Teva Pharmaceutical Industries Ltd

Teva Pharmaceutical Industries Ltd’s (TEVA) medicines and products have been used by patients, carers, and healthcare providers for over a century. The company is considered a leader in generic pharmaceuticals, trading and reaching almost 200 million people across six continents every day.

According to its website, TEVA commits hundreds of millions of dollars annually to scientists for developing specialised and biopharmaceutical treatments aimed at enhancing access and improving health outcomes of millions of patients every day.

Since its founding more than 100 years ago in Jerusalem, TEVA has been distinguished by its dedication to advancing quality of life. Today, the company employs approximately 37k people across 58 markets to deliver quality medicines.

From humble beginnings to global pharmaceutical corporation

Founded in 1901 in Jerusalem, TEVA began as a small wholesale drug distributor, known as S.L.E, named after its founded Chaim Salomon, Moshe Levin, and Yitschak Elstein. By the 1930s, local pharmaceutical manufacturing was gaining ground, especially during WW2 when these early plants provided crucial medical supplies to the region amid shortages.

As demand increased post war, TEVA expanded rapidly, leading to its debut on the Tel Aviv Stock Exchange in 1951. The period from the 1960s to the 1980s marked significant consolidation in Israel’s pharmaceutical industry, culminating in the formation of Teva Pharmaceutical Industries Ltd.

TEVA’s Kfar Saba facility gained FDA approval in 1982, and the company’s shares were listed on NASDAQ. The passage of the Hatch-Waxman Act in 1984 facilitated TEVA’s entry into the generic drug market. This was further boosted by strategic acquisitions, including the purchase of Lemmon and Abic, as well as Israeli API producer Plantex Ltd.

Between 1990 and 2000, TEVA’s global presence solidified through extensive acquisitions, establishing it as a leader in the US generics market. In 1996, TEVA launched its first specialty medicine for multiple sclerosis, securing FDA approval.

Throughout the 2000s, TEVA expanded further with significant acquisitions in North America, Europe, and beyond, making it the largest generic pharmaceutical company in North America. Notably, TEVA received EU and FDA approval for treatments in multiple sclerosis and Parkinson’s disease.

Today, TEVA’s extensive portfolio includes 3,500 products, with 1,800 unique molecules, serving around 200 million people worldwide daily.

Teva Pharmaceutic stock listing and market capitalisation

TEVA is listed on the New York Stock Exchange (NYSE) under the ticker symbol “TEVA”.  The company’s market capitalisation as of 24 October 2024 is US$20.68 billion, with a revenue valued at US$16.29 billion, with a net income of    -US$453.0 billion.

TEVA announces strong growth in second quarter revenues mainly driven by generics products in all regions and AUSTEDO®

According to a press release by TEVA on 31 July 2024, the company’s Q2 2024 revenues reached $4.2 billion, marking a 7% increase in U.S. dollars and an 11% rise in local currency terms compared to Q2 2023. The generics sector showed robust growth across all regions, with local currency increases of 16% in the U.S., 8% in Europe, and 22% in international markets compared to Q2 2023.

The U.S. revenue for AUSTEDO continued to climb, reaching $407 million for Q2 2024, a 32% increase year-over-year, raising 2024 revenue outlook to ~$1.6 billion. Additionally, AJOVY® achieved global revenues of $115 million in Q2 2024, reflecting a 12% rise in local currency terms compared to the previous year’s quarter.

TEVAL also reported progress on its product pipeline, announcing an accelerated development timeline for duvakitug (Anti-TL1A), with top-line results anticipated by Q4 2024 and full data expected next year. Phase 3 results for olanzapine LAI (TEV’ 749) showed promising efficacy, nearing completion of ~95% of target injections with no PDSS incidents reported.

In May 2024, Teva launched SIMLANDI® (adalimumab-ryvk), an interchangeable biosimilar to Humira®, and is preparing for the February 2025 launch of SELARSDI™ (ustekinumab-aekn), a Stelara® biosimilar.

Key financial metrics for Q2 2024 included a GAAP loss per share of $0.75, a non-GAAP diluted EPS of $0.61, operating cash flow of $103 million, and free cash flow amounting to $324 million. Building on the positive performance of the first half of 2024, Teva has raised its full-year outlook, forecasting revenues between $16.0 and $16.4 billion, AUSTEDO revenues of approximately ~$1.6 billion, adjusted EBITDA in the range of $4.6 to $5.0 billion, and non-GAAP diluted EPS of $2.30 to $2.50.

Price fixing controversy

According to this CNN article, Teva Pharmaceuticals agreed to pay more than $200 million in fines and divest a key generic drug treating cholesterol to settle price-fixing charges from the US Department of Justice, the agency announced Monday. The settlement is the largest penalty paid “for a domestic antitrust cartel,” the DOJ said in a statement. The core drug involved and that will be divested to a third party was pravastatin, a widely used cholesterol medication.

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