- Revenues of $4.0 billion
- GAAP diluted loss per share of $3.97
- Non-GAAP diluted EPS of $0.58
- Free cash flow of $506 million
- Full year 2020 business outlook revised:
- Net revenues of $16.5-16.8 billion
- EBITDA of $4.7 - $4.9 billion
- EPS of $2.40 - $2.55
- Free cash flow of $1.8 - $2.2 billion
Teva Pharmaceutical Industries Ltd. (NYSE: TEVA, TASE: TEVA)
today reported results for the quarter ended September 30,
2020.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20201105005182/en/
Mr. Kåre Schultz, Teva's President and CEO, said, “Teva's
business and operations have shown resilience as the COVID-19
pandemic continues to impact the world. The quarter saw continued
strong performance from our key growth drivers, led by AUSTEDO® and
the biosimilar TRUXIMA®, while the market share of AJOVY® continued
to grow in the U.S. and Europe. During this quarter we also
launched our digital inhalers AirDuo® Digihaler® and ArmonAir®
Digihaler® in the U.S. The DigiHaler® portfolio is now the first
and only family of digital inhalers with built-in sensors available
to patients."
Mr. Schultz continued, "Over the past three years we have
reduced our net debt by more than $10 billion to $23.8 billion.
This debt reduction, and the continued improvement of our
profitability, keeps us on track to achieve our long-term financial
targets by the end of 2023."
Third Quarter 2020 Consolidated
Results
Revenues in the third quarter of 2020 were $3,978
million, a decrease of 3% in both U.S. dollar and local currency
terms, compared to the third quarter of 2019. This decrease was
mainly due to lower revenues from generics, OTC and COPAXONE® in
all regions and lower revenues from QVAR® and BENDEKA®/TREANDA® in
our North America segment, as well as reduced demand for certain
products resulting from the impact of the COVID-19 pandemic,
partially offset by higher revenues from AUSTEDO and AJOVY.
Exchange rate differences between the third quarter of
2020 and the third quarter of 2019, including hedging effects,
positively impacted our revenues by $14 million and negatively
impacted our GAAP and non-GAAP operating income by $18 million and
$13 million, respectively.
GAAP gross profit was $1,852 million in the third quarter
of 2020, an increase of 1% compared to the third quarter of 2019.
GAAP gross profit margin was 46.6% in the third quarter of
2020, compared to 44.7% in the third quarter of 2019. The increase
in gross profit margin was mainly due to higher profitability in
North America resulting from the change in mix of products as well
as operational cost efficiencies and network optimization,
partially offset by lower sales of COPAXONE and other specialty
products in all segments. Non-GAAP gross profit was $2,084
million in the third quarter of 2020, a decrease of 1% compared to
the third quarter of 2019. Non-GAAP gross profit margin was
52.4% in the third quarter of 2020, compared to 51.4% in the third
quarter of 2019.
GAAP Research and Development (R&D) expenses in the
third quarter of 2020 were $258 million, an increase of 7% compared
to the third quarter of 2019. Non-GAAP R&D expenses were
$233 million, or 5.8% of quarterly revenues, in the third quarter
of 2020, compared to $242 million, or 5.9%, in the third quarter of
2019. In the third quarter of 2020, our R&D expenses related
primarily to specialty product candidates in the pain, respiratory
and neuropsychiatry therapeutic areas, with additional activities
in selected other areas and generic products including biosimilars.
Our higher R&D expenses in the third quarter of 2020, compared
to the third quarter of 2019, were mainly due to an upfront payment
made in the third quarter of 2020.
GAAP Selling and Marketing (S&M) expenses in the
third quarter of 2020 were $605 million, an increase of 2% compared
to the third quarter of 2019. Non-GAAP S&M expenses were
$566 million, or 14.2% of quarterly revenues, in the third quarter
of 2020, compared to $551 million, or 13.5%, in the third quarter
of 2019.
GAAP General and Administrative (G&A) expenses in the
third quarter of 2020 were $279 million, a decrease of 2% compared
to the third quarter of 2019. Non-GAAP G&A expenses were
$269 million, or 6.8% of quarterly revenues, in the third quarter
of 2020, compared to $270 million, or 6.6%, in the third quarter of
2019.
We recorded a goodwill impairment charge of $4,628
million related to our North America reporting unit in the third
quarter of 2020, in connection with current market capitalization
influenced by uncertainty regarding the timeframe for resolution of
certain litigations.
Other income in the third quarter of 2020 was $8 million,
compared to $14 million in the third quarter of 2019.
GAAP operating loss in the third quarter of 2020 was
$4,342 million, compared to GAAP operating loss of $81 million in
the third quarter of 2019. This decrease was mainly due to the
goodwill impairment charge and higher intangible asset impairment
in the third quarter of 2020, partially offset by lower legal
settlements and loss contingencies charges in the third quarter of
2020.
Non-GAAP operating income in the third quarter of 2020
was $1,025 million, a decrease of 3%, compared to $1,051 million in
the third quarter of 2019.
EBITDA (non-GAAP operating income, which excludes
amortization and certain other items, as well as depreciation
expenses) was $1,153 million in the third quarter of 2020, a
decrease of 3% compared to $1,183 million in the third quarter of
2019.
GAAP financial expenses were $117 million in the third
quarter of 2020, compared to $211 million in the third quarter of
2019. Non-GAAP financial expenses were $241 million in the
third quarter of 2020, compared to $208 million in the third
quarter of 2019.
In the third quarter of 2020, we recognized a GAAP tax
expense of $16 million, on pre-tax loss of $4,459 million. In
the third quarter of 2019, we recognized a tax expense of $11
million, on pre-tax loss of $292 million. Our tax rate for the
third quarter of 2020 was mainly affected by the goodwill
impairment charge that does not have a corresponding tax effect and
other changes to tax positions and deductions. Non-GAAP income
taxes for the third quarter of 2020 were $133 million, or 17%,
on pre-tax non-GAAP income of $784 million. Non-GAAP income taxes
in the third quarter of 2019 were $183 million, or 22%, on pre-tax
non-GAAP income of $843 million.
We expect our annual non-GAAP tax rate for 2020 to be 17-18%,
unchanged from our outlook provided in February 2020.
GAAP net loss attributable to Teva and GAAP diluted
loss per share were $4,349 million and $3.97 respectively, in
the third quarter of 2020, compared to GAAP net loss and GAAP
diluted loss per share of $314 million and $0.29 in the third
quarter of 2019. This decrease was mainly due to the goodwill
impairment charge and higher intangible asset impairment charges in
the third quarter of 2020, partially offset by lower legal
settlements and loss contingencies in the third quarter of 2020.
Non-GAAP net income attributable to Teva and non-GAAP
diluted EPS in the third quarter of 2020 were $637 million
and $0.58, respectively, compared to $637 million and $0.58 in the
third quarter of 2019.
The weighted average diluted shares outstanding used for
the fully diluted share calculation for the three months ended
September 30, 2020 and 2019 was 1,096 million and 1,092 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, 2020 and
2019 was 1,100 million and 1,093 million shares, respectively.
As of September 30, 2020 and 2019, the fully diluted share count
for purposes of calculating our market capitalization was
approximately 1,118 million and 1,107 million, respectively.
Non-GAAP information: Net non-GAAP adjustments in the
third quarter of 2020 were $4,986 million. Non-GAAP net income and
non-GAAP EPS for the third quarter of 2020 were adjusted to exclude
the following items:
- A goodwill impairment charge of $4,628 million related to our
North America reporting unit in the third quarter of 2020;
- $565 million impairment of long-lived assets comprised mainly
of impairments of identifiable intangible assets totaling $509
million ($360 million of IPR&D assets and $149 million of
identifiable product rights);
- Amortization of purchased intangible assets of $251 million, of
which $221 million is included in cost of sales and the remaining
$31 million in S&M expenses;
- Contingent consideration income of $179 million, mainly related
to a decrease in future royalties;
- Gain from equity investment of $134 million, reflecting the
difference between the book value of our investment in American
Well Corporation and its fair value as of the date it completed its
initial public offering in September 2020;
- Finance income of $124 million, mainly related to the American
Well equity holding;
- Purchase of in-process R&D of $21 million;
- Legal settlements and loss contingencies of $21 million;
- Equity compensation expenses of $30 million;
- Other items of $24 million; and
- Income tax of $117 million.
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 2020 was $307 million, compared to $325 million in
the third quarter of 2019. The decrease in the third quarter of
2020 was mainly due to an increase in inventory during the third
quarter of 2020 compared to a decrease in inventory in the third
quarter of 2019.
Free cash flow (cash flow generated from operating
activities, net of cash received for capital investments and
beneficial interest collected in exchange for securitized trade
receivables) was $506 million in the third quarter of 2020,
compared to $551 million in the third quarter of 2019. The decrease
in the third quarter of 2020 resulted mainly from lower cash flow
generated from operating activities.
As of September 30, 2020, our debt was $25,621 million,
compared to $26,266 million as of June 30, 2020. This decrease was
mainly due the repayment at maturity of our €1,010 million 0.375%
senior notes in July 2020, partially offset by exchange rate
fluctuations. The portion of total debt classified as short-term as
of September 30, 2020 was 8%, compared to 6% June 30, 2020. Our
average debt maturity was approximately 6 years as of September 30,
2020, compared to 6.1 years as of June 30, 2020. Our financial
leverage was 71% as of September 30, 2020, compared to 64% as of
June 30, 2020.
Segment Results for the Third Quarter
of 2020
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,
2020 and 2019:
Three months ended September
30,
2020
2019
(U.S. $ in millions / % of
Segment Revenues)
Revenues.............................................................................................................................................................................
$
2,017
100%
$
2,051
100%
Gross
profit..........................................................................................................................................................................
1,056
52.4%
1,048
51.1%
R&D
expenses......................................................................................................................................................................
155
7.7%
156
7.6%
S&M
expenses......................................................................................................................................................................
250
12.4%
219
10.7%
G&A
expenses......................................................................................................................................................................
97
4.8%
112
5.5%
Other (income)
expense..........................................................................................................................................................
(5)
§
(5)
§
Segment
profit*....................................................................................................................................................................
$
560
27.7%
$
565
27.5%
* 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 2020 were $2,017 million, a decrease of $34 million, or
2%, compared to the third quarter of 2019, mainly due to a decrease
in revenues of COPAXONE and BENDEKA/TREANDA, partially offset by
higher revenues from AUSTEDO, generic products 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 our new specialty products, primarily AJOVY
and AUSTEDO, has been impacted by less physician visits by patients
and less physician interactions by our sales personnel.
Revenues in the United States, our largest market, were
$1,887 million in the third quarter of 2020, a decrease of $20
million, or 1%, compared to the third quarter of 2019.
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, 2020 and 2019:
Three months ended September
30,
Percentage Change
2020
2019
2019-2020
(U.S. $ in millions)
Generic
products.........................................................................................................................................................................
$
928
$
914
2%
AJOVY.....................................................................................................................................................................................
35
25
42%
AUSTEDO.................................................................................................................................................................................
168
105
60%
BENDEKA/TREANDA...............................................................................................................................................................
105
124
(15%)
COPAXONE..............................................................................................................................................................................
236
271
(13%)
ProAir*.....................................................................................................................................................................................
50
71
(30%)
QVAR.......................................................................................................................................................................................
42
60
(29%)
Anda
........................................................................................................................................................................................
341
351
(3%)
Other........................................................................................................................................................................................
113
131
(14%)
Total.........................................................................................................................................................................................
$
2,017
$
2,051
(2%)
* Does not include revenues from the
ProAir authorized generic, which are included under generic
products.
Generic products revenues in our North America segment
(including biosimilars) in the third quarter of 2020 were $928
million, an increase of 2% compared to the third quarter of 2019.
This increase was mainly due to higher revenues from TRUXIMA and
from our ProAir® authorized generic, partially offset by lower
volume of other generic products.
On September 30, 2020, we launched emtricitabine and tenofovir
disoproxil fumarate tablets, 200mg/300mg (the generic equivalent of
Truvada®), and efavirenz, emtricitabine and tenofovir disoproxil
fumarate tablets (the generic equivalent for Atripla®) for the
prevention and treatment of HIV, respectively. We did not recognize
revenues for these products in the third quarter of 2020.
In the third quarter of 2020, we led the U.S. generics market in
total prescriptions and new prescriptions, with approximately 365
million total prescriptions (based on trailing twelve months),
representing 10.0% of total U.S. generic prescriptions according to
IQVIA data.
AJOVY revenues in our North America segment in the third
quarter of 2020 were $35 million, an increase of $10 million, or
42% compared to the third quarter of 2019, mainly due to growth in
volume in the third quarter of 2020.
AUSTEDO revenues in our North America segment in the
third quarter of 2020 increased by 60% to $168 million, compared to
$105 million in the third quarter of 2019. This increase was mainly
due to growth in volume in the third quarter of 2020.
BENDEKA and TREANDA combined revenues in our North
America segment in the third quarter of 2020 decreased by 15% to
$105 million, compared to the third quarter of 2019, mainly due to
the emergence of alternative novel therapies and continued
competition from Belrapzo® (a ready-to-dilute bendamustine
hydrochloride product from Eagle Pharmaceuticals, Inc.).
COPAXONE revenues in our North America segment in the
third quarter of 2020 decreased by 13% to $236 million, compared to
the third quarter of 2019, mainly due to generic competition in the
United States.
ProAir revenues in our North America segment in the third
quarter of 2020 decreased by 30% to $50 million, compared to the
third quarter of 2019. 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 HFA authorized generic are included in
“generic products” above. In July 2020, we announced the launch of
ProAir® Digihaler® (albuterol sulfate 117 mcg) inhalation
powder, which is the first and only digital rescue inhaler with
built-in sensors which connects to a companion mobile application
and provides inhaler use information to people with asthma and
COPD. In September 2020, we announced the launch of AirDuo
Digihaler (fluticasone propionate and salmeterol) inhalation
powder and the launch of ArmonAir Digihaler (fluticasone
propionate) inhalation powder, two digital maintenance inhalers for
adolescent and adult patients with asthma.
QVAR revenues in our North America segment in the third
quarter of 2020 decreased by 29% to $42 million, compared to the
third quarter of 2019, mainly due to increased price competition
and lower volumes.
Anda revenues in our North America segment in the third
quarter of 2020 decreased by 3% to $341 million, compared to $351
million in the third quarter of 2019, mainly due to slightly lower
demand.
North America Gross Profit
Gross profit from our North America segment in the third quarter
of 2020 was $1,056 million, an increase of 1%, compared to $1,048
million in the third quarter of 2019.
Gross profit margin for our North America segment in the third
quarter of 2020 increased to 52.4%, compared to 51.1% in the third
quarter of 2019. This increase was mainly due to the change in 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
2020 was $560 million, flat compared to $565 million in the third
quarter of 2019, mainly due to lower revenues, offset by a change
in mix of products.
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, 2020
and 2019:
Three months ended September
30,
2020
2019
(U.S. $ in millions / % of
Segment Revenues)
Revenues.............................................................................................................................................................................
$
1,116
100%
$
1,163
100%
Gross
profit..........................................................................................................................................................................
637
57.1%
662
56.9%
R&D
expenses......................................................................................................................................................................
60
5.4%
63
5.4%
S&M
expenses......................................................................................................................................................................
200
17.9%
206
17.7%
G&A
expenses......................................................................................................................................................................
66
5.9%
56
4.9%
Other (income)
expense..........................................................................................................................................................
(1)
§
(4)
§
Segment
profit*....................................................................................................................................................................
$
312
28.0%
$
341
29.3%
* Segment profit does not include
amortization and certain other items.
§ Represents an amount less than 0.5%.
Revenues from our Europe segment in the third quarter of 2020
were $1,116 million, a decrease of 4%, or $47 million, compared to
the third quarter of 2019. In local currency terms, revenues
decreased by 7%, mainly due to reduced demand for certain products
resulting from the COVID-19 pandemic. The COVID-19 pandemic has led
to a decline in doctor and hospital visits by patients resulting in
fewer prescriptions during the third quarter of 2020. This decrease
is also attributed to price declines for oncology products as a
result of generic competition and a decline in COPAXONE revenues
due to competing glatiramer acetate products.
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, 2020 and 2019:
Three months ended September
30,
Percentage Change
2020
2019
2019-2020
(U.S. $ in millions)
Generic
products.........................................................................................................................................................................
$
824
$
836
(1%)
COPAXONE..............................................................................................................................................................................
101
106
(5%)
Respiratory
products....................................................................................................................................................................
77
87
(12%)
AJOVY.....................................................................................................................................................................................
8
1
NA
Other........................................................................................................................................................................................
106
134
(21%)
Total.........................................................................................................................................................................................
$
1,116
$
1,163
(4%)
Generic products revenues in our Europe segment in the
third quarter of 2020, including OTC products, decreased by 1% to
$824 million, compared to the third quarter of 2019. In local
currency terms, revenues decreased by 6% compared to the third
quarter of 2019, mainly due to a reduced demand for certain
products resulting from the COVID-19 pandemic. The COVID-19
pandemic has led to a decline in doctor and hospital visits by
patients resulting in fewer prescriptions during the third quarter
of 2020.
COPAXONE revenues in our Europe segment in the third
quarter of 2020 decreased by 5% to $101 million, compared to the
third quarter of 2019. In local currency terms, revenues decreased
by 9%, 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 2020 decreased by 12% to $77 million, compared
to the third quarter of 2019. In local currency terms, revenues
decreased by 15%, mainly due to reduced demand resulting from the
impact the COVID-19 pandemic had on purchasing patterns. The
COVID-19 pandemic led to increased demand in the first quarter and
a correlating decrease in the following quarters.
AJOVY revenues in our Europe segment in the third quarter
of 2020 were $8 million, compared to $1 million in the third
quarter of 2019.
Europe Gross Profit
Gross profit from our Europe segment in the third quarter of
2020 was $637 million, a decrease of 4% compared to $662 million in
the third quarter of 2019. This decrease was mainly due to lower
revenues, as discussed above.
Gross profit margin for our Europe segment in the third quarter
of 2020 increased to 57.1%, compared to 56.9% in the third quarter
of 2019.
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 2020 was
$312 million, a decrease of 8%, compared to $341 million in the
third quarter of 2019. This decrease was mainly due to lower
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 July 30, 2020, we entered into an agreement to sell the
majority of the generic and operational assets of our business
venture in Japan. We expect this transaction to close by early
2021. The closing of the transaction is subject to customary
closing conditions.
The following table presents revenues, expenses and profit for
our International Markets segment for the three months ended
September 30, 2020 and 2019:
Three months ended September
30,
2020
2019**
(U.S. $ in millions / % of
Segment Revenues)
Revenues.............................................................................................................................................................................
$
529
100%
$
565
100%
Gross
profit..........................................................................................................................................................................
275
52.0%
295
52.2%
R&D
expenses......................................................................................................................................................................
17
3.2%
21
3.7%
S&M
expenses......................................................................................................................................................................
101
19.1%
114
20.1%
G&A
expenses......................................................................................................................................................................
33
6.3%
32
5.6%
Other (income)
expense..........................................................................................................................................................
(1)
§
(1)
§
Segment
profit*....................................................................................................................................................................
$
125
23.6%
$
130
23.0%
§ Represents an amount less than 0.5%.
* Segment profit does not include
amortization and certain other items.
**The data presented for prior periods
have been revised to reflect a revision in the presentation of net
revenues and cost of sales in the consolidated financial
statements. See note 1c to our consolidated financial statements
for additional information.
Revenues from our International Markets segment in the third
quarter of 2020 were $529 million, a decrease of $35 million, or
6%, compared to the third quarter of 2019. In local currency terms,
revenues decreased by 1% compared to the third quarter of 2019,
mainly due to lower sales in Japan resulting from regulatory price
reductions and generic competition to off-patented products, as
well as loss of revenues from the sale of certain assets in the
Israeli market, partially offset by higher revenues in other
markets. Revenues in the third quarter of 2020 were also impacted
by reduced demand for certain products resulting from the impact of
the COVID-19 pandemic. The COVID-19 pandemic has led to a decline
in doctor and hospital visits by patients resulting in fewer
prescriptions during the third quarter of 2020.
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, 2020 and 2019:
Three months ended
September 30,
Percentage Change
2020
2019*
2019-2020
(U.S. $ in millions)
Generic
products.........................................................................................................................................................................
$
429
$
474
(10%)
COPAXONE..............................................................................................................................................................................
14
20
(27%)
Other........................................................................................................................................................................................
86
71
21%
Total.........................................................................................................................................................................................
$
529
$
565
(6%)
*The data presented for prior periods have
been revised to reflect a revision in the presentation of net
revenues and cost of sales in the consolidated financial
statements. See note 1c to our consolidated financial statements
for additional information.
Generic products revenues in our International Markets
segment in the third quarter of 2020, which include OTC products,
decreased by 10% to $429 million, compared to the third quarter of
2019. In local currency terms, revenues decreased by 4%, mainly due
to lower sales in Japan resulting from regulatory price reductions
and generic competition to off-patented products. Revenues in the
third quarter of 2020 were also impacted by reduced demand for
certain products resulting from the impact of the COVID-19
pandemic. The COVID-19 pandemic has led to a decline in doctor and
hospital visits by patients resulting in fewer prescriptions during
the third quarter of 2020.
COPAXONE revenues in our International Markets segment in
the third quarter of 2020 decreased by 27% to $14 million, compared
to $20 million in the third quarter of 2019. In local currency
terms, revenues decreased by 14%.
AJOVY On May 12, 2017, we entered into a license and
collaboration agreement with Otsuka Pharmaceutical Co., Ltd.
(“Otsuka”) providing Otsuka with an exclusive license to conduct
phase 2 and 3 clinical trials for AJOVY in Japan and, once
approved, to commercialize the product in Japan. On July 29, 2020,
Otsuka submitted an application to obtain manufacturing and
marketing approval for AJOVY in Japan. As a result, Otsuka paid
Teva a milestone payment of $15 million in the third quarter of
2020, which was recorded as revenue under “Other” in the table
above.
International Markets Gross Profit
Gross profit from our International Markets segment in the third
quarter of 2020 was $275 million, a decrease of 7% compared to $295
million in the third quarter of 2019.
Gross profit margin for our International Markets segment in the
third quarter of 2020 decreased to 52.0%, compared to 52.2% in the
third quarter of 2019. This decrease was mainly due to a different
portfolio mix.
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 2020 was $125 million, a decrease of 4%, compared to
$130 million in the third quarter of 2019. This decrease was mainly
due to lower sales in Japan, partially offset by lower S&M
expenses.
Other Activities
We have other sources of revenues, primarily the sale of 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 2020 were $316 million, an increase of 1% compared to the third
quarter of 2019. In local currency terms, revenues decreased by
1%.
API sales to third parties in the third quarter of 2020
were $175 million, flat in both U.S. dollar and local currency
terms, compared to the third quarter of 2019.
Conference Call
Teva will host a conference call and live webcast including a
slide presentation on November 5, 2020 at 8:00 a.m. ET to discuss
its third quarter of 2020 results and overall business environment.
A question & answer session will follow.
United States 1 (866) 966-1396 International +44 (0) 2071 928000
Israel 1 (809) 203-624 Passcode: 7275239.
A live webcast of the call will be available on Teva’s website
at: ir.tevapharm.com. Please log in at least 10 minutes prior to
the conference call in order to download the required software.
Following the conclusion of the call, a replay of the webcast
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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, non-GAAP financial expenses, non-GAAP income taxes,
non-GAAP net income 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:
- 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; the increase in the number of
competitors targeting generic opportunities and seeking U.S. market
exclusivity for generic versions of significant products;
competition for our specialty products, especially COPAXONE®, our
leading medicine, which faces competition from existing and
potential additional generic versions, competing glatiramer acetate
products and orally-administered alternatives; the uncertainty of
commercial success of AJOVY® or AUSTEDO®; competition from
companies with greater resources and capabilities; delays in
launches of new products and our ability to achieve expected
results from investments in our product pipeline; ability to
develop and commercialize biopharmaceutical products; efforts of
pharmaceutical companies to limit the use of generics, including
through legislation and regulations and the effectiveness of our
patents and other measures to protect our intellectual property
rights;
- our substantial indebtedness, which may limit our ability to
incur additional indebtedness, engage in additional transactions or
make new investments, may result in a further downgrade of our
credit ratings; and our inability to raise debt or borrow funds in
amounts or on terms that are favorable to us;
- our business and operations in general, including: uncertainty
regarding the magnitude, duration, and geographic reach of the
COVID-19 pandemic and its impact on our business, financial
condition, operations, cash flows, and liquidity and on the economy
in general; our ability to successfully execute and maintain the
activities and efforts related to the measures we have taken or may
take in response to the COVID-19 pandemic and associated costs
therewith; effectiveness of our restructuring plan announced in
December 2017; our ability to attract, hire and retain highly
skilled personnel; our ability to develop and commercialize
additional pharmaceutical products; compliance with anti-corruption
sanctions and trade control laws; manufacturing or quality control
problems; interruptions in our supply chain, including due to
potential effects of the COVID-19 pandemic on our operations and
business in geographic locations impacted by the pandemic and on
the business operations of our suppliers; disruptions of
information technology systems; breaches of our data security;
variations in intellectual property laws; challenges associated
with conducting business globally, including adverse effects of the
COVID-19 pandemic, political or economic instability, major
hostilities or terrorism; 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; our prospects and opportunities for growth if we sell
assets; and potential difficulties related to the operation of our
new global enterprise resource planning (ERP) system;
- compliance, regulatory and litigation matters, including: our
ability to successfully defend against the U.S. Department of
Justice criminal charges of Sherman Act violations; increased legal
and regulatory action in connection with public concern over the
abuse of opioid medications in the U.S. and our ability to reach a
final resolution of the remaining opioid-related litigation; costs
and delays resulting from the extensive governmental regulation to
which we are subject or delays in governmental processing time due
to modified government operations due to the COVID-19 pandemic,
including effects on product and patent approvals due to the
COVID-19 pandemic; the effects of reforms in healthcare regulation
and reductions in pharmaceutical pricing, reimbursement and
coverage; governmental investigations into S&M practices;
potential liability for patent infringement; product liability
claims; increased government scrutiny of our patent settlement
agreements; failure to comply with complex Medicare and Medicaid
reporting and payment obligations; and environmental risks;
- other financial and economic risks, including: our exposure to
currency fluctuations and restrictions as well as credit risks;
potential impairments of our intangible assets; potential
significant increases in tax liabilities; and the effect on our
overall effective tax rate of the termination or expiration of
governmental programs or tax benefits, or of a change in our
business;
and other factors discussed in this press release, in our
Quarterly Report on Form 10-Q for the third quarter of 2020 and in
our Annual Report on Form 10-K for the year ended December 31,
2019, 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,
2020
2019
2020
2019
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Net
revenues.................................................................................................................................
3,978
4,093
12,206
12,420
Cost of
sales..................................................................................................................................
2,126
2,264
6,528
6,841
Gross
profit...................................................................................................................................
1,852
1,830
5,678
5,579
Research and development
expenses.............................................................................................
258
240
704
778
Selling and marketing
expenses.....................................................................................................
605
595
1,815
1,908
General and administrative
expenses............................................................................................
279
285
846
873
Intangible assets
impairments.......................................................................................................
509
177
1,278
1,206
Goodwill
impairment....................................................................................................................
4,628
-
4,628
-
Other asset impairments, restructuring and other
items...............................................................
(98)
160
404
263
Legal settlements and loss
contingencies.......................................................................................
21
468
10
1,171
Other income
..............................................................................................................................
(8)
(14)
(30)
(29)
Operating (loss)
income.................................................................................................................
(4,342)
(81)
(3,978)
(591)
Financial expenses,
net.................................................................................................................
117
211
565
635
Income (loss) before income
taxes.................................................................................................
(4,459)
(292)
(4,543)
(1,226)
Income taxes
(benefit)...................................................................................................................
16
11
(147)
(159)
Share in (profits) losses of associated companies-
net....................................................................
(136)
4
(135)
8
Net income
(loss)...........................................................................................................................
(4,340)
(307)
(4,261)
(1,076)
Net income (loss) attributable to non-controlling
interests.............................................................
10
7
(121)
33
Net income (loss) attributable to Teva
..........................................................................................
(4,349)
(314)
(4,140)
(1,108)
Earnings (loss) per share attributable to
Teva: Basic ($)
(3.97)
(0.29)
(3.78)
(1.02)
Diluted ($)
(3.97)
(0.29)
(3.78)
(1.02)
Weighted average number of shares (in millions):
Basic
1,096
1,092
1,095
1,091
Diluted
1,096
1,092
1,095
1,091
Non-GAAP net income attributable to Teva:*
637
637
2,077
1,943
Non-GAAP net income attributable to Teva for diluted earnings
per share:
637
637
2,077
1,943
Non-GAAP earnings per share attributable to Teva:*
Basic ($)
0.58
0.58
1.90
1.78
Diluted ($)
0.58
0.58
1.89
1.78
Non-GAAP average number of shares (in millions):
Basic
1,096
1,092
1,095
1,091
Diluted
1,100
1,093
1,099
1,093
* See reconciliation attached.
Condensed Consolidated Balance Sheets
(U.S. dollars in millions)
September 30, December 31,
2020
2019
ASSETS (Unaudited) (Audited) Current
assets: Cash and cash
equivalents.................................................................
1,827
1,975
Accounts receivables, net of allowance for credit losses of
$117million and $135 million as of September 30, 2020 and December
31, 2019
4,385
5,676
Inventories.......................................................................................
4,516
4,422
Prepaid
expenses..............................................................................
895
870
Other current
assets..........................................................................
423
434
Assets held for
sale..........................................................................
113
87
Total current
assets........................................................................
12,160
13,464
Deferred income
taxes....................................................................
509
386
Other non-current
assets.................................................................
822
591
Property, plant and equipment,
net.................................................
6,152
6,436
Operating lease right-of-use
assets..................................................
557
514
Identifiable intangible assets,
net....................................................
9,308
11,232
Goodwill.........................................................................................
20,228
24,846
Total
assets.....................................................................................
49,737
57,470
LIABILITIES & EQUITY Current liabilities:
Short-term
debt.................................................................................
2,106
2,345
Sales reserves and
allowances...........................................................
4,998
6,159
Accounts
payables............................................................................
1,716
1,718
Employee-related
obligations.............................................................
601
693
Accrued
expenses.............................................................................
1,735
1,869
Other current
liabilities.....................................................................
946
889
Total current
liabilities...................................................................
12,103
13,674
Long-term liabilities: Deferred income
taxes......................................................................
874
1,096
Other taxes and long-term
liabilities...................................................
2,181
2,640
Senior notes and
loans.......................................................................
23,515
24,562
Operating lease
liabilities..................................................................
472
435
Total long-term
liabilities................................................................
27,042
28,733
Equity: Teva shareholders’ equity
9,593
13,972
Non-controlling
interests...................................................................
999
1,091
Total
equity.....................................................................................
10,592
15,063
Total liabilities and
equity...............................................................
49,737
57,470
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,
2020
2019
2020
2019
Operating activities: Net income
(loss)....................................................................................................................
(4,261)
$
(1,076)
(4,339)
$
(308)
Adjustments to reconcile net income (loss) to net cash provided by
operations: Depreciation and
amortization................................................................................................
1,162
1,306
381
413
Impairment of long-lived assets and assets held for
sale........................................................
6,314
1,302
5,194
205
Net change in operating assets and
liabilities.........................................................................
(1,627)
(784)
(625)
272
Deferred income taxes – net and uncertain tax
positions.........................................................
(656)
(652)
(154)
(290)
Stock-based
compensation......................................................................................................
91
99
29
35
Net loss (gain) from investments and from sale of long lived assets
....................................
(232)
10
(256)
4
Research and development in
process....................................................................................
40
-
40
-
Other items
.............................................................................................................................
54
5
37
(6)
Net cash provided by operating
activities...........................................................................
885
210
307
325
Investing activities: Beneficial interest
collected in exchange for securitized accounts
receivables......................
1,102
1,108
333
362
Purchases of property, plant and
equipment............................................................................
(402)
(406)
(143)
(169)
Proceeds from sale of long-lived
assets................................................................................
54
167
9
33
Other investing
activities........................................................................................................
(32)
56
(42)
(2)
Net cash provided by investing
activities............................................................................
722
925
157
224
Financing activities: Repayment of senior notes and
loans and other long-term
liabilities......................................
(1,871)
(1,715)
(1,171)
(1,558)
Net change in short-term
debt.................................................................................................
115
96
115
96
Tax withholding payments made on shares and
dividends......................................................
-
(52)
-
-
Other financing
activities........................................................................................................
(4)
(14)
(1)
1
Net cash used in financing
activities....................................................................................
(1,760)
(1,685)
(1,057)
(1,461)
Translation adjustment on cash and cash
equivalents........................................................
5
9
18
(12)
Net change in cash and cash
equivalents.............................................................................
(148)
(541)
(575)
(924)
Balance of cash and cash equivalents at beginning of
period.............................................
1,975
1,782
2,402
2,165
Balance of cash and cash equivalents at end of
period....................................................... $
1,827
$
1,241
$
1,827
$
1,241
Non-cash financing and investing activities:
Beneficial interest obtained in exchange for securitized accounts
receivables $
1,055
$
1,123
$
327
$
353
Three Months Ended September 30, 2020 U.S. $ and shares
in millions (except per share amounts) GAAP Excluded for
non-GAAP measurement Non-GAAP
Amortization ofpurchasedintangibleassets
Legal settlementsand losscontingencies
Goodwillimpairment Impairment oflong livedassets
OtherR&Dexpenses Restructuringcosts Costs related
toregulatoryactions taken infacilities Equitycompensation
Contingentconsideration Other non-GAAP items
Otheritems Correspondingtax effect Cost of sales
2,126
221
6
7
(2)
1,894
R&D expenses
258
21
5
-
233
S&M expenses
605
31
8
-
566
G&A expenses
279
10
-
269
Other (income) expense
(8)
-
(8)
Legal settlements andloss contingencies
21
21
-
Other assetsimpairments,restructuring andother items
(98)
56
9
(179)
15
-
Intangible assets impairments
509
509
-
Goodwill impairment
4,628
4,628
-
Financial expenses, net
117
(124)
241
Income taxes
16
(117)
133
Share in losses ofassociated companies– net
(136)
(134)
(1)
Net income (loss)attributable to non-controlling interests
10
(6)
15
Total reconciled items
251
21
4,628
565
21
9
6
30
(179)
14
(264)
(117)
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.
Nine
Months Ended September 30, 2020 U.S. $ and shares in
millions (except per share amounts) GAAP Excluded for
non-GAAP measurement NonGAAP Amortization
ofpurchasedintangible assets Legal settlements andloss
contingencies Goodwillimpairment Impairment
oflong-livedassets Restructuringcosts Costs related
toregulatory actionstaken in facilities Equitycompensation
Contingentconsideration Other nonGAAP items
Otheritems Corresponding taxeffect Cost of
sales
6,528
663
17
19
30
5,799
R&D expenses
704
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 contingencies
10
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
-
Financial expenses, net
565
(118)
683
Income taxes
(147)
(583)
436
Share in losses of associatedcompanies – net
(135)
(134)
(1)
Net income (loss) attributable tonon-controlling interests
(121)
(174)
53
Total reconciled items
758
10
4,628
1,686
82
17
90
(96)
52
(427)
(583)
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.
Three
Months Ended September 30, 2019 U.S. $ and shares in
millions (except per share amounts) GAAP Excluded for
non-GAAP measurement Non-GAAP
Amortization ofpurchasedintangible assets Legalsettlements
andlosscontingencies Impairmentof long livedassets
Restructuringcosts Costs related toregulatory actionstaken in
facilities Equitycompensation Contingentconsideration Gain on sale
ofbusiness Other non-GAAPitems Otheritems Correspondingtax effect
Cost of sales**
2,264
220
11
7
35
1,990
R&D expenses
240
5
(7)
242
S&M expenses
595
35
9
551
G&A expenses
285
14
1
270
Other (income) expense
(14)
(3)
(11)
Legal settlements andloss contingencies
468
468
-
Other assets impairments,restructuring and other items
160
28
61
51
21
-
Intangible assets impairments
177
177
-
Financial expenses, net
211
3
208
Income taxes
11
(172)
183
Share in losses ofassociatedcompanies – net
4
4
Net income (loss)attributable to non-controlling interests
7
(12)
19
Total reconciled items
255
468
204
61
11
35
51
(3)
51
(9)
(172)
EPS - Basic
(0.29)
0.87
0.58
EPS - Diluted
(0.29)
0.87
0.58
**The data presented for prior periods
has been revised to reflect a revision in the presentation of net
revenues and cost of sales in the consolidated financial
statements. See note 1c to our consolidated financial statements
for additional information. The non-GAAP diluted weighted
average number of shares was 1,093 million for the three months
ended September 30, 2019.
Nine months ended September 30,
2019 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 Acquisition,integration and
relatedexpenses Restructuringcosts Costs related
toregulatory actionstaken in facilities Equitycompensation
Contingentconsideration Gain on sale ofbusiness
Other nonGAAP items Otheritems Corresponding
taxeffect Unusual taxitem* Cost of sales**
6,841
717
28
21
96
5,978
R&D expenses
778
17
(7)
768
S&M expenses
1,908
105
29
1,774
G&A expenses
873
37
-
836
Other (income) expense
(29)
(12)
(17)
Legal settlementsand loss contingencies
1,171
1,171
-
Other assetsimpairments,restructuring andother items
263
96
2
140
4
22
-
Intangible assets impairment
1,206
1,206
-
Financial expenses, net
635
9
626
Income taxes
(159)
(662)
61
442
Share in losses ofassociatedcompanies – net
8
-
8
Net income (loss)attributable to non-controlling interests
33
(28)
61
Total reconciled items
823
1,171
1,302
2
140
28
104
4
(12)
111
(19)
(662)
61
EPS - Basic
(1.02)
2.80
1.78
EPS - Diluted
(1.02)
2.80
1.78
*Interest disallowance as a result of the U.S Tax Cuts and
Jobs Act. **The data presented
for prior periods has been revised to reflect a revision in the
presentation of net revenues and cost of sales in the consolidated
financial statements. See note 1c to our consolidated financial
statements for additional information.
The non-GAAP diluted weighted average number of shares was
1,093 million for the nine months ended September 30, 2019.
Segment Information North
America Europe International Markets * Three
months ended September 30, Three months endedSeptember
30, Three months endedSeptember 30,
2020
2019
2020
2019
2020
2019
(U.S. $ in millions) (U.S. $ in millions)
(U.S. $ in millions) Revenues...................... $
2,017
$
2,051
$
1,116
$
1,163
$
529
$
565
Gross profit..................
1,056
1,048
637
662
275
295
R&D expenses..............
155
156
60
63
17
21
S&M expenses.............
250
219
200
206
101
114
G&A expenses..............
97
112
66
56
33
32
Other (income) loss.....
(5)
(5)
(1)
(4)
(1)
(1)
Segment profit............. $
560
$
565
$
312
$
341
$
125
$
130
*The data presented for prior periods have
been revised to reflect a revision in the presentation of net
revenues and cost of sales in the consolidated financial
statements.
Segment Information North America
Europe International Markets * Nine months
endedSeptember 30, Nine months endedSeptember 30,
Nine months endedSeptember 30,
2020
2019
2020
2019
2020
2019
(U.S. $ in millions) (U.S. $ in millions)
(U.S. $ in millions) Revenues...................... $
6,146
$
6,169
$
3,520
$
3,611
$
1,582
$
1,668
Gross profit..................
3,208
3,155
2,009
2,066
828
877
R&D expenses..............
455
497
180
199
51
66
S&M expenses.............
755
756
590
637
312
348
G&A expenses..............
325
342
184
175
96
102
Other income...............
(9)
(6)
(3)
(5)
(10)
(2)
Segment profit............. $
1,682
$
1,566
$
1,058
$
1,060
$
378
$
363
*The data presented for prior periods have been
revised to reflect a revision in the presentation of net revenues
and cost of sales in the consolidated financial statements.
Reconciliation of our segment profit to consolidated
income before income taxes Three months ended
September 30,
2020
2019
(U.S.$ in millions) North America
profit...................................................................
$
560
$
565
Europe
profit................................................................................
312
341
International Markets
profit.......................................................
125
130
Total segment
profit....................................................................
997
1,036
Profit of other
activities..............................................................
28
16
1,025
1,051
Amounts not allocated to segments: Amortization
251
255
Other asset impairments, restructuring and other items
(98)
160
Intangible asset impairments
509
177
Goodwill impairment
4,628
-
Legal settlements and loss contingencies
21
468
Other unallocated amounts
55
73
Consolidated operating income (loss)
(4,342)
(81)
Financial expenses - net
117
211
Consolidated loss before income taxes $
(4,459)
$
(292)
Reconciliation of our segment profit to consolidated
income before income taxes Nine months ended
September 30,
2020
2019
(U.S.$ in millions) North America
profit...................................................................
$
1,682
$
1,566
Europe
profit................................................................................
1,058
1,060
International Markets
profit.......................................................
378
363
Total segment
profit....................................................................
3,118
2,989
Profit of other
activities..............................................................
130
92
3,248
3,081
Amounts not allocated to segments: Amortization
758
823
Other asset impairments, restructuring and other items
404
263
Intangible asset impairments
1,278
1,206
Goodwill impairment
4,628
-
Legal settlements and loss contingencies
10
1,171
Other unallocated amounts
148
209
Consolidated operating income (loss)
(3,978)
(591)
Financial expenses - net
565
635
Consolidated income (loss) before income taxes $
(4,543)
$
(1,226)
Segment revenues by major products and activities
(Unaudited)
Three months ended September 30,
PercentageChange
2020
2019
2019-2020 (U.S.$ in millions) North America
segment Generic products................................... $
928
$
914
2%
AJOVY.....................................................
35
25
42%
AUSTEDO...............................................
168
105
60%
BENDEKA/TREANDA..............................
105
124
(15%)
COPAXONE.............................................
236
271
(13%)
ProAir*...................................................
50
71
(30%)
QVAR......................................................
42
60
(29%)
Anda .....................................................
341
351
(3%)
Other......................................................
113
131
(14%)
Total.......................................................
2,017
2,051
(2%)
Three months ended September 30,
PercentageChange
2020
2019
2019-2020 (U.S.$ in millions) Europe segment
Generic products................................... $
824
$
836
(1%)
COPAXONE.............................................
101
106
(5%)
Respiratory products............................
77
87
(12%)
AJOVY.....................................................
8
1
NA
Other......................................................
106
134
(21%)
Total.......................................................
1,116
1,163
(4%)
Three months ended September 30,
PercentageChange
2020
2019 *
2019-2020 (U.S.$ in millions) International
Markets segment Generic
products................................... $
429
$
474
(10%)
COPAXONE.............................................
14
20
(27%)
Other......................................................
86
71
21%
Total.......................................................
529
565
(6%)
*The data presented for prior periods have been revised to
reflect a revision in the presentation of net revenues and cost of
sales in the consolidated financial statements.
Revenues by
Activity and Geographical Area (Unaudited)
Nine
months ended September 30, PercentageChange
2020
2019
2019-2020 (U.S.$ in millions) North America
segment Generic products................................... $
2,804
$
2,826
(1%)
AJOVY.....................................................
98
68
45%
AUSTEDO...............................................
451
276
64%
BENDEKA / TREANDA............................
313
371
(16%)
COPAXONE.............................................
671
753
(11%)
ProAir.....................................................
175
194
(10%)
QVAR......................................................
139
183
(24%)
Anda .....................................................
1,141
1,080
6%
Other......................................................
354
417
(15%)
Total.......................................................
6,146
6,169
0%
Nine months ended September 30,
PercentageChange
2020
2019
2019-2020 (U.S.$ in millions) Europe segment
Generic products................................... $
2,593
$
2,599
-
COPAXONE.............................................
294
327
(10%)
Respiratory products............................
263
267
(2%)
AJOVY.....................................................
17
1
NA
Other......................................................
352
416
(15%)
Total.......................................................
3,520
3,611
(3%)
Nine months ended September 30,
PercentageChange
2020
2019 *
2019-2020 (U.S.$ in millions) International
Markets segment Generic
products................................... $
1,304
$
1,404
(7%)
COPAXONE.............................................
38
46
(18%)
Other......................................................
241
218
10%
Total.......................................................
1,582
1,668
(5%)
*The data presented for prior periods have been revised to
reflect a revision in the presentation of net revenues and cost of
sales in the consolidated financial statements.
Free cash flow
reconciliation (Unaudited)
Three months
endedSeptember 30,
2020
2019
(U.S. $ in millions) Net cash provided by
operating
activities......................................................
307
325
Beneficial interest collected in exchange for securitized
accountsreceivables, included in investing activities
333
362
Capital
investment...........................................................................................
(143)
(169)
Proceeds from sale of long lived assets
9
33
Free cash
flow...................................................................................................
$
506
$
551
Free cash flow reconciliation (Unaudited)
Nine
months endedSeptember 30,
2020
2019
(U.S. $ in millions) Net cash provided by
operating
activities......................................................
885
210
Beneficial interest collected in exchange for securitized
accountsreceivables, included in investing activities
1,102
1,108
Capital
investment...........................................................................................
(402)
(406)
Proceeds from sale of long lived assets
54
167
Free cash
flow...................................................................................................
$
1,639
$
1,079
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201105005182/en/
IR Contacts United States Kevin C. Mannix (215) 591-8912
Israel Yael Ashman 972 (3) 926-7516 PR Contacts United
States Kelley Dougherty (973) 832-2810 Israel Yonatan
Beker 972 (54) 888 5898
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