Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) today
reported results for the year and the quarter ended December 31,
2018.
FY 2018
Q4 2018
Revenues $18.9 billion $4.6 billion Cash flow from
operations $2.4 billion $0.4 billion GAAP loss per share
$2.35 $2.85 Non-GAAP EPS $2.92 $0.53
2019 Business outlook:
- Revenues are expected to be $17.0 –
17.4 billion
- Non-GAAP EPS is expected to be
$2.20-2.50
Mr. Kåre Schultz, Teva’s President and CEO, said, "2018 was the
first year of our restructuring plan and we have met or exceeded
all of our key financial targets for the year. The full year
yielded a cost base reduction of $2.2 billion, exceeding our 2018
target, and we are well on track to deliver the total $3.0 billion
reduction in 2019 as compared to the 2017 spend base. AJOVY® is
performing very well since its September launch in the U.S. with
growing demand for the first and only anti-CGRP treatment with both
quarterly and monthly dosing for the preventive treatment of
migraine in adults. We will focus our investments on growing AJOVY®
and continuing our success with AUSTEDO®, with both franchises
positioned to be important growth drivers for Teva.
"Looking ahead, we continue to expect that 2019 will be the
trough for our business, a year in which we will experience similar
challenges to those of 2018 including the continued erosion of
COPAXONE in the U.S. and Europe as well as the introduction of
generics in the ProAir® market. Throughout the year, we will
continue to execute against our restructuring plan goals, including
the optimization of our global portfolio and network, as we focus
our efforts on generating cash to reduce the company's debt."
2018 Annual Consolidated
Results
Revenues in 2018 were $18,854 million, a decrease of 16%
in both U.S. dollar and local currency terms, compared to 2017,
mainly due to generic competition to COPAXONE®, a decline in
revenues in our U.S. generics business and loss of revenues
following the divestment of certain products and discontinuation of
certain activities.
Exchange rate movements between 2018 and 2017 positively
impacted our revenues by $152 million, our GAAP operating income by
$4 million and our non-GAAP operating income by $10 million.
GAAP gross profit was $8,296 million in 2018, a decrease
of 22% compared to 2017. GAAP gross profit margin for 2018
was 44.0%, compared to 47.4% in 2017. Non-GAAP gross profit
was $9,546 million in 2018, a decrease of 21% compared to 2017.
Non-GAAP gross profit margin was 50.6% in 2018, compared to
53.8% in 2017. The decrease in both GAAP and non-GAAP gross profit
was mainly due to lower profitability in North America resulting
from a decline in COPAXONE revenues due to generic competition and
a decline in revenues in our U.S. generics business, partially
offset by higher profitability in Europe.
Research and Development (R&D) expenses in 2018 were
$1,213 million, a decrease of 32% compared to 2017. R&D
expenses excluding equity compensation expenses and purchase of
in-process R&D in 2018 were $1,102 million, or 5.8% of
revenues, compared to $1,515 million or 6.8% in 2017. The decrease
in R&D expenses resulted primarily from pipeline optimization,
phase 3 studies that have ended and related headcount
reductions.
Selling and Marketing (S&M) expenses in 2018 were
$2,916 million, a decrease of 14% compared to 2017. S&M
expenses excluding amortization of purchased intangible assets and
equity compensation expenses were $2,718 million, or 14.4% of
revenues, in 2018, compared to $3,149 million, or 14.1% of
revenues, in 2017. The decrease was mainly due to cost reductions
and efficiency measures as part of the restructuring plan.
General and Administrative (G&A) expenses in 2018
were $1,298 million, a decrease of 11% compared to 2017. G&A
expenses excluding equity compensation expenses were $1,228 million
in 2018, or 6.5% of revenues, compared to $1,413 million or 6.3% of
revenues in 2017. The decrease was mainly due to cost reductions
and efficiency measures as part of the restructuring plan.
GAAP other income in 2018 was $291 million, compared to
other income of $1,199 million in 2017. The decline in GAAP other
income was primarily the result of none recurring income related to
the divestment of our women's health business in 2017. Non-GAAP
other income in 2018 was $225 million, an increase of 94%
compared to $116 million in 2017, mainly due to higher Section 8
recoveries from multiple cases in Canada and recovery of lost
profits in cases in which U.S. patent infringement litigation had
previously prevented the sale of certain products.
GAAP Operating loss was $1,637 million in 2018 compared
to operating loss of $17,484 million in 2017. The increase was
mainly due higher goodwill impairment charges, higher intangible
assets impairments and other asset impairments recorded in 2017.
Non-GAAP operating income was $4,723 million, a decrease of
22% compared to $6,073 million in 2017.
Adjusted EBITDA (non-GAAP operating income, which
excludes amortization and certain other items, and excluding
depreciation expenses) in 2018 was $5,319 million, compared to
$6,665 million in 2017.
In 2018, GAAP financial expenses were $959 million,
compared to $895 million in 2017. Non-GAAP financial
expenses were $893 in 2018, compared to $908 in 2017.
In 2018 we recognized a GAAP tax benefit of $195 million,
or 8%, on pre-tax loss of $2,596 million. In 2017 we recognized a
tax benefit of $1,933 million, or 11%, on pre-tax loss of $18,379
million. Our tax rate for 2018 was mainly affected by one-time
legal settlements and divestments that had a low corresponding tax
effect. Additionally, in 2018 we recorded impairments, some of
which did not have a corresponding tax effect.
The non-GAAP income taxes for 2018 were $519 million on
non-GAAP pre-tax income of $3,830 million. The non-GAAP income
taxes in 2017 were $788 million on non-GAAP pre-tax income of
$5,165 million. The non-GAAP tax rate for 2018 was 14%, compared to
15% in 2017. The decrease in our tax rate was mainly due to the
reduction in the U.S. federal corporate tax rate following the U.S.
tax reform.
GAAP net loss attributable to Teva's ordinary
shareholders and GAAP diluted loss per share in 2018 were
$2,399 million and $2.35, respectively, compared to net loss of
$16,525 million and diluted loss per share of $16.26 in 2017.
Non-GAAP net income attributable to ordinary shareholders
for calculating diluted EPS and non-GAAP diluted EPS in 2018
were $2,985 million and $2.92, respectively, compared to $4,075
million and $4.01 in 2017.
The weighted average diluted shares outstanding used for
the fully diluted share calculation on a GAAP basis for 2018 and
2017 were 1,021 and 1,016 million shares, respectively. The
weighted average outstanding shares used for the fully
diluted EPS calculation on a non-GAAP basis for 2018 and 2017 were
1,024 and 1,018 million shares, respectively.
As of December 31, 2018 and 2017, the fully diluted share
count for purposes of calculating our market capitalization was
approximately 1,100 million and 1,086 million shares,
respectively.
Non-GAAP information: Net non-GAAP adjustments in 2018
were $5,384 million. Non-GAAP net income and non-GAAP EPS for the
year were adjusted to exclude the following items:
- A goodwill impairment of $3,027
million, mainly related to International Markets;
- An impairment of intangible and fixed
assets and equity investment of $2,594 million mainly related to
the acquisition of Actavis Generics;
- Amortization of purchased intangible
assets totaling $1,166 million, of which $1,004 million is included
in cost of goods sold and the remaining $162 million in selling and
marketing expenses;
- Restructuring expenses of $488
million;
- Equity compensation expenses of $152
million;
- In-Process R&D of $83 million;
- Financial expenses of $66 million
mainly related to early redemption fees;
- Contingent consideration of $57
million;
- Other non-GAAP items of $104
million;
- Minority interest adjustment of $431
million mainly relate to business venture in International
markets;
- Related tax effect of $714 million;
and
- Benefits from legal settlements and
loss contingencies of $1,208 million, mainly related to the
Allergan working capital adjustments, the Rimsa settlement and the
reversal of the reserve recorded for the carvedilol judgement
against Teva.
Teva believes that excluding such items facilitates investors'
understanding of its business. For further information see the
below tables 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 in 2018 was
$2,446 million, an increase of $221 million, or 10% compared to
2017. This increase was mainly due to the working capital
adjustment with Allergan and the Rimsa settlement in 2018,
partially offset by lower profit in our North America segment.
Free cash flow (Cash flow generated from operating
activities in 2018, net of cash used for capital investments and
beneficial interest collected in exchange for securitized trade
receivables) was $3,679 million, compared to $2,693 million in
2017. This increase resulted mainly from the higher cash flow
generated from operating activities, higher beneficial interest
collected in exchange for securitized trade receivables and lower
capital expenditures.
As of December 31, 2018, our debt was $28,916 million,
compared to $32,475 million as of December 31, 2017. The decrease
was mainly due to senior notes and term loans repaid at maturity or
prepaid with cash generated during the year. The portion of total
debt classified as short-term as of December 31, 2018 was 8%,
compared to 11% as of December 31, 2017, due to a decrease in
current maturities. Our average debt maturity was approximately 6.8
years as of December 31, 2018, compared to 6.4 years as of December
31, 2017.
Annual Report on Form
10-K
Teva will file its Annual Report on Form 10-K with the SEC in
the coming days. The report will include a complete analysis of the
financial results for 2018 and will be available on Teva’s website,
http://ir.tevapharm.com, as well as on the SEC’s website:
http://www.sec.gov.
Fourth Quarter 2018 Consolidated
Results
Revenues in the fourth quarter of 2018 were $4,559
million, a decrease of 16%, or 14% in local currency terms,
compared to the fourth quarter of 2017, mainly due to generic
competition to COPAXONE, a decline in revenues in our U.S. generics
business and loss of revenues following the divestment of certain
products and discontinuation of certain activities.
Exchange rate differences between the fourth quarter of
2018 and the fourth quarter of 2017 negatively impacted our
revenues and GAAP operating income by $100 million and $13 million,
respectively. Our non-GAAP operating income was negatively impacted
by $17 million.
GAAP gross profit was $1,971 million in the fourth
quarter of 2018, a decrease of 19% compared to the fourth quarter
of 2017. GAAP gross profit margin was 43.2% in the fourth
quarter of 2018, compared to 45.3% in the fourth quarter of 2017.
Non-GAAP gross profit was $2,328 million in the fourth
quarter of 2018, a decline of 15% from the fourth quarter of 2017.
Non-GAAP gross profit margin was 51.1% in the fourth quarter
of 2018, compared to 50.9% in the fourth quarter of 2017. The
increase in gross profit margin on a non-GAAP basis resulted
primarily from improved gross profit margin in our Europe
segment.
Research and Development (R&D) expenses for the
fourth quarter of 2018 were $295 million, a decrease of 15%
compared to the fourth quarter of 2017. R&D expenses excluding
equity compensation expenses and other expenses were $289 million,
or 6.3% of quarterly revenues in the fourth quarter of 2018,
compared to $295 million, or 5.5% of quarterly revenues in the
fourth quarter of 2017. The decrease in R&D expenses resulted
primarily from pipeline optimization, phase 3 studies that have
ended and related headcount reduction.
Selling and Marketing (S&M) expenses in the fourth
quarter of 2018 were $797 million, a decrease of 3% compared to the
fourth quarter of 2017. S&M expenses excluding amortization of
purchased intangible assets, equity compensation expenses and other
expenses were $768 million, or 16.8% of quarterly revenues in the
fourth quarter of 2018, compared to $749 million, or 13.9% of
quarterly revenues in the fourth quarter of 2017. The increase was
mainly due to higher promotional cost associated with the launch of
AJOVY in the U.S., partially offset by cost reduction and
efficiency measures as part of the restructuring plan.
General and Administrative (G&A) expenses in the
fourth quarter of 2018 were $344 million, a decrease of 2% compared
to the fourth quarter of 2017. G&A expenses excluding equity
compensation expenses and other expenses were $330 million in the
fourth quarter of 2018, or 7.2% of quarterly revenues in the fourth
quarter of 2018, compared to $335 million, or 6.2% of quarterly
revenues in the fourth quarter of 2017.
GAAP other loss in the fourth quarter of 2018 was $43
million, compared to other income of $1,099 million in the fourth
quarter of 2017. Non-GAAP other income in the fourth quarter
of 2018 was $5 million, compared to $15 million in fourth quarter
of 2017.
GAAP operating loss in the fourth quarter of 2018 was
$3,164 million, compared to $13,017 million in the fourth quarter
of 2017. Non-GAAP operating income in the fourth quarter of
2018 was $946 million, a decrease of 32% compared to the fourth
quarter of 2017. Non-GAAP operating margin was 20.8% in the
fourth quarter of 2018 compared to 25.7% in the fourth quarter of
2017.
EBITDA (non-GAAP operating income, which excludes
amortization and certain other items, as well as depreciation
expenses) was $1,091 million in the fourth quarter of 2018, a
decrease of 29% compared to $1,534 million in the fourth quarter of
2017.
GAAP financial expenses for the fourth quarter of 2018
were $223, compared to $191 million in the fourth quarter of 2017.
Non-GAAP financial expenses were $216 million in the fourth
quarter of 2018, compared to $209 million in the fourth quarter of
2017.
In the fourth quarter of 2018, we recognized a tax
benefit of $139 million, or 4%, on pre-tax loss of $3,387
million. In the fourth quarter of 2017, we recognized a tax benefit
of $1,471 million, on pre-tax loss of $13,208 million. Our tax rate
for the fourth quarter of 2018 was mainly affected by impairments
recorded, some of which did not have a corresponding tax effect.
Non-GAAP income taxes for the fourth quarter of 2018 were
$96 million, or 13%, on pre-tax non-GAAP income of $730 million.
Non-GAAP income taxes in the fourth quarter of 2017 were $183
million, or 16%, on pre-tax non-GAAP income of $1,176 million.
GAAP net loss attributable to ordinary shareholders and
GAAP diluted loss per share in the fourth quarter of 2018
were $2,940 million and $2.85, respectively, compared to loss of
$11,600 million and $11.41 in the fourth quarter of 2017. Non-GAAP
net income attributable to ordinary shareholders and
non-GAAP diluted EPS in the fourth quarter of 2018 were $543
million and $0.53, respectively, compared to $949 million and $0.93
in the fourth quarter of 2017.
For the fourth quarter of 2018, the weighted average
outstanding shares for the fully diluted EPS calculation on
a GAAP basis was 1,031 million shares, compared to 1,017 million
shares in the fourth quarter of 2017. The weighted average
outstanding shares for the fully diluted EPS calculation on
a non-GAAP basis was 1,034 million shares, compared to 1,018
million shares in the fourth quarter of 2017.
Non-GAAP information: Net non-GAAP adjustments in the
fourth quarter of 2018 were $3,483 million. Non-GAAP net income and
non-GAAP EPS for the fourth quarter were adjusted to exclude the
following items:
- A goodwill impairment of $2,727
million, mainly related to International Markets;
- An impairment of intangible and fixed
assets and equity investment of $990 million mainly related to the
acquisition of Actavis Generics;
- Amortization of purchased intangible
assets totaling $257 million, of which $233 million is included in
cost of goods sold and the remaining $24 million in selling and
marketing expenses;
- Restructuring expenses of $46
million;
- Legal settlements and loss
contingencies of $31 million;
- Equity compensation expenses of $30
million;
- Other non-GAAP items of $36
million;
- Minority interest adjustment of $399
million related to business venture in the International markets;
and
- Related tax effect of $235
million.
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 fourth
quarter of 2018 was $367 million, compared to $859 million in the
fourth quarter of 2017. The decrease was mainly due to lower profit
in our North America segment.
Free cash flow (Cash flow generated from operating
activities, net of cash used for capital investments and beneficial
interest collected in exchange for securitized trade receivables)
was $522 million in the fourth quarter of 2018, compared to $934
million in the fourth quarter of 2017. The increase in 2018
resulted mainly from the higher cash flow generated from operating
activities.
Segment Results for the Fourth Quarter
2018
Due to the organizational changes announced in November 2017, we
began reporting our financial results under a new structure in the
first quarter of 2018, consisting of the following segments:
a) North America segment, which includes the
United States and Canada.b) Europe segment, which includes the
European Union and certain other European countries.c)
International Markets segment, which includes all countries other
than those in our North America and Europe segments.
In addition to these three segments, we have other activities,
primarily the sale of API to third parties and certain contract
manufacturing services.
Segment profit is comprised of gross profit for the segment,
less R&D, S&M, G&A expenses and other income related to
each segment. Segment profit does not include amortization and
certain other items.
The data presented in this press release for prior periods have
been conformed to reflect our current segment reporting, which
commenced in the first quarter of 2018.
North America Segment
Our North America segment includes the United States and
Canada.
The following table presents revenues, expenses and profit for
our North America segment for the three months ended December 31,
2018 and 2017:
Three months ended December 31, 2018
2017 (U.S.$ in millions / % of Segment Revenues)
Revenues 2,238 100 % 2,689 100.0 % Gross profit 1,201
53.7 % 1,506 56.0 % R&D expenses 185 8.3 % 192 7.1 % S&M
expenses 341 15.2 % 285 10.6 % G&A expenses 127 5.7 % 101 3.8 %
Other income (3 ) § (10 )
§
Segment profit 551 24.6 % 938
34.9 % __________ § Represents an amount less than 0.5%.
Revenues from our North America segment in the fourth
quarter of 2018 were $2,238 million, a decrease of $451 million, or
17%, compared to the fourth quarter of 2017, mainly due to a
decline in revenues of COPAXONE, our U.S. generics business,
ProAir® and QVAR® and the loss of revenues from the sale of our
women’s health business, partially offset by higher revenues from
AUSTEDO® and Anda.
Revenues in the United States, our largest market, were
$2,103 million in the fourth quarter of 2018, a decrease of $434
million, or 17%, compared to the fourth quarter of 2017.
Revenues by Major Products and Activities
The following table presents revenues for our North America
segment by major products and activities for the three months ended
December 31, 2018 and 2017:
North America
Three months endedDecember
31,
PercentageChange
2018 2017 2017-2018 (U.S.$ in
millions) Generic products $ 1,099 $ 1,224 (10 %)
COPAXONE 356 641 (44 %) BENDEKA / TREANDA 140 158 (11 %) ProAir 45
102 (56 %) QVAR 9 48 (81 %) AUSTEDO 68 17 314 % Anda 363 289 26 %
Generic products revenues in our North America segment in
the fourth quarter of 2018 decreased by 10% to $1,099 million,
compared to the fourth quarter of 2017, mainly due to additional
competition to methylphenidate extended-release tablets (Concerta®
authorized generic), portfolio optimization primarily as part of
the restructuring plan as well as market dynamics and price erosion
in our U.S. generics business, partially offset by new generic
product launches.
In the fourth quarter of 2018, we led the U.S. generics market
in total prescriptions and new prescriptions, with approximately
504 million total prescriptions (based on trailing twelve months),
representing 13% of total U.S. generic prescriptions according to
IQVIA data.
COPAXONE revenues in our North America segment in the
fourth quarter of 2018 decreased by 44% to $356 million, of which
$341 million were generated in the United States, compared to the
fourth quarter of 2017, mainly due to generic competition in the
United States.
BENDEKA® and TREANDA® combined
revenues in our North America segment in the fourth quarter of 2018
decreased by 11% to $140 million, compared to the fourth quarter of
2017, mainly due to lower volumes resulting from Eagle
Pharmaceuticals' launch of a ready-to-dilute bendamustine
hydrochloride in June 2018, partially offset by higher pricing.
ProAir revenues in our North America segment in the
fourth quarter of 2018 decreased by 56% to $45 million, compared to
the fourth quarter of 2017, mainly due to higher sales reserves
recorded in the fourth quarter of 2018 in anticipation of generic
competition to the short-acting beta-agonist class of drugs,
including an approved generic version of Ventolin HFA. In the
albuterol inhaler category, approximately 40% of prescriptions are
written as “generic albuterol,” which means that the launch of any
generic inhaler may cause patient migration to such generic
products. We launched our own ProAir authorized generic in the
United States in January 2019.
QVAR revenues in our North America segment in the fourth
quarter of 2018 decreased by 81% to $9 million, compared to the
fourth quarter of 2017. The decrease in sales was mainly due to
lower net pricing.
AUSTEDO revenues in our North America segment in the
fourth quarter of 2018 were $68 million, compared to $17 million in
the fourth quarter of 2017.
Anda revenues in our North America segment in the fourth
quarter of 2018 increased by 26% to $363 million, compared to the
fourth quarter of 2017.
North America Gross Profit
Gross profit from our North America segment in the fourth
quarter of 2018 was $1,201 million, a decrease of 20% compared to
$1,506 million in the fourth 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 fourth
quarter of 2018 decreased to 53.7%, compared to 56.0% in the fourth
quarter of 2017. This decrease was mainly due to lower COPAXONE
revenues.
North America Profit
Profit from our North America segment in the fourth quarter of
2018 was $551 million, a decrease of 41% compared to $938 million
in the fourth quarter of 2017. The decrease was mainly due to lower
revenues from COPAXONE and generic products as well as investment
in the launch of AJOVY.
Europe Segment
Our Europe segment includes the European Union and certain other
European countries.
The following table presents revenues, expenses and profit for
our Europe segment for the three months ended December 31, 2018 and
2017:
Three months ended December 31, 2018
2017 (U.S.$ in millions / % of Segment Revenues)
Revenues 1,204 100 % 1,450 100 % Gross profit 689
57.2 % 758 52.3 % R&D expenses 75 6.2 % 78 5.4 % S&M
expenses 278 23.1 % 284 19.6 % G&A expenses 82 6.8 % 96 6.6 %
Other income 1 § (1 ) § Segment profit
253 21.0 % 301 20.8 % __________ §
Represents an amount less than 0.5%.
Revenues from our Europe segment in the fourth quarter of 2018
were $1,204 million, a decrease of $246 million, or 17%, compared
to the fourth quarter of 2017. In local currency terms, revenues
decreased by 14%, mainly due to the loss of revenues from the
closure of our distribution business in Hungary, the sale of our
women’s health business and a decline in COPAXONE revenues,
partially offset by new generic product launches.
Revenues by Major Products and Activities
The following table presents revenues for our Europe segment by
major products and activities for the three months ended December
31, 2018 and 2017:
Europe
Three months endedDecember
31,
PercentageChange
2018 2017 2017-2018 (U.S.$ in
millions) Generic products $ 844 $ 928 (9 %) COPAXONE 118 155
(24 %) Respiratory products 90 110 (18 %)
Generic products revenues in our Europe segment in the
fourth quarter of 2018, including OTC products, decreased by 9% to
$844 million, compared to the fourth quarter of 2017. In local
currency terms, revenues decreased by 6%, mainly due to the loss of
revenues from the termination of the PGT joint venture and generic
price reductions, partially offset by new generic product
launches.
COPAXONE revenues in our Europe segment in the fourth
quarter of 2018 decreased by 24% to $118 million, compared to the
fourth quarter of 2017. In local currency terms, revenues decreased
by 21%, mainly due to price reductions resulting from the entry of
competing glatiramer acetate products.
Respiratory products revenues in our Europe
segment in the fourth quarter of 2018 decreased by 18% to $90
million, compared to the fourth quarter of 2017. In local currency
terms, revenues decreased by 15%, mainly due to lower sales in the
United Kingdom.
Europe Gross Profit
Gross profit from our Europe segment in the fourth quarter of
2018 was $689 million, a decrease of 9% compared to $758 million in
the fourth quarter of 2017. The decrease was mainly due to the loss
of revenues from the sale of our women’s health business and a
decline in COPAXONE revenues. Gross profit margin for our Europe
segment in the fourth quarter of 2018 increased to 57.2%, compared
to 52.3% in the fourth quarter of 2017. This increase was mainly
due to lower cost of goods sold, primarily as a result of the
termination of the PGT joint venture and the closure of our
distribution business in Hungary.
Europe Profit
Profit from our Europe segment in the fourth quarter of 2018 was
$253 million, a decrease of 16% compared to $301 million in the
fourth quarter of 2017. The decrease was mainly due to lower
revenues, partially offset by cost reductions and efficiency
measures as part of the restructuring plan.
International Markets Segment
Our International Markets segment includes all countries other
than those in our North America and Europe segments. The key
markets in this segment are Japan, Israel and Russia.
During the fourth quarter of 2017, we deconsolidated our
subsidiaries in Venezuela from our financial results. Consequently,
results of operations of our subsidiaries in Venezuela are not
included in the fourth quarter of 2018.
The following table presents revenues, expenses and profit for
our International Markets segment for the three months ended
December 31, 2018 and 2017:
Three months ended December 31, 2018
2017 (U.S.$ in millions / % of Segment Revenues)
Revenues 740 100 % 910 100 % Gross profit 312 42.1 %
390 42.9 % R&D expenses 26 3.5 % 25 2.7 % S&M expenses 134
18.1 % 169 18.6 % G&A expenses 38 5.1 % 45 4.9 % Other income -
§ (4 ) § Segment profit 114 15.4
% 155 17.0 % __________ § Represents an amount
less than 0.5%.
Revenues from our International Markets segment in the
fourth quarter of 2018 were $740 million, a decrease of $170
million, or 19%, compared to the fourth quarter of 2017. In local
currency terms, revenues decreased 13% compared to the fourth
quarter of 2017, mainly due to lower sales in Russia and Japan, the
effect of the deconsolidation of our subsidiaries in Venezuela and
the loss of revenues from the sale of our women’s health
business.
Revenues by Major Products and Activities
The following table presents revenues for our International
Markets segment by major products and activities for the three
months ended December 31, 2018 and 2017:
Three months ended
December 31,
Percentage
Change
2018 2017 2017-2018 (U.S.$ in millions)
Generic products $ 499 $ 650 (23 %) COPAXONE 20 26 (23 %)
Distribution 146 144 1 %
Generic products revenues in our International Markets
segment in the fourth quarter of 2018, which include OTC products,
decreased by 23% to $499 million, compared to the fourth quarter of
2017. In local currency terms, revenues decreased by 18%, mainly
due to lower sales in Russia and lower sales in Japan resulting
from regulatory pricing reductions and generic competition to
off-patented products.
COPAXONE revenues in our International Markets segment in
the fourth quarter of 2018 decreased by 23% to $20 million,
compared to the fourth quarter of 2017. In local currency terms,
revenues decreased by 6%.
Distribution revenues in our International Markets
segment in the fourth quarter of 2018 increased by 1% to $146
million, compared to the fourth quarter of 2017. In local currency
terms, revenues increased by 6%.
International Markets Gross Profit
Gross profit from our International Markets segment in the
fourth quarter of 2018 was $312 million, a decrease of 20% compared
to $390 million in the fourth quarter of 2017. Gross profit margin
for our International Markets segment in the fourth quarter of 2018
decreased to 42.1%, compared to 42.9% in the fourth quarter of
2017. The decrease was mainly due to lower gross profit resulting
from changes in the product mix in certain countries, mainly Russia
and Japan.
International Markets Profit
Profit from our International Markets segment in the fourth
quarter of 2018 was $114 million, compared to $155 million in the
fourth quarter of 2017. The decrease was mainly due to lower
revenues in Russia and Japan, partially offset by cost reductions
and efficiency measures as part of the restructuring plan.
Other Activities
We have other sources of revenues, primarily the sale of API to
third parties and certain contract manufacturing services. These
other activities are not included in our North America, Europe or
International Markets segments.
Our revenues from other activities in the fourth quarter of 2018
increased by 8% to $377 million, compared to the fourth quarter of
2017. In local currency terms, revenues increased by 9%.
API sales to third parties in the fourth quarter of 2018 were
$209 million, an increase of 16% compared to the fourth quarter of
2017. In local currency terms, revenues increased by 16%.
Outlook for 2019
Non-GAAP Results
2018
Actuals
2019
Outlook
Revenues $18.9 billion
$17.0-17.4 billion
Non-GAAP Operating Income $4.7 billion
$3.8 – 4.2 billion
EBITDA $5.3 billion
$4.4-4.8 billion Non-GAAP
EPS $2.92
$2.20-2.50 Weighted average number of
shares 1,024 million
1,096 million Free cash flow
$3.7 billion
$1.6-2.0 billion
The outlook for 2019 non-GAAP results is based on the following
key assumptions:
2018
Actuals
2019
Commentary
Global COPAXONE $2.4B Continued generic erosion; sales of
~$1.5B ProAir HFA $397M Significant erosion due to
introduction of generic Albuterol AJOVY $3M Continued ramp
up of sales in the U.S. to ~$150M AUSTEDO $204M Continued
ramp up of sales in the U.S. to $350M North America Generics
$4.1B
Slight decline due to erosion and volume
declines offset by new launches
Europe Generics $3.6B Continued portfolio optimization and
full year effect of OTC JV dissolution International
Generics $2B Adverse impact in Japan due to NHI price revision and
LLP erosion Foreign Exchange Negative impact of
approximately $0.3B on sales, and $0.1B on operating profit vs.
2018
Non-GAAP Other Income
$0.2B Significant decline vs. 2018
Non-GAAP Tax Rate
15%
16% vs. 2018 actual of 15%
CAPEX $0.6B At similar level as 2018
Conference Call
Teva will host a conference call and live webcast along with a
slide presentation on Wednesday, February 13, 2019 at 8:00 a.m. ET
to discuss its fourth quarter and annual 2018 results and overall
business environment. A question & answer session will
follow.
United States 1-866-966-1396
International +44 (0) 2071 928000 Israel 1-809-203-624
For a list of other international toll-free numbers, click
here.
passcode: 1174907
A live webcast of the call will also be available on Teva's
website at: ir.tevapharm.com. Please log in at least 10 minutes
prior to the conference call in order to download the applicable
software.
Following the conclusion of the call, a replay of the webcast
will be available within 24 hours on the Company's website by
calling United States 1-866-331-1332; International +44 (0) 3333
009785; passcode: 1174907.
About Teva
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is a
global leader in generic medicines, with innovative treatments in
select areas, including CNS, pain and respiratory. We deliver
high-quality generic products and medicines in nearly every
therapeutic area to address unmet patient needs. We have an
established presence in generics, specialty, OTC and API, building
on more than a century-old legacy, with a fully integrated R&D
function, strong operational base and global infrastructure and
scale. We strive to act in a socially and environmentally
responsible way. Headquartered in Israel, with production and
research facilities around the globe, we employ 42,500
professionals, committed to improving the lives of millions of
patients. Learn more at 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, EBITDA, non-GAAP financial expenses, non-GAAP income taxes,
non-GAAP net income and non-GAAP diluted EPS are presented in order
to facilitates investors' understanding of our business. We utilize
certain non-GAAP financial measures to evaluate performance, in
conjunction with other performance metrics. The following are
examples of how we utilize the non-GAAP measures: our management
and board of directors use the non-GAAP measures to evaluate our
operational performance, to compare against work plans and budgets,
and ultimately to evaluate the performance of management; our
annual budgets are prepared on a non-GAAP basis; and senior
management’s annual compensation is derived, in part, using these
non-GAAP measures. See the attached tables for a reconciliation of
the GAAP results to the adjusted non-GAAP figures. Investors should
consider non-GAAP financial measures in addition to, and not as
replacements for, or superior to, measures of financial performance
prepared in accordance with GAAP. We are not providing forward
looking guidance for GAAP reported financial measures or a
quantitative reconciliation of forward-looking non-GAAP financial
measures to the most directly comparable GAAP measure because we
are unable to predict with reasonable certainty the ultimate
outcome of certain significant items without unreasonable
effort.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, which are based on management’s current beliefs and
expectations and are subject to substantial risks and
uncertainties, both known and unknown, that could cause our future
results, performance or achievements to differ significantly from
that expressed or implied by such forward-looking statements.
Important factors that could cause or contribute to such
differences include risks relating to:
- our ability to successfully compete in
the marketplace, including: that we are substantially dependent on
our generic products; competition for our specialty products,
especially COPAXONE®, our leading medicine, which faces competition
from existing and potential additional generic versions and
orally-administered alternatives; the uncertainty of commercial
success of AJOVY® or AUSTEDO®; 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 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: 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 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; increased legal and regulatory
action in connection with public concern over the abuse of opioid
medications in the U.S.; governmental investigations into selling
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, 2018, including the sections
captioned "Risk Factors." 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.
Some amounts in this press release may not add up due to
rounding. All percentages have been calculated using unrounded
amounts.
Consolidated
Statements of Income
(U.S. dollars in
millions, except share and per share data)
Three months ended
Year ended
December 31,
December 31,
2018 2017 2018 2017 (Unaudited)
(Unaudited) (Audited) (Audited) Net
revenues 4,559 5,398 18,854 22,385
Cost of sales 2,588
2,954 10,558 11,770
Gross profit
1,971 2,444 8,296 10,615
Research and development expenses
295 346 1,213 1,778
Selling and marketing expenses 797 823
2,916 3,395
General and administrative expenses 344 350
1,298 1,451
Other asset impairments, restructuring and other
items 153 1,036 987 1,836
Intangible assets impairment
745 2,829 1,991 3,238
Goodwill impairment 2,727 11,000 3,027
17,100
Legal settlements and loss contingencies 31 176
(1,208 ) 500
Other expense (income) 43 (1,099 ) (291
) (1,199 )
Operating loss (3,164 ) (13,017 ) (1,637 )
(17,484 )
Financial expenses – net 223 191 959
895
Loss before income taxes (3,387 ) (13,208
) (2,596 ) (18,379 )
Tax benefits
(139 ) (1,471 ) (195 ) (1,933 )
Share in losses (profit) of
associated companies, net (5 ) (7 ) 71 3
Net
loss (3,243 ) (11,730 ) (2,472 ) (16,449 )
Net income
attributable to non-controlling interests (357 ) (195 ) (322 )
(184 )
Net loss attributable to Teva (2,886 ) (11,535 )
(2,150 ) (16,265 )
Dividends on preferred shares 54
65 249 260
Net loss attributable to Teva's
ordinary shareholders
(2,940 ) (11,600 ) (2,399 ) (16,525 )
Earnings
per share attributable to ordinary shareholders: Basic
($) (2.85 ) (11.41 ) (2.35 ) (16.26 )
Diluted ($) (2.85
) (11.41 ) (2.35 ) (16.26 )
Weighted average number of shares
(in millions): Basic 1,031 1,017 1,021
1,016
Diluted
1,031 1,017 1,021 1,016
Non-GAAP net income
attributable to ordinary shareholders:* 543 949
2,985 4,075
Non-GAAP net income attributable to
ordinary shareholders for diluted earnings per share: 543
949 2,985 4,075
Non-GAAP
earnings per share attributable to ordinary shareholders:*
Basic ($) 0.53 0.93 2.92 4.01
Diluted ($) 0.53 0.93 2.92 4.01
Non-GAAP average number of shares (in millions):
Basic 1,031 1,017 1,021 1,016
Diluted 1,034
1,018 1,024 1,018
* See reconciliation attached.
Condensed
Consolidated Balance Sheets
(U.S. dollars in
millions)
(Audited)
December 31, December 31, 2018
2017 ASSETS Current assets: Cash and cash
equivalents 1,782 963 Trade receivables 5,822 7,128 Inventories
4,731 4,924 Prepaid expenses 899 1,100 Other current assets 468 701
Assets held for sale 92 566
Total current assets 13,794
15,382
Deferred income taxes 368 574
Other non-current
assets 731 932
Property, plant and equipment, net 6,868
7,673
Identifiable intangible assets, net 14,005 17,640
Goodwill 24,917 28,414
Total assets 60,683 70,615
LIABILITIES & EQUITY Current liabilities:
Short-term debt 2,216 3,646 Sales reserves and allowances 6,711
7,881 Trade payables 1,853 2,069 Employee-related obligations 870
549 Accrued expenses 1,868 3,014 Other current liabilities 804 724
Liabilities held for sale - 38
Total current liabilities
14,322 17,921
Long-term liabilities: Deferred income
taxes 2,140 3,277 Other taxes and long-term liabilities 1,727 1,843
Senior notes and loans 26,700 28,829
Total long-term
liabilities 30,567 33,949
Equity: Teva shareholders’
equity 14,707 17,359
Non-controlling interests
1,087 1,386
Total equity 15,794 18,745
Total liabilities
and equity 60,683 70,615
Condensed
Consolidated Cash Flow
(U.S. Dollars in
millions)
Three months ended Year ended December
31, December 31, 2018 2017 2018
2017 Unaudited Unaudited Unaudited
Unaudited Operating activities: Net income
(loss) (3,243 ) (11,730 ) (2,472 ) (16,449 )
Net change in
operating assets and liabilities (302 ) 72 (1,823 ) (1,645 )
Items not involving cash flow 3,912 12,517 6,741 20,319
Net cash provided by operating
activities 367 859 2,446 2,225
Net cash provided by
investing activities 74 1,912 1,866 3,446
Net cash
used in financing activities (499 ) (2,506 ) (3,351 ) (5,750 )
Translation adjustment on cash and cash equivalents
(35 ) 18 (142 ) 54
Net change in
cash and cash equivalents (93 ) 283 819 (25 )
Balance
of cash and cash equivalents at beginning of period 1,875 680
963 988
Balance of cash and cash
equivalents at end of period 1,782 963 1,782
963
Three Months Ended December 31, 2018 U.S. $ and shares in
millions (except per share amounts) GAAP Excluded for
non GAAP measurement
NonGAAP
Amortization ofpurchased
intangibleassets
Legal settlements andloss
contingencies
Goodwillimpairment
Impairment oflong-lived assets
Other R&Dexpenses
Acquisition,integration andrelated
expenses
Restructuringcosts
Costs related toregulatory actions takenin
facilities
Equitycompensation
Contingentconsideration
Gain on saleof business
Other nonGAAPitems
Other items COGS 2,588 233 8 6 110 2,231 R&D 295
1 5 - 289 S&M 797 24 8 (3) 768 G&A 344 11 3 330 Other
income 43 48 (5) Legal settlements and loss contingencies 31 31 -
Impairments, restructuring and other 153 245 4 46 (27) (115) -
Intangible assets impairment
745 745 Goodwill impairment 2,727 2,727 - Financial expenses 223 7
216 Corresponding tax effect (139) (235) 96 Share in losses of
associated companies – net (5) - (5) Net income attributable to
non-controlling interests (357)
(399) 42 Total reconciled items 257 31 2,727
990 1 4 46 8 30
(27) 48 (5) (627) EPS - Basic
(2.85) 3.38 0.53 EPS - Diluted (2.85) 3.38 0.53 The
non-GAAP diluted weighted average number of shares was 1,034
million for the three months ended December 31, 2018. The non-GAAP
weighted average number of shares for the three months ended
December 31, 2018 does not take into account the potential dilution
of the mandatory convertible preferred shares, which have an
anti-dilutive effect on non-GAAP earnings per share.
Three Months Ended December 31,
2017 U.S. $ and shares in millions (except per share
amounts) GAAP Excluded for non GAAP measurement
NonGAAP
Amortization ofpurchased
intangibleassets
Legal settlements andloss
contingencies
Goodwillimpairment
Impairment oflong-lived assets
Other R&Dexpenses
Acquisition,integration andrelated
expenses
Restructuringcosts
Costs related toregulatory actions takenin
facilities
Equitycompensation
Contingentconsideration
Other nonGAAP items
Otheritems
COGS 2,954 291 (1) 5 10 2,649 R&D 346 45 5 1 295 S&M 823 65
9 - 749 G&A 350 8 7 335 Other income (1,099) (1,084) (15) Legal
settlements and loss contingencies 176 176 - Impairments,
restructuring and other 946 299 18 235 (25) 419 -
Intangible assets impairment
2,919 2,919 - Goodwill impairment 11,000 11,000 - Financial
expenses 191 (18) 209 Corresponding tax effect (1,471) (1,654) 183
Share in losses of associated companies – net (7) 45 (52) Net
income attributable to non-controlling interests (195)
(226) 31 Total reconciled items 356 176
11,000 3,218 45 18 235
(1) 27 (25) (647) (1,853) EPS -
Basic (11.41) 12.34 0.93 EPS - Diluted (11.41) 12.34 0.93
The non-GAAP diluted weighted average number of shares was
1,018 million for the three months ended December 31, 2017. The
non-GAAP weighted average number of shares for the three months
ended December 31, 2017 does not take into account the potential
dilution of the mandatory convertible preferred shares, which have
an anti-dilutive effect on non-GAAP earnings per share.
Year Ended December 31, 2018
(U.S. $ and shares in millions, except per share amounts)
GAAP Excluded for non GAAP measurement
NonGAAP
Amortization ofpurchasedintangible
assets
Goodwill impairment
Legal settlementsand losscontingencies
Impairment oflong-lived assets
Other R&Dexpenses
Acquisition,integration andrelated
expenses
Restructuringcosts
Costs related toregulatory actions takenin
facilities
Equitycompensation
Contingentconsideration
Gain on saleof business
Other nonGAAPitems
Other items COGS 10,558 1,004 14 28 204 9,308 R&D 1,213 83 26 2
1,102 S&M 2,916 162 43 (7) 2,718 G&A 1,298 55 15 1,228
Other income (291) (66) (225) Legal settlements and loss
contingencies (1,208) (1,208) - Impairments, restructuring and
other 987 500 13 488 57 (71) - Intangible assets impairment 1,991
1,991 - Goodwill impairment 3,027 3,027 - Financial expenses 959 66
893 Corresponding tax effect (195) (714) 519 Share in losses of
associated companies – net 71 103 (32) Net income attributable to
non-controlling interests (322)
(431) 109 Total reconciled items 1,166 3,027
(1,208) 2,491 83 13 488 14
152 57 (66) 143 (976) EPS
- Basic (2.35) 5.27 2.92 EPS - Diluted (2.35) 5.27 2.92
The non-GAAP diluted weighted average number of shares was
1,024 million for the year ended December 31, 2018. The non-GAAP
weighted average number of shares for the year ended December 31,
2018 does not take into account the potential dilution of the
mandatory convertible preferred shares, which have an anti-dilutive
effect on non-GAAP earnings per share.
Year Ended December 31, 2017
(U.S. $ and shares in millions, except per share amounts)
GAAP Excluded for non GAAP measurement Non GAAP
Amortization ofpurchased
intangibleassets
Goodwill impairment
Legal settlementsand losscontingencies
Impairment of long-lived assets
Other R&Dexpenses
Inventory step-up
Acquisition,integration andrelated
expenses
Restructuring costs
Costs related toregulatory actionstaken in
facilities
Equitycompensation
Contingentconsideration
Other nonGAAPitems
Other items COGS 11,770 1,235 67 47 23 47 10,351 R&D 1,778 221
22 20 1,515 S&M 3,395 209 38 (1) 3,149 G&A 1,451 46 (8)
1,413 Other income (1,199) (1,083) (116) Legal settlements and loss
contingencies 500 500 - Impairments, restructuring and other 1,836
544 105 535 154 498 - Intangible assets impairment 3,238 3,238 -
Goodwill impairment 17,100 17,100 - Financial expenses 895 (13) 908
Corresponding tax effect (1,933) (2,721) 788 Share in losses of
associated companies – net 3 47 (44) Net income attributable to
non-controlling interests (184) (270) 86
Total reconciled items 1,444
17,100 500 3,782 221 67 105
535 47 129 154 (527)
(2,957) EPS - Basic (16.26) 20.27 4.01 EPS - Diluted (16.26) 20.27
4.01 The non-GAAP diluted weighted average number of
shares was 1,018 million for the year ended December 31, 2017. The
non-GAAP weighted average number of shares for the year ended
December 31, 2017 does not take into account the potential dilution
of the mandatory convertible preferred shares (amounting to 59
million weighted average shares), which have an anti-dilutive
effect on non-GAAP earnings per share.
Segment Information North
America Europe International Markets
Three months ended December 31,
Three months ended December 31, Three months ended
December 31, 2018 2017 2018 2017
2018 2017 (U.S. $ in millions) (U.S.
$ in millions) (U.S. $ in millions) Revenues $
2,238 $ 2,689 $ 1,204 $ 1,450 $ 740 $ 910 Gross profit 1,201 1,506
689 758 312 390 R&D expenses 185 192 75 78 26 25 S&M
expenses 341 285 278 284 134 169 G&A expenses 127 101 82 96 38
45 Other income (loss) (3 ) (10 ) 1 (1
) - (4 ) Segment profit $ 551 $ 938 $
253 $ 301 $ 114 $ 155
Segment Information North
America Europe International Markets Year
ended December 31, Year ended December 31, Year ended
December 31, 2018 2017 2018 2017
2018 2017 (U.S. $ in millions) (U.S.
$ in millions) (U.S. $ in millions) Revenues $
9,297 $ 12,141 $ 5,186 $ 5,466 $ 3,005 $ 3,395 Gross profit 4,979
7,322 2,884 2,887 1,254 1,433 R&D expenses 713 969 283 390 96
154 S&M expenses 1,154 1,288 1,003 1,130 518 672 G&A
expenses 484 533 325 354 153 189 Other income (209 )
(92 ) - (16 ) (11 ) (8 ) Segment profit
$ 2,837 $ 4,624 $ 1,273 $ 1,029 $ 498 $
426
Reconciliation of our segment
profit to consolidated income before income taxes
Three months ended December 31, 2018
2017 (U.S.$ in millions) North America
profit $ 551 $ 938 Europe profit 253 301 International Markets
profit 114 155 Total segment profit 918 1,394 Profit (loss) of
other activities 28 (9) 946 1,385 Amounts not allocated to
segments: Amortization 257 356 Other asset impairments,
restructuring and other items 153 1,036 Goodwill impairment 2,727
11,000 Intangible asset impairments 745 2,829 Loss from
divestitures, net of divestitures related costs 48 (1,083) Other
R&D expenses 1 45 Costs related to regulatory actions taken in
facilities 8 (1) Legal settlements and loss contingencies 31 176
Other unallocated amounts 140 44 Consolidated
operating income (3,164) (13,017) Financial expenses
- net 223 191 Consolidated income (loss) before
income taxes $ (3,387) $ (13,208)
Reconciliation of our segment profit to consolidated
income before income taxes Year ended December
31, 2018 2017 (U.S.$ in millions)
North America profit $ 2,837 $ 4,624 Europe profit 1,273
1,029 International Markets profit 498 426 Total segment profit
4,608 6,079 Profit of other activities 115 (6) 4,723 6,073 Amounts
not allocated to segments: Amortization 1,166 1,444 Other asset
impairments, restructuring and other items 987 1,836 Goodwill
impairment 3,027 17,100 Intangible asset impairments 1,991 3,238
Gain on divestitures, net of divestitures related costs (66)
(1,083) Inventory step-up - 67 Other R&D expenses 83 221 Costs
related to regulatory actions taken in facilities 14 47 Legal
settlements and loss contingencies (1,208) 500 Other unallocated
amounts 366 187 Consolidated operating
income (loss) (1,637) (17,484) Financial expenses -
net 959 895 Consolidated income (loss) before income
taxes $ (2,596) $ (18,379)
Revenues
by Activity and Geographical Area (Unaudited)
Three
months ended December 31,
PercentageChange
2018 2017 2017-2018 (U.S.$ in millions)
North America segment Generics medicines $ 1,099 $ 1,224 (10
%) COPAXONE 356 641 (44 %) Bendeka and Trenda 140 158 (11 %) ProAir
45 102 (56 %) QVAR 9 48 (81 %) AUSTEDO 68 17 314 % ANDA 363 289 26
%
Three months ended December 31,
PercentageChange
2018 2017 2017-2018 (U.S.$ in millions)
Europe segment Generic medicines $ 844 $ 928 (9 %) COPAXONE
118 155 (24 %) Respiratory products 90 110 (18 %)
Three months ended December 31,
PercentageChange
2018 2017 2017-2018 (U.S.$ in millions)
International Markets segment Generics medicines $ 499 $ 650
(23 %) COPAXONE 20 26 (23 %) Distribution 146 144 1 %
Revenues by Activity and Geographical Area
(Unaudited)
Year ended December 31,
PercentageChange
2018 2017 2017-2018 (U.S.$ in millions)
North America segment Generics medicines $ 4,056 5,203 (22
%) COPAXONE 1,759 3,116 (44 %) Bendeka and Trenda 642 656 (2 %)
ProAir 397 501 (21 %) QVAR 182 313 (42 %) AUSTEDO 204 24 750 % ANDA
1,347 1,153 17 %
Year ended December 31,
PercentageChange
2018 2017 2017-2018 (U.S.$ in millions)
Europe segment Generic medicines $ 3,593 $ 3,471 4 %
COPAXONE 535 595 (10 %) Respiratory products 402 368 9 %
Year ended December 31,
PercentageChange
2018 2017 2017-2018 (U.S.$ in millions)
International Markets segment Generics medicines $ 2,022 $
2,370 (15 %) COPAXONE 72 91 (21 %) Distribution 602 550 9 %
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190213005327/en/
IR ContactsKevin C. Mannix, (215) 591-8912orRan Meir, 972
(3) 926-7516orPR ContactsUnited StatesKelley Dougherty,
(973) 658-0237orIsraelYonatan Beker, 972 (54) 888 5898
Teva Pharmaceutical Indu... (NYSE:TEVA)
過去 株価チャート
から 6 2024 まで 7 2024
Teva Pharmaceutical Indu... (NYSE:TEVA)
過去 株価チャート
から 7 2023 まで 7 2024