Teva reiterates outlook despite first revenue beat in two quarters
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Teva Pharmaceutical (NYSE:TEVA) shed ~3% pre-market Wednesday as the generic drugmaker reiterated its full-year outlook in line with consensus even after recording its first topline beat in two quarters.
Israel-based TEVA reported $3.7B in revenue for the quarter, mostly unchanged from the prior year period, while in local currency terms, its revenue expanded ~4% YoY, thanks to generic products in EU and International markets and drugs such as Anda and Austedo in North America.
Revenue from North America rose ~2% YoY to YoY $1.8B as Anda and Austedo brought $494M and $170M to the topline with ~24% YoY and ~10% YoY growth, respectively, while the contribution from generic products slipped ~8% YoY to $824M.
The European markets generated $1.2B in revenue with ~2% YoY growth driven by ~6% YoY growth in generic products.
Teva’s (TEVA) non-GAAP gross profit margin reached 49.1% in Q1 2023 from 54.2% in the prior year due to factors such as inflationary and other macroeconomic pressures as well as unfavorable product changes mix.
“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,” Chief Executive Richard Francis noted.
“We expect these actions will improve our gross profit margin in the coming quarters,” he added.
Meanwhile, the company’s adj. net income fell ~25% YoY to $457M, and the company’s reaffirmed its full-year outlook for revenue, and non-GAAP diluted EPS at $14.8B – $15.4B and $2.25 - $2.55, respectively, in line with Wall Street’s forecasts.