Teva Pharmaceutical (NYSE: TEVA)
Teva Pharmaceutical announced weaker-than-expected fiscal 2018 fourth-quarter financial results before the opening bell on Wednesday, wherein both earnings and revenues missed estimates.
Further, the generic-drug king provided a downbeat 2019 guidance, sending its shares down 11.72% to $16.88 in pre-market trade. The stock has rallied gained 3.2% from a year ago, while the S&P 500 has jumped 3.1%.
TEVA Earnings & Outlook
Teva Pharmaceutical said net loss for the three months ending December 31, 2018 was $2.940 billion, or $2.85 per share. In the same period last year, the company had a net loss of $11.6 billion, or $11.41 per share.
On an adjusted basis, the drugmaker had earnings of $0.53 per share, while analysts surveyed by FactSet had been expecting earnings of $0.55 per share. Revenue, Teva Pharmaceutical said, dropped 16% to $4.559 billion from $5.398 billion in the year-earlier period, and also missed analyst estimates of $4.576 billion.
Looking ahead, the company expects fiscal 2019 revenue to be in the region of $17.0 billion to $17.4 billion and adjusted earnings of between $2.20 to $2.50 per share. Analysts expect the Israel-based drugmaker to post full-year adjusted earnings of $2.84 per share on revenue of $18.061 billion, based on figures compiled by FactSet.
Teva also expects continued erosion of COPAXONE sales in the U.S. and Europe, touting it to be at approximately $1.5 billion.
Teva Pharmaceutical CEO Comments
Mr. Kåre Schultz, Teva’s President and CEO, said, “2018 was the first year of our restructuring plan and we have met or exceeded all of our key financial targets for the year. The full year yielded a cost base reduction of $2.2 billion, exceeding our 2018 target, and we are well on track to deliver the total $3.0 billion reduction in 2019 as compared to the 2017 spend base.”
“AJOVY® is performing very well since its September launch in the U.S. with growing demand for the first and only anti-CGRP treatment with both quarterly and monthly dosing for the preventive treatment of migraine in adults. We will focus our investments on growing AJOVY® and continuing our success with AUSTEDO®, with both franchises positioned to be important growth drivers for Teva.”
Teva Pharmaceutical Profile
Teva Pharmaceutical Industries Ltd. is a global pharmaceutical company, which engages in development, production and marketing of drugs, generic drugs, over-the-counter drugs, active ingredients for the pharmaceutical industry (APIs) and therapeutic products. It operates through two segments: Generic Medicines and Specialty Medicines.
The Generic Medicines segment includes chemical and therapeutic equivalents of originator medicines in a variety of dosage forms, including tablets, capsules, injectables, inhalants, liquids, ointments and creams. The Specialty Medicine segment engages in the provision of core therapeutic areas of central nervous system medicines. The company was founded in 1901 and is headquartered in Petach Tikva, Israel. – CNN Money