Teva Pharmaceutical Industries Limited · TASE:TEVA
Teva Pharmaceutical Industries — 41st Annual J.P. Morgan Healthcare Conference (January 2023)
17 slides from Teva Pharmaceutical Industries's conference presentation, Jan 11, 2023
Slide 1: 41st Annual J.P. Morgan Healthcare Conference
Teva Pharmaceutical Industries Ltd. 41st Annual J.P. Morgan Healthcare Conference Eli Kalif EVP & Chief Financial Officer January 11, 2023
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management’s current beliefs and expectations and are subject to substantial risks and uncertainti
Slide 3: Welcoming Richard Francis as Teva's President and CEO
Welcoming Richard Francis as Teva’s President and CEO Over two and a half Entrepreneurial and Optimal leader to decades of pragmatic leadership further our mission and pharmaceutical style continue driving value experience creation Compelling Track Record of Growing Businesses 2001-2014 2014-2019 20
Slide 4: Teva today
Teva today ˜37,000 2021 Revenues: $15.9B One of the leading global employees generic companies A strong portfolio of innovative medicines, over the counter 53 60 25 Manufacturing R&D sites medicines & active Markets sites pharmaceutical Ingredients (API) 4 Data as of February 2022
Slide 5: Unique portfolio with a well diversified scope of generics, biosimilar and innovative medicines
Unique portfolio with a well diversified scope of generics, biosimilar and innovative medicines across the globe Generics Biosimilars Innovative Leading global generics Uniquely positioned to build Medicines company providing access to the leadership in the growing AUSTEDO and AJOVY continue world’s
Slide 6: Solid execution to transform the company
Solid execution to transform the company • Unified and simplified • High level of state participation organizational structure in the sign-on process of the • Continued network optimization: U.S. nationwide opioid litigation settlement • Reduced number of manufacturing sites from 80 Optimize to 53 i
Slide 7: Operating Margin Expansion
Operating Margin Expansion Non-GAAP operating margin % 28.0% 28.0% 27.8% 27.7% 27.3% 27.0% 26.3% Q3 YTD 2021 26.0% 25.9% 26.8% 25.0% 24.5% 24.0% 2017 2018 2019 2020 2021 Q3 YTD 2022 2023 Target 7
Slide 8: 2019-2022 Financial Targets Progress
2019-2022 Financial Targets Progress EPS Net Debt/ EBITDA FY 2019 FY 2020 FY 2021 Q3 YTD 2022 Revenues ($m) 16,887 16,659 15,878 11,041 GP% 51.5% 52.4% 54.2% 53.9% OP% 24.5% 26.3% 27.7% 27.3% Spend Base ($m) 12,745 12,271 11,477 8,032 FCF ($m) 2,053 2,110 2,196 1,103 8
Slide 9: Net Debt Development
Net Debt Development $ billions US$35.0 $34.0 US$30.8 US$26.5 US$22.3 $19.0 US$18.0 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 9
Slide 10: Refinancing of debt to address upcoming maturities
Refinancing of debt to address upcoming maturities 3.5 3.2 2.8 $2bn FCF 2.0 2.0 2.0 1.9 1.5 1.0 0.7 0.8 22 23 24 25 26 27 28 29 30 ... 36 ... 46 USD EUR CHF 10
Slide 11: Significant Opportunity in Generics and Biosimilars
Significant Opportunity in Generics and Biosimilars: The impact of exclusivity losses will increase to $188 billion over the next 5 years $ billions – loss of exclusivity Forecast -1.4 -3.7 -5.5 -5.2 -6.4 -9.7 -11.6 -14.8 -13.8 -10.5 -23 -23.4 -20.5 -9.4 -21.9 -15.7 -25.5 -19.1 -24.3 -24.8 -24.7 -24
Slide 12: AUSTEDO and AJOVY continue to deliver solid growth
AUSTEDO and AJOVY continue to deliver solid growth AUSTEDO® TRx Count Per Quarter Highlights – First and only VMAT2 inhibitor approved for both TD and HD chorea 60,000 – Tardive Dyskinesia remains a widespread and undertreated condition 45,000 – ~785k patients are living in the US with TD, of which
Slide 13: Teva Innovative Medicines & Biosimilar Pipeline
Teva Innovative Medicines & Biosimilar Pipeline By development stage – as of October 31, 2022 Under Preclinical Phase 1 Phase 2 Phase 3 Pre Submission Regulatory Review TEV-56278 TEV-53408 TEV-48574 TEV-44749 Digihaler® Biosimilar to Humira® TEV-56285 Inflammatory Bowel Oncology Gastrointestinal Sch
Slide 14: Bringing our ESG strategy to life in 2022
Bringing our ESG strategy to life in 2022 Significantly TCFD alignment, Embedded a robust Revolving Credit increased ESG including ESG governance Facility linked to ratings quantifying climate structure Sustainability KPIs performance risks Environment Social Governance SBTi 5 99.6% GHG targets vali
Slide 15: Established Improved 2027 Long-Term Financial Targets
Established Improved 2027 Long-Term Financial Targets To be achieved by year - end 2027 Operating income margin(2) Net debt/Adjusted Cash-to-earnings(1)(3)(4) Revenue growth(5) (3) EBITDA(3) 30% 2.0X 80% Committed to utilizing cash flow to pay down debt; we do not plan to raise equity 1. Free cash f
Slide 16: Sustainable Foundation to Return to Growth and Increase Shareholder Value
Sustainable Foundation to Return to Growth and Increase Shareholder Value - Balanced growth driven by: - Stable and predictable generics business - Strong biosimilar portfolio - Focused innovative medicines pipeline with high growth potential - Margin expansion through operational optimization - Sol
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