Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) swung to a profit in the fourth quarter of 2019 from a loss last year, helped by lower costs and expenses as well as a tax benefit. The results exceeded analysts’ expectations. Further, the company guided full-year guidance in-line with the consensus view.
Net income was $110 million compared to a loss of $2.94 billion in the previous year quarter. Adjusted earnings jumped by 17% to $0.62 per share, which exceeded consensus estimates of $0.61. Revenue rose by 1% to $4.47 billion, which came ahead of estimates of $4.35 billion.
The top line was driven by an increase in sales of Austedo, Ajovy, and certain respiratory products, partially offset by lower revenues from Copaxone in North America.
Looking ahead into the full year 2020, the company expects revenue in the range of $16.6-17 billion and adjusted earnings in the range of $2.30-2.55 per share. The consensus estimates EPS of $2.47 on revenue of $17.18 billion. Free cash flow is expected to be $1.8-2.2 billion for the full year.
For the fourth quarter, revenue from North America increased by 6% due mainly to the launch of Truxima, which is a biosimilar to Rituxan, higher revenues from respiratory products, Austedo and Anda. This was partially offset by lower revenues from Copaxone.
Europe’s revenues decreased by 2% as the entry of competing for glatiramer acetate products and the loss of exclusivity for certain products in the oncology portfolio impacted Copaxone revenues. International market revenue declined by 3% mainly due to lower sales in Japan and Israel.
In the fourth quarter of 2019, Teva led the US generics market in total prescriptions and new prescriptions, with about 388 million total prescriptions (based on trailing twelve months), representing 10.5% of total US generic prescriptions according to IQVIA data.
For the fourth quarter, research and development expenses fell by 21% due to pipeline optimization and efficiencies realized as part of its restructuring plan. The company said its key growth products met major milestones in 2019, including the launch of Ajovy in Europe, continued strong growth for Austedo, and the successful launch of first biosimilar Truxima in North America. In 2020, the company expects to see continued growth for Ajovy, Austedo, and biosimilars.