Teva Reports Q3 Revenue of $4.4 Billion, Raises Full-Year Outlook
Teva Pharmaceutical reported Q3 revenue of $4.4 billion and non-GAAP EPS of 86 cents, beating Wall Street forecasts. The company raised its full-year revenue outlook to $16.7-17 billion.
Teva Pharmaceutical Industries reported strong third-quarter results, posting revenue of $4.4 billion and a non-GAAP net income of 86 cents per share, surpassing Wall Street expectations of $4.23 billion in revenue and 72 cents per share. On a GAAP basis, Teva's net income reached $223 million, while non-GAAP net income totaled $1 billion. Following the announcement, Teva's shares climbed approximately 1.5% in pre-market trading on Wall Street.
Building on its momentum, the company raised its full-year revenue outlook to a range of $16.7 billion to $17 billion, up from the $16.5 billion to $16.85 billion forecast announced in August. However, the EBITDA range was slightly adjusted to $4.23 billion to $4.43 billion, and the operating income range was revised to $3.8 billion to $3.9 billion. Revenue from key proprietary products supported these positive results, growing by 33%.
Teva is traded on the New York Stock Exchange and the Tel Aviv Stock Exchange with a market capitalization of $47.5 billion, following a more than 30% surge in its share price since the beginning of the year. Although the stock dipped slightly earlier in the week, it recently hovered near a decade-high amid a series of positive developments. These include successful Phase 2a trial results for a celiac disease antibody, FDA approval for a novel schizophrenia treatment, and credit rating upgrades by international agencies that restored Teva's bonds to investment grade after a decade. Capitalizing on this regained status, Teva issued about $4.9 billion in bonds to refinance existing debt.
On the clinical front, Teva announced the discontinuation of a Phase 2 trial for emrusolmin, an investigational drug for multiple system atrophy (MSA). The decision followed recommendations from an independent data monitoring committee, with the company noting that no safety concerns were raised. Teva emphasized that emrusolmin is not among its core advanced pipeline products projected to exceed $10 billion in peak sales.
In addition, Teva announced a commercialization agreement with Samsung Bioepis for two FDA-approved biosimilar products.
Teva President and CEO Richard Francis stated, "Our strong performance in the third quarter reflects the continued execution of our 'Pivot to Growth' strategy and our significant progress. The FDA approval of WELTRUZA advances our innovative pipeline, our recent biosimilar agreement with Samsung Bioepis reinforces our leadership in generics, and our return to investment-grade status highlights our financial strength. Together, these achievements demonstrate how we continue to deliver consistent growth in our innovative portfolio and translate that growth into higher profitability."
