Despite the reduction in revenue guidelines from 2021 in today’s second-quarter financial result, Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; LEVEL: TEVA) the share price rose over 12% on the Tel Aviv Stock Exchange. The share was partly lifted by optimistic comments by CFO Eli Khalifa during a conference call for a final settlement in the U.S. over lawsuits against opioid pain medications that are a black cloud hovering over the Israeli company.
Answering a question about it to “Globes”, Teva’s financial director Eli Khalifa said that “the chances that such a settlement would not happen were very small.”
In its 2021 guidelines, Teva has reduced revenue from 16.4-16.8 billion to 16 to 16.4 billion dollars, compared to revenue of 16.7 billion in 2020. In other words, Teva will end 2021. for the fourth year in a row without growth. The caliph blamed Covid-19 for the lower income and said, “Wherever patient-physician interaction is needed, more time is needed now.”
Do you expect growth to continue in 2022?
“It is too early to say at this stage, but we want to see how we can return to a stable situation in terms of market demand. You must not forget that only recently several very large European countries have come out of the blockade.”
“So if Covid stays with us as well as the constraints, then the chances of Teva continuing to grow are slim?
“It depends on the mix of sales and products. It affected us in the first half of the year and it affects the overall revenue we expect for this year. It may eventually come to a faster recovery than we currently expect.”
Despite the reduction in revenue guidelines for 2021, the profit forecast remains unchanged.
On Teva’s growth drivers, the Caliph said, “Biosimilars are back. We are not giving data of course for Truxima, but in terms of market share and growth we have returned to pre-Covid numbers and continue to record growth. The combined sales of Ajovy and Austedo will exceed Copaxone- and this year with $ 1.15 billion compared to $ 1.05 billion for Copaxone. For Ajovy, we have an ambitious target of 33% market share and we are currently at 24% -25%, and we see how we are achieving that. “
Posted by Globes, business news in Israel – en.globes.co.il – July 28, 2021
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