•
Dec 31, 2019

Teva Q4 2019 Earnings Report

Reported earnings for the quarter and year ended December 31, 2019.

Key Takeaways

Teva Pharmaceutical Industries Ltd. reported Q4 2019 results with revenues of $4.5 billion, a 1% increase compared to Q4 2018. GAAP earnings per share was $0.10 and non-GAAP EPS was $0.62. The company saw growth in sales of AUSTEDO, AJOVY, and certain respiratory products, which was partially offset by lower revenues from COPAXONE in North America.

Completed two-year restructuring plan.

Reduced cost base by more than $3 billion.

Reduced net debt by more than $9 billion.

Key growth products met major milestones, including the launch of AJOVY in Europe, continued strong growth for AUSTEDO, and the successful launch of Teva's first biosimilar TRUXIMA in North America.

Total Revenue
$4.47B
Previous year: $4.56B
-2.0%
EPS
$0.62
Previous year: $0.53
+17.0%
Free Cash Flow
$974M
Gross Profit
$1.96B
Previous year: $1.97B
-0.7%
Cash and Equivalents
$1.98B
Previous year: $1.78B
+10.8%
Free Cash Flow
$974M
Previous year: $154M
+532.5%
Total Assets
$57.5B
Previous year: $60.7B
-5.3%

Teva

Teva

Teva Revenue by Segment

Teva Revenue by Geographic Location

Forward Guidance

Teva provided its outlook for 2020, expecting revenues between $16.6 to $17.0 billion, Non-GAAP Operating Income between $4.0 to $4.4 billion, EBITDA between $4.5 to $4.9 billion, Non-GAAP EPS between $2.30 to $2.55, and Free cash flow between $1.8 to $2.2 billion.

Positive Outlook

  • Continued generic erosion; sales of approximately $1.2 billion from Global COPAXONE
  • Continued increase in the U.S. sales to approximately $650 million from AUSTEDO
  • Continued increase in sales to approximately $250 million from Global AJOVY
  • Tax Rate 17% - 18%
  • Moderate negative impact on revenues and operating income compared to 2019 from Foreign Exchange

Challenges Ahead

  • Global COPAXONE Continued generic erosion
  • AUSTEDO Continued increase in the U.S. sales
  • Global AJOVY Continued increase in sales
  • Foreign Exchange Moderate negative impact on revenues and operating income compared to 2019
  • CAPEX $0.6 billion

Revenue & Expenses

Visualization of income flow from segment revenue to net income