Quarterly Report • Jan 29, 2025
Quarterly Report
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Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) January 29, 2025
(Exact name of registrant as specified in its charter)
Israel 001-16174 00-0000000 (State or Other Jurisdiction (Commission (IRS Employer of Incorporation) File Number) Identification No.)
124 Dvora Hanevi'a Street Tel Aviv 6944020, Israel (Address of Principal Executive Offices, including Zip Code)
+972-3-914-8213
(Registrant's Telephone Number, including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
| Securities registered pursuant to Section 12(b) of the Act: | ||
|---|---|---|
| Title of each class | Trading Symbol(s) |
Name of each exchange on which registered |
| American Depositary Shares, each representing one Ordinary Share |
TEVA | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging Growth Company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
On January 29, 2025, Teva Pharmaceutical Industries Ltd. issued a press release announcing its financial results for the period ended December 31, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and the information contained therein is incorporated herein by reference.
The information included in this Item 2.02 is being furnished to the Securities and Exchange Commission and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
(d) Exhibits
Exhibit No. Description of Document 99.1 Teva Reports 2024 Full Year and Fourth Quarter Financial Results
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: January 29, 2024 By:/s/ Eli Kalif
Name:Eli Kalif Title: Executive Vice President, Chief Financial Officer
| 04 2024 | FY 2024 | |
|---|---|---|
| Revenues | \$4.2 billion | \$16.5 billion |
| GAAP loss per share | 50.19 | 51.45 |
| Non-GAAP diluted EPS | \$0.71 | 52.49 |
| Cash flow generated from operating activities |
\$575 million | \$1,247 million |
| Free cash flow | \$790 million | \$2,068 million |
Teva Media Inquiries [email protected]
* 2025 outlook assumes a full year contribution from Teva api and our business venture in Japan and excludes the expected income from potential milestone payments from Sanofi in connection with the Phase 3 initiation of duvakitug.
Tel Aviv, Israel, January 29, 2025 - Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) today reported results for the year and the quarter ended December 31, 2024.
Mr. Richard Francis, Teva's President and CEO, said: "2024 marked a transformative year for Teva, resulting in a second consecutive year of growth, driven by our generic products and key innovative products. Focusing on rigorous execution of our Pivot to Growth strategy throughout the year, we continued to achieve important milestones in each of its four pillars, including surpassing the outlook for our key innovative products, growing our generics business across all segments, and accelerating our early-stage innovative pipeline, including the positive Phase 2b results for our duvakitug (anti-Tl1A) asset. These results pave the way for pivotal trials in Crohn's disease and ulcerative colitis, as well as, potentially, other Immunological and fibrotic indications beyond, in collaboration with our partner, Sanofi.
Mr. Francis continued, "In 2025, we anticipate further progress in our key innovative growth drivers, while also executing on our complex generics and biosimilars business, supported by new product launches. We are also excited to advance to Phase 3 trials for our duvakitug (anti-TL1A) asset."
In 2024, we continued to execute on the four key pillars of our "Pivot to Growth" strategy, which we announced in May 2023.
•
Our average debt maturity was approximately 5.5 years as of December 31, 2024, compared to 6.0 years as of December 31, 2023.
Revenues in fourth quarter of 2024 were \$4,229 million, a decrease of 5% in both U.S. dollars and in local currency terms, compared to the fourth quarter of 2023. This decrease was mainly due to an upfront payment of \$500 million received in 2023 related to the collaboration on our duvakitug (anti-TL1A) asset, partially offset by higher revenues from our innovative products AUSTEDO, UZEDY and AJOVY, from generic products in all our segments and from the sale of certain product rights.
Exchange rate movements during the fourth quarter of 2024, net of hedging effects, negatively impacted overall revenues by \$8 million, compared to the fourth quarter of 2023.
Gross profit in the fourth quarter of 2024 was \$2,120 million, a decrease of 12% compared to \$2,416 million in the fourth quarter of 2023. Gross profit margin was 50.1% in the fourth quarter of 2024, compared to 54.2% in the fourth quarter of 2023. Non-GAAP gross profit was \$2,319 million in the fourth quarter of 2024, a decrease of 11%, compared to \$2,592 million in the fourth quarter of 2023. Non-GAAP gross profit margin was 54.8% in the fourth quarter of 2024, compared to 58.2% in the fourth quarter of 2023. The decrease in both gross profit margin and non-GAAP gross profit margin was mainly due to the upfront payment received in 2023 related to the collaboration on our duvakitug (anti-TL1A) asset, as well as lower revenues from COPAXONE, partially offset by higher revenues from AUSTEDO, as well as the sale of certain product rights.
Research and Development (R&D) expenses, net in the fourth quarter of 2024 were \$248 million, an increase of 9% compared to \$227 million in the fourth quarter of 2023, as we continue to execute on our Pivot to Growth stratequ. Our higher R&D expenses, net in the fourth quarter of 2024 compared to the fourth quarter of 2023, were mainly due to an increase in our late-stage innovative pipeline in neuroscience (mainly neuropsychiatry), in immunology, and in immuno-oncology.
Selling and Marketing (S&M) expenses in the fourth quarter of 2024 were \$650 million, an increase of 7% compared to the fourth quarter of 2023. This increase was mainly to support revenue growth in our innovative portfolio, primarily AUSTEDO, generic products and AJOVY.
General and Administrative (G&A) expenses in the fourth quarter of 2024 were \$302 million, an increase of 4% compared to the fourth quarter of 2023.
Other loss (income) in the fourth quarter of 2024 was a loss of \$8 million, compared to an income of \$6 million in the fourth quarter of 2023.
Operating loss in the fourth quarter of 2024 was \$29 million, compared to an operating income of \$755 million in the fourth quarter of 2023. Operating loss as a percentage of revenues was 0.7% in the fourth quarter of 2024, compared to an operating income as a percentage of revenues of 17% in the fourth quarter of 2023. Non-GAAP operating income in the fourth quarter of 2024 was \$1,168 million representing a non-GAAP operating margin of 27.6%, compared to non-GAAP operating income of \$1,546 million representing a non-GAAP operating margin of 34.7% in the fourth quarter of 2023. The decrease in non-GAAP operating margin in the fourth quarter of 2024 was mainly due to an increase in operating expenses as a percentage of revenues, as well as due to lower non-GAAP gross profit margin, as discussed above.
Exchange rate movements during the fourth quarter of 2024, net of hedging effects, positively impacted our operating income and non-GAAP operating income by \$21 million and \$20 million, respectively, compared to the fourth quarter of 2023.
We believe that excluding such items facilitates investors' understanding of our business including underlying performance trends, thereby improving the comparability of our business performance results between reporting periods.
For a reconciliation of the U.S. GAAP results to the adjusted non-GAAP figures and for additional information, see the tables below and the information included under "Non-GAAP Financial Measures." Investors should consider non-GAAP financial measures in addition to, and not as replacement for, or superior to, measures of financial performance prepared in accordance with GAAP.
Cash flow generated from operating activities during the fourth quarter of 2024 was \$575 million, compared to \$1,184 million of cash flow generated from operating activities in the fourth quarter of 2023. The lower cash flow generated from operating activities in the fourth quarter of 2024 resulted mainly from changes in working capital items, including a negative impact of accounts payables, the classification of payments to Allergan in connection with lenalidomide (generic equivalent of Revlimid®) as cash flow used in operating activities, an upfront payment received in 2023 related to the collaboration on our duvakitug (anti-TL1A) asset, partially offset by lower legal payments during the fourth quarter of 2024, mainly in connection with our opioids litigation.
During the fourth quarter of 2024, we generated free cash flow of \$790 million, which we define as comprising \$575 million in cash flow generated from operating activities, \$340 million in beneficial interest collected in exchange for securitized accounts receivables (under our EU securitization program) and \$4 million in divestitures of businesses and other assets, partially offset by \$129 million in cash used for capital investment. During the fourth quarter of 2023, we generated free cash flow of \$1,486 million, which we define as comprising \$1,184 million in cash flow generated from operating activities, \$421 million in beneficial interest collected in exchange for securitized accounts receivables (under our EU securitization program), partially offset by \$120 million in cash used for capital investment. This decrease resulted mainly from lower cash flow generated from operating activities.
As part of a recent shift in executive management responsibilities and in line with our Pivot to Growth strategy, commencing January 1, 2024, Canada is reported as part of our International Markets segment. Prior period amounts were recast to reflect this change.
The following table presents revenues, expenses and profit for our United States segment for the three months ended December 31, 2024 and 2023:
| Three months ended December 31 | |||||||
|---|---|---|---|---|---|---|---|
| 2024 | 2023 | ||||||
| (U.S. \$ in millions / % of Segment Revenues) | |||||||
| Revenues S | 1,975 | 100% \$ \$ | 2.266 | 100% | |||
| Cost of sales | 877 | 44.4% | 822 | 36.3% | |||
| Gross profit | 1.097 | 55.6% | 1.444 | 63.7% | |||
| R&D expenses | 158 | 8.0% | 144 | 6.3% | |||
| S&M expenses | 260 | 13.2% | 238 | 10.5% | |||
| G&A expenses | 109 | 5.5% | 90 | 4.0% | |||
| Other loss (income) | ﮯ | ഗ | (1) | ഗ | |||
| Segment profit* \$ | 28.8% | 43.0% |
* Seqment profit does not include amortization and certain other items.
& Represents an amount less than 0.5%.
Revenues from our United States segment in the fourth quarter of 2024 were \$1,975 million, a decrease of \$291 million, or 13%, compared to the fourth quarter of 2023. This decrease was mainly due to an upfront payment received in 2023 related to the collaboration on our duvakitug (anti-TL1A) asset, partially offset by higher revenues from our innovative products AUSTEDO, and UZEDY, as well as the revenues from the sale of certain product rights.
The following table presents revenues for our United States segment by major products and activities for the three months ended December 31, 2024 and 2023:
| Three months ended December 31, |
Percentage Change |
||||
|---|---|---|---|---|---|
| 2024 | 2023 | 2024-2023 | |||
| (U.S. \$ in millions) | |||||
| Generic products (including biosimilars) | ಲ್ಲಿ | 674 | ഗ് | 667 | 1% |
| AJOVY | 63 | 57 | 11% | ||
| AUSTEDO | 518 | 408 | 27% | ||
| BENDEKA and TREANDA…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… | 41 | 52 | (21%) | ||
| COPAXONE | 63 | 72 | (13%) | ||
| UZEDY | 43 | இ | N/A | ||
| Anda | 402 | 394 | 2% | ||
| Other* | 171 | 607 | (72%) | ||
| Total | \$ | 1,975 | ഗ | 2,266 | (13%) |
*Other revenues in the fourth quarter of 2024 include the sale of certain product rights. Other revenues in the fourth quarter of 2023 were mainly comprised of a \$500 million upfront payment received in connection with the collaboration on our duvakitug (anti-TL1A) asset.
Generic products (including biosimilars) revenues in our United States segment in the fourth quarter of 2024 were \$674 million, an increase of 1% compared to the fourth quarter of 2023, the majority of which is driven by the launch of liraglutide injection 1.8mg (an authorized generic of Victoza®) and higher revenues from Truxima® (the biosimilar to Rituxan®), partially offset by lower revenues from lenalidomide capsules (the generic version of Revlimid®) and albuterol sulfate inhalation aerosol (our ProAir® authorized generic).
Amonq the most significant qeneric products we sold in the United States in the fourth quarter of 2024 were Truxima® (the biosimilar to Rituxan®), epinephrine injectable solution (the generic equivalent of EpiPen® and EpiPen Jr®), and liraqlutide 1.8 mq injection (an authorized generic of Victoza®).
In the fourth quarter of 2024, according to IQVIA data, our total prescriptions were approximately 68 million, representing 6.9% of total U.S. generic prescriptions.
On February 24, 2024, Alvotech and Teva announced that the FDA approved SIMLANDI (adalimumabryvk) injection, as an interchangeable biosimilar to Humira®, for the treatment of adult rheumatoid arthritis, juvenile idiopathic arthritis, adult psoriatic arthritis, adult ankylosing spondylitis, Crohn's
disease, adult ulcerative colitis, adult plaque psoriasis, adult hidradentis suppurativa and adult uveitis, On May 21, 2024, Alvotech and Teva announced the availability of SIMLANDI in the U.S.
On April 16, 2024, Alvotech and Teva announced that the FDA has approved SELARSDI (ustekinumabaekn) injection for subcutaneous use, as a biosimilar to Stelara®, for the treatment of moderate to severe plaque psoriasis and for active psoriatic arthritis in adults and pediatric patients six years and older. SELARASDI is expected to launch in the U.S. in the first quarter of 2025.
On June 24, 2024, Teva announced the launch of liraglutide injection 1.8mg (an authorized generic of Victoza®) in the United States. Liraglutide injection is indicated to improve glycemic control in adults and pediatric patients aged 10 years and older with type 2 diabetes mellitus and reduce the risk of cardiovascular events in adults with type 2 diabetes mellitus and established cardiovascular disease.
In July 2024, Teva launched paclitaxel protein-bound particles for injectable suspension (albuminbound) (a therapeutically equivalent product to Abraxane®) in the United States for the treatment of breast cancer after failure of combination chemotherapy for metastatic disease, the treatment of locally advanced or metastatic non-small cell lung cancer, and the treatment of patients with metastatic adenocarcinoma of the pancreas.
On October 1, 2024, Teva launched octreotide acetate for injectable suspension, the first generic version of Sandostatin® LAR Depot. Octreotide acetate for injectable suspension is indicated for the treatment of acromeqaly and severe diarrhea associated with carcinoid syndrome, and is available to patients in the U.S.
AJOVY revenues in our United States segment in the fourth quarter of 2024 were \$63 million, an increase of 11% compared to the fourth quarter of 2023, mainly due to growth in volume, partially offset by unfavorable net pricing. In the fourth quarter of 2024, AJOVY's exit market share in the United States in terms of total number of prescriptions was 29.6% compared to 25.7% in the fourth quarter of 2023.
AUSTEDO revenues in our United States segment in the fourth quarter of 2024 increased by 27%, to \$518 million, compared to \$408 million in the fourth quarter of 2023, mainly due to growth in volume, as well as expanded access for patients.
AUSTEDO XR (deutetrabenazine) extended-release tablets were approved by the FDA on February 17, 2023 in three doses of 6, 12 and 24 mg, and became commercially available in the U.S. in May 2023. In May 2024, the FDA approved AUSTEDO XR as a one pill, once-daily treatment option in doses of 30, 36, 42, and 48 mq. In July 2024, the FDA approved the 18 mq dosage for AUSTEDO XR, makinq it a one pill, once-daily option for all available doses. AUSTEDO XR is a once-daily formulation indicated in adults for tardive dyskinesia and chorea associated with Huntington's disease, which is additional to the currently marketed twice-daily AUSTEDO. AUSTEDO XR is protected by 11 Orange Book patents expiring between 2031 and 2041.
UZEDY (risperidone) extended-release injectable suspension revenues in our United States segment in the fourth quarter of 2024 were \$43 million. UZEDY was approved by the FDA on April 28, 2023 for the treatment of schizophrenia in adults, and was launched in the U.S. in May 2023. UZEDY is a subcutaneous, long-acting formulation of risperidone that controls the steady release of risperidone. UZEDY is protected by four Orange Book patents expiring between 2027 and 2040. UZEDY is protected by requlatory exclusivity until April 28, 2026. We are moving forward with plans to launch UZEDY in other countries worldwide. UZEDY faces competition from multiple other products.
BENDEKA and TREANDA (bendamustine) combined revenues in our United States seqment in the fourth quarter of 2024 were \$41 million, a decrease of 21% compared to the fourth quarter of 2023, mainly due to competition from alternative therapies, as well as the entry of qeneric bendamustine
products into the market. The orphan drug exclusivity that had attached to bendamustine products expired in December 2022.
COPAXONE revenues in our United States segment in the fourth quarter of 2024 were \$63 million, a decrease of 13% compared to the fourth quarter of 2023, mainly due to market share erosion and competition, partially offset by a reduction in sales allowance.
Anda revenues from third-party products in our United States segment in the fourth quarter of 2024 increased by 2% to \$402 million, compared to \$394 million in the fourth quarter of 2023, mainly due to higher volume. Anda, our distribution business in the United States, distributes generic, biosimilars and innovative medicines and OTC pharmaceutical products from Teva and various third-party manufacturers to independent retail pharmacy retail chains, hospitals and physician offices in the United States. Anda is able to compete in the distribution market by maintaining a broad portfolio of products, competitive pricing and delivery throughout the United States.
Gross profit from our United States segment in the fourth quarter of 2024 was \$1,097 million, a decrease of 24%, compared to \$1,444 million in the fourth quarter of 2023.
Gross profit marqin for our United States seqment in the fourth quarter of 2024 decreased to 55.6%, compared to 63.7% in the fourth quarter of 2023. This decrease was mainly due to an upfront payment received in the fourth quarter of 2023 related to the collaboration on our duvakitug (anti-TL1A) asset, partially offset by a favorable mix of products, primarily driven by an increase in revenues from AUSTEDO and the sale of certain product rights.
Profit from our United States seqment consists of revenues less cost of sales, R&D expenses, S&M expenses, G&A expenses and any other income related to this segment. Segment profit does not include amortization and certain other items.
Profit from our United States segment in the fourth quarter of 2024 was \$569 million, a decrease of 42% compared to \$974 million in the fourth quarter of 2023. The higher profit in the fourth quarter of 2023 was mainly due to an upfront payment received in relation to the collaboration on our duvakitug (anti-TL1A) asset.
Our Europe segment includes the European Union, the United Kingdom and certain other European countries.
The following table presents revenues, expenses and profit for our Europe segment for the three months ended December 31, 2024 and 2023:
| Three months ended December 31, | |||||||
|---|---|---|---|---|---|---|---|
| 2024 | 2023 | ||||||
| (U.S. \$ in millions / % of Segment Revenues) | |||||||
| Revenues S | 1.353 | 100% | S | 1,344 | 100% | ||
| Cost of sales | 561 | 41.4% | 561 | 41.7% | |||
| Gross profit | 792 | 58.6% | 783 | 58.3% | |||
| R&D expenses | 56 | 4.2% | 52 | 3.9% | |||
| S&M expenses | 221 | 16.3% | 203 | 15.1% | |||
| G&A expenses | 75 | 5.6% | 67 | 5.0% | |||
| Other loss (income) | 2 | ள | ന | ന | |||
| Segment profit* \$ | 438 | 32.4% \$ | 461 | 34.3% |
* Segment profit does not include amortization and certain other items.
§ Represents an amount less than \$0.5 million or 0.5%, as applicable.
Revenues from our Europe segment in the fourth quarter of 2024 were \$1,353 million, an increase of 1%, or \$9 million, compared to the fourth quarter of 2023. In local currency terms, revenues decreased by 2% compared to the fourth quarter of 2023. Our lower revenues in local currency terms in the fourth quarter of 2024 were mainly due to higher sales of certain product rights in the fourth quarter of 2023, partially offset by higher revenues from generic and OTC products as well as AJOVY.
In the fourth quarter of 2024, revenues were positively impacted by exchange rate fluctuations of \$33 million, net of hedging effects, compared to the fourth quarter of 2023. Revenues in the fourth quarter of 2024, included \$20 million from a positive hedging impact, which is included in "Other" in the table below. Revenues in the fourth quarter of 2023 included \$20 million from a negative hedging impact, which is included in "Other" in the table below.
The following table presents revenues for our Europe segment by major products and activities for the three months ended December 31, 2024 and 2023:
| Three months ended December 31, |
Percentage Change |
||||
|---|---|---|---|---|---|
| 2024 | 2023 | 2024-2023 | |||
| (U.S. \$ in millions) | |||||
| Generic products (including OTC and | |||||
| biosimilars) . \$ | 2 938 | 4% | |||
| AJOVY | 58 | 45 | 28% | ||
| COPAXONE | 50 | ટેર | (11%) | ||
| Respiratory products | 61 | 70 | (13%) | ||
| Other* | 205 | 234 | (12%) | ||
| Total | 1,353 | \$ 1,344 | 1% |
*Other revenues in the fourth quarter of 2024 and 2023 include the sale of certain product rights.
Generic products revenues (including OTC and biosimilar products) in our Europe segment in the fourth quarter of 2024, were \$979 million, an increase of 4% compared to the fourth quarter of 2023. In local currency terms, revenues increased by 5%, mainly due to price increases as a result of market conditions such as inflationary pressures in certain markets, as well as higher revenues from recently launched products.
AJOVY revenues in our Europe segment in the fourth quarter of 2024 were \$58 million, an increase of 28% in both U.S. dollars and local currency terms, compared to the fourth quarter of 2023. This increase was due to growth in volume.
COPAXONE revenues in our Europe segment in the fourth quarter of 2024 were \$50 million, a decrease of 11% in both U.S. dollars and local currency terms, compared to the fourth quarter of 2023. This decrease was mainly due to price reductions and a decline in volume resulting from availability of alternative therapies and competing glatiramer acetate products.
Respiratory products revenues in our Europe segment in the fourth quarter of 2024 were \$61 million, a decrease of 13% in both U.S. dollars and local currency terms, compared to the fourth quarter of 2023. This decrease was mainly due to net price reductions and lower volumes.
Gross profit from our Europe segment in the fourth quarter of 2024 was \$792 million, an increase of 1% compared to \$783 million in the fourth quarter of 2023.
Gross profit margin for our Europe segment in the fourth quarter of 2024 increased to 58.6%, compared to 58.3% in the fourth quarter of 2023. This increase was mainly due to positive impact from hedging activities.
Profit from our Europe seqment consists of revenues less cost of sales, R&D expenses, G&A expenses and any other income related to this segment profit does not include amortization and certain other items.
Profit from our Europe segment in the fourth quarter of 2024 was \$438 million, a decrease of 5%, compared to \$461 million in the fourth quarter of 2023. This decrease was mainly due to higher S&M expenses to support revenue growth.
Our International Markets segment includes all countries in which we operate other than the United States and the countries included in our Europe seqment. The International Markets segment covers a substantial portion of the global pharmaceutical industry, including more than 35 countries.
As part of a recent shift in executive management responsibilities, commencing January 1, 2024, Canada is reported under our International Markets segment and is no longer included as part of our United States segment. Prior period amounts were recast to reflect this change.
On December 5, 2024, we announced that we entered into an agreement with JKI Co. Ltd., established by the fund managed and operated by private equity firm J-Will Partners Co. Ltd., to sell our business venture in Japan (the "BV"), which includes generic products and legacy products, with an expected closing date of April 1, 2025, subject to standard closing conditions.
Since the establishment of the BV and as of December 31, 2024, Teva holds 51% of the outstanding common stock of the BV, therefore consolidating the BV in our financial statements.
The following table presents revenues, expenses and profit for our International Markets segment for the three months ended December 31, 2024 and 2023:
| Three months ended December 31, | ||||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | |||||
| (U.S. \$ in millions / % of Segment Revenues) | ||||||
| Revenues S | 661 | 100% | \$ | 601 | 100% | |
| Cost of sales | 315 | 47.7% | 302 | 50.2% | ||
| Gross profit | 346 | 52.3% | 299 | 49.8% | ||
| R&D expenses | 27 | 4.1% | 24 | 3.9% | ||
| S&M expenses | 137 | 20.7% | 134 | 22.2% | ||
| G&A expenses | 42 | 6.3% | 37 | 6.2% | ||
| Other loss (income) | (1) | ഗ | (4) | (0.7%) | ||
| Seqment profit* \$ | 141 | 21.4% | ળ | 109 | 18.1% |
* Segment profit does not include amortization and certain other items.
§ Represents an amount less than \$0.5 million or 0.5%, as applicable.
Revenues from our International Markets segment in the fourth quarter of 2024 were \$661 million, an increase of 10% compared to the fourth quarter of 2023. In local currency terms, revenues increased by 17% compared to the fourth quarter of 2023, mainly due to revenues from the sale of certain product rights, higher revenues from generic products in most markets, partially offset by regulatory price reductions and generic competition to off-patented products in Japan.
In the fourth quarter of 2024, revenues were negatively impacted by exchange rate fluctuations of \$40 million, net of hedging effects, compared to the fourth quarter of 2023. Revenues in the fourth quarter of 2024 included \$13 million from a positive hedging impact, compared to a negative hedging impact of \$3 million in the fourth quarter of 2023, which are included in "Other" in the table below.
The following table presents revenues for our International Markets segment by major products and activities for the three months ended December 31, 2024 and 2023:
| Three months ended December 31. |
Percentage Change |
||||
|---|---|---|---|---|---|
| 2024 | 2023 | 2024-2023 | |||
| (U.S. \$ in millions) | |||||
| Generic products (including OTC and | |||||
| biosimilars) | \$ 506 | (2%) | |||
| AJOVY | 22 | 19 | 16% | ||
| COPAXONE | இ | 12 | (25%) | ||
| AUSTEDO | 7 | 5 | 50% | ||
| Other* | 126 | 60 | 112% | ||
| Total | 5 661 | 601 | 10% |
*Other revenues in the fourth quarter of 2024 include the sale of certain product rights.
Generic products revenues (including OTC and biosimilar products) in our International Markets segment were \$497 million in the fourth quarter of 2024, a decrease of 2% compared to the fourth quarter of 2023. In local currency terms, revenues increased by 8% compared to the fourth quarter of 2023, mainly due to higher revenues in most markets, largely driven by price increases as a result of higher costs due to inflationary pressure in certain markets and higher volumes, partially offset by regulatory price reductions and generic competition to off-patented products in Japan.
AJOVY was launched in certain markets in our International Markets seqment, including in Canada, Japan, Australia, Israel, South Korea, Brazil and others. AJOVY revenues in our International Markets seqment in the fourth quarter of 2024 were \$22 million, compared to \$19 million in the fourth quarter of 2023. In local currency terms, revenues increased by 22%, due to growth in existing markets in which AJOVY was launched.
COPAXONE revenues in our International Markets segment in the fourth quarter of 2024 were \$9 million compared to \$12 million in the fourth quarter of 2023. In local currency terms, revenues decreased by 16% mainly due to market share erosion and competition.
AUSTEDO was launched in China and Israel in 2021 and in Brazil in 2022, for the treatment of chorea associated with Huntington's disease and for the treatment of tardive dyskinesia. In February 2024, we announced a strategic partnership for the marketing and distribution of AUSTEDO in China. We continue with additional submissions in various other markets.
AUSTEDO revenues in our International Markets seqment in the fourth quarter of 2024 were \$7 million, In local currency terms, revenues increased by 54%, substantially due to the launch of a strategic partnership in China.
Gross profit from our International Markets segment in the fourth quarter of 2024 was \$346 million, an increase of 16% compared to \$299 million in the fourth quarter of 2023.
Gross profit margin for our International Markets segment in the fourth quarter of 2024 increased to 52.3%, compared to 49.8% in the fourth quarter of 2023. This increase was mainly due to revenues from the sale of certain product rights, price increases largely as a result of inflationary pressures in certain markets, a positive hedging impact and a favorable mix of products, partially offset by regulatory price reductions and generic competition to off-patented products in Japan, as well as higher costs due to inflationary and other macroeconomic pressures.
Profit from our International Markets segment consists of revenues less cost of sales, R&D expenses, S&M expenses, G&A expenses and any other income related to this segment. Segment profit does not include amortization and certain other items.
Profit from our International Markets segment in the fourth quarter of 2024 was \$141 million, an increase of 30%, compared to \$109 million in the fourth quarter of 2023. This increase was mainly due to higher gross profit, as mentioned above.
We have other sources of revenues, primarily the sale of APIs to third parties, certain contract manufacturing services and an out-licensing platform offering a portfolio of products to other pharmaceutical companies through our affiliate Medis. Our other activities are not included in our United States, Europe or International Markets segments described above.
On January 31, 2024, we announced that we intend to divest our API business (including its R&D, manufacturing and commercial activities) through a sale. The intention to divest is in alignment with our Pivot to Growth strategy. However, there can be no assurance regarding the ultimate timing or structure of the potential divestiture or that a divestiture will be agreed or completed at all.
Revenues from other activities in the fourth quarter of 2024 were \$241 million, a decrease of 2% in both U.S. dollars and local currency terms, compared to the fourth quarter of 2023.
API sales to third parties in the fourth quarter of 2024 were \$145 million, flat compared to the fourth quarter of 2023, following a reallocation of an immaterial business within our other activities, in line with our intention to divest our API business.
| 2025 Non-GAAP Outlook | ||
|---|---|---|
| \$ billions, except diluted EPS or as noted |
2025 Outlook | |
| Revenues* | 16.8 -17.4 | |
| AUSTEDO (\$m)* | 1,900-2,050 | |
| AJOVY (Şm)* | ~600 | |
| UZEDY (\$m)* | ~160 | |
| COPAXONE (\$m)* | ~370 | |
| Operating Income | 4.1 - 4.6 | |
| Adjusted EBITDA | 4.5 - 5.0 | |
| Finance Expenses (\$m) | ~900 | |
| Tax Rate | 15% - 18% | |
| Diluted EPS (S) | 2.35-2.65 | |
| Free Cash Flow** | 1.6 - 1.9 | |
| CAPEX* | ~0.5 | |
| Foreian Exchange | Volatile swings in FX can negatively |
impact revenue and income
* Revenues and CAPEX presented on a GAAP basis.
** Free Cash Flow includes cash flow generated from operating activities net of capital expenditures and deferred purchase price cash component collected for securitized trade receivables
Teva's Annual Report on Form 10-K for the year ended December 31, 2024, which will be filed with the SEC, will include a complete analysis of the financial results for 2023 and will be available on Teva's website: http://ir.tevapharm.com, as well as on the SEC's website: http://www.sec.qov.
Teva will host a conference call and live webcast along with a slide presentation on Wednesday, January 29, 2025 at 8:00 a.m. ET to discuss its fourth quarter and annual 2024 results and overall business environment. A question & answer session will follow.
In order to participate, please register in advance here to obtain a local or toll-free phone number and your personal pin.
A live webcast of the call will be available on Teva's website at: http://ir.tevapharm.com/.
Following the conclusion of the call, a replay of the webcast will be available within 24 hours on Teva's website.
•
•
| Three months ended December 31, |
Year ended December 31, |
|||
|---|---|---|---|---|
| (Unaudited) | ||||
| 2024 | 2023 | 2024 | 2023 | |
| Net revenues | 4,229 | 4,457 | 16,544 | 15,846 |
| Cost of sales | 2,109 | 2,041 | 8,481 | 8,200 |
| Gross profit | 2,120 | 2,416 | 8,064 | 7,645 |
| Research and development expenses | 248 | 227 | 998 | 953 |
| Selling and marketing expenses | 650 | 610 | 2,541 | 2,336 |
| General and administrative expenses | 302 | 291 | 1,161 | 1162 |
| Intangible assets impairments | 81 | 61 | 251 | 350 |
| Goodwill impairment | 280 | - | 1,280 | 700 |
| Other asset impairments, restructuring and other items | 457 | 443 | 1,388 | 718 |
| Legal settlements and loss contingencies | 123 | 34 | 761 | 1,043 |
| Other (income) loss | 8 | (6) | (14) | (49) |
| Operating income (loss) | (29) | 755 | (303) | 433 |
| Financial expenses, net | 218 | 249 | 981 | 1,057 |
| Income (loss) before income taxes | (247) | 507 | (1,284) | (624) |
| Income taxes (benefit) | 29 | 43 | 676 | (7) |
| Share in (profits) losses of associated companies, net | (1) | (1) | (1) | (2) |
| Net income (loss) | (275) | 465 | (1,959) | (615) |
| Net income (loss) attributable to non-controlling interests | (58) | 4 | (320) | (56) |
| Net income (loss) attributable to Teva | (217) | 461 | (1,639) | (559) |
| Earnings (loss) per share attributable to Teva: | Basic (\$) | (0.19) | 0.41 | (1.45) | (0.50) |
|---|---|---|---|---|---|
| Diluted (\$) | (0.19) | 0.41 | (1.45) | (0.50) | |
| Weighted average number of shares (in millions): | Basic | 1,133 | 1,121 | 1,131 | 1,119 |
| Diluted | 1,133 | 1,137 | 1,131 | 1,119 | |
| Non-GAAP net income attributable to Teva for diluted earnings per share:* | 816 | 1,135 | 2,860 | 2,898 | |
| Non-GAAP earnings per share attributable to Teva:* | Diluted (\$) | 0.71 | 1.00 | 2.49 | 2.56 |
| Non-GAAP average number of shares (in millions): | Diluted | 1,157 | 1,137 | 1,150 | 1,131 |
Amounts may not add up due to rounding.
§ Represents an amount less than \$0.5 million.
* See reconciliation attached.
(Audited)
| December 31, | December 31, | |
|---|---|---|
| ASSETS | 2024 | 2023 |
| Current assets: | ||
| Cash and cash equivalents | 3,300 | 3,226 |
| Accounts receivables, net of allowance for credit losses of \$78 | ||
| million and \$95 million as of December 31, 2024 and December | ||
| 31, 2023 | 3,059 | 3,408 |
| Inventories | 3,007 | 4,021 |
| Prepaid expenses | 1,006 | 1,255 |
| Other current assets | 409 | 504 |
| Assets held for sale | 1,771 | 70 |
| Total current assets | 12,552 | 12,485 |
| Deferred income taxes | 1,799 | 1,812 |
| Other non-current assets | 462 | 470 |
| Property, plant and equipment, net | 4,581 | 5,750 |
| Operating lease right-of-use assets | 367 | 397 |
| Identifiable intangible assets, net | 4,418 | 5,387 |
| Goodwill | 15,147 | 17,177 |
| Total assets | 39,326 | 43,479 |
| LIABILITIES & EQUITY | ||
| Current liabilities: | ||
| Short-term debt | 1,781 | 1,672 |
| Sales reserves and allowances | 3,678 | 3,535 |
| Trade payables | 2,203 | 2,602 |
| Employee-related obligations | 624 | 611 |
| Accrued expenses | 2,792 | 2,771 |
| Other current liabilities | 1,020 | 1,044 |
| Liabilities held for sale | 698 | 13 |
| Total current liabilities | 12,796 | 12,247 |
| Long-term liabilities: | ||
| Deferred income taxes | 483 | 606 |
| Other taxes and long-term liabilities | 4,028 | 4,019 |
| Senior notes and loans | 16,002 | 18,161 |
| Operating lease liabilities | 296 | 320 |
| Total long-term liabilities | 20,809 | 23,106 |
| Redeemable non-controlling interests | 340 | - |
| Equity: | ||
| Teva shareholders' equity: | 5,373 | 7,506 |
| Non-controlling interests | 7 | 620 |
| Total equity | 5,380 | 8,126 |
| Total liabilities and equity | 39,326 | 43,479 |
| Year ended December 31, |
Three months ended December 31, |
||||
|---|---|---|---|---|---|
| (Unaudited) | |||||
| 2024 | 2023 | 2024 | 2023 | ||
| (Audited) | (Audited) | (Unaudited) | (Unaudited) | ||
| Operating activities: | |||||
| Net income (loss) | (1,959) | (615) | \$ (275) |
\$ 465 |
|
| Adjustments to reconcile net income (loss) to net cash provided by operations: | |||||
| Impairment of goodwil | 1,280 | 700 | 280 | - | |
| Impairment of long-lived assets and assets held for sale | 1,275 | 378 | 517 | 68 | |
| Depreciation and amortization | 1,059 | 1,153 | 269 | 266 | |
| Net change in operating assets and liabilities | (435) | (72) | (246) | 292 | |
| Deferred income taxes — net and uncertain tax positions | (634) | (317) | 32 | 34 | |
| Stock-based compensation | 123 | 121 | 34 | 28 | |
| Net loss (gain) from sale of business and long-lived assets | (22) | (41) | - | (10) | |
| Other items * | 560 | 61 | (37) | 41 | |
| Net cash provided by (used in) operating activities | 1,247 | 1,368 | 575 | 1,184 | |
| Investing activities: | |||||
| Beneficial interest collected in exchange for securitized trade receivables | 1,291 | 1,477 | 340 | 421 | |
| Purchases of property, plant and equipment and intangible assets | (498) | (526) | (129) | (120) | |
| Proceeds from sale of business and long lived assets | 43 | 68 | 4 | - | |
| Purchases of investments and other assets | (71) | (46) | (15) | (2) | |
| Proceeds from sale of investments | 40 | - | - | - | |
| Acquisitions of businesses, net of cash acquired | (15) | - | - | - | |
| Other investing activities | 2 | (5) | 2 | 2 | |
| Net cash provided by (used in) investing activities | 792 | 968 | 202 | 301 | |
| Financing activities: | |||||
| Repayment of senior notes and loans and other long term liabilities | (1,641) | (4,152) | (685) | - | |
| Proceeds from senior notes, net of issuance costs | - | 2,451 | - | - | |
| Proceeds from short term debt | - | 700 | - | - | |
| Repayment of short term debt | - | (700) | - | (500) | |
| Purchase of shares from non-controlling interests | (64) | - | - | - | |
| Dividends paid to non-controlling interests | (78) | - | - | - | |
| Other financing activities | (8) | (212) | 10 | (76) | |
| Net cash provided by (used in) financing activities | (1,791) | (1,913) | (675) | (576) | |
| Translation adjustment on cash and cash equivalents | (174) | (30) | (121) | 68 | |
| Net change in cash, cash equivalents and restricted cash \$ | 74 | \$ 393 |
\$ (19) |
\$ 977 |
|
| Balance of cash, cash equivalents and restricted cash at beginning of year | 3,227 | 2,834 | 3,319 | 2,250 | |
| Balance of cash, cash equivalents and restricted cash at end of year | 3,300 | 3,227 | 3,300 | 3,227 | |
| Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheets: | |||||
| Cash and cash equivalents | 3,300 | 3,226 | 3,300 | 3,226 | |
| Restricted cash included in other current assets | - | 1 | - | 1 | |
| Total cash, cash equivalents and restricted cash shown in the statements of cash flows | 3,300 | 3,227 | 3,300 | 3,227 |
| (\$ in millions except per share amounts) | Three months ended December 31, 2024 |
2023 | 2024 | Year ended December 31, 2023 |
||
|---|---|---|---|---|---|---|
| Net income (Loss) attributable to Teva | (\$) | (217) | 461 | (\$) | (1,639) | (559) |
| Increase (decrease) for excluded items: | ||||||
| Amortization of purchased intangible assets | 144 | 144 | 588 | 616 | ||
| Legal settlements and loss contingencies(1) | 123 | 34 | 761 | 1,043 | ||
| Goodwill impairment(2) | 280 | - | 1,280 | 700 | ||
| Impairment of long-lived assets(3) | 517 | 68 | 1,275 | 378 | ||
| Restructuring costs | 22 | 18 | 74 | 111 | ||
| Equity compensation | 34 | 28 | 123 | 121 | ||
| Contingent consideration(4) | (2) | 408 | 303 | 548 | ||
| Loss (Gain) on sale of business | 6 | - | (15) | (3) | ||
| Accelerated depreciation | 5 | 6 | 13 | 80 | ||
| Financial expenses | 13 | 13 | 49 | 66 | ||
| Items attributable to non-controlling interests(3) | (63) | (1) | (339) | (92) | ||
| Other non-GAAP items(5) | 67 | 83 | 229 | 335 | ||
| Corresponding tax effects and unusual tax items(6) | (114) | (128) | 157 | (446) | ||
| Non-GAAP net income attributable to Teva | (\$) | 816 | 1,135 | (\$) | 2,860 | 2,898 |
| Non-GAAP tax rate(7) | 14.8% | 13.1% | 15.3% | 13.0% | ||
| GAAP diluted earnings (loss) per share attributable to Teva | (\$) | (0.19) | 0.41 | (\$) (1.45) | (0.50) | |
| EPS difference(8) | 0.90 | 0.59 | 3.94 | 3.06 | ||
| Non-GAAP diluted EPS attributable to Teva(8) | (\$) | 0.71 | 1.00 | (\$) | 2.49 | 2.56 |
| Non-GAAP average number of shares (in millions)(8) | 1,157 | 1,137 | 1,150 | 1,131 |
(1) Adjustments for legal settlements and loss contingencies in 2024 were mainly related to a legal expenses of \$357 million recorded in connection with a decision by the European Commission in its antitrust investigation into COPAXONE, and to an update to the estimated settlement provision of \$278 million for the opioid cases (mainly the effect of the passage of time on the net present value of the discounted payments and the settlement agreement with the city of Baltimore). Adjustments for legal settlements and loss contingencies in 2023 were mainly related to an update to the estimated provision of \$370 million related to the DOJ patient assistance program litigation, an update to the estimated settlement provision of \$269 million related to the remaining opioid cases, the provision of \$207 million relating to the U.S. DOJ criminal antitrust charges on the marketing and pricing of certain Teva USA generic products and the provision of \$100 million related to the settlement of the reverse-payment antitrust litigation over certain HIV medicines.
| Three months ended | Year ended | |||||||
|---|---|---|---|---|---|---|---|---|
| December 31, | December 31, | |||||||
| (\$ in millions) | 2024 | 2023 | 2024 | 2023 | ||||
| GAAP gross profit | (\$) | 2,120 | 2,416 | (\$) | 8,064 | 7,645 | ||
| GAAP gross profit margin | 50.1% | 54.2% | 48.7% | 48.2% | ||||
| Increase (decrease) for excluded items:(1) | ||||||||
| Amortization of purchased intangible assets | 135 | 129 | 543 | 549 | ||||
| Costs related to regulatory actions taken in facilities | 3 | 2 | 8 | 4 | ||||
| Equity compensation | 5 | 4 | 23 | 19 | ||||
| Accelerated Depreciation | 5 | 6 | 13 | 80 | ||||
| Other non-GAAP items | 51 | 35 | 164 | 173 | ||||
| Non-GAAP gross profit | (\$) | 2,319 | 2,592 | (\$) | 8,814 | 8,470 | ||
| Non-GAAP gross profit margin(2) | 54.8% | 58.2% | 53.3% | 53.5% |
(1) For further explanations, refer to the footnotes under the "Reconciliation of net income (loss) attributable to Teva to Non-GAAP net income (loss) attributable to Teva" table.
(2) Non-GAAP gross profit margin is non-GAAP gross profit as a percentage of revenue.
| Three months ended | Year ended, | |||||
|---|---|---|---|---|---|---|
| December 31, | December 31, | |||||
| (\$ in millions) | 2024 | 2023 | 2024 | 2023 | ||
| Operating income (loss) | (\$) | (29) | 755 | (\$) | (303) | 433 |
| Operating margin | (0.7%) | 17.0% | (1.8%) | 2.7% | ||
| Increase (decrease) for excluded items: (1) | ||||||
| Amortization of purchased intangible assets | 144 | 144 | 588 | 616 | ||
| Legal settlements and loss contingencies | 123 | 34 | 761 | 1,043 | ||
| Goodwill impairment | 280 | - | 1,280 | 700 | ||
| Impairment of long-lived assets | 517 | 68 | 1,275 | 378 | ||
| Restructuring costs | 22 | 18 | 74 | 111 | ||
| Equity compensation | 34 | 28 | 123 | 121 | ||
| Contingent consideration | (2) | 408 | 303 | 548 | ||
| Loss (gain) on sale of business | 6 | - | (15) | (3) | ||
| Accelerated depreciation | 5 | 6 | 13 | 80 | ||
| Other non-GAAP items | 67 | 84 | 229 | 336 | ||
| Non-GAAP operating income (loss) | (\$) | 1,168 | 1,546 | (\$) | 4,329 | 4,361 |
| Non-GAAP operating margin(2) | (\$) | 27.6% | 34.7% | (\$) | 26.2% | 27.5% |
(1) For further explanations, refer to the footnotes under the "Reconciliation of net income (loss) attributable to Teva to Non-GAAP net income (loss) attributable to Teva" table.
(2) Non-GAAP operating margin is Non-GAAP operating income as a percentage of revenues.
| Three months ended | Year ended | |||||||
|---|---|---|---|---|---|---|---|---|
| December 31, | December 31, | |||||||
| (\$ in millions) | 2024 | 2023 | 2024 | 2023 | ||||
| Net income (loss) | \$ | (275) | 465 | \$ | (1,959) | (615) | ||
| Increase (decrease) for excluded items:(1) | ||||||||
| Financial expenses | 218 | 249 | 981 | 1,057 | ||||
| Income taxes | 29 | 43 | 676 | (7) | ||||
| Share in profits (losses) of associated companies –net | (1) | (1) | (1) | (2) | ||||
| Depreciation | 119 | 120 | 465 | 537 | ||||
| Amortization | 144 | 144 | 588 | 616 | ||||
| EBITDA | 235 | 1,020 | 750 | 1,585 | ||||
| Legal settlements and loss contingencies | 123 | 34 | 761 | 1,043 | ||||
| Goodwill impairment | 280 | - | 1,280 | 700 | ||||
| Impairment of long lived assets | 517 | 68 | 1,275 | 378 | ||||
| Restructuring costs | 22 | 18 | 74 | 111 | ||||
| Equity compensation | 34 | 28 | 123 | 121 | ||||
| Contingent consideration | (2) | 408 | 303 | 548 | ||||
| Loss (Gain) on sale of Business | 6 | - | (15) | (3) | ||||
| Other non-GAAP items | 67 | 84 | 229 | 335 | ||||
| Adjusted EBITDA | \$ | 1,282 | 1,660 | \$ | 4,781 | 4,818 |
(1) For further explanations, refer to the footnotes under the "Reconciliation of net income (loss) attributable
to Teva to Non-GAAP net income (loss) attributable to Teva" table.
| United States | Europe | International Markets | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Three months ended December 31, |
Three months ended December 31, |
Three months ended December 31, |
||||||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||
| (U.S. \$ in millions) | (U.S. \$ in millions) | (U.S. \$ in millions) | ||||||||||
| Revenues \$ | 1,975 | \$ | 2,266 | \$ | 1,353 | \$ | 1,344 | \$ | 661 | \$ | 601 | |
| Cost of sales | 877 | 822 | 561 | 561 | 315 | 302 | ||||||
| Gross profit | 1,097 | 1,444 | 792 | 783 | 346 | 299 | ||||||
| R&D expenses | 158 | 144 | 56 | 52 | 27 | 24 | ||||||
| S&M expenses | 260 | 238 | 221 | 203 | 137 | 134 | ||||||
| G&A expenses | 109 | 90 | 75 | 67 | 42 | 37 | ||||||
| Other income | 1 | (1) | 2 | § | (1) | (4) | ||||||
| Segment profit \$ | 569 | \$ | 974 | \$ | 438 | \$ | 461 | \$ | 141 | \$ | 109 |
§ Represents an amount less than \$0.5 million.
| United States | Europe Year ended December 31, |
International Markets Year ended December 31, |
|||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Year ended December 31, | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||
| (U.S. \$ in millions) | (U.S. \$ in millions) | (U.S. \$ in millions) | |||||||||||
| Revenues \$ | 8,034 | \$ | 7,731 | \$ | 5,103 | \$ | 4,837 | \$ | 2,463 | \$ | 2,351 | ||
| Cost of sales | 3,646 | 3,421 | 2,197 | 2,111 | 1,229 | 1,191 | |||||||
| Gross profit | 4,388 | 4,310 | 2,905 | 2,726 | 1,235 | 1,160 | |||||||
| R&D expenses | 633 | 604 | 229 | 220 | 112 | 104 | |||||||
| S&M expenses | 1,049 | 938 | 826 | 767 | 534 | 487 | |||||||
| G&A expenses | 410 | 378 | 272 | 263 | 150 | 142 | |||||||
| Other income | § | (5) | 3 | (2) | (2) | (39) | |||||||
| Segment profit \$ | 2,296 | \$ | 2,394 | \$ | 1,575 | \$ | 1,478 | \$ | 440 | \$ | 465 |
| Three months ended December 31, |
|||||
|---|---|---|---|---|---|
| 2024 | 2023 | ||||
| (U.S.\$ in millions) | |||||
| United States profit | \$ | 569 | \$ | 974 | |
| Europe profit | 438 | 461 | |||
| International Markets profit | 141 | 109 | |||
| Total reportable segment profit | 1,148 | 1,544 | |||
| Profit (loss) of other activities | 19 | 2 | |||
| 1,168 | 1,546 | ||||
| Amounts not allocated to segments: | |||||
| Amortization | 144 | 144 | |||
| Other asset impairments, restructuring and other items | 458 | 443 | |||
| Goodwill impairment | 280 | - | |||
| Intangible asset impairments | 81 | 61 | |||
| Legal settlements and loss contingencies | 123 | 34 | |||
| Other unallocated amounts | 110 | 108 | |||
| Consolidated operating income (loss) | (29) | 755 | |||
| Financial expenses - net | 218 | 249 | |||
| Consolidated income (loss) before income taxes | \$ | (247) | \$ | 507 |
| Year ended | |||||
|---|---|---|---|---|---|
| December 31, | |||||
| 2024 | 2023 | ||||
| (U.S.\$ in millions) | |||||
| United States profit | \$ | 2,296 | \$ | 2,394 | |
| Europe profit | 1,575 | 1,478 | |||
| International Markets profit | 440 | 465 | |||
| Total reportable segment profit | 4,311 | 4,338 | |||
| Profit (loss) of other activities | 18 | 24 | |||
| Total segment profit | 4,329 | 4,361 | |||
| Amounts not allocated to segments: | |||||
| Amortization | 588 | 616 | |||
| Other asset impairments, restructuring and other items | 1,388 | 718 | |||
| Goodwill impairment | 1,280 | 700 | |||
| Intangible asset impairments | 251 | 350 | |||
| Legal settlements and loss contingencies | 761 | 1,043 | |||
| Other unallocated amounts | 364 | 502 | |||
| Consolidated operating income (loss) | (303) | 433 | |||
| Financial expenses - net | 981 | 1,057 | |||
| Consolidated income (loss) before income taxes | \$ | (1,284) | \$ | (624) |
| December 31, | Percentage Change |
|||||||
|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2023-2024 | ||||||
| (U.S.\$ in millions) | ||||||||
| United States segment | ||||||||
| Generic products | \$ | 674 | \$ | 667 | 1% | |||
| AJOVY | 63 | 57 | 11% | |||||
| AUSTEDO | 518 | 408 | 27% | |||||
| BENDEKA/TREANDA | 41 | 52 | (21%) | |||||
| COPAXONE | 63 | 72 | (13%) | |||||
| UZEDY | 43 | 9 | N/A | |||||
| Anda | 402 | 394 | 2% | |||||
| Other* | 171 | 607 | (72%) | |||||
| Total | 1,975 | 2,266 | (13%) |
*Other revenues in the fourth quarter of 2024 include the sale of certain product rights. Other revenues in 2023 were mainly comprised of a \$500 million upfront payment received in the fourth quarter of 2023, in connection with the collaboration on our duvakitug (anti-TL1A) asset.
| Three months ended | |||||
|---|---|---|---|---|---|
| Percentage Change |
|||||
| 2024 | December 31, | 2023 | 2023-2024 | ||
| (U.S.\$ in millions) | |||||
| Europe segment | |||||
| Generic products | \$ 979 |
\$ | 938 | 4% | |
| AJOVY | 58 | 45 | 28% | ||
| COPAXONE | 50 | 56 | (11%) | ||
| Respiratory products | 61 | 70 | (13%) | ||
| Other* | 205 | 234 | (12%) | ||
| Total | 1,353 | 1,344 | 1% |
*Other revenues in the fourth quarter of 2024 and 2023 include the sale of certain product rights.
| Three months ended | ||||
|---|---|---|---|---|
| December 31, | Percentage Change |
|||
| 2024 | 2023 | 2023-2024 | ||
| (U.S.\$ in millions) | ||||
| International Markets segment | ||||
| Generic products | \$ 497 |
\$ | 506 | (2%) |
| AJOVY | 22 | 19 | 16% | |
| COPAXONE | 9 | 12 | (25%) | |
| AUSTEDO | 7 | 5 | 50% | |
| Other* | 126 | 60 | 112% | |
| Total | 661 | 601 | 10% |
*Other revenues in the fourth quarter of 2024 include the sale of certain product rights.
| Year ended | Percentage Change |
|||||
|---|---|---|---|---|---|---|
| December 31, | ||||||
| 2024 | 2023 | 2024-2023 | ||||
| (U.S.\$ in millions) | ||||||
| United States segment | ||||||
| Generic products | \$ | 3,599 | \$ | 3,138 | 15% | |
| AJOVY | 207 | 211 | (2%) | |||
| AUSTEDO | 1,642 | 1,225 | 34% | |||
| BENDEKA / TREANDA | 168 | 237 | (29%) | |||
| COPAXONE | 242 | 297 | (18%) | |||
| UZEDY | 117 | 23 | N/A | |||
| Anda | 1,536 | 1,577 | (3%) | |||
| Other* | 523 | 1,025 | (49%) | |||
| Total | 8,034 | 7,731 | 4% |
*Other revenues in 2024 include the sale of certain product rights. Other revenues in 2023 were mainly comprised of a \$500 million upfront payment received in the fourth quarter of 2023, in connection with the collaboration on our duvakitug (anti-TL1A) asset.
| Year ended | Percentage Change |
||||
|---|---|---|---|---|---|
| December 31, | |||||
| 2024 | 2023 | 2024-2023 | |||
| (U.S.\$ in millions) | |||||
| Europe segment | |||||
| Generic products | \$ | 3,926 | \$ | 3,664 | 7% |
| AJOVY | 216 | 160 | 34% | ||
| COPAXONE | 213 | 231 | (8%) | ||
| Respiratory products | 244 | 265 | (8%) | ||
| Other* | 504 | 516 | (2%) | ||
| Total | 5,103 | 4,837 | 5% |
*Other revenues in 2024 and 2023 include the sale of certain product rights.
| Year ended December 31, |
Percentage Change |
||||
|---|---|---|---|---|---|
| 2024 | 2023 | 2024-2023 | |||
| (U.S.\$ in millions) | |||||
| International Markets segment | |||||
| Generic products | \$ | 1,937 | \$ | 1,932 | 0% |
| AJOVY | 84 | 63 | 33% | ||
| COPAXONE | 48 | 63 | (24%) | ||
| Austedo | 46 | 15 | 199% | ||
| Other* | 349 | 278 | 25% | ||
| Total | 2,463 | 2,351 | 5% |
*Other revenues in 2024 include the sale of certain product rights.
| Three months ended December 31, | |||
|---|---|---|---|
| 2024 | 2023 (U.S. \$ in millions) |
||
| Net cash provided by (used in) operating activities | 575 | 1,184 | |
| Beneficial interest collected in exchange for securitized account receivables | 340 | 421 | |
| Purchases of property, plant and equipment and intangible assets | (129) | (120) | |
| Proceeds from divestitures of businesses and other assets | 4 | - | |
| Free cash flow \$ | 790 | \$ 1,486 |
| Year ended December 31 | |||
|---|---|---|---|
| 2024 | 2023 | ||
| (U.S. \$ in millions) | |||
| Net cash provided by (used in) operating activities | 1,247 | 1,368 | |
| Beneficial interest collected in exchange for securitized account receivables | 1,291 | 1,477 | |
| Purchases of property, plant and equipment and intangible assets | (498) | (526) | |
| Acquisition of businesses, net of cash acquired | (15) | - | |
| Proceeds from divestitures of businesses and other assets | 43 | 68 | |
| Free cash flow \$ | 2,068 | \$ 2,387 |
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