Teva Pharm second-quarter profit tops forecast, reaffirms 2020 outlook

The logo of Teva Pharmaceutical Industries is seen during a news conference hold by its CEO, Kare Schultz, to discuss the company’s 2019 outlooks in Tel Aviv, Israel February 19, 2019. REUTERS/Amir Cohen

TEL AVIV (Reuters) – Israel-based Teva Pharmaceutical Industries (TEVA.TA) reported a slightly smaller-than-expected fall in second-quarter profit on Wednesday, as higher profitability in North America partially offset lower profit margins in Europe.

The world’s largest generic drugmaker earned 55 cents per diluted share excluding one-time items in the April-June period, down from 60 cents a year earlier. Revenue fell 7% to $3.9 billion.

Analysts had forecast Teva (TEVA.N) would earn 53 cents a share ex-items on revenue of $3.93 billion, according to I/B/E/S data from Refinitiv.

Lower sales of generic and over-the-counter products “in Europe and international markets were in line with our expectations, after the unusually high demand seen in the prior quarter due to the initial response to the pandemic,” CEO Kare Schultz said.

North American sales of its migraine treatment Ajovy rose 50% to $34 million while sales of Austedo, its treatment for Huntington’s disease, jumped 67% to $161 million. Sales in North America of multiple sclerosis drug Copaxone fell 13% to $238 million.

The company also released together with Regeneron Pharmaceuticals (REGN.O) results for advanced trials for pain medication fasinumab. They said primary endpoints were achieved with 1 mg monthly, demonstrating “significant improvements in pain and physical function over placebo at week 16 and week 24”.

Teva reaffirmed its 2020 forecast for adjusted EPS of $2.30-$2.55 and revenue of $16.6-$17.0 billion. Analysts are forecasting EPS of $2.50 on revenue of $16.8 billion.

Reporting by Tova Cohen; Editing by Steven Scheer

Our Standards:The Thomson Reuters Trust Principles.

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