Teva Pharmaceutical Industries Report Second Quarter Financial Results

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) recently reported its second quarter earnings, topping consensus estimates but fell short of consensus estimates in revenues. Following the release of the earnings report, shares were down over 8%.

Second quarter earnings came in at 78 cents per share, beating the 67 cents estimate and generated a USD 4.70 Billion in revenues, missing the USD 4.76 Billion estimate, showing a 18% decline in sales year over year.

The Pharmaceutical Company reported a non-GAAP gross profit of USD 2.4 Billion, showing a 27% decline year over year. Non-GAAP gross profit margin was 50.4% in the second quarter of 2018, compared to 57.0% in the second quarter of 2017, citing price erosion in its U.S. generics business and a decline in COPAXON revenues due to competition, as well as loss of revenue in its women’s health business as the primary reasons for decreased gross profit margin.

The North America segment, which consists of the U.S. and Canada, generated a revenue of USD 2.3 Billion for the quarter, a decrease of USD 906 Million, or 29% from the second quarter of last year. Gross profit decreased 42% to USD 1.2 Billion, compared to USD 2.1 Billion last year.

The Europe segment generated a revenue of USD 1.3 Billion, showing a USD 33 Million, or 3%, increase. Revenues decreased by 5% in local currency terms, citing the closure of its distribution business in Hungary and the sale of our women’s health business, which was partially offset by new generic product launches.

Gross profit for the Europe segment was USD 731 Million for the quarter, up 6% year over year. Gross profit margin increased to 55% compared to 53.4% from the second quarter of 2017 due to the closure of its distribution business in Hungary.

Revenue from International Markets were down USD 96 Million, to USD 789 Million, or 11% year over year. Gross profit decreased 18% to USD 328 Million, from USD 400 Million in the second quarter of last year.

R&D expenses for the second quarter decreased by 38% compared to the second quarter of last year at USD 290 Million.

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