
3,887
Cost of sales
2,093
175
5
5
104
1,804
Gross profit
1,794
175
5
5
104
2,083
Gross profit margin
46.2
%
53.6
%
R&D expenses222
4
217
S&M expenses
597
24
7
567
G&A expenses
291
10
6
275
Other income
(25
)
(7
)
(18
)
Legal settlements and loss contingencies3
3
-
Other assets impairments, restructuring and other items
62
26
28
9
(1
)
-
Intangible assets impairments
21
21
-
Operating income (loss)
623
199
3
47
28
5
26
9
103
1,042
Financial expenses, net
241
6
235
Income (loss) before income taxes
382
199
3
47
28
5
26
9
103
6
807
Income taxes
76
(62
)
137
Share in (profits) losses of associated companies – net
5
0
4
Net income (loss)
302
199
3
47
28
5
26
9
103
(56
)
665
Net income (loss) attributable to non-controlling interests
11
(4
)
14
Net income (loss) attributable to Teva
292
199
3
47
28
5
26
9
103
(60
)
651
EPS - Basic
0.26
0.33
0.59
EPS - Diluted
0.26
0.32
0.59
The non-GAAP diluted weighted average number of shares was 1,109 million for the three months ended September 30, 2021. Non-GAAP income taxes for the three months ended September 30, 2021 were 17% on pre-tax non-GAAP income. * 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. Adjusted EBITDA reconciliation Operating income (loss)
623
Add: Depreciation
132
Amortization
199
EBITDA
954
Legal settlements and loss contingencies
3
Impairment of long lived assets
47
Restructuring costs
28
Costs related to regulatory actions taken in facilities
5
Equity compensation
26
Contingent consideration
9
Other non-GAAP items (excluding accelerated depreciation of $4 million)*
99
Adjusted EBITDA
1,170
* 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. Nine Months Ended September 30, 2021 U.S. $ and shares in millions (except per share amounts) GAAP Excluded for non-GAAP measurement Non-GAAP Amortizationof purchasedintangibleassets Legal settlementsand losscontingencies Impairmentof long-lived assets Restructuringcosts Costs relatedto regulatoryactions takenin facilities Equitycompensation Contingentconsideration Other non-GAAP items* Otheritems Net revenue
11,778
11,778
Cost of sales
6,234
538
17
17
195
5,467
Gross profit
5,544
538
17
17
195
6,311
Gross profit margin
47.1
%
53.6
%
R&D expenses723
14
5
704
S&M expenses
1,798
76
24
-
1,698
G&A expenses
822
31
7
785
Other (income) expense
(73
)
(44
)
(29
)
Legal settlements and loss contingencies113
113
-
Other assets impairments, restructuring and other items
227
106
96
(7
)
32
-
Intangible assets impairment
295
295
-
Operating income (loss)
1,638
613
113
401
96
17
86
(7
)
194
3,153
Financial expenses, net
805
104
701
Income (loss) before income taxes
833
613
113
401
96
17
86
(7
)
194
104
2,452
Income taxes
235
(182
)
417
Share in (profits) losses of associated companies – net
(9
)
(1
)
(8
)
Net income (loss)608
613
113
401
96
17
86
(7
)
194
(79
)
2,042
Net income (loss) attributable to non-controlling interests
32
(10
)
42
Net income (loss) attributable to Teva
576
613
113
401
96
17
86
(7
)
194
(90
)
2,001
EPS - Basic
0.52
1.29
1.82
EPS - Diluted
0.52
1.29
1.81
The non-GAAP diluted weighted average number of shares was 1,109 million for the nine months ended September 30, 2021. Non-GAAP income taxes for the nine months ended September 30, 2021 were 17% on pre-tax non-GAAP income. * 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. Adjusted EBITDA reconciliation Operating income (loss)
1,638
Add: Depreciation
398
Amortization
613
EBITDA
2,650
Legal settlements and loss contingencies
113
Impairment of long lived assets
401
Restructuring costs
96
Costs related to regulatory actions taken in facilities
17
Equity compensation
86
Contingent consideration
(7
)
Other non-GAAP items (excluding accelerated depreciation of $13 million)*181
Adjusted EBITDA
3,538
* 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 September 30, 2020 U.S. $ and shares in millions (except per share amounts) GAAP Excluded for non-GAAP measurement Non-GAAP Amortizationof purchasedintangible assets Legalsettlementsand losscontingencies Goodwillimpairment Impairmentof long livedassets Other R&Dexpenses Restructuringcosts Costs related toregulatory actionstaken in facilities Equitycompensation Contingentconsideration Other non-GAAP items* Other items Net revenues
3,978
3,978
Cost of sales
2,126
221
6
7
(2
)
1,894
Gross profit
1,852
221
6
7
(2
)
2,084
Gross profit margin
46.6
%
52.4
%
R&D expenses258
21
5
233
S&M expenses
605
31
8
566
G&A expenses
279
10
-
269
Other income
(8
)
(0
)
(8
)
Legal settlements and loss contingencies21
21
-
Other assets impairments, restructuring and other items
(98
)
56
9
(179
)
15
-
Intangible assets impairments
509
509
-
Goodwill impairment
4,628
4,628
-
Operating income (loss)
(4,342
)
251
21
4,628
565
21
9
6
30
(179
)
14
1,025
Financial expenses, net
117
(124
)
241
Income (loss) before income taxes
(4,459
)
251
21
4,628
565
21
9
6
30
(179
)
14
(124
)
784
Income taxes
16
(117
)
133
Share in profit (losses)of associated companies – net
(136
)
(134
)
(1
)
Net income (loss)(4,340
)
251
21
4,628
565
21
9
6
30
(179
)
14
(375
)
652
Net income (loss) attributable to non-controlling interests
10
(6
)
15
Net income (loss) attributable to Teva
(4,349
)
251
21
4,628
565
21
9
6
30
(179
)
14
(381
)
637
EPS - Basic
(3.97
)
4.55
0.58
EPS - Diluted
(3.97
)
4.55
0.58
The non-GAAP diluted weighted average number of shares was 1,100 million for the three months ended September 30, 2020. Non-GAAP income taxes for the three months ended September 30, 2020 were 17% on pre-tax non-GAAP income. * 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. Adjusted EBITDA reconciliation Operating income (loss)
(4,342
)
Add: Depreciation130
Amortization
251
EBITDA
(3,961
)
Legal settlements and loss contingencies21
Goodwill impairment
4,628
Impairment of long lived assets
565
Other R&D expenses
21
Restructuring costs
9
Costs related to regulatory actions taken in facilities
6
Equity compensation
30
Contingent consideration
(179
)
Other non-GAAP items (excluding accelerated depreciation of $2 million)*12
Adjusted EBITDA
1,153
* 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. Nine months ended September 30, 2020 U.S. $ and shares in millions (except per share amounts) GAAP Excluded for non-GAAP measurement Non-GAAP Amortization ofpurchasedintangible assets Legalsettlements andlosscontingencies Goodwillimpairment Impairment oflong-livedassets Restructuringcosts Costs related toregulatory actions takenin facilities Equitycompensation Contingentconsideration Other non-GAAP items* Otheritems Net revenue
12,206
12,206
Cost of sales
6,528
663
17
19
30
5,799
Gross profit
5,678
663
17
19
30
6,407
Gross profit margin
46.5
%
52.5
%
R&D expenses704
14
3
687
S&M expenses
1,815
95
25
1,695
G&A expenses
846
31
12
803
Other (income) expense
(30
)
(3
)
(27
)
Legal settlements and loss contingencies10
10
-
Other assets impairments, restructuring and other items
404
408
82
(96
)
10
-
Intangible assets impairment
1,278
1,278
-
Goodwill impairment
4,628
4,628
-
Operating income (loss)
(3,978
)
758
10
4,628
1,686
82
17
90
(96
)
52
-
3,248
Financial expenses, net
565
(118
)
683
Income (loss) before income taxes
(4,543
)
758
10
4,628
1,686
82
17
90
(96
)
52
(118
)
2,565
Income taxes
(147
)
(583
)
436
Share in losses of associated companies – net
(135
)
(134
)
(1
)
Net income (loss) attributable to Teva(4,261
)
758
10
4,628
1,686
82
17
90
(96
)
52
(835
)
2,130
Net income (loss) attributable to non-controlling interests
(121
)
(174
)
53
Net income (loss)
(4,140
)
758
10
4,628
1,686
82
17
90
(96
)
52
(1,009
)
2,077
EPS - Basic
(3.78
)
5.68
1.90
EPS - Diluted
(3.78
)
5.67
1.89
The non-GAAP diluted weighted average number of shares was 1,099 million for the nine months ended September 30, 2020. Non-GAAP income taxes for the nine months ended September 30, 2021 were 17% on pre-tax non-GAAP income. * 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. Adjusted EBITDA reconciliation Operating income (loss)
(3,978
)
Add: Depreciation404
Amortization
758
EBITDA
(2,815
)
Legal settlements and loss contingencies10
Goodwill impairment
4,628
Impairment of long lived assets
1,686
Restructuring costs
82
Costs related to regulatory actions taken in facilities
17
Equity compensation
90
Contingent consideration
(96
)
Other non-GAAP items (excluding accelerated depreciation of $18 million)*34
Adjusted EBITDA
3,635
* 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. Segment Information North America Europe International Markets Three months ended September 30, Three months ended September 30, Three months ended September 30,
2021
2020
2021
2020
2021
2020
(U.S. $ in millions) (U.S. $ in millions) (U.S. $ in millions) Revenues $1,875
$
2,017
$
1,220
$
1,116
$
530
$
529
Gross profit
967
1,056
714
637
296
275
R&D expenses
146
155
55
60
16
17
S&M expenses
250
250
204
200
102
101
G&A expenses
121
97
64
66
29
33
Other income
(7
)
(5
)
(2
)
(1
)
(2
)
(1
)
Segment profit $458
$
560
$
394
$
312
$
152
$
125
Segment Information North America Europe International Markets Nine months ended September 30, Nine months ended September 30, Nine months ended September 30,
2021
2020
2021
2020
2021
2020
(U.S. $ in millions) (U.S. $ in millions) (U.S. $ in millions) Revenues $5,807
$
6,146
$
3,618
$
3,520
$
1,505
$
1,582
Gross profit
3,081
3,208
2,063
2,009
826
828
R&D expenses
467
455
184
180
51
51
S&M expenses
734
755
628
590
303
312
G&A expenses
338
325
180
184
79
96
Other income
(14
)
(9
)
(3
)
(3
)
(5
)
(10
)
Segment profit $1,556
$
1,682
$
1,074
$
1,058
$
398
$
378
Reconciliation of our segment profit to consolidated income before income taxes Three months ended September 30,
2021
2020
(U.S.$ in millions) North America profit $
458
$560
Europe profit
394
312
International Markets profit
152
125
Total reportable segment profit
1,004
997
Profit of other activities
38
28
Total segment profit
1,042
1,025
Amounts not allocated to segments: Amortization
199
251
Other asset impairments, restructuring and other items
62
(98
)
Intangible asset impairments21
509
Goodwill impairment
-
4,628
Legal settlements and loss contingencies
3
21
Other unallocated amounts
134
55
Consolidated operating income (loss)
623
(4,342
)
Financial expenses - net241
117
Consolidated income (loss) before income taxes $
382
$(4,459
)
Reconciliation of our segment profit to consolidated income before income taxes Nine months ended September 30,2021
2020
(U.S.$ in millions) North America profit $
1,556
$1,682
Europe profit
1,074
1,058
International Markets profit
398
378
Total reportable segment profit
3,028
3,118
Profit of other activities
125
130
Total segment profit
3,153
3,248
Amounts not allocated to segments: Amortization
613
758
Other asset impairments, restructuring and other items
227
404
Goodwill impairment
-
4,628
Intangible asset impairments
295
1,278
Legal settlements and loss contingencies
113
10
Other unallocated amounts
266
148
Consolidated operating income (loss)
1,638
(3,978
)
Financial expenses - net805
565
Consolidated income (loss) before income taxes $
833
$(4,543
)
Segment revenues by major products and activities (Unaudited) Three months ended September 30, PercentageChange2021
2020
2020-2021 (U.S.$ in millions) North America segment Generic products $859
$928
(7
%)
AJOVY46
35
31
%
AUSTEDO201
168
19
%
BENDEKA/TREANDA95
105
(9
%)
COPAXONE133
236
(44
%)
ProAir*31
50
(37
%)
Anda363
341
7
%
Other146
155
(5
%)
Total1,875
2,017
(7
%)
* Does not include revenues from the ProAir authorized generic, which are included under generic products. Three months ended September 30, PercentageChange2021
2020
2020-2021 (U.S.$ in millions) Europe segment Generic products $895
$824
9
%
AJOVY23
8
180
%
COPAXONE95
101
(6
%)
Respiratory products85
77
10
%
Other122
106
15
%
Total1,220
1,116
9
%
Three months ended September 30, PercentageChange2021
2020
2020-2021 (U.S.$ in millions) International Markets segment Generic products $412
$429
(4
%)
AJOVY39
16
145
%
COPAXONE10
14
(30
%)
Other69
71
(3
%)
Total530
529
§ Revenues by Activity and Geographical Area (Unaudited) Nine months ended September 30, PercentageChange2021
2020
2020-2021 (U.S.$ in millions) North America segment Generic products $2,864
$2,804
2
%
AJOVY123
98
25
%
AUSTEDO520
451
15
%
BENDEKA / TREANDA292
313
(7
%)
COPAXONE448
671
(33
%)
ProAir*140
175
(20
%)
Anda968
1,141
(15
%)
Other451
493
(8
%)
Total5,807
6,146
(6
%)
* Does not include revenues from the ProAir authorized generic, which are included under generic products. Nine months ended September 30, PercentageChange2021
2020
2020-2021 (U.S.$ in millions) Europe segment Generic products $2,637
$2,593
2
%
AJOVY58
17
232
%
COPAXONE296
294
1
%
Respiratory products263
263
0
%
Other364
352
3
%
Total3,618
3,520
3
%
Nine months ended September 30, PercentageChange2021
2020
2020-2021 (U.S.$ in millions) International Markets segment Generic products $1,211
$1,304
(7
%)
AJOVY46
17
170
%
COPAXONE29
38
(23
%)
Other219
224
(2
%)
Total1,505
1,582
(5
%)
Free cash flow reconciliation (Unaudited) Three months ended September30,2021
2020
(U.S. $ in millions) Net cash provided by operating activities529
307
Beneficial interest collected in exchange for securitized accounts receivables
397
333
Purchases of property, plant and equipment
(146
)
(143
)
Proceeds from sale of business and long lived assets15
9
Free cash flow $
795
$
506
Free cash flow reconciliation (Unaudited) Nine months ended September30,
2021
2020
(U.S. $ in millions) Net cash provided by (used in) operating activities342
885
Beneficial interest collected in exchange for securitized accounts receivables
1,278
1,102
Purchases of property, plant and equipment
(409
)
(402
)
Proceeds from sale of business and long lived assets269
54
Free cash flow $
1,479
$
1,639
View source version on businesswire.com: https://www.businesswire.com/news/home/20211027005516/en/
IR Contacts Kevin C. Mannix (215) 591-8912 Yael Ashman +972 (3) 914 8262
PR Contacts Kelley Dougherty (973) 832-2810 Yonatan Beker (973) 917-0851
1 Year Teva Pharmaceutical Indu... Chart |
1 Month Teva Pharmaceutical Indu... Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions