Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) provided its current outlook for non-GAAP financial performance for the full year ending December 31, 2013.
- Total net revenues of between $19.5-$20.5 billion, consisting of:
|United States||$10.0 to $10.6B|
|Europe||$5.5 to $6.1B|
|Rest of World||$3.7 to $4.3B|
- Total net revenues include the following major business lines:
- Generic medicines (including API) net revenues of between $10.3-$10.7 billion, consisting of:
|United States||$4.3 to $4.7B|
|Europe||$3.3 to $3.7B|
|Rest of World||$2.4 to $2.8B|
- Brand medicines net revenues of between $7.6-$8.0 billion including estimated global net revenues of the following products:
|COPAXONE®||$3.7 to $3.9B|
|TREANDA®||$600 to $700M|
|Women's Health||$460 to $500M|
|ProAir® HFA||$400 to $440M|
|AZILECT®||$340 to $380M|
|QVAR®||$320 to $360M|
|NUVIGIL®||$280 to $320M|
- OTC net revenues of between $0.9-$1.1 billion
- Other net revenues, mostly distribution of third party products, of approximately $0.7-$0.9 billion.
- Non-GAAP gross profit margin (which excludes amortization of intangible assets of approximately $1.1 billion) of between 59% and 61%, consisting of:
Gross Profit Margin(% of total net sales for the line)
|Generic||45% to 47%|
|Branded (excl Copaxone)||84% to 86%|
|MS||89% to 91%|
- Net R&D expenses of between 6.6% and 7.0% of net revenues, consisting of:
R&D Expenses(% of total net sales for the line)
|Generic||$500 to $550M|
|Branded (excl Copaxone)||$650 to $700M|
|MS||$130 to $200M|
- Non-GAAP selling & marketing expenses (which excludes amortization of intangible assets) of between 19.5% and 21.5% of net revenues, including royalties of approximately $500 million, and consisting of:
S&M Expenses(% of total net sales for the line)
|Generic||18.3% to 18.7%|
|Branded (excl Copaxone)||34% to 38%|
|MS||14.3% to 15.3%|
- General and administrative expenses of between 5.8% and 6.2% of net sales.
- Non-GAAP net financial expenses of between $300 and $330 million.
- Non-GAAP diluted earnings per share of between $4.85 and $5.15.*
- Estimated fully diluted average number of shares of between 856 and 866 million.
- Tax provision on our non-GAAP pretax income of between 14.0% and 15.0%.
- Cash flow from operations of between $4.5 and $4.8 billion. Free cash flow (cash flow from operations minus capital expenditures and dividends) of between $2.5 and $2.8 billion.
These estimates reflect management`s current expectations for Teva's performance in 2013. Actual results may vary, whether as a result of FX differences, market conditions or other factors. In addition, the non-GAAP figures exclude the amortization of purchased intangible assets, costs related to certain regulatory actions, inventory step-up, legal settlements and reserves, impairments and related tax effects. The non-GAAP data presented by Teva are the results used by Teva's management and board of directors to evaluate the operational performance of the company, to compare against the company's work plans and budgets, and ultimately to evaluate the performance of management. Teva provides such non-GAAP data to investors as supplemental data and not in substitution or replacement for GAAP results, because management believes such data provides useful information to investors. Except as expressly required by law, Teva disclaims and intent or obligation to update these statements.