Beset by debt, litigation in the US on price fixing and the opioid epidemic, falling Copaxone sales and Us generic prices, Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) has reported better than expected second quarter financial results. At the same time CFO Michael McClellan has announced that he is stepping down.
RELATED ARTICLES
Teva tanks on renewed opioid settlement concerns
Revenue in the second quarter of 2019 was $4.337 billion, down 8% compared wityh the second quarter of 2018. The fall was mainly due to generic competition to Copaxone, as well as declines in revenue from Treanda/Bedenka, and other specialty products in the US. The falls were partially offset by higher revenue from Austedo, Ajovy and Qvar in the US. The analysts had predicted revenue of $4.25 billion.
Non-GAAP arnings per share in the second quarter was $0.60, above the analysts’ consensus of $0.57 per share.
Teva president and CEO Kåre Schultz said, “During the second quarter, portfolio optimization and new launches stabilized our North American generics business, Copaxone performed above expectations and Austedo achieved a very strong growth rate. We continue to focus our efforts on growth for Ajovy in the US and are excited by the early momentum of the product’s recent launches in the EU.”
He added, “We are on track to achieve the targets of our two year restructuring plan and based on our good results for the first half of the year we are reaffirming our full year guidance.”
McClellan said that he had decided to step down from his role as CFO due to personal reasons requiring him to be located near his family. Teva has initiated a search to identify its next CFO. McClellan is expected to remain in his role through the announcement of third quarter results to assist with a smooth transition.
Teva’s share price in premarket trading is up 2.83% at $7.26, after falling 9.83% yesterday to $7.06, giving a market cap of $7.94, on fresh concerns about the size of the settlement it will be required to pay for the opioid epidemic.
Published by Globes, Israel business news – en.globes.co.il – on August 7, 2019
© Copyright of Globes Publisher Itonut (1983) Ltd. 2019