Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  TEL AVIV STOCK EXCHANGE  >  Teva Pharmaceutical Industries Limited    TEVA   IL0006290147

TEVA PHARMACEUTICAL INDUSTRIES LIMITED (TEVA)
My previous session
Most popular
  Report  
SummaryQuotesChartsNewsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsTweets
OFFRE

Teva Pharmaceutical Industries : shares topple on profit warning, uncertain future

share with twitter share with LinkedIn share with facebook
share via e-mail
0
11/02/2017 | 06:59pm CEST
FILEP PHOTO: A building belonging to Teva Pharmaceutical Industries, the world's biggest generic drugmaker and Israel's largest company, is seen in Jerusalem

JERUSALEM (Reuters) - Teva Pharmaceutical Industries (>> Teva Pharmaceutical Industries Limited), the world's biggest generic medicine maker, came under investor and market pressure on Thursday after saying it would miss 2017 profit forecasts.

JERUSALEM (Reuters) - Teva Pharmaceutical Industries (>> Teva Pharmaceutical Industries Limited), the world's biggest generic medicine maker, came under investor and market pressure on Thursday after saying it would miss 2017 profit forecasts.

Shares in the Israeli-based company dropped by as much as 20 percent after it issued the profit warning, which it said was due to falling prices of generics in the U.S. market and weakening sales of its multiple sclerosis drug Copaxone, which fell 7 percent in the third quarter in the United States.

Investors are pushing Teva, which is battling narrowing profit margins, a nearly $35 billion debt burden that could lead to a credit rating downgrade, for clarity on its future.

Foremost among their questions is whether Teva will remain a company with both generics and speciality drugs, split in two or divest totally from lower-margin generics. Generics accounted for 54 percent of its third-quarter sales, with 36 percent for speciality medicines.

Teva's <TEVA.N> management said nothing about its future beyond 2017 and its new chief executive Kare Schultz, who took the reins this week, left most of the talking to other executives, but underscored Teva's debt woes.

"It will be an absolute priority for me that we stabilise the company's operating profit and cash flow in order to improve our financial profile," Schultz said on an analyst call.

Pressure on Teva's shares was increased by U.S. shareholder Allergan's (>> Allergan plc) announcement on Wednesday that it would begin selling down its 10 percent stake in the company.

While Chairman Sol Barer said he was confident the new CEO could turn the company around, Schultz needs to convince restive investors that Teva can boost growth while also cutting the debt it took on to finance its $40.5 billion purchase last year of generics business Actavis from Allergan.

His predecessor stepped down in February after criticism for a string of acquisitions and delayed drug launches.

Teva's shares slid 19 percent in Tel Aviv, and were 15 percent lower in New York, taking their losses to more than 60 percent since August,

Berenberg analyst Alistair Campbell said in a note he did not expect the stock to recover until Schultz outlined his strategy and gave "a steer on the 2018 outlook", which he said would be challenging due to the roll-out of cheap, copycat competitors to Copaxone.

DUAL HEADWINDS

As well as U.S. competition and Copaxone's troubles, Teva said a lower-than-expected contribution from new generic launches in the United States and a lower contribution from Venezuela had also taken their toll.

"We are now facing two headwinds - continued pressure in U.S. generics and in our own Copaxone," interim chief financial officer Mike McClellan said.

With Copaxone prices falling around 10 percent in the third quarter and generic competition starting sooner than expected, Teva again cut its 2017 estimates, while McClellan said only that it was "working on a 2018 plan and evaluating all options".

Teva cut its 2017 earnings per share (EPS) forecast, excluding special items, to $3.77-$3.87 from $4.30-$4.50 and its revenue forecast to $22.2-$22.3 billion from $22.8-$23.2 billion. Analysts had been expecting full-year EPS of $4.19 on revenue of $22.6 billion, Thomson Reuters I/B/E/S data showed.

Its third-quarter adjusted EPS sank to $1.00 from $1.31 and missed a consensus estimate of $1.02.

Teva had planned to pay down $5 billion of debt in 2017 and was working to sell off non-core assets to that end, but McClellan said debt payments would only be $3.5-$4 billion.

In September, Teva said it would sell the remaining businesses in speciality women’s health for $1.38 billion.. It said that in all, it expected $2.3 billion in net proceeds from asset sales in 2017.

"We will be doing a review to see if there's additional non-core assets that it would make sense to monetize," McClellan said, adding that Teva had "some important decisions to make" to retain its investment grade credit rating.

He said raising more equity would be considered, although there was no plan to do so at present.

Despite its challenges, Teva said it will pay a quarterly dividend of 8.5 cents a share, unchanged from the second quarter when it cut the payout by 75 percent.

(Additinal reporting by Tova Cohen; Editing by Jason Neely/Mark Potter/Alexander Smith)

By Steven Scheer and Ari Rabinovitch

Stocks treated in this article : Teva Pharmaceutical Industries Limited, Allergan plc
Stocks mentioned in the article
ChangeLast1st jan.
ALLERGAN PLC -0.62% 191.31 Delayed Quote.17.69%
TEVA PHARMACEUTICAL INDUSTRIES LIMITED 2.16% 8848 Delayed Quote.36.04%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on TEVA PHARMACEUTICAL INDUST
09/21EMA Nod to Eli Lilly Drug Stokes Competition in Migraine Prevention Market
DJ
09/20TEVA PHARMACEUTICAL INDUSTRIES : An Application for the Trademark "ACTAVIS" Has ..
AQ
09/20TEVA PHARMACEUTICAL INDUSTRIES : Announces Early Results of Debt Tender Offer an..
AQ
09/19TEVA PHARMACEUTICAL INDUSTRIES : Announces U.S. Approval of AJOVYTM Injection, t..
AQ
09/18TODAY’S RESEARCH REPORTS ON STOCKS T : Teva Pharmaceutical and TG Therapeutics
AC
09/18TEVA PHARMACEUTICAL INDUSTRIES : Announces Early Results of Debt Tender Offer an..
BU
09/17Amazon and Apple slide; Caterpillar and ConocoPhillips rise
AQ
09/17FDA approves Teva's Ajovy, second CGRP inhibitor to prevent migraine
AQ
09/15TEVA PHARMACEUTICAL INDUSTRIES : FDA Approves Teva's Migraine Drug Ajovy -- Upda..
DJ
09/15TEVA PHARMACEUTICAL INDUSTRIES : Will migraine drug approval make Teva a success..
AQ
More news
News from SeekingAlpha
07/11YOUR DAILY PHARMA SCOOP : IsoRay Doubles, OncoCyte Zooms, Celgene Sluggish 
07/11Big Pharma in the red after Pfizer backs away from price hikes 
07/10Pricing transparency law in California having effect, drug makers nix planned.. 
07/10Crinetics Pharmaceuticals Readies $80 Million IPO 
07/09Biotechs give up gains after Trump tweet on prices 
Financials ($)
Chart TEVA PHARMACEUTICAL INDUSTRIES LIMITED
Duration : Period :
Teva Pharmaceutical Industries Limited Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends TEVA PHARMACEUTICAL INDUST
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Income Statement Evolution
Consensus
 
Mean consensus OUTPERFORM
Number of Analysts 1
Average target price 22,0 $
Spread / Average Target -11%
Managers
NameTitle
Kåre Schultz President, Chief Executive Officer & Director
Sol J. Barer Chairman
Carlo de Notaristefani Executive Vice President-Global Operations
Michael McClellan Chief Financial Officer & Executive Vice President
Amir Elstein Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
TEVA PHARMACEUTICAL INDUSTRIES LIMITED36.04%25 142
JOHNSON & JOHNSON1.62%383 312
PFIZER21.65%258 285
NOVARTIS-0.63%216 108
ROCHE HOLDING LTD.-4.60%211 501
MERCK AND COMPANY25.79%189 092