TEL AVIV - Teva Pharmaceutical Industries Ltd. (NYSE:TEVA) reported first-quarter 2024 earnings that missed analyst expectations by $0.03, with adjusted EPS of $0.48 compared to the $0.51 consensus. However, the company's revenue for the quarter was $3.82 billion, surpassing the analyst estimate of $3.73 billion and marking a 5% increase in local currency terms from Q1 2023.
The generics business experienced a 9% growth globally, while the U.S. saw a significant 67% increase in sales of AUSTEDO, contributing to the overall positive performance. AJOVY revenues also rose by 18% to $113 million.
The company's recent FDA approvals of SIMLANDI and SELARSDI, biosimilars to Humira® and Stelara®, respectively, along with positive Phase 3 results for olanzapine LAI, highlight Teva's commitment to expanding its innovative pipeline.
President and CEO Richard Francis expressed pride in the company's progress under the Pivot to Growth Strategy, which focuses on delivering growth engines, stepping up innovation, sustaining the generics business, and optimizing the business portfolio for strategic capital deployment.
The stock moved up 2.6% following the earnings release, indicating a positive market response to the revenue beat and confidence in the company's growth trajectory. Despite the EPS miss, the revenue growth and strategic advances appear to have resonated with investors.
Teva reaffirmed its full-year 2024 outlook, expecting revenues between $15.7 and $16.3 billion, adjusted EBITDA of $4.5 to $5.0 billion, adjusted EPS of $2.20 to $2.50, and free cash flow of $1.7 to $2.0 billion.
In the face of a GAAP loss per share of $0.12 and a cash flow used in operating activities of $124 million, the company managed to generate a free cash flow of $32 million. Teva's strategic focus on its generics business and innovative brands, coupled with operational efficiency improvements, have set a solid foundation for continued growth in 2024.
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