TEVA 10-K Annual Reports

Teva Pharmaceutical Industries Annual Report, Year Ended Dec 31, 2025

Teva Pharmaceutical Industries Limited reported 2025 net revenues of $17,258 million, up 4% in U.S. dollars (3% in local currency), compared to 2024. Gross profit was $8,938 million, with gross profit margin of 51.8% versus 48.7% in 2024. Operating income was $2,157 million, compared to an operating loss of $303 million in 2024. Net income attributable to Teva was $1,410 million, or $1.21 diluted earnings per share, compared to a net loss of $1,639 million in 2024. Growth was driven by AUSTEDO, AJOVY and UZEDY, along with $500 million in development milestone payments tied to the initiation of Phase 3 studies for duvakitug (anti-TL1A). Operating results also reflected lower impairments and legal settlement charges, and the company recorded $1,050 million for other asset impairments, restructuring and other items, including a $726 million impairment on a European manufacturing facility. Debt declined to $16,807 million at year-end 2025 from $17,783 million, and free cash flow was $2,396 million, as defined by the company. Cash flow from operating activities was $1,649 million. The company has not paid dividends since December 2017. Teva's Transformation programs, announced May 7, 2025, are expected to generate approximately $700 million of net savings through 2027. Management says it has achieved its targeted savings for 2025. The company continues its Pivot to Growth strategy, including the planned divestiture of its API business, which remains subject to a renewed sales process after exclusive talks with a buyer ended in November 2025. Beginning January 1, 2026, Anda will be reported under Other Activities rather than the United States segment.

Teva Pharmaceutical Industries Annual Report, Year Ended Dec 31, 2024

Teva Pharmaceutical Industries Limited reported 2024 net revenues of $16,544 million, up 4% in U.S. dollars and 6% in local currency compared to 2023, driven mainly by higher generic product revenues across all segments, lenalidomide capsules, AUSTEDO, UZEDY and AJOVY, partly offset by lower COPAXONE and BENDEKA and TREANDA revenues. The company nonetheless posted an operating loss of $303 million and a net loss attributable to Teva of $1,639 million, or $1.45 per diluted share, compared to a net loss of $559 million in 2023. The loss was driven by a $1,280 million goodwill impairment, primarily related to the Teva API reporting unit, $1,388 million of other asset impairments, restructuring and other items, $761 million of legal settlements and loss contingencies, and a tax expense of $676 million on a pre-tax loss of $1,284 million. Teva's balance sheet shows total assets of $39,326 million, debt of $17,783 million (down from $19,833 million), and total equity of $5,380 million (down from $8,126 million). Cash flow from operating activities was $1,247 million, and free cash flow, as defined by the company, was $2,068 million. Management highlighted its Pivot to Growth strategy, including the planned divestiture of the API business and the agreement to sell the Japan business venture to JKI Co. Ltd., with closing expected by April 1, 2025. Non-GAAP diluted EPS was $2.49 for 2024, compared to $2.56 in 2023.

Teva Pharmaceutical Industries Annual Report, Year Ended Dec 31, 2023

Teva Pharmaceutical Industries Limited reported 2023 revenues of $15,846 million, up 6% in U.S. dollars (7% in local currency), compared to 2022. The increase was mainly driven by a $500 million upfront payment received in connection with the collaboration on its anti-TL1A asset with Sanofi, higher revenues from generic products in International Markets and Europe, growth in AUSTEDO and AJOVY, and higher Anda revenues, partially offset by lower COPAXONE, API sales and BENDEKA/TREANDA revenues. The company reported an operating income of $433 million (compared to an operating loss of $2,197 million in 2022) and a net loss attributable to Teva of $559 million, or diluted loss per share of $0.50. Results were affected by a $700 million goodwill impairment in the International Markets reporting unit, $1,043 million in legal settlements and loss contingencies, and $718 million in other asset impairments, restructuring and other items. Total debt was $19,833 million at December 31, 2023, down from $21,212 million a year earlier, and cash and cash equivalents rose to $3,226 million. Operating cash flow was $1,368 million, and the company reported free cash flow of $2,387 million, a figure it defines to include beneficial interest collected under its EU securitization program. Management describes its Pivot to Growth strategy, launched in May 2023, which centers on AUSTEDO, AJOVY, UZEDY and the biosimilar pipeline, and includes an intention to divest the API business in the first half of 2025. The filing also discloses a material weakness in internal control over financial reporting related to the contingent consideration liability and related expenses for estimated future royalty payments. This led to a revision of previously issued 2022 financial statements and certain 2023 interim periods. The company has not paid dividends since December 2017, and it disclosed a deferred prosecution agreement with the DOJ, an opioids nationwide settlement of up to $4.25 billion payable over 13 years, and a $1 billion-plus damages claim in the DOJ patient assistance program case.

Teva Pharmaceutical Industries Annual Report, Year Ended Dec 31, 2022

Teva Pharmaceutical Industries Limited reported 2022 net revenues of $14,925 million, a decrease of 6% in U.S. dollars (1% in local currency) compared to 2021, driven by lower COPAXONE and certain respiratory product sales in North America and Europe, and lower generic and BENDEKA/TREANDA revenues in North America. Gross profit was $6,973 million, with gross margin of 46.7% versus 47.8% in 2021. The company reported an operating loss of $2,099 million, compared to operating income of $1,716 million in 2021, driven mainly by a $2,045 million goodwill impairment charge and $2,082 million in legal settlements and loss contingencies, primarily related to the remaining opioid cases. Net loss attributable to Teva was $2,353 million, or a diluted loss per share of $2.12, compared to net income of $417 million and diluted EPS of $0.38 in 2021. Cash flow from operating activities rose to $1,590 million from $798 million, mainly due to a U.S. securitization facility entered into in November 2022. Free cash flow, as defined by the company, was $2,243 million. Total debt decreased to $21,212 million from $23,043 million, and total equity fell to $8,691 million from $11,244 million. The company said it was in compliance with its financial ratio covenants as of December 31, 2022, and its RCF leverage covenant was amended in February 2023. Teva has not paid dividends since December 2017. The filing also highlights ongoing exposure to the opioid nationwide settlement, which is contingent on sufficient participation, as well as a pending U.S. criminal indictment of Teva USA under the Sherman Act and a European Commission Statement of Objections regarding COPAXONE. Innovative medicines AUSTEDO and AJOVY continued to grow, with AUSTEDO revenues up 20% and AJOVY revenues up 24% in North America.

Teva Pharmaceutical Industries Annual Report, Year Ended Dec 31, 2021

Teva Pharmaceutical Industries Limited reported 2021 net revenues of $15,878 million, a decrease of 5% in U.S. dollars (6% in local currency) from 2020, mainly due to lower COPAXONE revenues, U.S. generic products, Japan generic divestment effects, and Anda, partially offset by higher AUSTEDO and AJOVY revenues. Operating income was $1,716 million versus an operating loss of $3,572 million in 2020, which included a $4,628 million goodwill impairment. Net income attributable to Teva was $417 million, or $0.38 diluted EPS, compared with a net loss of $3,990 million in 2020. Cash flow from operating activities was $798 million, and the company reported free cash flow of $2,196 million. Debt declined to $23,043 million at December 31, 2021 from $25,919 million, following a $5 billion sustainability-linked senior notes issuance, a cash tender offer that repurchased $4,008 million of notes, and repayment of maturing senior notes. The company stated it was in compliance with all financial ratios as of year-end, and it had no amounts outstanding under its revolving credit facility. Teva has not paid dividends since December 2017. The filing also details significant legal exposure, including a $717 million expense for legal settlements and loss contingencies in 2021, a $2,710 million provision for legal settlements, and a $420 million Ontario Teachers securities class action settlement reached in January 2022. Segment profit was $2,224 million in North America, $1,494 million in Europe, and $529 million in International Markets. Growth products AUSTEDO (up 26% in North America to $802 million) and AJOVY (up 31% in North America to $176 million) partly offset declines in COPAXONE, which fell 35% in North America to $577 million.

Teva Pharmaceutical Industries Annual Report, Year Ended Dec 31, 2020

Teva Pharmaceutical Industries Limited's 10-K for fiscal 2020 reports net revenues of $16,659 million, down 1% in both U.S. dollar and local currency terms from $16,887 million in 2019, mainly due to lower oncology, COPAXONE and certain respiratory revenues, partly offset by higher AUSTEDO and AJOVY revenues. The company posted a net loss attributable to Teva of $3,990 million, driven largely by a $4,628 million goodwill impairment in the North America reporting unit, recorded in the third quarter of 2020 following a 25% decline in market capitalization and uncertainty around opioid and price-fixing litigation. Operating loss was $3,572 million, compared with an operating loss of $443 million in 2019. Cash flow from operations improved to $1,216 million from $748 million, and free cash flow was $2,110 million as defined by the company. Total debt decreased to $25,919 million from $26,908 million, and total equity fell to $11,061 million from $15,063 million. Teva has not paid dividends since December 2017. The filing also details substantial legal exposure, including a criminal indictment of Teva USA under the Sherman Act, a DOJ civil complaint under the Anti-Kickback Statute, and a provision of $1,625 million for legal settlements and loss contingencies, with a nationwide opioid settlement framework still under negotiation. Segment profit was $2,421 million in North America (up 7%), $1,331 million in Europe (up 1%) and $474 million in International Markets (up 2%). Management expects Teva to exceed debt covenant thresholds in the RCF within one year, and cites a $1,405 million beneficial interest collected from securitized receivables as a contributor to free cash flow.

Teva Pharmaceutical Industries Annual Report, Year Ended Dec 31, 2019

Teva Pharmaceutical Industries Limited reported 2019 net revenues of $16.89 billion, down from $18.27 billion in 2018, driven mainly by generic competition to COPAXONE, a decline in its U.S. generics business, BENDEKA/TREANDA and Japan, partially offset by higher revenues from AUSTEDO, AJOVY and QVAR in the United States. The company posted a net loss attributable to Teva of $999 million, or $0.91 per diluted share, compared with a net loss of $2.15 billion in 2018. Operating loss narrowed to $443 million from $1.64 billion, mainly because 2018 included a $3.03 billion goodwill impairment and 2019 had no goodwill impairment, although 2019 included a $1.18 billion legal settlements and loss contingencies expense, mainly tied to remaining opioid cases. Cash flow weakened: operating cash flow was $748 million, down $1.70 billion or 69%, and free cash flow was $2.05 billion as defined by the company. Total debt fell to $26.91 billion from $28.92 billion, and the company stated it was in compliance with all applicable financial ratios at year end. Teva continued its restructuring plan announced in December 2017, which reduced the cost base by $3 billion and cut roughly 13,000 full-time-equivalent employees. The company has not paid dividends on its ordinary shares since December 2017. Investors should note several risks disclosed in the filing: continuing COPAXONE erosion, the Davie, Florida FDA warning letter, a February 2020 negative trial result for AUSTEDO in Tourette syndrome with a $211 million expected impairment in the first quarter of 2020, and a broad set of U.S. antitrust, opioid and securities litigations. Teva's credit ratings are below investment grade at Fitch, Moody's and Standard & Poor's.

Teva Pharmaceutical Industries Annual Report, Year Ended Dec 31, 2018

Teva Pharmaceutical Industries Limited reported a net loss attributable to Teva of $2.15 billion for 2018, compared with a net loss of $16.27 billion in 2017, as revenues fell to $18.85 billion from $22.39 billion. The decline was driven mainly by generic competition to COPAXONE, a decline in the U.S. generics business, and the divestment of certain products. Operating loss was $1.64 billion, reflecting goodwill impairments of $3.03 billion (mainly International Markets) and intangible asset impairments of $1.99 billion, partially offset by a $1.21 billion income from legal settlements and loss contingencies. Cash flow from operating activities was $2.45 billion, and the company ended the year with total debt of $28.92 billion, down from $32.48 billion. The filing describes a comprehensive restructuring plan announced in December 2017 intended to reduce the total cost base by $3 billion by the end of 2019, with approximately 25% of the workforce to be reduced and about 10,300 full-time-equivalent employees already removed since the announcement. Restructuring expenses were $488 million in 2018. Dividends on ordinary shares have been suspended, and the company states it cannot repurchase shares due to its accumulated deficit. Credit ratings were downgraded to non-investment grade by Fitch, Moody's and S&P during 2017 and early 2018. Key risks highlighted include continued price erosion in U.S. generics, the decline of COPAXONE following approval of generic versions, a February 2019 FDA warning letter for the Davie, Florida plant (with approximately $255 million in expected 2019 revenue from that site), the valsartan recall, and ongoing litigation including opioid-related and antitrust matters. The company's specialty pipeline includes AJOVY, launched in the U.S. in September 2018, and AUSTEDO, which generated $204 million in U.S. revenue in 2018.

Teva Pharmaceutical Industries Annual Report, Year Ended Dec 31, 2017

Teva Pharmaceutical Industries Limited reported a 2017 net loss attributable to Teva of $16.3 billion (net loss attributable to ordinary shareholders of $16.5 billion, or $16.26 per diluted share), compared with net income of $329 million in 2016. The loss was driven primarily by goodwill impairments of $17.1 billion, mainly tied to the U.S. generics reporting unit, and $3.8 billion of long-lived asset impairments. Net revenues were $22.4 billion, up 2% from $21.9 billion in 2016, while operating loss was $17.5 billion versus operating income of $2.2 billion the prior year. Total debt stood at $32.5 billion at December 31, 2017, and the company suspended dividends on its ordinary shares and ADSs in December 2017. In December 2017 the company announced a comprehensive restructuring plan intended to reduce its total cost base by $3 billion by the end of 2019, including a reduction of 14,000 positions (over 25% of the workforce) and the closure or divestment of a significant number of manufacturing plants and R&D facilities. Kåre Schultz became President and CEO effective November 1, 2017. The company also reorganized into one commercial organization across three regions, and it sold several non-core businesses, including PARAGARD for $1.1 billion and PLAN B ONE-STEP for $675 million. The filing highlights continued pressure on the generics business, particularly in the United States, and on COPAXONE, the company's leading specialty medicine, which faces generic competition following FDA approval of generic versions in October 2017. Credit ratings were downgraded to non-investment grade by Fitch, Moody's and S&P during 2017 and early 2018, and the company reported that it was in compliance with its financial covenants as of December 31, 2017.

Teva Pharmaceutical Industries Annual Report, Year Ended Dec 31, 2016

Teva Pharmaceutical Industries Limited's 2016 Form 20-F, filed February 15, 2017, reports a year dominated by the August 2016 acquisition of Allergan plc's generic pharmaceuticals business (Actavis Generics) for approximately $33.4 billion in cash and about 100.3 million Teva shares. Net revenues rose to $21.9 billion from $19.7 billion, but net income attributable to Teva fell to $329 million from $1.6 billion, and net income attributable to ordinary shareholders was $68 million, or $0.07 diluted EPS, after $261 million of accrued preferred dividends. Operating income fell to $2.2 billion from $3.4 billion, driven by a $900 million goodwill impairment tied to the Rimsa acquisition, $899 million in legal settlements and loss contingencies (including a $519 million FCPA resolution), and $383 million of inventory step-up. Total debt rose to $35.8 billion from $9.9 billion, and cash and investments fell to $1.9 billion. The filing signals a structural shift toward generics. Generic medicines generated $12.0 billion of revenue, or 55% of total revenues, and the company expects generics to approach two-thirds of revenues in 2017. Specialty medicines revenue was $8.7 billion, with Copaxone contributing $4.2 billion, about 19% of revenues. In January 2017 a U.S. district court held four Copaxone 40 mg/mL patents invalid, and the company expects Copaxone sales to decline. Both S&P and Moody's moved their outlooks to negative, and Teva's ratings are BBB and Baa2. Dr. Yitzhak Peterburg became interim CEO on February 6, 2017, succeeding Erez Vigodman, and the company's management and strategy are under review.

Teva Pharmaceutical Industries Annual Report, Year Ended Dec 31, 2015

Teva Pharmaceutical Industries Limited's annual report for fiscal 2015 shows net revenues of $19.65 billion, down from $20.27 billion in 2014, with operating income of $3.35 billion (versus $3.95 billion) and net income attributable to Teva of $1.59 billion (versus $3.06 billion). The decline was driven by higher impairments, restructuring and others ($1.13 billion), legal settlements and loss contingencies of $631 million, and a $1.0 billion financial expense line that includes a $623 million loss on Teva's Mylan shares. Diluted EPS was $1.82 versus $3.56 in 2014. Revenue was hurt by $1.3 billion of currency movements, though local-currency revenues rose 4%. The Generic Medicines segment grew profit to $2.68 billion (28.1% of segment revenues) on higher gross margin and lower S&M spending, while Specialty Medicines profit declined 5% to $4.36 billion, reflecting pressure on Copaxone, which generated $4.0 billion in 2015 sales, down 5%. Teva ended 2015 with $6.9 billion in cash and cash equivalents, total debt of $9.97 billion, and total equity of $29.9 billion, after raising about $7.24 billion of net proceeds from equity and mandatory convertible preferred offerings to help fund the pending Actavis Generics acquisition. The filing is dominated by forward-looking transaction risk. Teva agreed to pay $33.75 billion in cash plus about 100 million shares for Actavis Generics, and expects approximately $27 billion of acquisition-related borrowings, which would raise consolidated debt to about $37 billion on a pro forma basis. Credit ratings were downgraded to BBB+ and Baa1, with further downgrades expected on closing. The company also disclosed an ongoing FCPA investigation that it said is substantially complete and is expected to conclude in 2016, with potential material fines.

Teva Pharmaceutical Industries Annual Report, Year Ended Dec 31, 2014

Teva Pharmaceutical Industries Limited reported net revenues of $20.27 billion for 2014, essentially flat compared with $20.31 billion in 2013, as declines in generic and OTC sales were offset by higher specialty medicines revenues. Operating income rose to $3.95 billion from $1.65 billion, driven mainly by a $111 million gain from legal settlements and loss contingencies in 2014 versus a $1.52 billion expense in 2013 (largely the pantoprazole settlement). Net income attributable to Teva was $3.06 billion, or $3.56 diluted earnings per share, compared with $1.27 billion, or $1.49 per share, in 2013. Cash flow from operating activities was $5.13 billion, up from $3.24 billion. Segment results show generic medicines revenues of $9.81 billion with segment profit of $2.15 billion, and specialty medicines revenues of $8.56 billion with segment profit of $4.58 billion. Copaxone was $4.24 billion of revenue, or 21% of total revenues, and the filing notes that the company's U.S. Orange Book patents on Copaxone 20 mg/mL expired in May 2014 and, subject to further judicial review, in September 2015. The filing also discloses an ongoing voluntary worldwide FCPA investigation, which the company says could result in material fines, and it describes continuing antitrust and product liability litigation, including metoclopramide and modafinil matters. Total debt declined to $10.33 billion from $12.19 billion, and cash and cash equivalents rose to $2.23 billion. Teva's board approved a share repurchase authorization increase to $3 billion in October 2014, with $2.5 billion remaining at year-end, and dividends of $1.34 per share were paid during 2014. The company also announced it will begin declaring and paying dividends in U.S. dollars starting April 2015.

Teva Pharmaceutical Industries Annual Report, Year Ended Dec 31, 2013

Teva Pharmaceutical Industries Limited's 2013 annual report (Form 20-F, filed February 10, 2014) shows net revenues of $20.3 billion, flat compared to 2012, as higher specialty medicines and OTC revenues offset lower generic medicines sales. Operating income fell to $1.6 billion from $2.2 billion, driven mainly by legal settlements and loss contingencies of $1.5 billion, primarily the pantoprazole settlement. Net income attributable to Teva declined to $1.3 billion from $2.0 billion, and diluted EPS was $1.49 versus $2.25 in 2012. Cash flow from operating activities was $3.2 billion, down $1.3 billion from 2012. The generic medicines segment generated revenues of $9.9 billion and profitability of $1.7 billion, down 5% and 20% respectively. The specialty medicines segment generated revenues of $8.4 billion and profitability of $4.6 billion, up 3% in revenue and down 3% in profitability. Copaxone® remains the largest specialty product at $4.3 billion, but the filing warns that generic competition in the United States may begin as early as May 2014, and that the company's strategy relies heavily on a three-times-a-week version of the product. Management is in transition, with Erez Vigodman set to become President and CEO on February 11, 2014, and the company's cost reduction program targets $2 billion in savings by the end of 2017. The filing also highlights significant legal and regulatory exposure, including ongoing FCPA investigations by the SEC and DOJ, antitrust litigation over patent settlements, and product liability claims. Total debt was $12.2 billion at year end, down $2.5 billion from 2012.

Teva Pharmaceutical Industries Annual Report, Year Ended Dec 31, 2012

Teva Pharmaceutical Industries Limited reported net revenues of $20.3 billion for 2012, up from $18.3 billion in 2011, driven mainly by a full year of revenues from Cephalon and Taiyo. Net income attributable to Teva fell to $1.96 billion from $2.76 billion, and diluted earnings per share were $2.25 versus $3.09 in 2011. The decline was primarily due to higher impairments, loss contingencies, restructuring and other charges of $1.97 billion, including a $670 million provision related to pending generic pantoprazole patent litigation. Operating income was $2.2 billion compared with $3.1 billion a year earlier. Specialty medicines revenues rose 26% to $8.2 billion, led by Copaxone, whose global revenues reached $4.0 billion, while generic medicines revenues were $10.4 billion, up 2%. Cash flow from operating activities was $4.57 billion. The company refinanced $5 billion of debt, extending its average debt maturity to six years, and total debt stood at $14.7 billion at year-end. Shareholders' equity was $22.9 billion. Management outlines a new strategy with six pillars and expects further restructuring and impairment charges, a material decrease in Provigil sales due to generic competition, and a small decline in Copaxone sales in 2013. The filing also discloses ongoing risks, including the Copaxone patent challenges, a potential $1.4 billion loss in excess of the amount accrued on the pantoprazole matter, an Israeli Tax Authority demand of about $903 million, and federal investigations relating to the Foreign Corrupt Practices Act, whose outcomes the company describes as unpredictable.

Teva Pharmaceutical Industries Annual Report, Year Ended Dec 31, 2011

Teva Pharmaceutical Industries Limited reported net revenues of $18.3 billion for 2011, up from $16.1 billion in 2010, driven mainly by the full-year inclusion of ratiopharm, the October 2011 acquisition of Cephalon, and Japanese acquisitions including Taiyo. Net income attributable to Teva was $2.76 billion, compared with $3.33 billion in 2010, and diluted EPS was $3.09 versus $3.67. Operating income fell to $3.1 billion from $3.9 billion, reflecting higher operating expenses, amortization of acquired intangibles, legal settlements of $901 million in legal settlements, acquisition, restructuring and other expenses, and impairment charges. On a non-GAAP basis the company reported diluted EPS of $4.97 for 2011 versus $4.54 in 2010. Total debt rose to $14.5 billion at December 31, 2011 from $6.9 billion a year earlier, following financing of the Cephalon acquisition, which cost approximately $6.5 billion in cash. Financial leverage increased from roughly 24% to 39%. Cash flow from operating activities was $4.1 billion, similar to 2010. The company repurchased about $899 million of shares in 2011 and authorized a new $3 billion repurchase program in December 2011. The quarterly dividend for Q4 2011 was NIS 1.00 per share, up 25% from NIS 0.8 in prior quarters. The filing highlights concentration and regulatory risks. Copaxone, the leading innovative product, faces possible generic challenges before its patents expire in 2014, and Provigil faces US competition starting April 2012, which management expects to materially reduce its revenues. Teva also disclosed significant product liability and patent litigation, including a propofol judgment total of approximately $800 million and a Wyeth/Protonix claim of roughly $2.1 billion. The company faces ongoing FDA remediation at its Irvine facility, with full production expected to resume in the second half of 2012.

Teva Pharmaceutical Industries Annual Report, Year Ended Dec 31, 2010

Teva Pharmaceutical Industries Limited reported record 2010 results driven by the August 2010 acquisition of ratiopharm, which was financed largely with $5.2 billion in cash. Net sales rose 16% to $16,121 million, operating income increased 61% to $3,871 million, and net income attributable to Teva reached a record $3,331 million, or $3.67 diluted EPS, compared with $2.23 in 2009. Cash flow from operating activities was a record $4,136 million, up 23%. Growth was broad-based across North America ($9,988 million, up 16%) and Europe ($3,947 million, up 21%), with the U.S. generics business, Copaxone® (in-market sales of $3,316 million, up 17%) and Azilect® (up 31%) as key contributors. The filing also flags material risks. Copaxone®, about 18% of 2010 net sales, faces patent challenges from Sandoz/Momenta and Mylan/Natco, with generic entry possible before 2014. The FDA issued a complete response letter in December 2010 on the lower-volume Copaxone® formulation, and a warning letter on the Jerusalem oral solid dose facility was received January 31, 2011. A jury award in the propofol litigation exceeded $500 million, and Teva posted a bond of about $580 million to stay execution pending appeal. Management guided 2011 net sales to $18.5 billion to $19.0 billion and non-GAAP EPS to $4.90 to $5.20, while noting the extraordinary 2010 U.S. generics increase is not expected to repeat. For 2010, Teva reported total debt of $6,881 million against total equity of $22,002 million, and it paid $668 million in dividends. The company also completed the Théramex (January 2011) and Corporación Infarmasa (January 2011) acquisitions after year-end.

Teva Pharmaceutical Industries Annual Report, Year Ended Dec 31, 2009

Teva Pharmaceutical Industries Limited, the Israeli global generic drug maker, reported record 2009 results in this Form 20-F. Net sales rose to $13.90 billion, an increase of approximately $2,814 million, or 25%, over 2008, driven mainly by the first-time inclusion of Barr Pharmaceuticals' sales and strong performance across all geographic regions. Net income attributable to Teva reached a record $2.00 billion, compared with $609 million in 2008, which was depressed by $1,402 million of in-process R&D write-offs tied to acquisitions. Diluted earnings per share were $2.23, versus $0.75 in 2008. Operating income rose to $2.41 billion from $1.15 billion, and financial debt to equity leverage fell to 23% from 34%. Copaxone, the company's leading multiple sclerosis drug, grew global in-market sales by 25% to $2.83 billion and accounted for about 18% of net sales. The filing also highlights a 2015 strategic goal of $31 billion in revenue and $6.8 billion in non-GAAP net income. Management flagged material risks, including generic price erosion, reliance on a few large U.S. customers (one accounted for 16% of 2009 sales), pending patent litigation against Copaxone generics, government drug-pricing lawsuits, and a $315 million charge in the fourth quarter related to a drug pricing settlement and reserves. For 2010, the company guided to net R&D of 6% to 6.5% of sales, selling and marketing of 16% to 18%, and financial expenses of $150 million to $170 million, and it expected to stop paying sanofi-aventis termination payments on North American Copaxone sales from April 1, 2010. Dividends were paid quarterly, with $528 million paid in 2009.

Teva Pharmaceutical Industries Annual Report, Year Ended Dec 31, 2008

Teva Pharmaceutical Industries Limited reported record 2008 net sales of $11.085 billion, up approximately 18% from $9.408 billion in 2007, driven by higher generic sales in the U.S., a record number of new U.S. product launches, and strong growth in branded products. Net income fell to $635 million from $1.952 billion in 2007, reflecting $1.806 billion in charges, including a $1.402 billion write-off of in-process research and development primarily related to the Barr acquisition, $375 million in other-than-temporary impairment of financial assets (mainly auction rate securities), and $107 million in impairment of intangible assets. Diluted earnings per share were $0.78 versus $2.38 in 2007; on a non-GAAP basis, excluding these items, net income was $2.374 billion and diluted EPS was $2.86. The company completed the acquisition of Barr Pharmaceuticals, Inc. on December 23, 2008, for approximately $4.6 billion in cash and 69 million ADSs, with a total accounting value of $7.5 billion and approximately $1.5 billion of Barr net debt. Barr's results are included in Teva's income statement only from January 1, 2009, and the company guided to higher 2009 interest expense of $200-$250 million, amortization of intangibles of approximately $475 million, and a $270 million inventory step-up. Total assets rose to $32.904 billion from $23.412 billion, long-term debt increased to $5.537 billion from $3.347 billion, and shareholders' equity reached $16.300 billion. Operating cash flow was $3.231 billion, up from $1.813 billion. Teva's core franchise remains its generic business, supplemented by Copaxone for multiple sclerosis, whose global in-market sales grew 32% to $2.26 billion, and Azilect for Parkinson's disease. Key risks noted in the filing include the pending Sandoz/Momenta ANDA challenge to Copaxone, which triggers a stay of FDA approval until the earlier of January 2011 or a favorable district court decision, pricing pressure from consolidation of U.S. customers, currency exposure (over 40% of revenues are from outside the United States), and ongoing antitrust and drug-price-reporting litigation.

Teva Pharmaceutical Industries Annual Report, Year Ended Dec 31, 2007

Teva Pharmaceutical Industries Limited reported net sales of $9.41 billion for 2007, up from $8.41 billion in 2006, and net income of $1.95 billion, compared with $546 million in 2006. Diluted earnings per share were $2.38, against $0.69 in 2006. The 2006 results were depressed by a $1.295 billion write-off of in-process R&D, largely tied to the Ivax acquisition, and by other charges. Gross margin rose to 51.8% of sales from 50.7%, while SG&A increased to 20.2% of sales from 18.7%. Research and development expenses were $581 million, up 17%, and the company says it will raise its R&D target to 7.5% of sales from 6%. The company describes itself as the leading generic drug company in the world and in the United States, with 18% of U.S. generic prescriptions in 2007. Its innovative franchise centers on Copaxone for multiple sclerosis, with in-market global sales of $1.713 billion in 2007, and on Azilect for Parkinson's disease, with 2007 sales of $120 million. Teva launched 25 generic products in the U.S. during 2007, including Protonix and Lotrel. It also set a strategic goal of doubling the size of the business by 2012 to $20 billion in revenue, with net income margins above 20%. In February 2008 it acquired CoGenesys for $400 million to expand its biogenerics business. The filing also flags risks. Copaxone's U.S. sales are subject to a planned shift in distribution from Sanofi-Aventis to Teva in April 2008, which the company expects to raise reported revenue while producing little net income change over two years. Other risks include generic price erosion, patent litigation, and U.S. drug-pricing and Medicaid reimbursement reforms. The company paid $299 million in dividends in 2007 and repurchased $152 million of shares.

Teva Pharmaceutical Industries Annual Report, Year Ended Dec 31, 2006

Teva Pharmaceutical Industries Limited's 2006 annual report on Form 20-F reports a year transformed by the acquisition of Ivax Corporation, which was consolidated from February 1, 2006. Net sales rose to $8,408 million from $5,250 million in 2005, driven by the Ivax acquisition and several major U.S. generic launches with 180-day exclusivity (Zocor, Zoloft, Wellbutrin XL and Pravachol). However, net income fell to $546 million from $1,072 million, reflecting a $1,295 million write-off of in-process R&D, mainly from the Ivax deal, along with a $95 million inventory step-up, a $50 million litigation charge related to Pfizer and $36 million of impairment charges. Diluted EPS was $0.69 versus $1.59 in 2005. On an as-adjusted, non-GAAP basis that excludes these items, the company reports net income of $1,867 million and diluted EPS of $2.30. The balance sheet expanded sharply. Total assets reached $20,471 million (from $10,387 million), goodwill rose to $8,038 million, and long-term debt grew to $4,585 million, including $2,127 million of senior notes and loans and $2,458 million of convertible senior debentures, largely to finance the acquisition. Shareholders' equity increased to $11,142 million. Operating cash flow was $2,058 million, and free cash flow, as defined by the company, was $1,463 million. Copaxone, the company's leading innovative product, had in-market global sales of $1,414 million in 2006, up 20%. The company also notes that Azilect, its second innovative product, had worldwide sales of $44 million in 2006 after launch in the U.S. in July 2006. The filing highlights concentration risk and regulatory exposure. Teva expects revenue growth to depend on its generic pipeline (162 U.S. product registrations awaiting FDA approval, including 78 Paragraph IV applications), and it notes that 2006's U.S. launches with exclusivity were unusually large and unlikely to repeat at the same scale in 2007. Management also said Ivax units not fully integrated at year-end represented about 18% of consolidated total assets and 22% of net sales, and that Ivax was excluded from the internal control assessment for 2006.

Teva Pharmaceutical Industries Annual Report, Year Ended Dec 31, 2005

Teva Pharmaceutical Industries Limited, filed on Form 20-F for the fiscal year ended December 31, 2005, reported net sales of $5,250.4 million, up 9% from $4,798.9 million in 2004. Net income was $1,072.3 million, compared with $331.8 million in 2004; the filing notes that 2004 included one-time charges, and before those items 2004 net income was $964.6 million. Diluted earnings per ADR were $1.59, versus $0.50 reported in 2004. Growth was described as almost entirely organic. Copaxone was reported as Teva's leading innovative product, with global in-market sales of $1,176 million in 2005, up 26%. Gross profit margin was 47.2%, and operating income was $1,312.9 million. The filing's most significant subsequent event was the acquisition of Ivax Corporation on January 26, 2006, for approximately $3.8 billion in cash and 123 million ADRs, with an accounting value of $7.9 billion. The filing describes this as Teva's largest acquisition to date. It was financed with $1.7 billion of Teva's own cash and bridge loans of $2.8 billion, which were refinanced with senior notes and convertible senior debentures. The filing states that Ivax's results are not included in the 2005 figures, and that financial expenses are expected to increase substantially in 2006, with annual interest and amortization of about $120 million on the $2.9 billion raised. Management also flagged a preliminary in-process R&D charge of $1,300 million to be expensed in the first quarter of 2006. At December 31, 2005, total assets were $10,387.4 million, shareholders' equity was $6,042.3 million, and working capital was $3,245.2 million. Total long-term debt was $1,773.3 million. Cash generated by operations was $1,370 million, and free cash flow was $901 million. The company paid dividends of $162 million and repurchased $379 million of shares during 2005.

Teva Pharmaceutical Industries Annual Report, Year Ended Dec 31, 2004

Teva Pharmaceutical Industries Limited's Form 20-F for fiscal 2004 reports net sales of $4.80 billion, up from $3.28 billion in 2003, driven by the January 2004 acquisition of Sicor Inc. (aggregate consideration of approximately $3.46 billion), the launch of 30 new generic products in the United States, and continued growth of Copaxone®. Gross profit reached $2.24 billion, and operating income fell to $577.8 million from $877.4 million, primarily because of a $596.6 million charge for acquired in-process R&D and a $30.0 million impairment of Purinethol® product rights. Reported net income declined to $331.8 million from $691.0 million, or $0.50 diluted per ADR versus $1.16 in 2003. Excluding one-time items, which the company says is its preferred measure of underlying performance, net income rose to $964.6 million and diluted earnings per ADR were $1.42. The balance sheet expanded materially, with total assets of $9.63 billion and shareholders' equity of $5.39 billion at year-end 2004. Convertible senior debentures are a significant part of the capital structure: the company reports $1,513.4 million of long-term convertible debentures at December 31, 2004. Cash generated by operations was $1.25 billion. Sales were approximately 64% North American, 26% European and 10% rest of the world. The filing also describes pipeline items, including Azilect® (rasagiline), which received a positive EMEA opinion and European Commission marketing authorization, and laquinimod for multiple sclerosis, along with ongoing patent litigation in the United States.

Teva Pharmaceutical Industries Annual Report, Year Ended Dec 31, 2003

Teva Pharmaceutical Industries Limited's annual report on Form 20-F for the year ended December 31, 2003 reports net sales of $3.28 billion, up from $2.52 billion in 2002, and net income of $691.0 million, compared with $410.3 million in 2002. Diluted earnings per ADR were $2.39, versus $1.52 in 2002. Before one-time items (a $100 million gain from the GlaxoSmithKline litigation settlement and $7.4 million in restructuring charges, net of tax $73 million in 2003), net income was $617.8 million and diluted earnings per ADR were $2.14. Operating income rose to $877.4 million from $524.0 million. Gross margin improved to 46.4% of sales from 43.5% in 2002, driven by product mix, Copaxone® sales, and the vertically integrated API division. The central event after year-end was the January 22, 2004 closing of the acquisition of Sicor Inc., at a purchase price of about $3.46 billion, paid with $2.0 billion in cash and $1.4 billion in Teva ADRs. The filing states that the deal is the largest acquisition Teva has undertaken, that it was funded partly through $1.13 billion of short-term bank borrowings later refinanced with convertible senior debentures, and that it is expected to be accretive to earnings per ADR within 12 months. The filing notes that a substantial one-time write-off of in-process R&D is expected in the first quarter of 2004, and that Sicor's inventory step-up will weigh on early-2004 gross margins. Risk factors highlighted in the filing include dependence on Copaxone®, which lost its U.S. orphan drug exclusivity on December 20, 2003; competition from generics and branded companies; the concentration of Sicor's sales in one product, propofol; integration risk; and pending litigation, including a Biovail arbitration seeking recovery of a $98 million deduction and a Quebec class action. Management states that no provision has been made for the pending matters described, and that it believes none will have a material adverse effect on financial condition.

Teva Pharmaceutical Industries Annual Report, Year Ended Dec 31, 2002

Teva Pharmaceutical Industries Limited's annual report for the year ended December 31, 2002 shows strong growth. Sales reached $2,518.6 million, up from $2,077.4 million in 2001, and net income rose to $410.3 million from $278.2 million. Diluted earnings per ADR were $1.52, compared with $1.02 in 2001. Gross profit was $1,095.4 million, and operating income was $524.0 million. The company attributes the growth mainly to higher U.S. generic sales, including the generic version of Augmentin launched in the fourth quarter of 2002, and to continued growth of Copaxone, whose in-market global sales reached $539 million in 2002. Management also cited a reduction in the effective tax rate to 17% in 2002, while noting that it expects a 20%-23% rate for 2003. The filing also highlights risks. The PROMISE trial for primary progressive multiple sclerosis did not reach statistical significance and was terminated, and the etilevodopa Phase III trial did not show significant superiority over levodopa. Net R&D expense rose to $165.0 million from $107.2 million. Balance sheet items include $562.4 million of convertible senior debentures classified as short-term because of an October 2003 put option, along with $810.0 million of long-term convertible debentures. Total assets were $4,626.8 million and shareholders' equity was $1,829.4 million. The filing also discloses several pending litigation matters, including patent challenges, antitrust suits, and a trade-secret suit by GlaxoSmithKline related to amoxiclav products. For investors, the key points are the strong earnings growth, a heavier reliance on Copaxone and the new generic launches, and a higher debt load from the November 2002 $450 million convertible debenture offering, which carries a 0.375% coupon.

Teva Pharmaceutical Industries Annual Report, Year Ended Dec 31, 2001