Teva missed forecasts: revenues of $ 3.8879 billion, a decrease of 2% at the 3rd quarter

Teva missed market forecasts for the third quarter. The Israeli pharma company concludes the quarter with revenues of $ 3.8879 billion, a decrease of 2% compared to the corresponding quarter last year - analysts expected revenues of $ 4.03 billion.
Revenue was hit mainly by the decline in Copaxone sales in North America, which was partially offset by the growth of the generics and over-the-counter pharmaceutical sector in Europe.
Net income was $ 292 million or 26 cents a share, lower than forecast, compared to a loss of $ 4.34 billion or $ 3.97 per share in the same quarter last year - Teva recorded a large one-time write-off.
Adjusted earnings were $ 651 million or 59 cents per share, compared to adjusted earnings of $ 637 million or 58 cents per share in the same quarter in 2020. This is while market expectations were for adjusted earnings of 65 cents per share.
Adjusted operating income in the third quarter was $ 1.042 billion, compared to $ 1.025 billion in the same period last year. Adjusted EBITDA was $ 1.17 billion, compared to $ 1.153 billion in the same period last year.
Teva has approved its existing forecast for 2021, for annual revenues of $ 16.4-16 billion; Adjusted EBITDA of $ 5.1-4.8 billion and earnings per share of $ 2.70-2.50.
The factor that played into the company's revenue in the third quarter was the old Copaxone drug designed to treat multiple sclerosis. Teva's revenues from Copaxone in North America were cut 44% in the third quarter compared to its counterpart and totaled $ 133 million. They accounted for only 3.5% of the company's revenue. The company's total revenue in North America totaled $ 1.87 billion in the third quarter, down 7% from the same period last year.
The explanation for the damage to the company's activity in North America, which is mostly in the US, is interesting in itself. Because they were required to more specifically treat epidemic patients, on the other hand, an increase in demand for drugs given as complementary therapies to epidemic patients, halted some of the decline in demand experienced by Teva.
On the other hand, Teva's two new flagship drugs - AJOVY, which treats migraines, and AUSTEDO, which treats Huntington's disease and late dyskinesia, have accelerated their sales. Ajobi sales rose 31% in the third quarter to $ 46 million, while Ostedo sales grew 19% to $ 201 million.
Another positive statistic is Teva's free cash flow, which totaled $ 795 million in the third quarter, and is important to help it meet its debts due to failed acquisitions in the middle of the previous decade. Teva's total long-term debt stands at $ 24.6 billion at the end of the third quarter, a decrease of nearly $ 2 billion within a year from $ 26.4 billion.
Teva's debt as of the end of the quarter was $ 23.746 billion, compared to $ 25.132 billion at the end of the second quarter of 2021. A debt repayment of $ 1.475 billion made in July this year contributed to the debt reduction. The free cash flow recorded for Teva in the quarter was $ 795 million, compared to $ 506 million in the third quarter of 2020.
Simultaneously with the publication of the report, the company announced its intention to issue debentures linked to existing targets worth $ 4 billion.
CEO Carr Schultz noted with the release of the reports: “I am very pleased with our solid performance in the quarter, especially the high cash flow and continued momentum among our leading products. The results are driven by strong performance by AJOVY in the US, Europe and Japan, as well as US sales of AUSTEDO, the treatment of patients with Huntington's disease and dyskinesia