01—Abstract
Summary
Summary of the 10-K filed February 5, 2025. Cited figures are marked; the original filing is the authoritative source.
Teva Pharmaceutical Industries Limited reported 2024 net revenues of $16,544 milliona, 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 millionb 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 millionc, 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.
02—Key points
Key Highlights
- Revenues of $16,544 million, up 4% in U.S. dollars and 6% in local currency, led by generic products in all segments and lenalidomide capsules
- Operating loss of $303 million versus operating income of $433 million in 2023, reflecting $1,280 million in goodwill impairment and $1,388 million in other asset impairments, restructuring and other items
- Net loss attributable to Teva of $1,639 million, or $1.45 per diluted share, compared with a net loss of $559 million, or $0.50 per share, in 2023
- Non-GAAP diluted EPS of $2.49 for 2024, versus $2.56 for 2023
- Debt reduced to $17,783 million from $19,833 million, with $1,641 million of senior notes repaid at maturity in 2024
- Free cash flow of $2,068 million, defined as operating cash flow plus EU securitization collections and divestiture proceeds, less capital investments and acquisitions
- Agreement to sell the Teva-Takeda Japan business venture to JKI Co. Ltd. with expected closing on April 1, 2025, and the API business classified as held for sale
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2024, Teva Pharmaceutical Industries lost $0.10.
- Revenue$16.54B100.0%
- Cost of revenue−$8.48B51.3%
- Gross profit$8.06B48.7%
- Operating costs−$8.37B50.6%
- Operating income−$303.0M1.8%
- Interest, other & tax−$1.34B8.1%
- Net income−$1.64B9.9%
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 5, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $16.54B$15.85B | +4.4% |
| Cost of Revenue | $8.48B$8.20B | +3.4% |
| Gross Profit | $8.06B$7.64B | +5.5% |
| Operating Income | -$303.00M$433.00M | −170.0% |
| Interest Expense | $1.00B$1.03B | −2.6% |
| Net Income | -$1.64B-$559.00M | −193.2% |
| EPS (Basic) | $-1.45$-0.50 | −190.0% |
| EPS (Diluted) | $-1.45$-0.50 | −190.0% |
| Shares Outstanding (Basic) | 1.13B1.12B | +1.1% |
| Shares Outstanding (Diluted) | 1.13B1.12B | +1.1% |
05—Questions
Frequently Asked Questions
Why did Teva report a net loss in 2024 despite revenue growth?
The net loss was driven mainly by non-cash and restructuring-related charges rather than by core sales. Teva recorded a $1,280 million goodwill impairment, largely tied to its Teva API reporting unit, $1,388 million for other asset impairments, restructuring and other items, and $761 million for legal settlements and loss contingencies. It also recorded a tax expense of $676 million on a pre-tax loss, which included a $495 million tax item related to a settlement agreement with the Israeli Tax Authorities.
How is Teva's debt position changing?
Total debt was $17,783 million as of December 31, 2024, compared with $19,833 million a year earlier. The decrease was mainly due to the repayment at maturity of $1,641 million of senior notes and $429 million of exchange rate fluctuations. Teva also disclosed that it repaid $426 million of 6% senior notes and $427 million of 7.13% senior notes in January 2025, and its $1.8 billion revolving credit facility had no amounts outstanding as of December 31, 2024.
What is the Pivot to Growth strategy and what divestitures are planned?
Pivot to Growth is Teva's four-pillar strategy, announced in May 2023, focused on growing innovative products such as AUSTEDO, AJOVY and UZEDY, advancing late-stage pipeline and biosimilars, sustaining the generics business, and optimizing the portfolio and manufacturing footprint. Under this strategy, Teva intends to divest its API business, which was classified as held for sale at December 31, 2024, and has agreed to sell its Japan business venture to JKI Co. Ltd., with closing expected by April 1, 2025, subject to standard conditions and regulatory approvals.
Which products drove growth and which declined in 2024?
In the United States, AUSTEDO revenues increased 34% to $1,642 million and generic products, including biosimilars, rose 15% to $3,599 million, helped by lenalidomide capsules and the SIMLANDI launch. UZEDY reached $117 million. Revenues declined for COPAXONE, down 18% in the U.S. to $242 million and 8% in Europe to $213 million, and for BENDEKA and TREANDA, down 29% to $168 million, due to competition and generic entry. Anda revenues from third parties decreased 3%.
What regulatory and legal risks are highlighted for Teva's key products?
AUSTEDO and AUSTEDO XR were selected by CMS on January 17, 2025 for Medicare price-setting, with the revised prices expected to take effect January 1, 2027. Teva filed a lawsuit against CMS on January 15, 2025, challenging the implementation of the drug price negotiation program. The filing also discloses a European Commission final decision on COPAXONE on October 31, 2024, with a fine of euro 462.6 million, which Teva has appealed. Teva additionally disclosed a $425 million settlement with the DOJ over patient assistance program donations, payable over six years.
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