Teva Q2 Profit Tops View; Reaffirms 2020 Outlook

(RTTNews) - Teva Pharmaceutical Industries Ltd. (TEVA) reported that its second-quarter net income attributable to the company were $140 million or $0.13 per share compared to a net loss of $689 million or $0.63 per share in the second quarter of 2019.

In Wednesday pre-market trade, TEVA was trading at $12.51, up $0.68 or 5.75 percent.

Non-GAAP net income attributable to the company declined to $605 million or $0.55 per share from the prior year's $653 million or $0.60 per share, mainly due to lower gross profit, partially offset by lower operating expenses. Analysts polled by Thomson Reuters expected the company to report earnings of $0.53 per share. Analysts' estimates typically exclude special items.

Looking ahead for 2020, the company still expects earnings per share to be in the range of $2.30 - $2.55, and net revenues of $16.6 billion - $17 billion. Wall Street currently is looking for fiscal year 2019 earnings of $2.50 per share on annual revenues of $16.8 billion.

Teva's revenues for the second quarter were $3.87 billion, a decrease of 7%, or 5% in local currency terms, compared to the second quarter of 2019. Analysts expected revenues of $3.93 billion for the quarter. The decrease was mainly due to lower revenues from generics, OTC and COPAXONE in all regions and lower revenues from QVAR and BENDEKA/TREANDA in North America segment, as well as reduced demand for certain products resulting from the impact the COVID-19 pandemic had on purchasing patterns, partially offset by higher revenues from AUSTEDO, Anda and AJOVY in the U.S.

In a separate press release, Teva and Alvotech have entered into an exclusive strategic partnership for the commercialization in the U.S. of five biosimilar product candidates. All other financial terms and product details remain confidential.

As per the agreement, Alvotech will be responsible for the development, registration and supply of the biosimilars, while Teva will be exclusively commercializing the products in the U.S. The originator products of these five candidates currently generate around $35 billion in U.S. sales.

The agreement includes an upfront payment, with subsequent milestone payments over the next several years. Teva and Alvotech will share profit from the commercialization of the biosimilars.