Teva published disappointing financial reports: lost $ 955 million in the first Q of 2022

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by Ifi Reporter Category:Financial May 3, 2022

Teva has published disappointing financial reports and forecasts for 2022, which explain well the sharp declines in Teva shares in recent days. Teva, managed by Carr Schultz, lost $ 955 million in the first quarter of 2022 which is 86 cents based on generally accepted US accounting rules (US GAAP) - Compared to $ 77 million earnings of 7 cents a share in the same quarter in 2022.
The jump in losses stems from a $ 1.1 billion provision in the last quarter to settle lawsuits related primarily to her involvement as a defendant in the U.S. narcotics (opioid) painkillers trial; compared to a $ 104 million provision in the same quarter in 2021.
Teva earned $ 609 million, which is 55 cents a share in the first quarter of 2022 on a non-GAAP basis, that is, less expenses related to allocating options to executives and employees, reducing intangible assets and one-time legal expenses and reorganization expenses. Analysts' forecast for non-GAAP earnings per share was 55 cents a share.

Teva's revenues decreased by 8% in the first quarter of 2022 compared to the corresponding quarter in 2021 and amounted to $ 3.66 billion. In doing so, the company missed by $ 90 million the average of analysts' forecasts for the company's revenues in the past quarter.
The decline in Teva's revenue was mainly due to a 15% drop in its generic drug market in North America and a 48% drop in Copaxone sales for multiple sclerosis - only partially offset by an increase in sales from ANDA distribution in the US and growth in generic drug sales in Europe.
Teva notes that the strengthening of the dollar, mainly against the euro, deducted $ 133 million from its revenue in the first quarter of 2022 and $ 59 million from non-GAAP operating profit.
Teva lowered its revenue forecast for 2022 to reflect the collapse of the euro exchange rate against the dollar and the accelerated erosion in Copaxone sales for multiple sclerosis beyond the company's previous forecasts, as a result of growing competition.
Teva expects its revenue in 2022 to be $ 15.4-16.0 billion so that the center of the forecast range is reduced by $ 200 million. Teva estimates that Copaxone's revenue in 2022 will be $ 750 million while the previous forecast was for sales of $ 850 million.
Teva's forecasts for the operating profit of $ 4.2-4.5 billion, the cash flow operating profit (Ebitda) of $ 4.7-5.0 billion and the net earnings per share on a non GAAP basis of $ 2.40-2.60 per share remained the same - as they were in the forecast given in February 2022 when the results were published. -2021.
Teva's revenues in North America decreased by 13% in the first quarter of 2022 compared to the corresponding quarter in 2021 and amounted to $ 1.7 billion. The sharp decline in revenue is due to a 15% drop in sales of generic drugs in the last quarter compared to its counterpart in 2021 - to a level of $ 899 million; And a $ 78 million drop, or 48%, in Copaxone sales to $ 86 million last quarter.
Teva benefited last quarter from the launch of the generic version of the drug Revlimid for the treatment of myeloma and the increase in sales of the biosimilar version of Truxima for the treatment of leukemias - which was offset by a quantitative decline in sales of the old drugs. Teva maintained its market share in the generic market at 8.2% as it has been in the last two quarters.
Sales of Teva's relatively new original drugs have struggled to keep pace with the decline in Copaxone sales. Ajobi's sales, the migraine prevention shot, grew by 16% in the last quarter compared to the same period in 2021 and amounted to $ 36 million; And Ostrado's sales of motion sickness as a result of long-term use of antipsychotic drugs grew by only $ 8 million, or 6% in the past quarter compared to the same period in 2021 - and totaled $ 154 million.
The sales of the relatively low profitability of ANDA distribution company increased by 18% in the first quarter of 2022 compared to the corresponding period in 2021, and amounted to $ 342 million.
Teva's gross profit in North America decreased by 17% in the first quarter of 2022 compared to the corresponding quarter in 2021 and amounted to $ 890 million, which is 51.2% of turnover compared to 54.0% of the corresponding turnover in 2021, as a result of declining generic drug sales and sales Copaxone.
Teva's performance in Europe is a reflection of the continuing deterioration in North America. Teva's revenues in Europe fell by 5% in the first quarter of 2022 compared to the same quarter in 2021 - and amounted to $ 1.16 billion. The decline in sales is due to a fall in the euro exchange rate against the dollar, which deducted $ 67 million from the company's revenues.
Revenue in terms of source currencies grew by 3% in Europe in the first quarter of 2022 compared to the corresponding quarter in 2021 as a result of increased sales of generic and over-the-counter drugs with the removal of restrictions on patient visits to clinics and hospitals and increased demand for colds and coughs. Teva's revenue from generic drug marketing in Europe increased by 1% in the last quarter to $ 876 million.
Ajobi's revenue in Europe jumped 94% in the first quarter of 2022 compared to the same quarter in 2021 and totaled $ 30 million. This is thanks to growth in the European countries where it has been launched in the past and the launch of the drug in other countries. Ajobi has established itself as the second largest drug in the group of anti-cgrp injections to prevent migraines. Copaxone's sales in Europe collapsed 29% in the first quarter of 2022 compared to the same quarter in 2021 and totaled $ 72 million.
Teva continued to improve its profitability in Europe. Gross profit increased by 1% in the first quarter of 2022 compared to the corresponding quarter in 2021 and amounted to $ 644 million which is 60.0% of turnover compared to 56.6% of turnover in parallel in 2021 thanks to plant closures, decrease in raw material purchase cost and impairment provisions . Teva's operating profit grew by 13% in the first quarter of 2022 compared to the corresponding quarter in 2021 and amounted to $ 381 million, which is 32.9% of turnover - compared to 27.

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