Skip to content
AnalystLens

Teva Pharmaceutical Industries 8-K Report, Financial Results (May 8, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed May 8, 2024
Period End
May 8, 2024
Security
TEVA
In the record · 2016–202610-K1110-Q278-K283

TEVA filed 11 annual reports (10-K), 27 quarterly reports (10-Q) and 283 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Nov ’19Nov ’19
  2. Leadership change8-K · Nov ’22Nov ’22
  3. Leadership change8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed May 8, 2024. Cited figures are marked; the original filing is the authoritative source.

Teva Pharmaceutical Industries Ltd. reported first-quarter 2024 results in a press release furnished as Exhibit 99.1 to this Form 8-K.

Revenues were $3,819 milliona, up 4% in U.S. dollars and 5% in local currency compared with Q1 2023, driven by generics across all segments, AUSTEDO and AJOVY. GAAP operating loss was $218 million and GAAP net loss attributable to Teva was $139 million, or $0.12 per share. Non-GAAP operating income was $892 million (23.4% margin) and non-GAAP diluted EPS was $0.48.

Results were affected by a $577 millionb impairment tied to classifying a business in the International Markets segment as held for sale. Cash flow used in operating activities was $124 million and free cash flow was $32 million. Total debt was $19,643 million at March 31, 2024, and the revolving credit facility's maximum leverage ratio was amended on May 3, 2024.

Teva reaffirmed its full-year 2024 outlook: revenues of $15.7 to $16.3 billionc, adjusted EBITDA of $4.5 to $5.0 billion, non-GAAP diluted EPS of $2.20 to $2.50, and free cash flow of $1.7 to $2.0 billion. The company also cited FDA approvals of the Humira and Stelara biosimilars SIMLANDI and SELARSDI, and positive Phase 3 results for olanzapine LAI.

02—Key points

Key Highlights

  1. Q1 2024 revenues of $3,819 million, up 4% in U.S. dollars and 5% in local currency terms versus Q1 2023.
  2. GAAP operating loss of $218 million, compared with a $13 million operating loss in Q1 2023, mainly due to higher other asset impairments and restructuring costs.
  3. Non-GAAP operating income of $892 million, a 23.4% non-GAAP operating margin, versus $785 million (21.4%) a year earlier.
  4. GAAP net loss attributable to Teva of $139 million ($0.12 per share); non-GAAP diluted EPS of $0.48 versus $0.40 in Q1 2023.
  5. AUSTEDO U.S. revenues rose 67% to $282 million; AJOVY global revenues were $113 million, up 18%.
  6. Free cash flow of $32 million after cash used in operating activities of $124 million; total debt of $19,643 million at March 31, 2024.
  7. Full-year 2024 outlook reaffirmed: revenues of $15.7 to $16.3 billion, adjusted EBITDA of $4.5 to $5.0 billion, non-GAAP diluted EPS of $2.20 to $2.50, and free cash flow of $1.7 to $2.0 billion.

03—Questions

Frequently Asked Questions

  1. Did Teva maintain its 2024 financial guidance?

    Yes. Teva reaffirmed its full-year 2024 outlook, including revenues of $15.7 to $16.3 billion, adjusted EBITDA of $4.5 to $5.0 billion, non-GAAP diluted EPS of $2.20 to $2.50, and free cash flow of $1.7 to $2.0 billion.

  2. What drove the GAAP operating loss in the first quarter of 2024?

    The filing attributes the higher operating loss of $218 million mainly to higher other asset impairments, restructuring costs and other items, and higher S&M expenses, partially offset by higher gross profit and lower legal settlements and loss contingencies. Impairment of long-lived assets was $679 million, primarily $577 million tied to classifying a business in the International Markets segment as held for sale.

  3. How did the company's generics and growth brands perform?

    Generic products grew 9% in local currency terms globally. U.S. AUSTEDO revenues increased 67% to $282 million, while U.S. COPAXONE revenues fell 58% to $30 million on generic competition. Europe segment revenues rose 7% to $1,272 million, and International Markets revenues rose 3% to $597 million.

  4. What was the change to the revolving credit facility?

    On May 3, 2024, the RCF was amended to set a maximum leverage ratio of 4.00x in 2024, 2025 and the first quarter of 2026, 3.75x in the second through fourth quarters of 2026, and 3.50x in the first quarter of 2027 and onwards. The RCF permits a higher maximum ratio if the company consummates or commences certain material transactions.

  5. What are the key regulatory and pipeline developments mentioned?

    The FDA approved SIMLANDI (adalimumab-ryvk) as an interchangeable biosimilar to Humira on February 24, 2024, and SELARSDI (ustekinumab-aekn) as a biosimilar to Stelara on April 16, 2024. Teva also announced positive Phase 3 efficacy results for olanzapine Once-Monthly LAI, with no incidence of post-injection delirium/sedation syndrome observed to date.

04—Continue

← View all 8-K filings