logo
  

Teva Posts Q2 Loss, Cuts FY Revenues View; Reaches More Than $4 Bln Settlement Over Opioid Lawsuits

An Israel-based drug manufacturer Teva Pharmaceutical Industries Ltd. (TEVA) reported a loss in the second quarter compared to profit in the prior year. It reaffirmed its fiscal year 2022 earnings per share outlook, but cut annual revenues outlook mainly due to continued foreign exchange headwinds. Meanwhile, the company reached a settlement of over $4 billion in a lawsuit for their alleged role in the opioid crisis in the United States.

The company still expects earnings per share to be in the range of $2.40-$2.60 for fiscal year 2022.

The company lowered its annual revenues outlook to a range of $15.0 billion - $15.6 billion from the previous range of $15.4 billion - $16.0 billion.

The company also cut its annual COPAXONE revenues outlook to about $700 million from the previous outlook of approximately $750 million, mainly due to increased competition and foreign exchange fluctuations.

Teva said it has reached an agreement in principle with the working group of States' Attorneys General, counsel for Native American Tribes, and plaintiffs' lawyers representing the States and subdivisions, on the primary financial terms of a nationwide opioids settlement.

Teva will pay up to $4.25 billion plus approximately $100 million for the Tribes, spread over 13 years.

The settlement amount includes the supply of up to $1.2 billion (wholesale acquisition cost) of its generic version of the life-saving medication, Narcan (naloxone hydrochloride nasal spray)—which can reverse an overdose from opioids—over 10 years, or cash at 20% of wholesale acquisition cost ($240 million) in lieu of product.

Teva reported that its net loss attributable to the company for the second quarter of 2022 was $232 million or $0.21 per share, compared to net income of $207 million or $0.19 per share in the second quarter of 2021.

Net loss in the second quarter of 2022 was mainly affected by goodwill impairment charges and legal settlements and loss contingencies, partially offset by a tax benefit.

In the second quarter of 2022, the company recognized a GAAP tax benefit of $900 million, on pre-tax loss of $1.160 billion. In the second quarter of 2021, it recognized a tax expense of $98 million, on pre-tax income of $308 million.

Non-GAAP net income attributable to the company for the second quarter of 2022 were $754 million or $0.68 per share, compared to $651 million or $0.59 per share in second quarter of 2021.

Revenues for the second quarter were $3.786 billion, a decrease of 3% from the prior year. In local currency terms quarterly revenues increased by 1%, mainly due to higher revenues from generic products in our Europe and North America segments, partially offset by lower revenues from COPAXONE and BENDEKA/TREANDA in North America segment.

For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Japanese entrepreneur Yusaku Maezawa has selected ten crewmembers, comprising artists, content creators, and athletes, to fly with him on SpaceX's Starship around the Moon on the dearMoon mission. SpaceX's first private lunar flight with dearMoon crew, including two backups, is planned to take place in 2023. Maezawa announced the crew for the mission in a YouTube video and a tweet. SpaceX, owned by Elon Musk, has launched 40 satellites of British communications network OneWeb into orbit. From NASA's Kennedy Space Center or KSC in Florida, Falcon 9 rocket on Thursday evening carried the satellites. The Falcon 9's first stage separated, and it then returned to Earth to make a landing on a SpaceX pad at the nearby Cape Canaveral Space Force Station. Google, owned by Alphabet Inc., plans to merge its teams working on Maps products and the mapping service Waze with effect from December 9, reports said. The decision to consolidate processes comes as the search giant is facing pressure to streamline operations and cut costs. The restructuring is expected to reduce overlapping work across the Waze and Maps products.
Follow RTT