Teva Pharmaceutical Industries (NYSE: TEVA) topped revenue and earnings estimates for the second quarter of 2019, giving shares a lift of 1.4% in premarket hours on Wednesday.
Total revenue of $4.3 billion was down 8% from the same period last year but came ahead of estimates of $4.2 billion. Revenue results were hurt by generic competition to COPAXONE as well as revenue declines in TREANDA/BENDEKA and other specialty products in the US, Europe and Japan.
Net loss attributable to ordinary shareholders was $689 million, or $0.63 per share, compared to $241 million, or $0.24 per share, in the year-ago period. Adjusted net income was $653 million, or $0.60 per share. Analysts had forecast adjusted EPS of $0.57.
Mr. Kare Schultz, Teva’s President and CEO, said, “During the second quarter, portfolio optimization and new launches stabilized our North American generics business, COPAXONE performed above expectations and AUSTEDO achieved a very strong growth rate. We continue to focus our efforts on growth for AJOVY in the US and are excited by the early momentum of the product’s recent launches in the EU.”
On a GAAP basis, R&D expenses fell 5% to $276 million while on an adjusted basis, they amounted to $271 million. The decrease was mainly due to pipeline optimization and related headcount reductions.
Teva is on track to achieve the targets of its two-year restructuring plan and based on the first half results, the company is reaffirming its full-year 2019 guidance.
Revenues in the North America segment declined 8% year-over-year to $2.07 billion, mainly due to revenue declines in COPAXONE, TREANDA/BENDEKA and other specialty products. Revenues in the US, which is the largest market, fell 10%.
Revenues in Europe fell 11% to $1.18 billion, hurt by a decline in COPAXONE revenues. Revenues from International Markets dropped 6% to $741 million hurt by lower sales in Japan.
During the quarter, generic products revenues remained flat in North America but saw decreases in Europe and International Markets. COPAXONE revenues fell across all three geographic markets.
Revenues fell double-digits in TREANDA/BENDEKA and ProAir while QVAR, AUSTEDO and Anda revenues saw increases. AUSTEDO revenues jumped 117% to $96 million from last year. Revenues in respiratory products decreased 16% while distribution revenues increased 6%. Revenues from other activities grew 6% to $342 million.
Teva also announced that EVP and CFO Michael McClellan has decided to step down from his role due to personal reasons. The company has initiated the search for a successor. Mr. McClellan is expected to continue with the company through the announcement of the third quarter results to ensure a smooth transition.