Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) reported results for the quarter ended March 31, 2020 Thursday before markets open. Shares of the Company about 15 percent. Revenues in the first quarter of 2020 were $4,357 million, an increase of 5% in both U.S. dollar and local currency terms, compared to the first quarter of 2019.
This increase was mainly due to higher revenues from generics and OTC sales in Europe, higher revenues from AUSTEDO® and Anda in North America and higher revenues from our International Markets segment, partially offset by lower revenues from generics in the U.S. and lower revenues from QVAR® and BENDEKA®/TREANDA® in North America.
Kåre Schultz, Teva’s President and CEO, said, “2020 brought an unprecedented global health crisis, affecting all nations and industries, including the pharmaceutical industry, which plays many roles in countering the epidemic. As our industry responds to the challenge, we are reminded of the importance of reliable supplies of high quality generic medicines to meet critical demand. Teva has responded to this challenge by supporting efforts of governments and health services to curb the impact of the virus. We have done this while taking robust measures to safeguard the health and well-being of our employees, who have diligently worked to ensure that all our manufacturing and distribution facilities remain open to allow the safe supply of medicines and APIs to our customers, and to millions of patients around the world.”
Exchange rate differences between the first quarter of 2020 and the first quarter of 2019, net of hedging, negatively impacted our revenues by $3 million and positively impacted our GAAP and non-GAAP operating income by $27 million and $25 million, respectively.
Schultz continued, “Our very strong results during the first quarter of 2020 were impacted by greater demand in our major markets for generic and OTC products and respiratory products. Stronger revenues across these categories, along with growth in our operating and net profit, contributed to strong free cash flow and a further reduction in our net debt to $24.3 billion.”