Teva CEO: Israel’s production capacity has not been affected by the war
Teva CEO: Israel’s production capacity has not been affected by the war
The Israeli pharmaceutical company’s revenues grew by 7% in the last quarter to $3.9 billion, according to a report it recently published.
Israeli pharmaceutical company Teva has completed another disappointing quarter with revenues of $3.9 billion, similar to the previous quarter - a 7% increase compared to the same quarter last year and slightly above market expectations, according to a report released by the company. CEO Richard Francis stated upon publication of the report that the company's production capabilities, including those in Israel, have not been affected by the war. He added that Teva has expanded its drug stockpile for emergency use in Israel. Teva also has plans for alternative production for main products if necessary.
Francis said: "In the six months since we announced our growth strategy, we have made progress on all fronts and have become a bolder and more streamlined organization. As part of the progress towards transforming Teva API’s material activity into an independent company, we have appointed a new CEO."
Ultimately, Teva reported a net profit of 60 cents per share, an improvement from the previous quarter but slightly below analyst expectations. Teva has adjusted its annual revenue forecast from $15-15.4 billion to $15.1-15.5 billion.
The improved revenue forecast is attributed to strong sales of Austedo and Ajovy, two Teva original drugs, expected to generate one billion dollars in revenue this year. Austedo in particular performed well in the United States with sales up by 30% at $339 million, while Ajovy experienced a similar increase in the European market, where it generated $41 million in revenue, resulting in over $100 million in quarterly revenue when combined with U.S. sales.
Teva's annual operating profit is expected to range from $4-4.4 billion before accounting for adjustments and non-recurring items. The free cash flow is expected to amount to $1.7-2.1 billion following $229 million in the third quarter.
