On Wednesday, Israel-based Teva Pharmaceutical Industries (TEVA.TA) announced first-quarter profit below projections. Still, they maintained its full-year outlook, citing a hope that new product releases will enhance profitability into 2023.
Teva projected adjusted earnings per share (EPS) of $2.25-$2.55 and revenue of $14.8-$15.4 billion this year, compared to $2.52 and $14.9 billion in 2022.
“We are growing in our innovative (drugs segment) and we’ll see more growth, also in our generics outside of the United States, in Europe and international markets,” Chief Financial Officer Eli Kalif told an investors’ conference call.
Teva plans to launch UZEDY (risperidone), an extended-release injectable for adult schizophrenia, later this week.
“It’s a $4 billion market,” stated CEO Richard Francis. “We expect 10%–20% market share.”
The world’s largest generic pharmaceutical earned 40 cents per diluted share, excluding one-time expenses from January to March, down from 55 cents a year earlier. Revenue remained at $3.7 billion.
Refinitiv I/B/E/S data predicted Teva would earn 56 cents a share ex-items on $3.63 billion in revenue.
Tel Aviv-listed Teva slumped 6%.
“While we are seeing some positive tailwinds, we are also taking decisive actions to address some headwinds, mainly through improved portfolio mix driven by our innovative products and supply chain enhancements,” added Francis.
“We expect these actions will improve our gross profit margin in the coming quarters.”
In the first quarter, North American sales of generic pharmaceuticals declined 8%, while the group’s branded Huntington’s disease medication Austedo grew 10% to $170 million, and migraine treatment Ajovy rose 36% to $49 million.
Francis said next week’s Teva strategy would “build on Teva’s strong foundations, key strengths, and sets the stage for long-term growth.”
