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Teva falls on the gloomy forecast of 2019



The share price of Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) was down more than 11% in premarket trading on Wall Street after the company reported the results for the year and the final quarter on December 31, 2018, and provided a gloomy forecast for 2019.

Teva's revenues in 2018 were $ 18,854 billion, 16% less than in 2017, mainly due to the generic competition with Copaxone, a decrease in generics revenues in the United States and the loss of income after the sale of products and interruption of activities. Revenues were slightly above analysts' expectations. Teva expects revenues to fall further from $ 17 to $ 17.4 billion in 2019, and non-GAAP EPSs are expected to be $ 2.20 to 2.50.

The net loss of GAAP in 2018 was $ 2,399 billion ($ 2.35 per share) compared to a net loss of $ 16,525 billion ($ 16.26 per share) in 2017. The unaudited net GAAP gain in 2018 was $ 2,985 billion of $ 2.92 per share), slightly below analysts. expectations, compared to $ 4,075 billion ($ 4.01 per share) in 2017.

As of December 31, 2018, Teva's debt was $ 28.916 billion, compared to $ 32.475 billion as of December 31, 2017. The decrease was mainly due to senior bonds and overdue or past due loans. anticipated with cash generated during the year.

Revenues in the fourth quarter of 2018 were $ 4,559 billion, slightly above analysts' predictions, which decreased 16% compared to the fourth quarter of 2017.

The net loss of GAAP in the fourth quarter of 2018 was $ 2,940 billion ($ 2.85 per share) compared to a net GAAP loss of $ 11.6 billion ($ 11.41 per share) in the fourth quarter of 2017. The net gain Unaudited GAAP in the fourth quarter of 2018 was $ 543 million ($ 0.53 per share), slightly below analysts' expectations) compared to $ 949 million ($ 0.93 per share) in the fourth quarter. quarter of 2017.

President and CEO of Teva, Kåre Schultz, said: "2018 was the first year of our restructuring plan and we have met or exceeded all of our key financial goals for the year." The full year resulted in a cost reduction of $ 2.2 billion, surpassing our 2018 goal, and we are well on track to offer the total reduction of $ 3.0 billion in 2019 compared to the 2017 expense base. AJOVY is performing very well since its launch in September in the US. With an increasing demand for the first and only anti-CGRP treatment with both quarterly and monthly doses for the preventive treatment of migraine in adults, we will concentrate our investments in the growth of AJOVY and in the continued success of AUSTEDO, with both franchises positioned as important growth engines for Teva.

He added: "Looking ahead, we continue to expect 2019 to be the base of our business, a year in which we will face challenges similar to those of 2018, including the continued erosion of Copaxone in the United States and Europe, as well as the introduction." . of generics in the ProAir market. Throughout the year, we will continue to execute against the objectives of our restructuring plan, including the optimization of our global network and portfolio, as we focus our efforts on generating cash to reduce the company's debt. "

Copaxone's revenues in North America in the fourth quarter of 2018 fell 44% to $ 356 million, as generic rivals contributed to sales of the treatment for multiple sclerosis. Copaxone's revenues in Europe in the fourth quarter of 2018 fell 24% to $ 118 million. Teva expects Copaxone's global sales in 2018 of $ 2.4 billion to fall to only $ 1.5 billion in 2019.

Income from migraine treatment Ajovy, which obtained FDA approval in September, was only $ 3 million in 2018, but is expected to increase to $ 150 million this year. Revenue in the US UU The treatment with chorea of ​​Huntington Austedo disease was $ 204 million in 2018 and is expected to increase to $ 350 million in 2019.

Posted by Globes, Israel business news – en.globes.co.il – February 13, 2019

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