-
Revenues of $5.1 billion
-
Free cash flow of $1.9 billion
-
GAAP EPS of $1.03
-
Non-GAAP EPS of $0.94
-
Restructuring plan on-track to achieve $1.5 billion of savings in 2018
and $3.0 billion by the end of 2019
-
Raising 2018 full year guidance:
-
Non-GAAP EPS guidance raised to $2.40-2.65 from $2.25-2.50
-
Free cash flow guidance raised to $3.0-3.2 billion from $2.6-2.8
billion
JERUSALEM--(BUSINESS WIRE)--May 3, 2018--
Teva Pharmaceutical Industries Ltd. (NYSE: TEVA, TASE: TEVA) today
reported results for the quarter ended March 31, 2018.
Mr. Kåre Schultz, Teva’s President and CEO, said "2018 is off to a solid
start. Our restructuring program is proceeding well, and we are on track
to meet our cost reduction targets of $1.5 billion in 2018 and $3.0
billion by the end of 2019. During this quarter, our strong cash flow
allowed us to continue to reduce our outstanding debt, and together with
our recent debt issuance and covenant amendment, has placed Teva on a
more stable financial footing. We have also benefited this quarter from
the durability of COPAXONE and a steady flow of generic launches in the
U.S. Our strong first quarter performance, along with our confidence in
executing the restructuring program, gives us a solid foundation to
raise our guidance for the year.”
First Quarter 2018 Consolidated Results
Revenues in the first quarter of 2018 were $5.1 billion, a
decrease of 10%, or 15% in local currency terms, compared to the first
quarter of 2017, mainly due to adverse market dynamics in the U.S.
generics market, generic competition to COPAXONE and loss of revenues
following our divestment of certain products and discontinuation of
certain activities.
Exchange rate differences between the first quarter of 2018 and
the first quarter of 2017 positively impacted our revenues by $240
million, our GAAP operating income by $37 million and our non-GAAP
operating income by $46 million.
GAAP gross profit was $2.3 billion in the first quarter of 2018,
down 17% compared to the first quarter of 2017. GAAP gross profit
margin was 46.4% in the first quarter of 2018, compared to 50.2% in
the first quarter of 2017.
Non-GAAP gross profit was $2.7 billion in the first quarter of
2018, a decline of 18% from the first quarter of 2017. Non-GAAP gross
profit margin was 52.3% in the first quarter of 2018, compared to
56.9% in the first quarter of 2017. The decrease in gross profit margin,
on both a GAAP and a non-GAAP basis, was mainly the result of lower
profitability in our North America segment due to lower COPAXONE sales
and adverse market dynamics in the U.S. generics market.
Research and Development (R&D) expenses for the first quarter
of 2018 were $317 million, down 27% compared to the first quarter of
2017. R&D expenses excluding equity compensation expenses and other R&D
expenses were $289 million, or 5.7% of quarterly revenues in the first
quarter of 2018, compared to $420 million, or 7.4%, in the first quarter
of 2017. The decrease in R&D expenses primarily resulted from pipeline
optimization, project terminations, phase 3 studies that ended and
related headcount reductions.
Selling and Marketing (S&M) expenses in the first quarter of
2018 were $771 million, a decrease of 20% compared to the first quarter
of 2017. S&M expenses excluding amortization of purchased intangible
assets and equity compensation expenses were $715 million, or 14.1% of
revenues, in the first quarter of 2018, compared to $894 million, or
15.8% of revenues, in the first quarter of 2017. The decrease was mainly
due to cost reduction and efficiency measures as part of the
restructuring plan.
General and Administrative (G&A) expenses in the first
quarter of 2018 were $329 million, a decrease of 10% compared to the
first quarter of 2017. G&A expenses excluding equity compensation
expenses and other items were $322 million in the first quarter of 2018,
or 6.4% of quarterly revenues, compared to $353 million, or 6.2% in the
first quarter of 2017. The decrease was mainly due to cost reduction and
efficiency measures as part of the restructuring plan.
GAAP other income in the first quarter of 2018 was $203 million,
an increase of 182% compared to $72 million in the first quarter of
2017. Non-GAAP other income in the first quarter of 2018 was $110
million, an increase of 53% compared to $72 million in the first quarter
of 2017. The increase in other income was primarily the result of higher
Section 8 recoveries in Canada and a $93 million net gain related to the
divestment of our women’s health business, which was excluded from our
non-GAAP results.
GAAP operating income in the first quarter of 2018 was $1.5
billion, compared to $895 million in the first quarter of 2017. Non-GAAP operating
income in the first quarter of 2018 was $1.4 billion, a decrease of
11% compared to the first quarter of 2017. GAAP operating margin
was 30.0% in the first quarter of 2018 compared to 15.8% in the first
quarter of 2017. Non-GAAP operating margin was 28.3% in the first
quarter of 2018 compared to 28.7% in the first quarter of 2017.
EBITDA (non-GAAP operating income, which excludes amortization
and certain other items, as well as excluding depreciation expenses) was
$1.6 billion in the first quarter of 2018, down 10% compared to $1.8
billion in the first quarter of 2017.
GAAP financial expenses for the first quarter of 2018 were $271
million, compared to $207 million in the first quarter of 2017. Non-GAAP
financial expenses were $203 million in the first quarter of 2018,
compared to $235 million in the first quarter of 2017. The decrease in
our non-GAAP financial expenses was mainly due to an increased gain in
our hedging and derivatives activities and lower interest expenses
resulting from reduced overall debt, partially offset by an increase in
interest and foreign exchange rates.
GAAP income taxes for the first quarter of 2018 were $46 million,
or 4%, on pre-tax income of $1.3 billion. In the first quarter of 2017,
GAAP income taxes were $54 million, or 8%, on pre-tax income of $688
million. Our tax rate for the first quarter of 2018 was mainly affected
by one-time legal settlements and divestments that had a low
corresponding tax effect. Non-GAAP income taxes for the first
quarter of 2018 were $211 million on pre-tax non-GAAP income of $1.2
billion, for a quarterly tax rate of 17%. Non-GAAP income taxes in the
first quarter of 2017 were $240 million on pre-tax non-GAAP income of
$1.4 billion, for a quarterly tax rate of 17%.
GAAP net income attributable to ordinary shareholders and GAAP
diluted EPS in the first quarter of 2018 were $1.1 billion and
$1.03, respectively, compared to $580 million and $0.57, respectively,
in the first quarter of 2017. Non-GAAP net income attributable to
ordinary shareholders and non-GAAP diluted EPS in the first
quarter of 2018 were $954 million and $0.94, respectively, compared to
$1.1 billion and $1.06 in the first quarter of 2017.
For the first quarter of 2018, the weighted average outstanding
shares for the fully diluted EPS calculation on both a GAAP and a
non-GAAP basis was 1,020 million, compared to 1,017 million on a GAAP
and non-GAAP basis for the first quarter of 2017. Additionally, no
account was taken of the potential dilution by the mandatory convertible
preferred shares, amounting to 64 million (including shares that may be
issued due to unpaid dividends to date) for the three months ended March
31, 2018 and 59 million for the three months ended March 31, 2017, as
well as for the convertible senior debentures for the respective
periods, since both had an anti-dilutive effect on EPS.
Non-GAAP information: Net non-GAAP adjustments in the first
quarter of 2018 were positive $101 million. Non-GAAP net income and
non-GAAP EPS for the quarter were adjusted to exclude the following
items:
-
Impairments of $612 million, mainly a goodwill impairment related to
Rimsa, impairment of intangible assets of product rights and IPR&D
assets related to the Actavis Generics acquisition, as well as
impairment for closure of manufacturing sites and other fixed assets.
The impairment also includes $56 million related to a plant located in
India in connection with the termination of PGT Healthcare joint
venture.
-
Impairments of equity investments of $94 million due to termination of
PGT Healthcare joint venture.
-
Amortization of purchased intangible assets totaling $310 million, of
which $264 million is included in cost of goods sold and the remaining
$46 million in S&M expenses;
-
Restructuring expenses of $247 million;
-
Financial expenses of $68 million mainly related to early redemption
fees;
-
Other non-GAAP items of $104 million;
-
Divestment benefit of $93 million related to capital gain from the
sales of our women health business;
-
Tax benefit of $165 million; and
-
Benefits from legal settlements of $1.3 billion mainly related to the
Allergan working capital adjustments, the Rimsa settlement and the
reversal of the carvedilol judgement against Teva.
Teva believes that excluding such items facilitates investors'
understanding of its business. 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 replacement for, or superior to, measures of financial
performance prepared in accordance with GAAP.
Cash flow generated from operations during the first quarter of
2018 was $1.5 billion, compared to $0.1 billion in the first quarter of
2017. The increase was mainly due to proceeds from the working capital
adjustment with Allergan and the legal settlement with Rimsa, compared
to payments made to the SEC and DOJ in connection with the FCPA
resolution in the first quarter of 2017.
Free cash flow, excluding net capital expenditures and
beneficial interest collected in exchange for securitized trade
receivables, was $1.9 billion in the first quarter of 2018, compared to
$0.3 billion in the first quarter of 2017. The increase was mainly due
to the increase in cash flow from operations as well as lower net
capital expenditures investments and higher securitized account
receivables.
As of March 31, 2018, our total gross debt was $30.8 billion,
compared to $32.5 billion as of December 31, 2017. The decrease was
mainly due to $6.5 billion in debt prepayments, partially offset by our
March 2018 issuance of an aggregate principal amount of $4.4 billion of
senior notes, as well as exchange rate fluctuations. The portion of
total debt classified as short-term as of March 31, 2018 was 4%,
compared to 11% as of December 31, 2017.
Segment Results for the First Quarter 2018
Due to the organizational changes announced in November 2017, our
financial results are now being reported under new segments. Our new
reportable segments are:
a) North America segment, which includes the United States and Canada.
b) Europe segment, which includes the European Union and certain other
European countries.
c) Growth Markets segment, which includes all countries other than those
in our North America and Europe segments.
In addition to these three segments, we have other activities, primarily
our API third party manufacturing business and certain contract
manufacturing services.
Segment profit is comprised of gross profit for the segment, less R&D,
S&M, G&A expenses and other income related to each segment. Segment
profit does not include amortization and certain other items.
North America Segment
Our North America segment includes the United States and Canada.
The following table presents revenues, expenses and profit for our North
America segment for the three months ended March 31, 2018 and 2017:
|
Three months ended March 31,
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
(U.S.$ in millions / % of Segment Revenues)
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
2,531
|
100%
|
|
$
|
3,240
|
100%
|
Gross profit
|
|
1,432
|
57%
|
|
|
2,080
|
64%
|
R&D expenses
|
|
188
|
8%
|
|
|
267
|
8%
|
S&M expenses
|
|
305
|
12%
|
|
|
441
|
14%
|
G&A expenses
|
|
126
|
5%
|
|
|
139
|
4%
|
Other income
|
|
(102)
|
(4%)
|
|
|
(73)
|
(2%)
|
Segment profit*
|
$
|
915
|
36%
|
|
$
|
1,306
|
40%
|
|
|
|
|
|
|
|
|
* Segment profit does not include amortization and certain other
items. The data presented for prior periods have
been conformed to reflect the changes to our segment reporting
commencing in the first quarter of 2018.
|
Revenues from our North America segment in the first quarter of
2018 were $2.5 billion, a decrease of $709 million, or 22%, compared to
the first quarter of 2017, mainly due to adverse market dynamics in the
U.S. generics market, a decline in COPAXONE revenues due to generic
competition and the loss of revenues from the sale of our women’s health
business, partially offset by higher revenues from AUSTEDO, BENDEKA and
TREANDA, QVAR and our distribution business.
Revenues in the United States, our largest market, were $2.4
billion in the first quarter of 2018, a decrease of $719 million, or
23%, compared to the first quarter of 2017.
Revenues by Major Products and Activities
The following table presents revenues for our North America segment by
major products and activities for the three months ended March 31, 2018
and 2017:
|
|
Three months ended
|
|
|
|
|
March 31,
|
|
Percentage
Change
|
|
|
2018
|
|
2017
|
|
2017-2018
|
|
|
(U.S.$ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
Generic products
|
|
$
|
1,088
|
|
$
|
1,415
|
|
(23%)
|
COPAXONE
|
|
|
476
|
|
|
797
|
|
(40%)
|
BENDEKA / TREANDA
|
|
|
181
|
|
|
156
|
|
16%
|
ProAir
|
|
|
130
|
|
|
121
|
|
7%
|
QVAR
|
|
|
107
|
|
|
84
|
|
27%
|
AUSTEDO
|
|
|
30
|
|
|
-
|
|
N/A
|
Distribution
|
|
|
331
|
|
|
295
|
|
12%
|
Generic products revenues in our North America segment in the
first quarter of 2018 decreased by 23% to $1.1 billion, compared to the
first quarter of 2017, mainly due to lower volumes and price erosion.
In the first quarter of 2018, we led the U.S. generics market in total
prescriptions and new prescriptions, with approximately 584 million
total prescriptions, representing 15% of total U.S. generic
prescriptions according to IQVIA data.
COPAXONE revenues in our North America segment in the first
quarter of 2018 decreased by 40% to $476 million compared to the first
quarter of 2017, mainly due to generic competition in the United States.
COPAXONE revenues in the United States were $462 million in the first
quarter of 2018.
BENDEKA® and TREANDA®
combined revenues in our North America segment in the first quarter of
2018 increased by 16% to $181 million, compared to the first quarter of
2017, mainly due to higher volumes resulting from supply stabilization.
ProAir® revenues in our North America segment
in the first quarter of 2018 increased by 7% to $130 million, compared
to the first quarter of 2017, mainly due to higher volumes.
QVAR® revenues in our North America segment in the
first quarter of 2018 increased by 27% to $107 million, compared to the
first quarter of 2017. We launched QVAR® RediHaler™ in the
first quarter of 2018. The increase in sales in the first quarter of
2018 was mainly due to slightly higher wholesaler stocking for all QVAR
family products in connection with the launch. QVAR maintained its
second-place position in the inhaled corticosteroids category in the
United States.
AUSTEDO® revenues in our North America segment
in the first quarter of 2018 were $30 million. AUSTEDO was approved by
the FDA for the treatment of chorea associated with Huntington disease
and was launched in the United States in April 2017. In August 2017, the
FDA approved AUSTEDO for the treatment of tardive dyskinesia.
Distribution revenues in our North America segment which are
generated by Anda increased by 12% to $331 million in the first quarter
of 2018, compared to the first quarter of 2017, mainly due to the severe
cold, cough and influenza season in the first quarter of 2018, which
increased demand for certain medicines.
North America Gross Profit
Gross profit from our North America segment in the first quarter of 2018
was $1.4 billion, a decrease of 31% compared to $2.1 billion in the
first quarter of 2017. The decrease was mainly due to lower revenues
from COPAXONE and generic products.
Gross profit margin for our North America segment in the first quarter
of 2018 decreased to 56.6%, compared to 64.2% in the first quarter of
2017. This decrease was mainly due to lower COPAXONE revenues and
continued price erosion of generic products.
North America Profit
Profit from our North America segment in the first quarter of 2018 was
$915 million, a decrease of 30% compared to $1.3 billion in the first
quarter of 2017. The decrease was mainly due to lower revenues due to
generic competition for COPAXONE and continued price erosion in the U.S.
generics market, partially offset by cost reduction and higher other
income.
Europe Segment
Our Europe segment includes the European Union and certain other
European countries.
The following table presents revenues, expenses and profit for our
Europe segment for the three months ended March 31, 2018 and 2017:
|
Three months ended March 31,
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
(U.S.$ in millions / % of Segment Revenues)
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
1,442
|
100%
|
|
$
|
1,341
|
100%
|
Gross profit
|
|
797
|
55%
|
|
|
734
|
55%
|
R&D expenses
|
|
73
|
5%
|
|
|
106
|
8%
|
S&M expenses
|
|
255
|
18%
|
|
|
279
|
21%
|
G&A expenses
|
|
91
|
6%
|
|
|
79
|
6%
|
Other expenses
|
|
1
|
0%
|
|
|
2
|
0%
|
Segment profit*
|
$
|
377
|
26%
|
|
|
268
|
20%
|
|
|
|
|
|
|
|
|
* Segment profit does not include amortization and certain other
items. The data presented for prior periods have
been conformed to reflect the changes to our segment reporting
commencing in the first quarter of 2018.
|
Revenues from our Europe segment in the first quarter of 2018 were $1.4
billion, an increase of $101 million or 8%, compared to the first
quarter of 2017. In local currency terms, revenues decreased by 6%,
mainly due to the loss of revenues from the closure of our distribution
business in Hungary and the sale of our women’s health business,
partially offset by new generic product launches.
Revenues by Major Products and Activities
The following table presents revenues for our Europe segment by major
products and activities for the three months ended March 31, 2018 and
2017:
|
|
Three months ended
|
|
|
|
|
March 31,
|
|
Percentage
Change
|
|
|
2018
|
|
2017
|
|
2017-2018
|
|
|
(U.S.$ in millions)
|
|
|
|
|
|
|
|
|
|
Generic products
|
|
$
|
997
|
|
$
|
850
|
|
17%
|
COPAXONE
|
|
|
153
|
|
|
152
|
|
1%
|
Respiratory products
|
|
|
113
|
|
|
84
|
|
35%
|
Generic products revenues in our Europe segment in the first
quarter of 2018, including OTC products, increased by 17% to $997
million, compared to the first quarter of 2017. In local currency terms,
revenues increased by 2%, mainly due to new product launches and volume
growth in OTC, partially offset by price reductions.
COPAXONE revenues in our Europe segment in the first quarter of
2018 increased by 1% to $153 million, compared to the first quarter of
2017. In local currency terms, revenues decreased by 13%, mainly due to
price reductions resulting from the entry of generic competition.
Respiratory products revenues in our Europe segment in the
first quarter of 2018 increased by 35% to $113 million, compared to the
first quarter of 2017. In local currency terms, revenues increased by
18%, mainly due to the launch of BRALTUS® in 2017.
Europe Gross Profit
Gross profit from our Europe segment in the first quarter of 2018 was
$797 million, an increase of 9% compared to $734 million in the first
quarter of 2017. The increase was mainly due to the positive impact of
currency fluctuations, partially offset by the loss of revenues from the
sale of our women's health business.
Gross profit margin for our Europe segment in the first quarter of 2018
increased to 55.3%, compared to 54.7% in the first quarter of 2017. This
increase was mainly due to the closure of our distribution business in
Hungary, partially offset by other production costs.
Europe Profit
Profit from our Europe segment in the first quarter of 2018 was $377
million, an increase of 41% compared to $268 million in the first
quarter of 2017. The increase was mainly due to higher revenues as well
as cost reductions and efficiency measures as part of the restructuring
plan.
Growth Markets Segment
Our Growth Markets segment includes all countries other than those in
our North America and Europe segments. The key markets in this segment
are Japan, Russia and Israel.
The following table presents revenues, expenses and profit for our
Growth Markets segment for the three months ended March 31, 2018 and
2017:
|
Three months ended March 31,
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
(U.S.$ in millions / % of Segment Revenues)
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
750
|
100%
|
|
$
|
718
|
100%
|
Gross profit
|
|
313
|
42%
|
|
|
292
|
41%
|
R&D expenses
|
|
24
|
4%
|
|
|
47
|
7%
|
S&M expenses
|
|
134
|
18%
|
|
|
158
|
22%
|
G&A expenses
|
|
41
|
5%
|
|
|
48
|
7%
|
Other income
|
|
(8)
|
(1%)
|
|
|
(1)
|
(0%)
|
Segment profit*
|
$
|
122
|
16%
|
|
$
|
40
|
6%
|
|
|
|
|
|
|
|
|
* Segment profit does not include amortization and certain other
items. The data presented for prior periods have
been conformed to reflect the changes to our segment reporting
commencing in the first quarter of 2018.
|
Revenues from our Growth Markets segment in the first quarter of
2018 were $750 million, an increase of $32 million, or 4%, compared to
the first quarter of 2017. In local currency terms, revenues were flat
compared to the first quarter of 2017, mainly due to higher sales in
Israel, Japan and Russia, partially offset by the effect of the
deconsolidation of our subsidiaries in Venezuela and the loss of
revenues from the sale of our women’s health business.
Revenues by Major Products and Activities
The following table presents revenues for our Growth Markets segment by
major products and activities for the three months ended March 31, 2018
and 2017:
|
|
Three months ended
|
|
|
|
|
March 31,
|
|
Percentage
Change
|
|
|
2018
|
|
2017
|
|
2017-2018
|
|
|
(U.S.$ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
Generic products
|
|
$
|
488
|
|
$
|
486
|
|
0.5%
|
COPAXONE
|
|
|
16
|
|
|
21
|
|
(24%)
|
Distribution
|
|
|
153
|
|
|
125
|
|
22%
|
Generic products revenues in our Growth Markets segment in the
first quarter of 2018, which includes OTC products, were flat compared
to the first quarter of 2017. In local currency terms, revenues
decreased by 3%, mainly due to the effect of the deconsolidation of our
subsidiaries in Venezuela.
COPAXONE revenues in our Growth Markets segment in the first
quarter of 2018 decreased by 24% to $16 million, compared to the first
quarter of 2017. In local currency terms, revenues decreased by 20%.
Distribution revenues in our Growth Markets segment in the first
quarter of 2018 increased by 22%, compared to the first quarter of 2017.
In local currency terms, revenues increased by 13%.
Growth Markets Gross Profit
Gross profit from our Growth Markets segment in the first quarter of
2018 was $313 million, an increase of 7% compared to $292 million in the
first quarter of 2017. The increase was mainly due to higher revenues in
Japan, including Azilect approval payment from Takeda, and Israel,
partially offset by the deconsolidation of our subsidiaries in Venezuela
and the loss of revenues from the sale of our women’s health business.
Gross profit margin for our Growth Markets segment in the first quarter
of 2018 increased to 41.7%, compared to 40.7% in the first quarter of
2017. This increase was mainly due to higher gross profit in Japan,
partially offset by the deconsolidation of our subsidiaries in Venezuela.
Growth Markets Profit
Profit from our Growth Markets segment in the first quarter of 2018 was
$122 million, compared to $40 million in the first quarter of 2017. The
increase was mainly due to higher revenues, as well as cost reductions
and efficiency measures as part of the restructuring plan.
During the fourth quarter of 2017, we deconsolidated our subsidiaries in
Venezuela from our financial results. Consequently, results of
operations of our subsidiaries in Venezuela are not included in our
financial results for the first quarter of 2018.
Other Activities
We have other sources of revenues, primarily our API manufacturing
business and certain contract manufacturing services. These other
activities are not included in our North America, Europe or Growth
Markets segments.
Our revenues from other activities in the first quarter of 2018
decreased by 2.6% to $342 million. In local currency terms, revenues
decreased by 8%, mainly due to lower API sales to third parties.
API sales to third parties in the first quarter of 2018 decreased
by 9% to $179 million. In local currency terms, revenues decreased by
10%, mainly due to the timing of certain shipments in the first quarter
of 2018.
R&D Pipeline Update
fremanezumab - We do not expect to receive FDA approval on our
Biologics License Applications (BLA) for fremanezumab on the mid-June
PDUFA date. We are engaged in a constructive dialogue with the FDA in
close collaboration with our partner Celltrion, Inc. We expect an FDA
pre-approval inspection to take place in the coming months and to
receive FDA approval and launch before the end of 2018.
Updated 2018 Non-GAAP Results Outlook
|
|
Updated Guidance
May 2018
|
|
Original Guidance
February 2018
|
Revenues
|
$18.5-19.0 billion
|
|
$18.3-18.8 billion
|
Non-GAAP Operating Income
|
$4.2-4.5 billion
|
|
$4.0-4.3 billion
|
EBITDA
|
$4.9-5.2 billion
|
|
$4.7-5.0 billion
|
Non-GAAP EPS
|
$2.40-2.65
|
|
$2.25-2.50
|
Weighted average number of shares
|
1,030 million
|
|
1,030 million
|
Free cash flow
|
$3.0-3.2 billion
|
|
$2.6-2.8 billion
|
These estimates reflect management's current expectations for Teva's
performance in 2018. Actual results may vary, whether as a result of
exchange rate differences, market conditions or other factors. In
addition, the non-GAAP measures exclude the amortization of purchased
intangible assets, costs related to certain regulatory actions,
inventory step-up, legal settlements and reserves, impairments and
related tax effects.
See “Non-GAAP Financial Measures” below.
Conference Call
Teva will host a conference call and live webcast along with a slide
presentation on Thursday, May 3, 2018 at 8:00 a.m. ET to discuss its
first quarter 2018 results and overall business environment. A question
& answer session will follow.
In order to participate, please dial the following numbers (at least 15
minutes before the scheduled start time):
United States 1-866-254-0808
International 44 (0) 1452 541003
for a list of other international toll-free numbers, click here.
Passcode: 9496209
A live webcast of the call will also be available on Teva's website at: www.ir.tevapharm.com.
Please log in at least 10 minutes prior to the conference call in order
to download the applicable audio software.
Following the conclusion of the call, a replay of the webcast will be
available within 24 hours on Teva's website. The replay can also be
accessed until May 31, 2018, 9:00 a.m. ET by calling United States
1-866-247-4222 or International 44(0)1452550000; passcode: 9496209.
About Teva
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is a leading
global pharmaceutical company that delivers high-quality,
patient-centric healthcare solutions used by millions of patients every
day. Headquartered in Israel, Teva is the world’s largest generic
medicines producer, leveraging its portfolio of more than 1,800
molecules to produce a wide range of generic products in nearly every
therapeutic area. In specialty medicines, Teva has a world-leading
position in innovative treatments for disorders of the central nervous
system, including pain, as well as a strong portfolio of respiratory
products. Teva integrates its generics and specialty capabilities in its
global research and development division to create new ways of
addressing unmet patient needs by combining drug development
capabilities with devices, services and technologies. Teva's net
revenues in 2017 were $22.4 billion. For more information, visit www.tevapharm.com.
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, 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;
competition for our specialty products, especially COPAXONE®, our
leading medicine, which faces competition from existing and potential
additional generic versions and orally-administered alternatives;
competition from companies with greater resources and capabilities;
efforts of pharmaceutical companies to limit the use of generics
including through legislation and regulations; 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; price erosion relating to our products, both
from competing products and increased regulation; delays in launches
of new products and our ability to achieve expected results from
investments in our product pipeline; our ability to take advantage of
high-value opportunities; the difficulty and expense of obtaining
licenses to proprietary technologies; and the effectiveness of our
patents and other measures to protect our intellectual property rights;
-
our substantially increased indebtedness and significantly decreased
cash on hand, which may limit our ability to incur additional
indebtedness, engage in additional transactions or make new
investments, and 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: failure to
effectively execute our restructuring plan announced in December,
2017; uncertainties related to, and failure to achieve, the potential
benefits and success of our new senior management team and
organizational structure; harm to our pipeline of future products due
to the ongoing review of our R&D programs; our ability to develop and
commercialize additional pharmaceutical products; potential additional
adverse consequences following our resolution with the U.S. government
of our FCPA investigation; compliance with sanctions and other trade
control laws; manufacturing or quality control problems, which may
damage our reputation for quality production and require costly
remediation; interruptions in our supply chain; disruptions of our or
third party information technology systems or breaches of our data
security; the failure to recruit or retain key personnel; variations
in intellectual property laws that may adversely affect our ability to
manufacture our products; challenges associated with conducting
business globally, including adverse effects of political or economic
instability, major hostilities or terrorism; significant sales to a
limited number of customers in our U.S. market; 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: costs and
delays resulting from the extensive governmental regulation to which
we are subject; the effects of reforms in healthcare regulation and
reductions in pharmaceutical pricing, reimbursement and coverage;
governmental investigations into sales and marketing 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 our Annual Report on Form 10-K for the
year ended December 31, 2017, including in the section captioned “Risk
Factors,” and in our other filings with the U.S. Securities and Exchange
Commission, which are available at www.sec.gov
and www.tevapharm.com.
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 (Unaudited,
U.S. dollars in millions, except share and per share data)
|
|
|
|
|
|
|
|
Three months ended
|
|
|
March 31,
|
|
|
2018
|
|
2017
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Net revenues
|
|
5,065
|
|
5,650
|
Cost of sales
|
|
2,717
|
|
2,811
|
Gross profit
|
|
2,348
|
|
2,839
|
Research and development expenses
|
|
317
|
|
432
|
Selling and marketing expenses
|
|
771
|
|
958
|
General and administrative expenses
|
|
329
|
|
366
|
Other asset impairments, restructuring and other items
|
|
707
|
|
240
|
Goodwill impairment
|
|
180
|
|
-
|
Legal settlements and loss contingencies
|
|
(1,278)
|
|
20
|
Other income
|
|
(203)
|
|
(72)
|
Operating income
|
|
1,525
|
|
895
|
Financial expenses – net
|
|
271
|
|
207
|
Income before income taxes
|
|
1,254
|
|
688
|
Income taxes
|
|
46
|
|
54
|
Share in (profits) losses of associated companies, net
|
|
74
|
|
(7)
|
Net income
|
|
1,134
|
|
641
|
Net income (loss) attributable to non-controlling interests
|
|
14
|
|
(4)
|
Net income attributable to Teva
|
|
1,120
|
|
645
|
Dividends on preferred shares
|
|
65
|
|
65
|
Net income attributable to Teva's ordinary shareholders
|
|
1,055
|
|
580
|
|
|
|
|
|
Earnings per share attributable to ordinary shareholders:
|
Basic ($)
|
1.04
|
|
0.57
|
|
Diluted ($)
|
1.03
|
|
0.57
|
Weighted average number of shares (in millions):
|
Basic
|
1,017
|
|
1,016
|
|
Diluted
|
1,020
|
|
1,017
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income attributable to ordinary shareholders:*
|
|
954
|
|
1,079
|
Non-GAAP net income attributable to ordinary shareholders for
diluted earnings per share:
|
|
954
|
|
1,079
|
|
|
|
|
|
Non-GAAP earnings per share attributable to ordinary
shareholders:*
|
Basic ($)
|
0.94
|
|
1.06
|
|
Diluted ($)
|
0.94
|
|
1.06
|
|
|
|
|
|
Non-GAAP average number of shares (in millions):
|
Basic
|
1,017
|
|
1,016
|
|
Diluted
|
1,020
|
|
1,017
|
Condensed Consolidated Balance Sheets
(U.S. dollars in millions)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
|
2018
|
|
2017
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
1,418
|
|
963
|
Trade receivables
|
|
6,289
|
|
7,128
|
Inventories
|
|
5,113
|
|
4,924
|
Prepaid expenses
|
|
1,138
|
|
1,100
|
Other current assets
|
|
712
|
|
701
|
Assets held for sale
|
|
17
|
|
566
|
Total current assets
|
|
14,687
|
|
15,382
|
Deferred income taxes
|
|
463
|
|
574
|
Other non-current assets
|
|
832
|
|
932
|
Property, plant and equipment, net
|
|
7,420
|
|
7,673
|
Identifiable intangible assets, net
|
|
17,314
|
|
17,640
|
Goodwill
|
|
28,465
|
|
28,414
|
Total assets
|
|
69,181
|
|
70,615
|
|
|
|
|
|
LIABILITIES & EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Short-term debt
|
|
1,302
|
|
3,646
|
Sales reserves and allowances
|
|
7,410
|
|
7,881
|
Trade payables
|
|
1,929
|
|
2,069
|
Employee-related obligations
|
|
607
|
|
549
|
Accrued expenses
|
|
2,632
|
|
3,014
|
Other current liabilities
|
|
876
|
|
724
|
Liabilities held for sale
|
|
-
|
|
38
|
Total current liabilities
|
|
14,756
|
|
17,921
|
|
|
|
|
|
Long-term liabilities:
|
|
|
|
|
Deferred income taxes
|
|
2,998
|
|
3,277
|
Other taxes and long-term liabilities
|
|
1,875
|
|
1,843
|
Senior notes and loans
|
|
29,450
|
|
28,829
|
Total long-term liabilities
|
|
34,323
|
|
33,949
|
Equity:
|
|
|
|
|
Teva shareholders’ equity
|
|
18,621
|
|
17,359
|
Non-contolling interests
|
|
1,481
|
|
1,386
|
Total equity
|
|
20,102
|
|
18,745
|
Total liabilities and equity
|
|
69,181
|
|
70,615
|
Condensed Consolidated Cash Flow (U.S.
Dollars in millions)
|
|
|
|
|
|
Three months ended
|
|
March 31,
|
|
2018
|
|
2017
|
|
Unaudited
|
|
Unaudited
|
Operating activities:
|
|
|
|
Net income
|
1,134
|
|
641
|
Net change in operating assets and liabilities
|
(592)
|
|
(797)
|
Items not involving cash flow
|
954
|
|
292
|
|
|
|
|
Net cash provided by operating activities
|
1,496
|
|
136
|
|
|
|
|
Net cash provided by investing activities
|
1,039
|
|
1,516
|
|
|
|
|
Net cash used in financing activities
|
(2,091)
|
|
(1,768)
|
|
|
|
|
Translation adjustment on cash and cash equivalents
|
11
|
|
28
|
|
|
|
|
Net change in cash and cash equivalents
|
455
|
|
(88)
|
|
|
|
|
Balance of cash and cash equivalents at beginning of period
|
963
|
|
988
|
|
|
|
|
Balance of cash and cash equivalents at end of period
|
1,418
|
|
900
|
Non GAAP reconciliation items
|
(U.S. Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2018
|
|
2017
|
|
(U.S. $ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
Gain on divestitures, net of divestitures related costs
|
|
(93)
|
|
|
-
|
|
Amortization of purchased intangible assets
|
|
310
|
|
|
320
|
|
Restructuring expenses
|
|
247
|
|
|
130
|
|
Inventory step-up
|
|
-
|
|
|
64
|
|
Capital loss from currency translation
|
|
-
|
|
|
52
|
|
Equity compensation expenses
|
|
30
|
|
|
36
|
|
Costs related to regulatory actions taken in facilities
|
|
1
|
|
|
34
|
|
Acquisition, integration and related expenses
|
|
2
|
|
|
23
|
|
Other R&D expenses
|
|
22
|
|
|
-
|
|
Contingent consideration
|
|
8
|
|
|
21
|
|
Legal settlements and loss contingencies
|
|
(1,278)
|
|
|
20
|
|
Goodwill impairment
|
|
180
|
|
|
-
|
|
Impairment of long-lived assets
|
|
432
|
|
|
11
|
|
Other non-GAAP items
|
|
49
|
|
|
15
|
|
Financial expense (income)
|
|
68
|
|
|
(28)
|
|
Minority interest
|
|
(8)
|
|
|
(13)
|
|
Impairments of Equity Investments
|
|
94
|
|
|
-
|
|
Tax effect
|
|
(165)
|
|
|
(186)
|
|
|
Three Months Ended March 31, 2018
|
|
|
|
Three Months Ended March 31, 2017
|
|
U.S. dollars and shares in millions (except per share amounts)
|
|
|
|
|
GAAP
|
Non-GAAP Adjustments
|
Dividends on Preferred Shares
|
Non-GAAP
|
% of Net Revenues
|
|
|
|
GAAP
|
Non-GAAP Adjustments
|
Dividends on Preferred Shares
|
Non-GAAP
|
% of Net Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (1)
|
2,348
|
303
|
|
|
2,651
|
|
52%
|
|
|
|
2,839
|
377
|
|
3,216
|
|
57%
|
|
Operating income (loss) (1)(2)
|
1,525
|
(90)
|
|
|
1,435
|
|
28%
|
|
|
|
895
|
726
|
|
1,621
|
|
29%
|
|
Net income attributable to ordinary shareholders (1)(2)(3)(4)
|
1,055
|
(101)
|
|
|
954
|
|
19%
|
|
|
|
580
|
499
|
|
1,079
|
|
19%
|
|
Earnings per share attributable to ordinary shareholders - diluted
(5)
|
1.03
|
(0.09)
|
|
|
0.94
|
|
|
|
|
|
0.57
|
0.49
|
|
1.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Amortization of purchased intangible assets
|
|
264
|
|
|
|
|
|
|
|
|
|
267
|
|
|
|
|
|
Inventory step-up
|
|
-
|
|
|
|
|
|
|
|
|
|
64
|
|
|
|
|
|
Costs related to regulatory actions taken in facilities
|
|
1
|
|
|
|
|
|
|
|
|
|
34
|
|
|
|
|
|
Equity compensation expenses
|
|
6
|
|
|
|
|
|
|
|
|
|
5
|
|
|
|
|
|
Other COGS related adjustments
|
|
32
|
|
|
|
|
|
|
|
|
|
7
|
|
|
|
|
|
Gross profit adjustments
|
|
303
|
|
|
|
|
|
|
|
|
|
377
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on divestitures, net of divestitures related costs
|
|
(93)
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
Goodwill impairment
|
|
180
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
(2)
|
Restructuring expenses
|
|
247
|
|
|
|
|
|
|
|
|
|
130
|
|
|
|
|
|
Amortization of purchased intangible assets
|
|
46
|
|
|
|
|
|
|
|
|
|
53
|
|
|
|
|
|
Capital loss on currency translation
|
|
-
|
|
|
|
|
|
|
|
|
|
52
|
|
|
|
|
|
Equity compensation expenses
|
|
24
|
|
|
|
|
|
|
|
|
|
31
|
|
|
|
|
|
Acquisition, Integration and related expenses
|
|
2
|
|
|
|
|
|
|
|
|
|
23
|
|
|
|
|
|
Other R&D expenses
|
|
22
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
Contingent consideration
|
|
8
|
|
|
|
|
|
|
|
|
|
21
|
|
|
|
|
|
Legal settlements and loss contingencies
|
|
(1,278)
|
|
|
|
|
|
|
|
|
|
20
|
|
|
|
|
|
Impairment of long-lived assets
|
|
432
|
|
|
|
|
|
|
|
|
|
11
|
|
|
|
|
|
Other operating related adjustments
|
|
17
|
|
|
|
|
|
|
|
|
|
8
|
|
|
|
|
|
|
|
(393)
|
|
|
|
|
|
|
|
|
|
349
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income adjustments
|
|
(90)
|
|
|
|
|
|
|
|
|
|
726
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Financial expense (income)
|
|
68
|
|
|
|
|
|
|
|
|
|
(28)
|
|
|
|
|
|
Tax effect
|
|
(165)
|
|
|
|
|
|
|
|
|
|
(186)
|
|
|
|
|
|
Impairments of Equity Investments
|
|
94
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
Minority interest
|
|
(8)
|
|
|
|
|
|
|
|
|
|
(13)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income adjustments
|
|
(101)
|
|
|
|
|
|
|
|
|
|
499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
The non-GAAP diluted weighted average number of shares was 1,020
and 1,017 million for the three months ended March 31, 2018 and
2017,
respectively. For the three months ended March 31, 2018, the
mandatory convertible preferred shares amounting to 64 million
weighted average
shares had an anti-dilutive effect on earnings per share and were
therefore excluded from the outstanding shares calculation.
Non-GAAP earnings per
share can be reconciled with GAAP earnings per share by dividing
each of the amounts included in footnotes 1-3 above by the
applicable weighted
average share number.
|
Segment Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
Europe
|
|
Growth Markets
|
|
Three months ended March 31,
|
|
Three months ended March 31,
|
|
Three months ended March 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(U.S. $ in millions)
|
|
|
|
|
(U.S. $ in millions)
|
|
|
|
|
(U.S. $ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
2,531
|
|
$
|
3,240
|
|
$
|
1,442
|
|
$
|
1,341
|
|
$
|
750
|
|
$
|
718
|
Gross profit
|
|
1,432
|
|
|
2,080
|
|
|
797
|
|
|
734
|
|
|
313
|
|
|
292
|
R&D expenses
|
|
188
|
|
|
267
|
|
|
73
|
|
|
106
|
|
|
24
|
|
|
47
|
S&M expenses
|
|
305
|
|
|
441
|
|
|
255
|
|
|
279
|
|
|
134
|
|
|
158
|
G&A expenses
|
|
126
|
|
|
139
|
|
|
91
|
|
|
79
|
|
|
41
|
|
|
48
|
Other income
|
|
(102)
|
|
|
(73)
|
|
|
1
|
|
|
2
|
|
|
(8)
|
|
|
(1)
|
Segment profit
|
$
|
915
|
|
$
|
1,306
|
|
$
|
377
|
|
$
|
268
|
|
$
|
122
|
|
$
|
40
|
Reconciliation of our segment profit
to consolidated income before income taxes
|
|
|
Three months ended
|
|
|
March 31,
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
(U.S.$ in millions)
|
|
|
|
|
|
|
|
|
|
|
North America profit
|
|
$
|
915
|
|
$
|
1,306
|
Europe profit
|
|
|
377
|
|
|
268
|
Growth Market profit
|
|
|
122
|
|
|
40
|
Total segment profit
|
|
|
1,414
|
|
|
1,614
|
Profit of other activities
|
|
|
21
|
|
|
7
|
|
|
|
1,435
|
|
|
1,621
|
Amounts not allocated to segments:
|
|
|
|
|
|
|
Amortization
|
|
|
310
|
|
|
320
|
Other asset impairments, restructuring and other items
|
|
|
707
|
|
|
240
|
Goodwill impairment
|
|
|
180
|
|
|
-
|
Gain on divestitures, net of divestitures related costs
|
|
|
(93)
|
|
|
-
|
Inventory step-up
|
|
|
-
|
|
|
64
|
Other R&D expenses
|
|
|
22
|
|
|
-
|
Costs related to regulatory actions taken in facilities
|
|
|
1
|
|
|
34
|
Legal settlements and loss contingencies
|
|
|
(1,278)
|
|
|
20
|
Other unallocated amounts
|
|
|
61
|
|
|
48
|
|
|
|
|
|
|
|
Consolidated operating income
|
|
|
1,525
|
|
|
895
|
Financial expenses - net
|
|
|
271
|
|
|
207
|
Consolidated income before income taxes
|
|
$
|
1,254
|
|
$
|
688
|
Revenues by Activity and Geographical Area
(Unaudited)
|
|
|
Three months ended
|
|
|
|
|
March 31,
|
|
Percentage
Change
|
|
|
2018
|
2017
|
|
2017-2018
|
|
|
U.S.$ in millions
|
|
|
North America segment
|
|
|
|
|
|
|
|
|
Generics medicines
|
|
$
|
1,088
|
|
$
|
1,415
|
|
(23%)
|
COPAXONE
|
|
|
476
|
|
|
797
|
|
(40%)
|
Bendeka and Trenda
|
|
|
181
|
|
|
156
|
|
16%
|
ProAir
|
|
|
130
|
|
|
121
|
|
7%
|
QVAR
|
|
|
107
|
|
|
84
|
|
27%
|
AUSTEDO
|
|
|
30
|
|
|
-
|
|
N/A
|
Distribution
|
|
|
331
|
|
|
295
|
|
12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
|
March 31,
|
|
Percentage
Change
|
|
|
2018
|
|
2017
|
|
2017-2018
|
|
|
U.S.$ in millions
|
|
|
Europe segment
|
|
|
|
|
|
|
|
|
Generic medicines
|
|
$
|
997
|
|
$
|
850
|
|
17%
|
COPAXONE
|
|
|
153
|
|
|
152
|
|
1%
|
Respiratory products
|
|
|
113
|
|
|
84
|
|
35%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
|
March 31,
|
|
Percentage
Change
|
|
|
2018
|
|
2017
|
|
2017-2018
|
|
|
U.S.$ in millions
|
|
|
Growth Market segment
|
|
|
|
|
|
|
|
|
Generics medicines
|
|
$
|
488
|
|
$
|
486
|
|
0.5%
|
COPAXONE
|
|
|
16
|
|
|
21
|
|
(24%)
|
Distribution
|
|
|
153
|
|
|
125
|
|
22%
|

View source version on businesswire.com: https://www.businesswire.com/news/home/20180503005663/en/
Source: Teva Pharmaceutical Industries Ltd.
Teva Pharmaceutical Industries Ltd.
IR Contacts
United
States
Kevin C. Mannix, 215- 591-8912
or
Israel
Ran
Meir, 972 (3) 926 7516
or
Tomer Amitai, 972 (3) 926 7656
or
PR
Contacts
United States
Doris Saltkill, 816- 391-8881
or
Israel
Yonatan
Beker, 972 (54) 888 5898