Teva reports stronger-than-expected results for the second quarter: Revenues of $4.2 billion

Teva reports stronger-than-expected results for the second quarter of 2024. The company ended it with revenues of $4.2 billion and a profit of 61 cents per share. Forecasts were for revenues of $4.05 billion and earnings of 55 cents per share.
Against the background of the good performance, the pharmaceutical company raises the annual revenue forecast of 16-16.4 billion dollars and this is mainly against the background of the strong performance of the drug Ostedo which is expected to generate higher than expected revenues of 1.6 billion dollars. The annual net profit should be 2.3-2.5 billion dollars.
Following the surprising growth in the generics sector that Teva presented in the first quarter of the year, it continues the trend even now with a 16% increase in revenues in the US, 8% in Europe and a sharper increase of 22% in the rest of the world. On the financial side, Teva reports a free flow of 324 million dollars and a flow from operations of 103 million dollars.
Teva increased marketing expenses by 9% - in accordance with CEO Richard Francis' transition to growth strategy. On the other hand, the company's management and general expenses decreased by 8% - mainly due to a decrease in legal expenses, following the closure of several major cases, including the painkillers lawsuit in the US. b that clouded the company for many years.
Teva acknowledged in the second quarter a tax expense of $630 million following the settlement with the Israel Tax Authority that it announced a month ago. According to the arrangement with the Tax Authority according to which it will pay 750 million dollars, or about NIS 3 billion, for the tax assessments in the period between 2008 and 2020. Although on the face of it this is a high amount, in practice it is a third of the state's original demand from the pharmaceutical company. Of the total amount of $750 million, $500 million is a tax on the retained profits resulting from the definition of Teva as an approved enterprise in the Capital Investments Encouragement Law and $250 million is related to the dispute over allowing expenses. Teva points out that the tax rate she will pay in the whole of 2024 will also be higher than the 13% that was collected from her last year and will now reach 14-17% and this is due to a reduced tax benefit as a result of a change in the registration of intellectual property.
Richard Francis, President and CEO of Teva: "We are encouraged by the positive momentum in each of the four pillars of our Pivot to Growth strategy. The robust growth is primarily driven by our generics and innovative drugs businesses. In addition, we show significant progress in the development stages of the backlog of innovative products that are in an advanced stage, with an emphasis on accelerating the development process of duvakitug (Anti-TL1A) and now, we anticipate that the main results (topline results) will be published in the fourth quarter of 2024, and that the full data is expected during next year. With these solid results, we raise our financial forecast for 2024."