Teva Sees FY17 Results Below View; Stock Down

(RTTNews) - Teva Pharmaceutical Industries Ltd. (TEVA) said Friday that it expects non-GAAP earnings per share to be in the range of $4.90 - $5.30 and net revenues of $23.8 billion - $24.5 billion for fiscal year 2017. Analysts polled by Thomson Reuters expected the company to report earnings of $5.44 per share and revenues of $24.84 billion for fiscal year 2017. Analysts' estimates typically exclude special items.

In the pre-Market trade, TEVA is currently trading at $36.70, down $1.26 or 3.32 percent.

Erez Vigodman, Teva's President and Chief Executive Officer, said "2016 was a transition year for Teva. The entire healthcare sector has faced significant headwinds, and we have not been immune."

Copaxone 40 mg/mL is not expected to face generic competition in the United States during 2017. The entry of two AB-rated generic competitors in the U.S. in February 2017 could reduce revenues by $1.0 billion to $1.2 billion, and could reduce non-GAAP EPS by $0.65 to $0.80.

Compared to 2016, foreign exchange rate fluctuations are expected to have an adverse impact of $0.8 billion on revenues, while reducing operating income by $0.2 billion. This includes the impact of the use, from December 1, 2016, of a blended exchange rate of approximately 300 bolivars per U.S. dollar to report our results in Venezuela.

Vigodman said, "Looking ahead to 2017, we are focused on execution. We know what our key priorities are, and we are determined to deliver on them. We are focused on extracting synergies related to the Actavis Generics transaction, driving additional efficiencies throughout the organization, cash generation and paying down our debt, delivering on the promise of the specialty pipeline and executing key generic launches. We continue to make excellent progress on the integration of Actavis Generics and our promise of $1.4 billion in net deal-related synergies and tax savings by 2019."

The company expect generic revenues in the United States to be approximately 43%-45% of the generics segment revenues in 2017, Europe to account for approximately 26%-28% and our ROW markets to be 28%-30%.

The company expects the profitability of the generics segment in 2017 to be between 30% and 31%.