Teva Pharmaceutical Industries Ltd. (TEVA) beat market estimates on adjusted EPS for Q2 2018 while revenues came in line with expectations. Despite these results, the stock fell around 5% in premarket trade.
Teva reported a decrease of 18% in revenues to $4.7 billion for the second quarter of 2018 compared to the same period last year, mainly due to price erosion in the US generic business, generic competition to COPAXONE and loss of revenues from the divestment and discontinuation of certain products and activities.
GAAP net loss in the quarter came down to $241 million or $0.24 per share compared to $6 billion or $5.94 per share in the prior-year period. Adjusted net income was $794 million or $0.78 per share.
Revenues in the North America segment fell 29%, mainly due to a decline in COPAXONE revenues, a drop in revenues from the US generics business and a loss of revenues from the sale of the women’s health business. This revenue decline was partially offset by higher revenues from AUSTEDO and the distribution business. Revenues in the US dropped 30% during the quarter to $2.1 billion.
Teva’s multiple sclerosis drug COPAXONE maintained its market share during the quarter but its revenues in North America dropped 46%, due to generic competition in the US.
Teva is raising its full-year 2018 guidance. The company now expects adjusted EPS to come in at $2.55 to $2.80 versus the prior outlook of $2.40 to $2.65. Free cash flow is expected to be $3.2 billion to $3.4 billion compared to the prior guidance of $3 billion to $3.2 billion. The outlook for revenues remains unchanged at $18.5 billion to $19 billion.
The company’s restructuring plan is on track to achieve $1.5 billion of savings in 2018 and a total of $3 billion by the end of 2019.