Teva Pharmaceutical Industries Ltd.’s American depositary receipts
TEVA,
gained 3% premarket on Wednesday after the company reported third-quarter sales that topped expectations and raised its full-year revenue guidance.
Teva reported net income of $80 million, or 7 cents per share, compared with net income of $56 million, or 5 cents per share, in the year-earlier period. Adjusted earnings per share came to 60 cents, versus 59 cents a year earlier, just missing the FactSet consensus of 61 cents. Revenues totaled $3.85 billion, up 7% from a year earlier and ahead of the FactSet consensus of $3.73 billion.
The Tel Aviv-based drugmaker now expects full-year 2023 revenues of $15.1 billion to $15.5 billion, up from previous guidance of $15 to $15.4 billion.
Sales growth in the quarter was fueled by the Huntington’s disease treatment Austedo, the migraine drug Ajovy, and the global generics business, Teva said.
North American sales of multiple sclerosis drug Copaxone came to $103 million, down 2% from a year earlier, due in part to generic competition, Teva said.
Teva is focused on boosting innovation, sustaining its global generics business, and supporting growth products like Austedo and Ajovy as part of a “pivot to growth” strategy announced earlier this year. The company last month announced a new collaboration with Sanofi
SNY,
on an anti-TL1A therapy designed to treat ulcerative colitis and Crohn’s disease. Teva expects to release late-stage trial results for a long-acting formulation of schizophrenia treatment olanzapine in the second half of next year.
Commenting on the Israel-Hamas war, Teva said Wednesday that its production remains largely unaffected, and the company has increased its emergency medical supplies, product donations and other support activities. “As a company with deep roots in Israel, we are humbled by the incredible resilience, care and resolve being shown in delivering our medicines to the millions of patients around the world who count on us,” Teva president and CEO Richard Francis said in a statement.
While there was some investor “nervousness” heading into the quarterly results, given questions about manufacturing operation continuity issues in Israel, the lack of disruption in manufacturing and generic results coming in ahead of consensus suggest a very good quarter, Evercore ISI analyst Umer Raffat wrote in a note Wednesday.
Teva’s American depositary receipts are down 0.9% in the year to date, while the S&P 500
SPX
has gained 14%.
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