Teva 3rd-Quarter Adjusted Profit Meets Estimate; Revenue Lags

Teva shares were lower after the drugmaker's adjusted earnings matched analyst expectations while revenue lagged.
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Teva Pharmaceutical  (TEVA) - Get Report shares on Thursday were lower after the Israeli drugmaker reported third-quarter adjusted earnings that matched analyst expectations while revenue lagged. 

At last check Teva shares fell 2.8% to $8.95. They'd closed the regular session Wednesday at $9.21, up 3.7%.

The company reported a net loss of $4.34 billion, or $3.97 a share, widened from a $307 million loss, or 29 cents, in the year-earlier period.

Adjusted earnings were 58 cents a share, matching analyst estimates in a FactSet survey for the quarter. 

Revenue for the period fell to $3.98 billion from $4.09 billion. analysts were expecting about $4.07 billion for the third quarter. 

"The quarter saw continued strong performance from our key growth drivers, led by Austedo and the biosimilar Truxima, while the market share of Ajovy continued to grow in the U.S. and Europe," Chief Executive Kare Schultz said in a statement. 

Austedo treats involuntary movements in patients with Huntington's disease. Truxima treats non-Hodgkin's lymphoma and chronic lymphocytic leukemia. Ajovy is designed to prevent migraines.

The drop in revenue was due to lower revenue from its over-the-counter and Copaxone generics in all regions and lower revenue from Qvar and Bendeka in its North America segment.

North America revenue dropped 2% year over year but still represented Teva's biggest market, with $2 billion coming from the region. Revenue in the U.S. fell 1% to $1.89 billion in the quarter. 

"Teva's business and operations have shown resilience as the covid-19 pandemic continues to impact the world," Schulz said. 

In August, Teva was charged by the U.S. Department of Justice with conspiring to fix prices for a range of generic medicines between 2013 and 2015 as part of a scheme to overcharge consumers. 

The effort overcharged consumers by $350 million, the government charged. Teva denied the charges.

The charges were part of a wider probe that resulted in seven drugmakers being indicted.