Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) today
reported results for the year and the quarter ended December 31,
2020.
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the full release here:
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Q4 2020 and FY 2020
highlights:
Q4 2020
FY 2020
Revenues
$4.5 billion
$16.7 billion
Cash flow from operating
activities
$331 million
$1,216 million
Free cash flow
$471 million
$2,110 million
GAAP earnings (loss) per
share
$0.14
$(3.64)
Non-GAAP EPS
$0.68
$2.57
- 2021 business outlook:
- Revenues are expected to be $16.4 - $16.8 billion (2020 actual
results include ~$240 million in revenues from generic products in
Japan divested on February 1, 2021, along with a manufacturing
site)
- Non-GAAP EPS is expected to be $2.50 - $2.70
- Free cash flow is expected to be $2.0 - $2.3 billion
"In 2020, Teva continued to provide essential medicines to
millions of patients around the world every day, and despite the
COVID-19 pandemic challenges, we saw minimal impact on our supply
chain, R&D programs and product launches. Following a strong
fourth quarter performance, we have met all components of our 2020
financial guidance," said Mr. Kåre Schultz, Teva’s President and
CEO.
"Our key growth drivers delivered promising results and
milestones, including the continued growth of AUSTEDO® and our
leading biosimilar TRUXIMA®, as AJOVY® sales continued to improve
following the launch of the auto-injector. Our generic performance
was boosted by the successful launch of the generic versions of
HIV-1 treatments Truvada® and Atripla® tablets in the U.S. We have
also taken steps to strengthen our biopharmaceutical pipeline, with
a biosimilar commercialization agreement, and are advancing other
pipeline assets, including the recently announced positive results
from the phase 3 trial of risperidone extended-release injectable
for patients with schizophrenia."
Mr. Schultz continued, “Looking ahead, we will continue to
optimize our manufacturing network, portfolio and pipeline, improve
our profitability and generate cash, as we remain on track to repay
our debt and achieve our long-term financial targets."
2020 Annual Consolidated Results
Revenues in 2020 were $16,659 million, a decrease of 1%
in both U.S. dollar and local currency terms, compared to 2019,
mainly due to a decline in revenues from certain oncology products,
COPAXONE® and certain respiratory products, partially offset by
higher revenues from AUSTEDO and AJOVY. The decline in revenues was
also affected by reduced demand for certain products resulting from
the impact of the COVID-19 pandemic.
Exchange rate movements during 2020 including hedging
effects, in comparison with 2019, negatively impacted our revenues
by $33 million, our GAAP operating loss by $56 million and our
non-GAAP operating income by $49 million.
GAAP gross profit was $7,726 million in 2020, an increase
of 3% compared to 2019. GAAP gross profit margin was 46.4%
in 2020, compared to 44.6% in 2019. Non-GAAP gross profit
was $8,734 million in 2020, slightly higher than 2019, and Non-GAAP
gross profit margin was 52.4% in 2020, compared to 51.5% in 2019.
The increase in gross profit as a percentage of revenues was mainly
due to higher profitability in North America, resulting from higher
revenues from AUSTEDO and AJOVY, higher gross profit margin in our
U.S. generics business, partially offset by a decline in COPAXONE
revenues due to generic competition.
GAAP Research and Development (R&D) expenses
in 2020 were $997 million, a decrease of 1% compared to 2019.
Non-GAAP R&D expenses in 2020 were $941 million, or 5.6%
of revenues, compared to $1,004 million, or 5.9% of revenues, in
2019. Our lower R&D expenses in 2020, compared to 2019,
resulted primarily from project milestone timing and pipeline
optimization.
GAAP Selling and Marketing (S&M) expenses in
2020 were $2,498 million, a decrease of 4% compared to 2019.
Non-GAAP S&M expenses were $2,322 million, or 13.9% of
revenues, in 2020, compared to $2,438 million, or 14.4% of
revenues, in 2019. This decrease was mainly due to lower marketing
and travel costs attributed to restrictions related to the COVID-19
pandemic.
GAAP General and Administrative (G&A) expenses in
2020 were $1,173 million, a decrease of 2% compared to 2019.
Non-GAAP G&A expenses were $1,115 million in 2020, or
6.7% of revenues, compared to $1,145 million, or 6.8% of revenues,
in 2019.
We recorded a goodwill impairment charge of $4,628
million related to our North America reporting unit in 2020, in
connection with current market capitalization influenced by
uncertainty regarding the timeframe for resolution of certain
litigations.
GAAP other income in 2020 was $40 million, compared to
$76 million in 2019. Non-GAAP other income in 2020 was $31
million, compared to $27 million in 2019.
GAAP operating loss was $3,572 million in 2020, compared
to operating loss of $443 million in 2019. The increase was mainly
due to a goodwill impairment charge recorded in 2020. Non-GAAP
operating income was $4,388 million, an increase of 6%
compared to $4,142 million in 2019.
Adjusted EBITDA (non-GAAP operating income, which
excludes amortization and certain other items, and excluding
depreciation expenses) in 2020 was $4,912 million, compared to
$4,685 million in 2019.
In 2020, GAAP financial expenses were $834 million,
compared to $822 million in 2019. Non-GAAP financial
expenses were $918 million in 2020, compared to $824 million in
2019.
In 2020, we recognized a GAAP tax benefit of $168
million, or 4%, on a pre-tax loss of $4,406 million. In 2019, we
recognized a tax benefit of $278 million, or 22%, on a pre-tax loss
of $1,265 million. Our tax rate for 2020 was lower than in 2019,
mainly due to goodwill impairments that did not have a
corresponding tax effect.
Non-GAAP income taxes for 2020 were $577 million on
non-GAAP pre-tax income of $3,470 million. Non-GAAP income taxes in
2019 were $597 million on non-GAAP pre-tax income of $3,317
million. The non-GAAP tax rate for 2020 was 17%, compared to 18% in
2019.
GAAP net loss attributable to Teva’s ordinary
shareholders and GAAP diluted loss per share in 2020 were
$3,990 million and $3.64, respectively, compared to net loss of
$999 million and diluted loss per share of $0.91 in 2019. Non-GAAP
net income attributable to ordinary shareholders for
calculating diluted EPS and non-GAAP diluted EPS in 2020
were $2,830 million and $2.57, respectively, compared to $2,627
million and $2.40 in 2019.
The weighted average diluted shares outstanding used for
the fully diluted share calculation on a GAAP basis for 2020 and
2019 were 1,095 million and 1,091 million shares, respectively. The
weighted average outstanding shares used for the
fully diluted EPS calculation on a non-GAAP basis for 2020 and 2019
were 1,099 million and 1,094 million shares, respectively.
As of December 31, 2020 and 2019, the fully diluted share
count for purposes of calculating our market capitalization was
approximately 1,117 million and 1,108 million shares,
respectively.
Non-GAAP information: Net non-GAAP adjustments in 2020
were $6,820 million. Non-GAAP net income and non-GAAP EPS for the
year were adjusted to exclude the following items:
- A goodwill impairment charge of $4,628 million related to our
North America reporting unit in the third quarter of 2020;
- $1,918 million impairment of long-lived assets comprised mainly
of impairments of identifiable intangible assets totaling $1,502
million ($797 million of IPR&D assets and $705 million of
identifiable product rights);
- Amortization of purchased intangible assets totaling $1,020
million, of which $894 million is included in cost of goods sold
and the remaining $126 million in selling and marketing
expenses;
- Legal settlements and loss contingencies of $60 million;
- Restructuring expenses of $120 million;
- Purchase of in process R&D of $37 million;
- Contingent consideration income of $81 million, mainly related
to a decrease in future royalties
- Gain from equity investment of $134 million, reflecting the
difference between the book value of our investment in American
Well Corporation and its fair value as of the date it completed its
initial public offering in September 2020;
- Finance income of $85 million, mainly related to the American
Well equity holding;
- Equity compensation expenses of $129 million;
- Other non-GAAP items of $130 million;
- Minority interest adjustment of $177; and
- Related tax effect of $745 million.
Teva believes that excluding such items facilitates investors’
understanding of its business. For further information, see below
the U.S. GAAP to adjusted non-GAAP reconciliation tables under
“Financial Tables” and the information under “Non-GAAP Financial
Measures.” Investors should consider non-GAAP financial measures in
addition to, and not as replacement for, or superior to, measures
of financial performance prepared in accordance with GAAP.
Cash flow generated from operating activities in 2020 was
$1,216 million, an increase of $468 million, or 63%, compared to
2019. The increase was mainly due to higher profit in our North
America segment during 2020.
Free cash flow (Cash flow generated from operating
activities in 2020, net of cash used for capital investments and
beneficial interest collected in exchange for securitized trade
receivables) was $2,110 million in 2020, compared to $2,053 million
in 2019. The increase in 2020 resulted mainly from higher cash flow
generated from operating activities, partially offset by less cash
generated from sales of assets and higher capital investments.
As of December 31, 2020, our debt was $25,919 million,
compared to $26,908 million as of December 31, 2019. This decrease
was mainly due to senior notes repaid at maturity with cash
generated during the year, partially offset by exchange rate
fluctuations. The portion of total debt classified as short-term as
of December 31, 2020 was 12%, compared to 9% as of December 31,
2019, due to a reclassification of upcoming maturities in 2021. Our
average debt maturity was approximately 5.8 years as of December
31, 2020, compared to 6.4 years as of December 31, 2019.
Fourth Quarter 2020 Consolidated Results
Revenues in the fourth quarter of 2020 were $4,454
million, flat compared to the fourth quarter of 2019. In local
currency terms, revenues decreased by 1%, mainly due to lower
revenues from Anda, our distribution business in the United States,
COPAXONE and certain oncology products, offset by higher revenues
from our U.S. generics business, AUSTEDO, most markets in our
International Markets segment and AJOVY. Revenues in our North
America and Europe segments were impacted by some reductions in
volume due to less physician and hospital activity during the
COVID-19 pandemic, but our North America segment also experienced
increases in demand for certain products related to the treatment
of COVID-19 and its symptoms.
Exchange rate differences between the fourth quarter of
2020 and the fourth quarter of 2019, including hedging effects
positively impacted our revenues by $35 million and negatively
impacted our GAAP operating income by $30 million. Our non-GAAP
operating income was negatively impacted by $24 million.
GAAP gross profit was $2,048 million in the fourth
quarter of 2020, an increase of 5% compared to the fourth quarter
of 2019. GAAP gross profit margin was 46.0% in the fourth
quarter of 2020, compared to 43.8% in the fourth quarter of 2019.
Non-GAAP gross profit was $2,327 million in the fourth
quarter of 2020, an increase of 3% compared to the fourth quarter
of 2019. Non-GAAP gross profit margin was 52.3% in the
fourth quarter of 2020, compared to 50.6% in the fourth quarter of
2019. The increase in non-GAAP gross profit margin in the fourth
quarter of 2020 resulted from higher revenues from AUSTEDO and
AJOVY, higher gross margin in our U.S. generics business, partially
offset by a decline in COPAXONE revenues due to generic
competition.
GAAP Research and Development (R&D) expenses
in the fourth quarter of 2020 were $293 million, an increase of 26%
compared to the fourth quarter of 2019. Non-GAAP R&D
expenses were $254 million, or 5.7% of quarterly revenues, in
the fourth quarter of 2020, compared to $237 million, or 5.3% of
quarterly revenues, in the fourth quarter of 2019. The increase in
R&D expenses in the fourth quarter of 2020 resulted primarily
from initiation and advanced development activities for certain
specialty and biosimilar products.
GAAP Selling and Marketing (S&M) expenses in
the fourth quarter of 2020 were $683 million, a decrease of 3%
compared to the fourth quarter of 2019. Non-GAAP S&M
expenses were $627 million, or 14.1% of quarterly revenues in
the fourth quarter of 2020, compared to $665 million, or 14.9% of
quarterly revenues in the fourth quarter of 2019.
GAAP General and Administrative (G&A) expenses in the
fourth quarter of 2020 were $327 million, an increase of 3%
compared to the fourth quarter of 2019. Non-GAAP G&A
expenses were $312 million in the fourth quarter of 2020, or
7.0% of quarterly revenues in the fourth quarter of 2020, compared
to $309 million, or 6.9% of quarterly revenues in the fourth
quarter of 2019.
GAAP other income in the fourth quarter of 2020 was $10
million, compared to $47 million in the fourth quarter of 2019.
Non-GAAP other income in the fourth quarter of 2020 was $5
million, compared to $9 million in fourth quarter of 2019.
GAAP operating income in the fourth quarter of 2020 was
$406 million, compared to an income of $148 million in the fourth
quarter of 2019. Non-GAAP operating income in the fourth
quarter of 2020 was $1,140 million, an increase of 7% compared to
the fourth quarter of 2019.
EBITDA (non-GAAP operating income, which excludes
amortization and certain other items, as well as depreciation
expenses) was $1,277 million in the fourth quarter of 2020, an
increase of 6% compared to $1,204 million in the fourth quarter of
2019.
GAAP financial expenses for the fourth quarter of 2020
were $268, compared to $186 million in the fourth quarter of 2019.
Non-GAAP financial expenses were $235 million in the fourth
quarter of 2020, compared to $198 million in the fourth quarter of
2019.
In the fourth quarter of 2020, we recognized a GAAP tax
benefit of $22 million on a pre-tax GAAP income of $138
million. In the fourth quarter of 2019, we recognized a GAAP tax
benefit of $119 million on a pre-tax GAAP loss of $38 million.
Non-GAAP income taxes for the fourth quarter of 2020 were
$141 million, or 16%, on pre-tax non-GAAP income of $905 million.
Non-GAAP income taxes in the fourth quarter of 2019 were $155
million, or 18%, on pre-tax non-GAAP income of $863 million.
GAAP net income attributable to Teva and GAAP diluted
earnings per share in the fourth quarter of 2020 were $150
million and $0.14, respectively, compared to GAAP net income
attributable to Teva and GAAP diluted earnings per share of $110
million and $0.10, respectively, in the fourth quarter of 2019.
Non-GAAP net income attributable to Teva and non-GAAP
diluted earnings per share in the fourth quarter of 2020
were $753 million and $0.68, respectively, compared to $683 million
and $0.62, respectively, in the fourth quarter of 2019.
For the fourth quarter of 2020, the weighted average
outstanding shares for the fully diluted EPS calculation on a
GAAP basis was 1,100 million shares, compared to 1,094 million
shares in the fourth quarter of 2019. The weighted average
outstanding shares for the fully diluted EPS calculation on a
non-GAAP basis was 1,100 million shares in the fourth quarter of
2020, compared to 1,094 million shares in the fourth quarter of
2019.
Non-GAAP information: Net non-GAAP adjustments in the
fourth quarter of 2020 were $603 million. Non-GAAP net income and
non-GAAP EPS for the fourth quarter were adjusted to exclude the
following items:
- $233 million impairment of long-lived assets, comprised mainly
of impairments of identifiable intangible assets totaling $224
million ($135 million of identifiable product rights globally, of
which $127 million are from the U.S., and $89 million of in process
R&D assets);
- Amortization of purchased intangible assets of $262 million, of
which $231 million is included in cost of sales and the remaining
$31 million in S&M expenses;
- Legal settlements and loss contingencies of $50 million;
- Restructuring expenses of $38 million;
- Purchase of in process R&D of $34 million;
- Contingent consideration of $15 million, mainly related to
bendamustine;
- Finance expenses of $33 million, mainly related to the American
Well equity holding;
- Equity compensation expenses of $40 million;
- Other non-GAAP items of $60 million; and
- Related tax effect of $162 million.
Teva believes that excluding such items facilitates investors'
understanding of its business. For further information, see below
the U.S. GAAP to adjusted non-GAAP reconciliation tables under
“Financial Tables” and the information under “Non-GAAP Financial
Measures.” Investors should consider non-GAAP financial measures in
addition to, and not as replacement for, or superior to, measures
of financial performance prepared in accordance with GAAP.
Cash flow generated from operating activities during the
fourth quarter of 2020 was $331 million, compared to $538 million
in the fourth quarter of 2019. The decrease was mainly due to
higher payments to suppliers in the fourth quarter of 2020.
Free cash flow (Cash flow generated from operating
activities, net of cash used for capital investments and beneficial
interest collected in exchange for securitized accounts
receivables) was $471 million in the fourth quarter of 2020,
compared to $974 million in the fourth quarter of 2019. The
decrease in 2020 resulted mainly from lower cash flow generated
from operating activities, less cash generated from sales of assets
and higher capital investments.
Segment Results for the Fourth Quarter of 2020
North America Segment
Our North America segment includes the United States and
Canada.
The following table presents revenues, expenses and profit for
our North America segment for the three months ended December 31,
2020 and 2019:
Three months ended December
31,
2020
2019
(U.S. $ in millions / % of
Segment Revenues)
Revenues
$
2,300
100
%
$
2,373
100.0
%
Gross profit
1,281
55.7
%
1,196
50.4
%
R&D expenses
167
7.2
%
155
6.5
%
S&M expenses
258
11.2
%
265
11.2
%
G&A expenses
119
5.2
%
97
4.1
%
Other (income) expense
(1
)
§
(7
)
§
Segment profit*
$
738
32.1
%
$
686
28.9
%
_________
* Segment profit does not include
amortization and certain other items. § Represents an amount less
than 0.5%.
Revenues from our North America segment in the fourth
quarter of 2020 were $2,300 million, a decrease of $73 million, or
3%, compared to the fourth quarter of 2019, mainly due to lower
revenues from Anda, our distribution business in the United States,
COPAXONE and BENDEKA®/TREANDA®, partially offset by higher revenues
from our U.S. generics business, AUSTEDO and AJOVY.
Our North America segment has experienced some reductions in
volume due to less physician and hospital activity during the
COVID-19 pandemic, but has also experienced increase in demand for
certain products related to the treatment of COVID-19 and its
symptoms. In addition, the ability to promote our new specialty
products, primarily AJOVY and AUSTEDO, has been impacted by less
physician visits by patients and less physician interactions by our
sales personnel.
Revenues in the United States, our largest market, were
$2,170 million in the fourth quarter of 2020, a decrease of $48
million, or 2%, compared to the fourth quarter of 2019.
Revenues by Major Products and Activities
The following table presents revenues for our North America
segment by major products and activities for the three months ended
December 31, 2020 and 2019:
Three months ended December
31,
Percentage Change
2020
2019
2019-2020
(U.S. $ in millions)
Generic products
$
1,206
$
1,137
6
%
AJOVY
36
25
42
%
AUSTEDO
185
136
36
%
BENDEKA/TREANDA
102
125
(19
%)
COPAXONE
213
264
(19
%)
ProAir®*
67
80
(17
%)
QVAR®
40
67
(40
%)
Anda
321
412
(22
%)
Other
131
128
2
%
Total
$
2,300
$
2,373
(3
%)
_________
* Does not include revenues from the
ProAir authorized generic, which are included under generic
products
Generic products revenues in our North America segment in
the fourth quarter of 2020 increased by 6% to $1,206 million,
compared to the fourth quarter of 2019, mainly due to new generic
product launches, higher revenues from TRUXIMA (the biosimilar to
Rituxan®) and our ProAir authorized generic, partially offset by
lower revenues from other generic products.
On September 30, 2020, we launched emtricitabine and tenofovir
disoproxil fumarate tablets (the generic equivalent of Truvada®)
and efavirenz, emtricitabine and tenofovir disoproxil fumarate
tablets (the generic equivalent for Atripla®) in the United
States.
In the fourth quarter of 2020, we led the U.S. generics market
in total prescriptions and new prescriptions, with approximately
348 million total prescriptions (based on trailing twelve months),
representing 9.6% of total U.S. generic prescriptions according to
IQVIA data.
AJOVY revenues in our North America segment in the fourth
quarter of 2020 were $36 million compared to $25 million in the
fourth quarter of 2019. This increase was mainly due to growth in
volume. AJOVY’s exit market share in the United Stated in terms of
total number of prescriptions during 2020 was 20% compared to 17%
in 2019.
AUSTEDO revenues in our North America segment in the
fourth quarter of 2020 were $185 million, compared to $136 million
in the fourth quarter of 2019. This increase was mainly due to
growth in volume.
BENDEKA and TREANDA combined revenues in our North
America segment in the fourth quarter of 2020 decreased by 19% to
$102 million, compared to the fourth quarter of 2019, mainly due to
the emergence of alternative novel therapies and continued
competition from Belrapzo® (a ready-to-dilute bendamustine
hydrochloride product from Eagle Pharmaceuticals, Inc.).
COPAXONE revenues in our North America segment in the
fourth quarter of 2020 decreased by 19% to $213 million, compared
to the fourth quarter of 2019, mainly due to generic competition in
the United States.
ProAir (HFA and RespiClick) revenues in our North
America segment in the fourth quarter of 2020 decreased by 17% to
$67 million, compared to the fourth quarter of 2019. In January
2019, we launched our own ProAir authorized generic in the United
States, following the launch of a generic version of Ventolin® HFA,
another albuterol inhaler. Revenues from our ProAir authorized
generic are included in “generic products” above.
QVAR revenues in our North America segment in the fourth
quarter of 2020 decreased to $40 million, compared to the fourth
quarter of 2019. This decrease was mainly due to lower volume.
Anda revenues in our North America segment in the fourth
quarter of 2020 decreased by 22% to $321 million, compared to the
fourth quarter of 2019, mainly due to lower volume partially as a
result of the COVID-19 pandemic.
North America Gross Profit
Gross profit from our North America segment in the fourth
quarter of 2020 was $1,281 million, an increase of 7% compared to
the fourth quarter of 2019. This increase was mainly due to new
generic product launches and higher revenues from AUSTEDO,
partially offset by lower revenues from COPAXONE.
Gross profit margin for our North America segment in the fourth
quarter of 2020 increased to 55.7%, compared to 50.4% in the fourth
quarter of 2019. This increase was mainly due to new generic
product launches and higher revenues from AUSTEDO.
North America Profit
Profit from our North America segment in the fourth quarter of
2020 was $738 million, an increase of 8% compared to $686 million
in the fourth quarter of 2019. Profit increased mainly due to
higher revenues from new generic product launches as well as from
AUSTEDO, partially offset by lower revenues from COPAXONE and
higher legal expenses.
Europe Segment
Our Europe segment includes the European Union and certain other
European countries.
The following table presents revenues, expenses and profit for
our Europe segment for the three months ended December 31, 2020 and
2019:
Three months ended December
31,
2020
2019
(U.S. $ in millions / % of
Segment Revenues)
Revenues
$
1,237
100
%
$
1,184
100
%
Gross profit
657
53.1
%
638
53.9
%
R&D expenses
67
5.4
%
63
5.3
%
S&M expenses
239
19.4
%
253
21.3
%
G&A expenses
77
6.2
%
65
5.5
%
Other (income) expense
§
§
§
§
Segment profit*
$
273
22.1
%
$
258
21.8
%
___________
* Segment profit does not include
amortization and certain other items. § Represents an amount less
than $1 million or 0.5%, as applicable.
Revenues from our Europe segment in the fourth quarter of
2020 were $1,237 million, an increase of $52 million, or 4%,
compared to the fourth quarter of 2019. In local currency terms,
revenues decreased by 1%, mainly due to reduced demand for certain
products resulting from the COVID-19 pandemic. The COVID-19
pandemic has led to a decline in doctor and hospital visits by
patients resulting in fewer prescriptions during the fourth quarter
of 2020. This decrease is also attributed to price declines for
oncology products as a result of generic competition and a decline
in COPAXONE revenues due to competing glatiramer acetate products,
partially offset by the launch of AJOVY.
Revenues by Major Products and Activities
The following table presents revenues for our Europe segment by
major products and activities for the three months ended December
31, 2020 and 2019:
Three months ended December
31,
Percentage Change
2020
2019
2019-2020
(U.S. $ in millions)
Generic products
$920
$
871
6
%
AJOVY
13
2
639
%
COPAXONE
106
106
§
Respiratory products
90
86
5
%
Other
107
120
(11
%)
Total
$1,237
$
1,184
4
%
______________
§ Represents an amount less than 0.5%.
Generic products revenues in our Europe segment in the
fourth quarter of 2020, including OTC products, increased by 6% to
$920 million, compared to the fourth quarter of 2019. In local
currency terms, revenues decreased by 1%, mainly due to reduced
demand for certain products resulting from the COVID-19 pandemic.
The COVID-19 pandemic has led to a decline in doctor and hospital
visits by patients resulting in fewer prescriptions during the
fourth quarter of 2020.
AJOVY revenues in our Europe segment in the fourth
quarter 2020, were $13 million, compared to $2 million in fourth
quarter of 2019, mainly due to launches and reimbursements in
additional European countries.
COPAXONE revenues in our Europe segment in the fourth
quarter of 2020 were $106 million, flat compared to the fourth
quarter of 2019. In local currency terms, revenues decreased by 6%
due to price reductions and a decline in volume resulting from
competing glatiramer acetate products.
Respiratory products revenues in our Europe
segment in the fourth quarter of 2020 increased by 5% to $90
million, compared to the fourth quarter of 2019. In local currency
terms, revenues were flat.
Europe Gross Profit
Gross profit from our Europe segment in the fourth quarter of
2020 was $657 million, an increase of 3% compared to $638 million
in the fourth quarter of 2019. The increase was mainly due to
higher revenues, as discussed above.
Gross profit margin for our Europe segment in the fourth quarter
of 2020 decreased to 53.1%, compared to 53.9% in the fourth quarter
of 2019. This decrease was mainly due to higher cost of goods
sold.
Europe Profit
Profit from our Europe segment consists of gross profit less
R&D expenses, S&M expenses, G&A expenses and any other
income related to this segment. Segment profit does not include
amortization and certain other items.
Profit from our Europe segment in the fourth quarter of 2020 was
$273 million, an increase of 6% compared to $258 million in the
fourth quarter of 2019. This increase was mainly due to higher
gross profit, as discussed above.
International Markets Segment
Our International Markets segment includes all countries other
than those in our North America and Europe segments. The key
markets in this segment are Japan, Russia and Israel.
The following table presents revenues, expenses and profit for
our International Markets segment for the three months ended
December 31, 2020 and 2019:
Three months ended December
31,
2020
2019
(U.S. $ in millions / % of
Segment Revenues)
Revenues
$
572
100
%
$
578
100
%
Gross profit
268
46.9
%
290
50.1
%
R&D expenses
19
3.3
%
21
3.7
%
S&M expenses
115
20.1
%
133
23.0
%
G&A expenses
40
6.9
%
36
6.2
%
Other (income) expense
(1
)
§
(1
)
§
Segment profit*
$
96
16.8
%
$
101
17.5
%
__________
* Segment profit does not include
amortization and certain other items.
§ Represents an amount less than 0.5%.
Revenues from our International Markets segment in the
fourth quarter of 2020 were $572 million, a decrease of $6 million,
or 1%, compared to the fourth quarter of 2019. In local currency
terms, revenues increased by 5% compared to the fourth quarter of
2019, mainly due to higher sales in most markets, partially offset
by lower sales in Japan resulting from regulatory pricing
reductions and generic competition to off-patented products.
Revenues by Major Products and Activities
The following table presents revenues for our International
Markets segment by major products and activities for the three
months ended December 31, 2020 and 2019:
Three months ended December
31,
Percentage Change
2020
2019
2020-2020
(U.S. $ in millions)
Generic products
$
488
$
489
§
COPAXONE
15
17
(10
%)
Other
69
73
(6
%)
Total
$
572
$
578
(1
%)
_____________
§ Represents an amount less than 0.5%.
Generic products revenues in our International Markets
segment, which include OTC products, were $488 million in the
fourth quarter of 2020, flat compared to the fourth quarter of
2019. In local currency terms, revenues increased by 5%, mainly due
to higher revenues in most markets, partially offset by lower
revenues in Japan resulting from regulatory pricing reductions and
generic competition to off-patented products.
COPAXONE revenues in our International Markets segment in
the fourth quarter of 2020 decreased by 10% to $15 million,
compared to the fourth quarter of 2019. In local currency terms,
revenues increased by 5%.
International Markets Gross Profit
Gross profit from our International Markets segment in the
fourth quarter of 2020 was $268 million, a decrease of 8% compared
to $290 million in the fourth quarter of 2019. Gross profit margin
for our International Markets segment in the fourth quarter of 2020
decreased to 46.9%, compared to 50.1% in the fourth quarter of
2019. The decrease was mainly due to lower gross profit resulting
from changes in the product mix in certain countries, mainly
Japan.
International Markets Profit
Profit from our International Markets segment in the fourth
quarter of 2020 was $96 million, compared to $101 million in the
fourth quarter of 2019. The decrease was mainly due to lower
revenues in Japan, partially offset by higher revenues from most
other markets and lower S&M expenses attributed to lower
marketing and travel costs attributed to restrictions related to
the COVID-19 pandemic.
Other Activities
We have other sources of revenues, primarily the sale of APIs to
third parties, certain contract manufacturing services and an
out-licensing platform offering a portfolio of products to other
pharmaceutical companies through our affiliate Medis. Our other
activities are not included in our North America, Europe or
International Markets segments.
Our revenues from other activities in the fourth quarter of 2020
increased by 4% to $344 million, compared to the fourth quarter of
2019. In local currency terms, revenues increased by 1%.
API sales to third parties in the fourth quarter of 2020 were
$210 million, an increase of 12% compared to the fourth quarter of
2019. In local currency terms, API sales increased by 11%.
Outlook for 2021 Non-GAAP
Results
2020 Actual
2021 Outlook
Revenues*
16.7
16.4 - 16.8
COPAXONE
$1,337 million
~$1,050 million
AUSTEDO
$638 million
~$950 million
AJOVY
$183 million
~$300 million
Operating Income
4.4
4.3 - 4.6
EBITDA
4.9
4.8 - 5.1
EPS ($)
2.57
2.50 - 2.70
Share Count
1,099 million shares
1,105 million shares
Free Cash Flow
2.1
2.0 - 2.3
CAPEX
0.6
0.6
Non-GAAP Tax Rate
17%
17% - 18%
___________________
* 2020 actual results include ~$240
million in revenues from generic products in Japan divested on
February 1, 2021, along with a manufacturing site
Annual Report on Form 10-K
Teva's Annual Report on Form 10-K for the year ended December
31, 2020, which will be filed with the SEC, will include a complete
analysis of the financial results for 2020 and will be available on
Teva’s website: http://ir.tevapharm.com, as well as on the SEC’s
website: http://www.sec.gov.
Conference Call
Teva will host a conference call and live webcast along with a
slide presentation on Wednesday, February 10, 2021 at 8:00 a.m. ET
to discuss its fourth quarter and annual 2020 results and overall
business environment. A question & answer session will
follow.
In order to participate, please dial the following numbers (at
least 10 minutes before the scheduled start time): United States
1-866-966-1396; Israel 1-809-203-624 or International +44 (0) 2071
928000; passcode: 5458315.
A live webcast of the call will be available on Teva's website
at: http://ir.tevapharm.com/. Please log in at least 10 minutes
prior to the conference call in order to download the applicable
audio software.
Following the conclusion of the call, a replay of the webcast
will be available within 24 hours on the Company's website or by
calling United States 1-866-331-1332; International +44 (0) 3333
009785; passcode: 5458315.
About Teva
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) has
been developing and producing medicines to improve people’s lives
for more than a century. We are a global leader in generic and
specialty medicines with a portfolio consisting of over 3,500
products in nearly every therapeutic area. Around 200 million
people around the world take a Teva medicine every day, and are
served by one of the largest and most complex supply chains in the
pharmaceutical industry. Along with our established presence in
generics, we have significant innovative research and operations
supporting our growing portfolio of specialty and biopharmaceutical
products. Learn more at www.tevapharm.com.
Non-GAAP Financial Measures
This press release contains certain financial information that
differs from what is reported under accounting principles generally
accepted in the United States ("GAAP"). These non-GAAP financial
measures, including, but not limited to, revenues prior to
revision, non-GAAP EPS, non-GAAP operating income, non-GAAP gross
profit, non-GAAP gross profit margin, EBITDA, non-GAAP financial
expenses, non-GAAP income taxes, non-GAAP net income and non-GAAP
diluted EPS are presented in order to facilitates investors'
understanding of our business. We utilize certain non-GAAP
financial measures to evaluate performance, in conjunction with
other performance metrics. The following are examples of how we
utilize the non-GAAP measures: our management and board of
directors use the non-GAAP measures to evaluate our operational
performance, to compare against work plans and budgets, and
ultimately to evaluate the performance of management; our annual
budgets are prepared on a non-GAAP basis; and senior management’s
annual compensation is derived, in part, using these non-GAAP
measures. See the attached tables for a reconciliation of the GAAP
results to the adjusted non-GAAP figures. Investors should consider
non-GAAP financial measures in addition to, and not as replacements
for, or superior to, measures of financial performance prepared in
accordance with GAAP. We are not providing forward looking guidance
for GAAP reported financial measures or a quantitative
reconciliation of forward-looking non-GAAP financial measures to
the most directly comparable GAAP measure because we are unable to
predict with reasonable certainty the ultimate outcome of certain
significant items without unreasonable effort.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, which are based on management’s current beliefs and
expectations and are subject to substantial risks and
uncertainties, both known and unknown, that could cause our future
results, performance or achievements to differ significantly from
that expressed or implied by such forward-looking statements.
Important factors that could cause or contribute to such
differences include risks relating to:
- our ability to successfully compete in the marketplace,
including: that we are substantially dependent on our generic
products; consolidation of our customer base and commercial
alliances among our customers; delays in launches of new generic
products; the increase in the number of competitors targeting
generic opportunities and seeking U.S. market exclusivity for
generic versions of significant products; our ability to develop
and commercialize biopharmaceutical products; competition for our
specialty products, including AUSTEDO, AJOVY and COPAXONE; our
ability to achieve expected results from investments in our product
pipeline; our ability to develop and commercialize additional
pharmaceutical products; and the effectiveness of our patents and
other measures to protect our intellectual property rights;
- our substantial indebtedness, which may limit our ability to
incur additional indebtedness, engage in additional transactions or
make new investments, may result in a further downgrade of our
credit ratings; and our inability to raise debt or borrow funds in
amounts or on terms that are favorable to us;
- our business and operations in general, including: uncertainty
regarding the magnitude, duration, and geographic reach of the
COVID-19 pandemic and its impact on our business, financial
condition, operations, cash flows, and liquidity and on the economy
in general; our ability to successfully execute and maintain the
activities and efforts related to the measures we have taken or may
take in response to the COVID-19 pandemic and associated costs
therewith; effectiveness of our optimization efforts; our ability
to attract, hire and retain highly skilled personnel; manufacturing
or quality control problems; interruptions in our supply chain;
disruptions of information technology systems; breaches of our data
security; variations in intellectual property laws; challenges
associated with conducting business globally, including political
or economic instability, major hostilities or terrorism; costs and
delays resulting from the extensive pharmaceutical regulation to
which we are subject or delays in governmental processing time due
to travel and work restrictions caused by the COVID-19 pandemic;
the effects of reforms in healthcare regulation and reductions in
pharmaceutical pricing, reimbursement and coverage; significant
sales to a limited number of customers; our ability to successfully
bid for suitable acquisition targets or licensing opportunities, or
to consummate and integrate acquisitions; and our prospects and
opportunities for growth if we sell assets;
- compliance, regulatory and litigation matters, including:
failure to comply with complex legal and regulatory environments;
increased legal and regulatory action in connection with public
concern over the abuse of opioid medications and our ability to
reach a final resolution of the remaining opioid-related
litigation; scrutiny from competition and pricing authorities
around the world, including our ability to successfully defend
against the U.S. Department of Justice (“DOJ”) criminal charges of
Sherman Act violations; potential liability for patent
infringement; product liability claims; failure to comply with
complex Medicare and Medicaid reporting and payment obligations;
compliance with anti-corruption sanctions and trade control laws;
and environmental risks;
- other financial and economic risks, including: our exposure to
currency fluctuations and restrictions as well as credit risks;
potential impairments of our intangible assets; potential
significant increases in tax liabilities; and the effect on our
overall effective tax rate of the termination or expiration of
governmental programs or tax benefits, or of a change in our
business;
and other factors discussed in our Annual Report on Form 10-K
for the year ended December 31, 2020, including in the sections
captioned “Risk Factors” and “Forward-Looking Statements.”
Forward-looking statements speak only as of the date on which they
are made, and we assume no obligation to update or revise any
forward-looking statements or other information contained herein,
whether as a result of new information, future events or otherwise.
You are cautioned not to put undue reliance on these
forward-looking statements.
Consolidated Statements of
Income (U.S. dollars in millions,
except share and per share data) Three months
ended December 31, Year ended December 31,
2020
2019
2020
2019
(Unaudited) (Unaudited) (Audited)
(Audited) Net revenues
4,454
4,468
16,659
16,887
Cost of sales
2,405
2,510
8,933
9,351
Gross profit
2,048
1,958
7,726
7,537
Research and development expenses
293
232
997
1,010
Selling and marketing expenses
683
706
2,498
2,614
General and administrative expenses
327
318
1,173
1,192
Intangible assets impairment
224
433
1,502
1,639
Goodwill impairment
-
-
4,628
-
Other asset impairments, restructuring and other items
75
161
479
423
Legal settlements and loss contingencies
50
7
60
1,178
Other income
(10
)
(47
)
(40
)
(76
)
Operating loss (income)
406
148
(3,572
)
(443
)
Financial expenses – net
268
186
834
822
Income (loss) before income taxes
138
(38
)
(4,406
)
(1,265
)
Income taxes (benefit)
(22
)
(119
)
(168
)
(278
)
Share in (profits) losses of associated companies, net
(3
)
5
(138
)
13
Net income (loss)
162
75
(4,099
)
(1,000
)
Net income (loss) attributable to non-controlling interests
12
(34
)
(109
)
(2
)
Net income (loss) attributable to Teva
150
110
(3,990
)
(999
)
Earnings (loss) per share
attributable to Teva: Basic ($)
0.14
0.10
(3.64
)
(0.91
)
Diluted ($)
0.14
0.10
(3.64
)
(0.91
)
Weighted average number of shares (in millions):
Basic
1,096
1,092
1,095
1,091
Diluted
1,100
1,094
1,095
1,091
Non-GAAP net income attributable to Teva:*
753
683
2,830
2,627
Non-GAAP net income attributable to Teva for diluted earnings
per share:
753
683
2,830
2,627
Non-GAAP earnings per share attributable to Teva:*
Basic ($)
0.69
0.63
2.58
2.41
Diluted ($)
0.68
0.62
2.57
2.40
Non-GAAP average number of shares (in millions):
Basic
1,096
1,092
1,095
1,091
Diluted
1,100
1,094
1,099
1,094
* See reconciliation attached.
Condensed Consolidated Balance
Sheets (U.S. dollars in
millions) (Audited)
December 31,2020 December
31,2019 ASSETS Current assets: Cash and
cash equivalents
2,177
1,975
Accounts receivables, net of allowance for credit losses of $126
millionand $135 million as of December 31, 2020 and December 31,
2019
4,581
5,676
Inventories
4,403
4,422
Prepaid expenses
945
870
Other current assets
710
434
Assets held for sale
189
87
Total current assets
13,005
13,464
Deferred income taxes
695
386
Other non-current assets
538
591
Property, plant and equipment, net
6,296
6,436
Operating lease right-of-use assets
559
514
Identifiable intangible assets, net
8,923
11,232
Goodwill
20,624
24,846
Total assets
50,640
57,470
LIABILITIES & EQUITY Current liabilities:
Short-term debt
3,188
2,345
Sales reserves and allowances
4,824
6,159
Trade payables
1,756
1,718
Employee-related obligations
685
693
Accrued expenses
1,780
1,869
Other current liabilities
933
889
Total current liabilities
13,164
13,674
Long-term liabilities: Deferred income taxes
964
1,096
Other taxes and long-term liabilities
2,240
2,640
Senior notes and loans
22,731
24,562
Operating lease liabilities
479
435
Total long-term liabilities
26,414
28,733
Equity: Teva shareholders’ equity
10,026
13,972
Non-controlling interests
1,035
1,091
Total equity
11,061
15,063
Total liabilities and equity
50,640
57,470
TEVA PHARMACEUTICAL INDUSTRIES LIMITEDCONSOLIDATED
STATEMENTS OF CASH FLOWS (U.S. dollars in millions)
(Unaudited)
Year endedDecember 31, Three months
endedDecember 31,
2020
2019
2020
2019
Operating activities: (Audited) (Audited)
(Unaudited) (Unaudited) Net income (loss)
$
(4,099
)
$
(1,000
)
$
162
$
75
Adjustments to reconcile net income (loss) to net cash provided by
operations:
Impairment of goodwill, long-lived assets and assets held for sale
6,546
1,778
232
476
Depreciation and amortization
1,557
1,722
395
416
Net change in operating assets and liabilities
(2,188
)
(896
)
(561
)
(112
)
Deferred income taxes — net and uncertain tax positions
(696
)
(985
)
(40
)
(333
)
Stock-based compensation
129
119
38
20
Other items
100
28
46
24
Research and development in process
80
-
40
-
Net loss (gain) from investments and from sale of long lived assets
(213
)
(18
)
19
(28
)
Net cash provided by operating activities
1,216
748
331
538
Investing activities:
Beneficial interest collected in exchange for securitized trade
receivables
1,405
1,487
303
379
Proceeds from sales of long-lived assets and investments
67
343
13
174
Purchases of property, plant and equipment
(578
)
(525
)
(176
)
(119
)
Purchases of investments and other assets
(55
)
(8
)
(9
)
(3
)
Other investing activities
24
58
10
(1
)
Net cash provided by investing activities
863
1,355
141
430
Financing activities:
Repayment of senior notes and loans and other long term liabilities
(1,871
)
(3,944
)
-
(2,229
)
Proceeds from senior notes and loans, net of issuance costs
-
2,083
-
2,083
Proceeds from short term debt
550
500
319
-
Repayment of short term debt
(559
)
(502
)
(443
)
(98
)
Other financing activities
(5
)
(11
)
(1
)
3
Tax withholding payments made on shares and dividends
-
(52
)
-
-
Net cash provided by (used in) financing activities
(1,885
)
(1,926
)
(125
)
(241
)
Translation adjustment on cash and cash equivalents
8
16
3
7
Net change in cash and cash equivalents
$
202
$
193
$
350
$
734
Balance of cash and cash equivalents at beginning of year
1,975
1,782
1,827
1,241
Balance of cash and cash equivalents at end of year
2,177
1,975
2,177
1,975
Three Months Ended December 31, 2020U.S. $ and shares in
millions (except per share amounts) GAAP Excluded for non GAAP
measurement Non GAAP Amortizationof purchasedintangible assets
Legalsettlementsand losscontingencies Impairmentof long-livedassets
OtherR&Dexpenses Restructuringcosts Costs related toregulatory
actionstaken in facilities Equitycompensation
Contingentconsideration Gain onsale ofbusiness OthernonGAAPitems
Otheritems COGS
2,405
231
7
8
34
2,126
R&D
293
34
6
-
254
S&M
683
31
11
14
627
G&A
327
15
-
312
Other income
(10
)
(5
)
(5
)
Legal settlements andloss contingencies
50
50
-
Other asset impairments,restructuring and other items
75
8
38
15
14
-
Intangible assets impairment
224
224
-
Financial expenses
268
33
235
Income taxes
(22
)
(162
)
141
Share in profits (losses) ofassociated companies – net
(3
)
-
(3
)
Net income (loss) attributableto non-controlling interests
12
(2
)
14
Total reconciled items
262
50
233
34
38
7
40
15
(5
)
62
(131
)
EPS - Basic
0.14
0.55
0.69
EPS - Diluted
0.14
0.55
0.68
The non-GAAP diluted weighted average number of
shares was 1,100 million for the three months ended December 31,
2020.
Three Months Ended December 31, 2019U.S. $ and
shares in millions (except per share amounts) GAAP Excluded for
non GAAP measurement Non GAAP Amortizationof purchasedintangible
assets Legalsettlementsand losscontingencies Impairmentof
long-livedassets OtherR&Dexpenses Restructuringcosts Costs
related toregulatory actionstaken in facilities Equitycompensation
Contingentconsideration Gain onsale ofbusiness OthernonGAAPitems
Otheritems COGS
2,510
256
17
5
26
2,206
R&D
232
(8
)
4
-
237
S&M
706
34
6
1
665
G&A
318
5
5
309
Other income
(47
)
(38
)
(9
)
Legal settlements andloss contingencies
7
7
-
Other asset impairments,restructuring and other items
161
44
59
55
2
-
Intaingable assets impairment
433
433
-
Financial expenses
186
(11
)
198
Income taxes
(119
)
(274
)
155
Share in profits (losses) ofassociated companies – net
5
-
5
Net income (loss) attributableto non-controlling interests
(34
)
(54
)
19
Total reconciled items
290
7
477
(8
)
59
17
19
55
(38
)
34
(339
)
EPS - Basic
0.10
0.52
0.63
EPS - Diluted
0.10
0.52
0.62
The non-GAAP diluted weighted average number of shares was
1,094 million for the three months ended December 31, 2019.
Year
Ended December 31, 2020(U.S. $ and shares in millions,
except per share amounts) GAAP Excluded for non GAAP
measurement Non GAAP Amortizationof purchasedintangibleassets
Legalsettlementsand losscontingencies Goodwillimpairment Impairment
oflong-livedassets OtherR&Dexpenses Restructuringcosts Costs
relatedto regulatoryactions takenin facilities Equitycompensation
Contingentconsideration Gain onsale ofbusiness OthernonGAAPitems
Otheritems COGS
8,933
894
23
27
63
7,925
R&D
997
37
20
-
941
S&M
2,498
126
36
14
2,322
G&A
1,173
46
12
1,115
Other income
(40
)
(8
)
(31
)
Legal settlements andloss contingencies
60
60
-
Other asset impairments,restructuring and other items
479
416
120
(81
)
24
-
Intangible assets impairment
1,502
1,502
-
Goodwill impairment
4,628
4,628
-
Financial expenses
834
(85
)
918
Income taxes
(168
)
(745
)
577
Share in profits (losses) ofassociated companies – net
(138
)
(134
)
(4
)
Net income (loss) attributableto non-controlling interests
(109
)
(177
)
68
Total reconciled items
1,020
60
4,628
1,918
37
120
23
129
(81
)
(8
)
114
(1,140
)
EPS - Basic
(3.64
)
6.23
2.58
EPS - Diluted
(3.64
)
6.22
2.57
The non-GAAP diluted weighted average number of shares was
1,099 million for the year ended December 31, 2020.
Year ended
December 31, 2019(U.S. $ and shares in millions, except per
share amounts) GAAP Excluded for non GAAP measurement Non GAAP
Amortizationof purchasedintangibleassets Legalsettlementsand
losscontingencies Impairment oflong-livedassets
OtherR&Dexpenses Restructuringcosts Costs relatedto
regulatoryactions takenin facilities Equitycompensation
Contingentconsideration Gain onsale ofbusiness OthernonGAAPitems
Otheritems COGS
9,351
973
45
26
121
8,185
R&D
1,010
(15
)
20
1
1,004
S&M
2,614
139
35
1
2,438
G&A
1,192
42
5
1,145
Other income
(76
)
(50
)
(27
)
Legal settlements andloss contingencies
1,178
1,178
-
Other asset impairments,restructuring and other items
423
139
199
59
26
-
Intangible assets impairment
1,639
1,639
-
Financial expenses
822
(3
)
824
Income taxes
(278
)
(875
)
597
Share in profits (losses) ofassociated companies – net
13
-
13
Net income (loss) attributableto non-controlling interests
(2
)
(82
)
80
Total reconciled items
1,113
1,178
1,778
(15
)
199
45
123
59
(50
)
155
(959
)
EPS - Basic
(0.91
)
3.32
2.41
EPS - Diluted
(0.91
)
3.32
2.40
The non-GAAP diluted weighted average number of shares was
1,094 million for the year ended December 31, 2019.
Segment
Information North America Europe
International Markets Three months endedDecember 31,
Three months endedDecember 31, Three months endedDecember
31,
2020
2019
2020
2019
2020
2019
(U.S. $ in millions) (U.S. $ in millions)
(U.S. $ in millions) Revenues
$
2,300
$
2,373
$
1,237
$
1,184
$
572
$
578
Gross profit
1,281
1,196
657
638
268
290
R&D expenses
167
155
67
63
19
21
S&M expenses
258
265
239
253
115
133
G&A expenses
119
97
77
65
40
36
Other income (loss)
(1
)
(7
)
-
-
(1
)
(1
)
Segment profit
$
738
$
686
$
273
$
258
$
96
$
101
Segment Information North America
Europe International Markets Year endedDecember
31, Year endedDecember 31, Year endedDecember 31,
2020
2019
2020
2019
2020
2019
(U.S. $ in millions) (U.S. $ in millions)
(U.S. $ in millions) Revenues
$
8,447
$
8,542
$
4,757
$
4,795
$
2,154
$
2,246
Gross profit
4,489
4,350
2,666
2,704
1,096
1,167
R&D expenses
622
652
247
262
70
88
S&M expenses
1,013
1,021
830
890
427
481
G&A expenses
443
439
261
239
136
138
Other income (loss)
(10
)
(14
)
(3
)
(5
)
(11
)
(3
)
Segment profit
$
2,421
$
2,252
$
1,331
$
1,318
$
474
$
464
Reconciliation of our segment profitto consolidated
income before income taxes Three months endedDecember
31,
2020
2019
(U.S.$ in millions)
North America profit
$
738
$
686
Europe profit
273
258
International Markets profit
96
101
Total segment profit
1,107
1,044
Profit (loss) of other activities
33
17
1,140
1,061
Amounts not allocated to segments:
Amortization
262
290
Other asset impairments, restructuring and other items
75
161
Intangible asset impairments
224
433
Loss from divestitures, net of divestitures related costs
(5
)
(38
)
Other R&D expenses (income)
34
(8
)
Costs related to regulatory actions taken in facilities
7
17
Legal settlements and loss contingencies
50
7
Other unallocated amounts
87
51
Consolidated operating income (loss)
406
148
Financial expenses - net
268
186
Consolidated income (loss) before income taxes
$
138
$
(38
)
Reconciliation of our segment profitto consolidated
income before income taxes Year endedDecember 31,
2020
2019
(U.S.$ in millions)
North America profit
$
2,421
$
2,252
Europe profit
1,331
1,318
International Markets profit
474
464
Total segment profit
4,225
4,034
Profit (loss) of other activities
163
108
4,388
4,142
Amounts not allocated to segments:
Amortization
1,020
1,113
Other asset impairments, restructuring and other items
479
423
Goodwill impairment
4,628
-
Intangible asset impairments
1,502
1,639
Gain on divestitures, net of divestitures related costs
(8
)
(50
)
Other R&D expenses (income)
37
(15
)
Costs related to regulatory actions taken in facilities
23
45
Legal settlements and loss contingencies
60
1,178
Other unallocated amounts
219
252
Consolidated operating income (loss)
(3,572
)
(443
)
Financial expenses - net
834
822
Consolidated income (loss) before income taxes
$
(4,406
)
$
(1,265
)
Revenues by Activity and Geographical Area (Unaudited)
Three months ended
December 31,
Percentage Change
2020
2019
2019-2020
(U.S.$ in millions)
North America segment
Generics products
$
1,206
$
1,137
6%
AJOVY
36
25
42%
AUSTEDO
185
136
36%
BENDEKA/TREANDA
102
125
(19%)
COPAXONE
213
264
(19%)
ProAir*
67
80
(17%)
QVAR
40
67
(40%)
Anda
321
412
(22%)
Other
131
128
2%
Total
2,300
2,373
(3%)
Three months ended
December 31,
Percentage Change
2020
2019
2019-2020
(U.S.$ in millions)
Europe segment
Generic medicines
$
920
$
871
6%
AJOVY
13
2
639%
COPAXONE
106
106
§
Respiratory products
90
86
5%
Other
107
120
(11%)
Total
1,237
1,184
4%
* Does not include revenues from
the ProAir authorized generic, which are included under generic
products.
Three months ended
December 31,
Percentage Change
2020
2019
2019-2020
(U.S.$ in millions)
International Markets segment
Generics products
$
488
$
489
§
COPAXONE
15
17
(10%)
Other
69
73
(6%)
Total
572
578
(1%)
Revenues by Activity and Geographical Area (Unaudited)
Year ended
December 31,
Percentage Change
2020
2019
2019-2020
(U.S.$ in millions)
North America segment
Generics products
$
4,010
3,963
1%
AJOVY
134
93
45%
AUSTEDO
637
412
55%
BENDEKA/TREANDA
415
496
(16%)
COPAXONE
884
1,017
(13%)
ProAir*
241
274
(12%)
QVAR
179
250
(28%)
Anda
1,462
1,492
(2%)
Other
485
546
(11%)
Total
8,447
8,542
(1%)
* Does not include revenues from
the ProAir authorized generic, which are included under generic
products.
Year ended
December 31,
Percentage Change
2020
2019
2019-2020
(U.S.$ in millions)
Europe segment
Generic medicines
$
3,513
$
3,470
1%
AJOVY
31
3
852%
COPAXONE
400
432
(7%)
Respiratory products
353
354
§
Other
459
536
(14%)
Total
4,757
4,795
(1%)
Year ended
December 31,
Percentage Change
2020
2019
2019-2020
(U.S.$ in millions)
International Markets segment
Generics products
$
1,792
$
1,893
(5%)
COPAXONE
53
63
(16%)
Other
309
291
6%
Total
2,154
2,246
(4%)
Free cash flow reconciliation(Unaudited)
Three
months endedDecember 31,
2020
2019
(U.S. $ in millions) Net cash provided by
operating activities
331
538
Beneficial interest collected in exchange for securitized
accountsreceivables, included in investing activities
303
379
Capital investment
(176
)
(119
)
Proceeds from sale of long lived assets
13
176
Free cash flow
$
471
$
974
Free cash flow reconciliation(Unaudited)
Year
endedDecember 31,
2020
2019
(U.S. $ in millions) Net cash provided by
operating activities
1,216
748
Beneficial interest collected in exchange for securitized
accountsreceivables, included in investing activities
1,405
1,487
Capital investment
(578
)
(525
)
Proceeds from sale of long lived assets and companies
67
343
Free cash flow
$
2,110
$
2,053
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210210005298/en/
IR Contacts
United States Kevin C. Mannix, (215) 591-8912
Israel Yael Ashman, 972 (3) 914-8262
PR Contacts
United States Kelley Dougherty, (973) 832-2810
Israel Yonatan Beker, 972 (54) 888 5898
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