- Revenues of $3.9 billion
- GAAP diluted EPS of $0.26
- Non-GAAP diluted EPS of $0.59
- Cash flow generated from operating activities of $529
million
- Free cash flow of $795 million
- Full year 2021 business outlook reaffirmed
- Net revenues of $16.0 - $16.4 billion
- Adjusted EBITDA of $4.8 - $5.1 billion
- EPS of $2.50 - $2.70
- Free cash flow of $2.0 - $2.3 billion
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:
- Amortization of purchased intangible assets of $199 million, of
which $175 million is included in cost of sales and the remaining
$24 million in S&M expenses;
- Impairment of long-lived assets of $47 million, comprised of
tangible assets in the North America segment and impairment of
intangible assets of IPR&D and product rights assets mainly in
connection with the Actavis Generics acquisition;
- Restructuring expenses of $28 million;
- Equity compensation expenses of $26 million;
- Contingent consideration expense of $9 million, mainly related
to an increase in future royalties;
- Finance expenses of $6 million, related to revaluation of
marketable securities;
- Other items of $107 million; and
- Income tax of $62 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 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:
- our ability to successfully compete in the marketplace,
including: that we are substantially dependent on our generic
products; consolidation of our customer base and commercial
alliances among our customers; delays in launches of new generic
products; the increase in the number of competitors targeting
generic opportunities and seeking U.S. market exclusivity for
generic versions of significant products; our ability to develop
and commercialize biopharmaceutical products; competition for our
specialty products, including AUSTEDO, AJOVY and COPAXONE; our
ability to achieve expected results from investments in our product
pipeline; our ability to develop and commercialize additional
pharmaceutical products; and the effectiveness of our patents and
other measures to protect our intellectual property rights;
- our substantial indebtedness, which may limit our ability to
incur additional indebtedness, engage in additional transactions or
make new investments, may result in a further downgrade of our
credit ratings; and our inability to raise debt or borrow funds in
amounts or on terms that are favorable to us;
- our business and operations in general, including: uncertainty
regarding the COVID-19 pandemic and its impact on our business,
financial condition, operations, cash flows, and liquidity and on
the economy in general; our ability to successfully execute and
maintain the activities and efforts related to the measures we have
taken or may take in response to the COVID-19 pandemic and
associated costs therewith; effectiveness of our optimization
efforts; our ability to attract, hire and retain highly skilled
personnel; manufacturing or quality control problems; interruptions
in our supply chain; disruptions of information technology systems;
breaches of our data security; variations in intellectual property
laws; challenges associated with conducting business globally,
including political or economic instability, major hostilities or
terrorism; costs and delays resulting from the extensive
pharmaceutical regulation to which we are subject or delays in
governmental processing time due to travel and work restrictions
caused by the COVID-19 pandemic;
- the effects of reforms in healthcare regulation and reductions
in pharmaceutical pricing, reimbursement and coverage; significant
sales to a limited number of customers; our ability to successfully
bid for suitable acquisition targets or licensing opportunities, or
to consummate and integrate acquisitions; and our prospects and
opportunities for growth if we sell assets;
- compliance, regulatory and litigation matters, including:
failure to comply with complex legal and regulatory environments;
increased legal and regulatory action in connection with public
concern over the abuse of opioid medications and our ability to
reach a final resolution of the remaining opioid-related
litigation; scrutiny from competition and pricing authorities
around the world, including our ability to successfully defend
against the U.S. Department of Justice criminal charges of Sherman
Act violations; potential liability for patent infringement;
product liability claims; failure to comply with complex Medicare
and Medicaid reporting and payment obligations; compliance with
anti-corruption sanctions and trade control laws; and environmental
risks;
- other financial and economic risks, including: our exposure to
currency fluctuations and restrictions as well as credit risks;
potential impairments of our intangible assets; potential
significant increases in tax liabilities (including as a result of
potential tax reform in the United States); and the effect on our
overall effective tax rate of the termination or expiration of
governmental programs or tax benefits, or of a change in our
business;
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 revenues
3,887
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) income
623
(4,342
)
1,638
(3,978
)
Financial expenses, net
241
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, net
5
(136
)
(9
)
(135
)
Net income (loss)
302
(4,340
)
608
(4,261
)
Net income (loss) attributable to non-controlling interests
11
10
32
(121
)
Net income (loss) attributable to Teva
292
(4,349
)
576
(4,140
)
Earnings (loss) per share attributable to
Teva: Basic ($)
0.26
(3.97
)
0.52
(3.78
)
Diluted ($)
0.26
(3.97
)
0.52
(3.78
)
Weighted average number of shares (in millions):
Basic
1,103
1,096
1,102
1,095
Diluted
1,109
1,096
1,109
1,095
Non-GAAP net income attributable to Teva:*
651
637
2,001
2,077
Non-GAAP net income attributable to Teva for diluted earnings
per share:
651
637
2,001
2,077
Non-GAAP earnings per share attributable to Teva:*
Basic ($)
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 equivalents
2,045
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
Inventories
4,167
4,403
Prepaid expenses
1,066
945
Other current assets
805
710
Assets held for sale
25
189
Total current assets
12,154
13,005
Deferred income taxes
622
695
Other non-current assets
518
538
Property, plant and equipment, net
6,040
6,296
Operating lease right-of-use assets
507
559
Identifiable intangible assets, net
7,832
8,923
Goodwill
20,179
20,624
Total assets
47,851
50,640
LIABILITIES & EQUITY Current liabilities:
Short-term debt
2,709
3,188
Sales reserves and allowances
4,241
4,824
Accounts payables
1,514
1,756
Employee-related obligations
555
685
Accrued expenses
2,035
1,780
Other current liabilities
770
933
Total current liabilities
11,825
13,164
Long-term liabilities: Deferred income taxes
910
964
Other taxes and long-term liabilities
2,203
2,240
Senior notes and loans
21,037
22,731
Operating lease liabilities
425
479
Total long-term liabilities
24,575
26,414
Equity: Teva shareholders’ equity
10,467
10,026
Non-controlling interests
984
1,035
Total equity
11,451
11,061
Total liabilities and equity
47,851
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 amortization
1,010
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 positions
13
(656
)
8
(154
)
Stock-based compensation
86
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 assets
269
54
15
9
Proceeds from sale of investments
172
12
19
3
Other investing activities
(33
)
(44
)
3
(45
)
Net cash provided by investing activities
1,277
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 debt
500
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 period
2,177
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 expenses
222
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 contingencies
3
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 expenses
723
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 contingencies
113
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 expenses
258
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 contingencies
21
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: Depreciation
130
Amortization
251
EBITDA
(3,961
)
Legal settlements and loss contingencies
21
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 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
-
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: Depreciation
404
Amortization
758
EBITDA
(2,815
)
Legal settlements and loss contingencies
10
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 impairments
21
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 - net
241
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 - net
805
565
Consolidated income (loss) before income taxes $
833
$
(4,543
)
Segment revenues by major products and activities
(Unaudited)
Three months ended September 30,
PercentageChange
2021
2020
2020-2021 (U.S.$ in millions) North America
segment 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 the ProAir authorized
generic, which are included under generic products.
Three
months ended September 30, PercentageChange
2021
2020
2020-2021 (U.S.$ in millions) Europe segment
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
%
Three months ended September 30,
PercentageChange
2021
2020
2020-2021 (U.S.$ in millions) International
Markets segment Generic products $
412
$
429
(4
%)
AJOVY
39
16
145
%
COPAXONE
10
14
(30
%)
Other
69
71
(3
%)
Total
530
529
§ Revenues by Activity and Geographical
Area (Unaudited)
Nine months ended September
30, PercentageChange
2021
2020
2020-2021 (U.S.$ in millions) North America
segment Generic products $
2,864
$
2,804
2
%
AJOVY
123
98
25
%
AUSTEDO
520
451
15
%
BENDEKA / TREANDA
292
313
(7
%)
COPAXONE
448
671
(33
%)
ProAir*
140
175
(20
%)
Anda
968
1,141
(15
%)
Other
451
493
(8
%)
Total
5,807
6,146
(6
%)
* Does not include revenues from the ProAir authorized
generic, which are included under generic products.
Nine months ended September 30,
PercentageChange
2021
2020
2020-2021 (U.S.$ in millions) Europe segment
Generic products $
2,637
$
2,593
2
%
AJOVY
58
17
232
%
COPAXONE
296
294
1
%
Respiratory products
263
263
0
%
Other
364
352
3
%
Total
3,618
3,520
3
%
Nine months ended September 30,
PercentageChange
2021
2020
2020-2021 (U.S.$ in millions) International
Markets segment Generic products $
1,211
$
1,304
(7
%)
AJOVY
46
17
170
%
COPAXONE
29
38
(23
%)
Other
219
224
(2
%)
Total
1,505
1,582
(5
%)
Free cash flow reconciliation (Unaudited)
Three months ended September30,
2021
2020
(U.S. $ in millions) Net cash provided by
operating activities
529
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 assets
15
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 activities
342
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 assets
269
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
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