Teva gains after raising outlook for second time this year
Shares of Teva Pharmaceutical (NYSE:TEVA) gained in the premarket trading on Wednesday after the generic drugmaker reported better-than-expected Q3 2024 financials and raised its full-year outlook for the second time this year.
Israel-based Teva (NYSE:TEVA) reported $4.3B in revenue for the quarter, indicating ~13% YoY growth, its seventh consecutive quarterly growth. The company’s innovative portfolio and generics business contributed mainly to the growth.
TEVA’s generics business added ~$2.5B globally with ~16% YoY growth driven by its U.S. segment, which added more than $1B of generics sales during the quarter with ~30% YoY growth.
Meanwhile, TEVA’s movement disorder therapy, Austedo, added $435M from the U.S., representing 28% YoY growth, and Copaxone, a treatment for multiple sclerosis, brought $135M globally, with ~20% YoY drop.
“Our innovative portfolio and generics business drove strong performance in the third quarter of 2024, reflecting the successful execution of our pivot to growth strategy,” CEO Richard Francis remarked, referring to a turnaround plan the company announced in May 2023.
While Teva’s (TEVA) gross margin rose to ~50% from ~48% in the prior-year period, the company swung to a net loss of $437M compared to $69M in net income last year, driven by a goodwill impairment charge and higher legal settlements and loss contingencies.
After adding $35M in sales from the U.S. for its newly launched schizophrenia therapy Uzedy in Q3, the company raised its full-year sales outlook for the injectable to ~$100M from ~$80M.
Citing the upcoming milestones and the strong YTD performance, TEVA raised its full-year revenue outlook to $16.1B–$16.5B in revenue and $2.40–$2.50 in adj. earnings per share in line with $16.3B and $2.45 per share in the consensus.