Pharma giant Teva trims revenue estimates on currency volatility

Israel-based Teva Pharmaceutical Industries, which continues to forge legal settlements in US opioid cases, reported as expected first-quarter profit and trimmed 2022 revenue estimates due to currency fluctuations.

The world’s largest generic drugmaker said on Tuesday it earned 55 cents per diluted share excluding one-time items in the January-March period, down from 63 cents a share a year earlier.

Hurt by lower sales in North America of both generic drugs and its own multiple sclerosis treatment Copaxone, which is facing stiff competition, revenue fell 8 percent to $3.66 billion.

Analysts had forecast Teva would earn 55 cents a share ex-items on revenue of $3.76 billion, according to I/B/E/S data from Refinitiv.

Teva lowered its 2022 revenue estimate to $15.4-$16.0 billion from $15.6-$16.2 billion, after revenue of $15.9 billion in 2021. It reiterated its projection for 2022 adjusted EPS of $2.40-$2.60, versus $2.58 last year.

Teva said it paid $1.1 billion in the quarter for legal settlements and loss contingencies, while settling opioid cases in Florida and Rhode Island.

Sales of the company’s migraine drug Ajovy grew 16 percent to $36 million. Huntington’s disease treatment Austedo sales rose 6 percent to $154 million.

Overall generic drug sales in North America dipped 15 percent to $899 million due to competition on many products.

Revenue in Europe slipped 5 percent to $1.16 billion, although sales of Ajovy doubled to $30 million.

“While easing of Covid-19 related restrictions has led to positive momentum in our European business, we are seeing fluctuations of foreign exchange rates, and have therefore lowered our 2022 revenue outlook,” said CEO Kåre Schultz.