Teva Cuts Outlook Again in Perfect Storm of Problems
November 02 2017 - 9:51AM
Dow Jones News
By Rory Jones
TEL AVIV--The world's biggest seller of generic drugs, Israel's
Teva Pharmaceutical Industries Ltd., cut its full-year outlook for
the second time this year, blaming price pressure in its U.S.
business and greater competition for its blockbuster multiple
sclerosis drug.
The Israeli drugmaker cut its earnings per share estimate for
the year Thursday as it predicted weaker revenue from its U.S.
generics business. It also warned it would face competition earlier
than expected for a high-dose version of its Copaxone drug, which
makes up roughly 20% of sales.
Teva has grappled with a perfect storm of problems this year, as
the U.S. generics business has struggled with a tough price
environment and its blockbuster multiple sclerosis drug has faced
competition from rivals.
The drug giant posted disappointing third-quarter results on
Thursday. Adjusted net profit for the quarter ending Sept. 30 was
$1 billion, compared with $1.4 billion in the same period the year
before, while revenue rose slightly over the same period to $5.6
billion.
Teva said it now expects adjusted earnings per share of $3.77 to
$3.87 for 2017, down by roughly 30 cents from earlier guidance.
Shares were down 7.6% on Thursday afternoon in Tel Aviv. They
are down more 60% since the end of 2016, a decline that has erased
more than $60 billion in market capitalization.
Saddled with billions in debt after a series of ill-timed
acquisitions, Teva is hastily trying to sell assets to make
financing repayments. Net debt fell to slightly $34.7 billion after
Teva said it paid down roughly $600 million of loans.
It had also been without a permanent chief executive for nine
months. In September it appointed industry veteran Kare Schultz to
lead a turnaround at the firm but the new chief only began work on
Wednesday and hasn't communicated a new strategy yet.
Teva in August said it had taken a $6.1 billion write-down on
its U.S. generics unit to reflect dimming prospects, dragging the
company's quarterly net loss down to $6.04 billion.
Write to Rory Jones at rory.jones@wsj.com
(END) Dow Jones Newswires
November 02, 2017 09:36 ET (13:36 GMT)
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