Teva Pharmaceutical Industries Limited · TASE:TEVA
Teva Pharmaceutical Industries — 43rd Annual J.P. Morgan Healthcare Conference (January 2025)
32 slides from Teva Pharmaceutical Industries's conference presentation, Jan 13, 2025
Slide 1: 43rd Annual J.P. Morgan Healthcare Conference
Teva Pharmaceutical Industries Ltd. 43rd Annual J.P. Morgan Healthcare Conference January 13, 2025
Slide 2: 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 uncertainties, both known and unknown, that could cause our futu
Slide 3: President and Chief Executive Officer
President and Chief Executive Officer
Slide 4: Pivot to Growth: key financial outlook and growth engines
Mid-single-digit % revenue growth ‘23-’27 $9B+ global generics revenue, fuels growing innovative High-margin growth engines’ revenue $16.1-$16.5B business and pipeline 2024 Revenues Outlook ~$1.3B (’22) ~$2.2B (’24E) Strong FCF generation High-quality, innovative $1.7B - $2.0B 2024 FCF outlook pip
Slide 5: Where We Stood in January 2023 vs Where We Are Today
Where We Are Today Where We Stood in January 2023 Executing on our Pivot to Growth Strategy Negative topline evolution 7 consecutive quarters of revenue growth Strongly growing innovative portfolio (AUSTEDO®, Limited focus on our growth assets AJOVY®, UZEDY®) with revenues of ~$2.2B (’24E), +64.2% v
Slide 6: Pivot to Growth strategy pillars
Deliver on Step up Sustain generics Focus our growth engines innovation powerhouse business 6|
Slide 7: What we promised May '23: Return to growth
What we promised May ‘23: 2028+ 2025-2027 2023-2024 Sustain growth • Innovative launches Accelerate growth (duvakitug, anti-PD1-IL2, anti-IL15) Return to growth • Sustainable innovative pipeline • Innovative launches: olanzapine • AUSTEDO ‘24 revenues initial LAI, DARI (ICS/SABA) • Focused business
Slide 8: What we've delivered to-date: Return to growth
What we’ve delivered to-date: 2028+ 2025-2027 2023-2024 Sustain growth • Innovative launches Accelerate growth (duvakitug, anti-PD1-IL2, anti-IL15) Return to growth • Sustainable innovative pipeline • Raised AUSTEDO ‘24 revenues • Innovative launches: olanzapine outlook to ~$1.6B LAI, DARI (ICS/SABA
Slide 9: 2024 strategy execution: AUSTEDO and UZEDY
2024 strategy execution Long-Term • On track for ~$1.6B ‘24 revenue, 31%+ growth over ‘23 On track to achieve >$2.5B • Enhanced profile with launches of 1 pill, revenue by 2027 1x/day dosing and titration pack • Gaining momentum; on track for ~$100m ‘24 revenue outlook, +~$80m YoY Long-term growth d
Slide 10: Late-stage pipeline progress and next milestones
Asset Indication Progress Next milestones olanzapine LAI Achieved Phase III targeted Long term study Schizophrenia H1 2025 TEV-’749 (Phase III) injections without PDSS full safety presentation DARI (ICS/SABA) Phase III adults & pediatrics Asthma Phase III results H2 2026 TEV-’248 (Phase III) Ongoing
Slide 11: Duvakitug: potential best-in-class efficacy and safety
Data show potential best-in-class efficacy and safety Teva and Sanofi targeting to initiate Phase III this year Approval in UC and CD will open up duvakitug to the IBD market opportunity Positive results underscore Teva's ability to discover, develop and accelerate access to innovative medicines Sou
Slide 12: Duvakitug Phase II UC and CD endpoints
UC: Met Primary Endpoint of Clinical Remission CD: Met Primary Endpoint Endoscopic Response (Modified Mayo Score; mMS) (Simple Endoscopic Score for Crohn’s Disease; SES-CD) 27.4%a 34.8%a 60% 60% p=0.003 p<0.001 Participants Achieving Endpoint (%) 47.8% 47.8% Participants Achieving Endpoint (%) 50% 1
Slide 13: Statistically significant and clinically meaningful responses in Phase 2
Statistically Significant and High Potency1 Clinically Meaningful High Selectivity1 Responses Observed in Phase Low Anti-Drug Antibodies2 2 for Both Rapid, Profound, and Prolonged Suppression of Free TL1A2 Ulcerative Colitis and Crohn's Consistent Favorable Safety and Tolerability To Date Disease De
Slide 14: Olanzapine LAI (TEV-'749) for schizophrenia
Schizophrenia market (U.S.+EU5) Controlled release properties without bursts in plasma Diagnosed concentrations Prevalence: 4.9M Treated Patients: Subcutaneous for easy administration 3.8M Patients treated with LAIs: Formulated to address PDSS risk; 0.5M+ >100% of targeted injections completed with
Slide 15: DARI (TEV-'248) for asthma
11M of 13M Asthma patients in U.S. are treated on SABA TEV-’248 expected to be a unique asset 2023 Asthma Patient Population (U.S.)1 GINA guidelines recommend use of dual action inhalers instead of single-action inhalers SABA DARI is ideally suitable for the entire patient Treated Treated Expected p
Slide 16: Generics deliver profitable growth
Generics Global business now growing, providing fuel for Deliver accelerating higher return opportunities Profitable Cash Conversion to Substantial improvements in our launch and supply Fund Growing, performance metrics in 2024 Margin Accretive Innovative Productivity program with targeted cost savi
Slide 17: Biosimilars pipeline expansion to 18 assets
Recent expansion brings pipeline to 18 assets across multiple therapeutic areas with >$60B originator value 2024 - 2025 In-line products, launches & expected 2026 & beyond regulatory approvals bXgeva bEylea (denosumab) (aflibercept) bXolair bSimponi (omalizumab) (golimumab) bProlia mAbxience bSimpon
Slide 18: Focusing the business: TAPI and CDMO
Continued Continued Divestment revenue growth strong traction process on +4% Q3 ’24 vs. on CDMO track, targeting Q3 ’23 business completion by H1 2025 TAPI divestiture will represent a major milestone in Focusing the Business API sales to third parties in Q3 2024 reflect a reallocation of an immater
Slide 19: Meeting our commitments while funding growth
Meeting our commitments while funding growth Debt repayment and 1 net working capital enhancement Cash flow from operations Investment in our growth engines 2 (AUSTEDO, AJOVY, UZEDY, etc.) Portfolio optimization Investment in R&D and 3 business development 19 |
Slide 20: 2027 financial targets
Revenue growth Operating Net debt/ Cash-to- (CAGR ’23 – ’27) income margin1,2 adjusted EBITDA2 earnings2,3,4 Mid-single 30% 2.0x 80% digit % 1. Operating income margin = Non-GAAP operating income divided by net revenues; excluding potential impact of business development deals depending on timing 2.
Slide 21: What we've delivered to-date: Return to growth
What we’ve delivered to-date: 2028+ 2025-2027 2023-2024 Sustain growth • Innovative launches Accelerate growth (duvakitug, anti-PD1-IL2, anti-IL15) Return to growth • Sustainable innovative pipeline • Raised AUSTEDO ‘24 revenues • Innovative launches: olanzapine outlook to ~$1.6B LAI, DARI (ICS/SABA
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Slide 23: Innovative Pipeline
od) > W VU Cc Innovat Pipel 23|
Slide 24: Innovative pipeline and technology platforms
Preclinical Phase 1 Phase 2 Phase 3 TEV-’279 Anti-IL-15 Duvakitug Olanzapine LAI Neuroscience (TEV-’408) (TEV-’574)2 (TEV-’749) Celiac & Vitiligo Ulcerative Colitis & TEV-’288 Schizophrenia Crohn’s Disease Neuroscience TEV-’192 DARI (ICS/SABA3; Immunology & TEV-’248) Neuroscience Emrusolmin Asthma T
Slide 25: Additional
Additional Cc O ‘yp a) ‘= _ O q = teva 25|
Slide 26: Revenue by region, Q3 YTD 2024
Europe 30% $3.7B United States 49% $6.1B 15% International Markets 6% Other $1.8B $0.7B Data from Q3 YTD’24 results in billions of U.S. dollars 26 | Other: primarily the sale of APIs to third parties, certain contract manufacturing services and an out-licensing platform offering a portfolio of produ
Slide 27: Revenue by product, Q3 YTD 2024
AJOVY Anda 3% BENDEKA / TREANDA 9% Other 1% 11% Tapi 3% UZEDY Japan BV 1% 2% AUSTEDO 9% COPAXONE 3% Generics 58% Data from Q3 YTD’24 results in billions of U.S. dollars 27 | Other: primarily the sale of APIs to third parties (Teva api), certain contract manufacturing services and Medis, an out-licen
Slide 28: EBITDA MAT and leverage
$ billions $17.7 $16.6 $16.7 $16.4 $15.7 $4.8 $4.9 $5.2 EBITDA MAT $4.4 $5.0 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Net Debt / EBITDA MAT (x) 4.03 3.45 3.38 3.30 3.04 Leverage 73% 71% 72% 74% 75% 28 | Teva’s 2024 Net Debt / EBITDA MAT covenant ratio limit is 4.00x; MAT = Moving Annual Total; Levera
Slide 29: Credit rating upgrades and debt profile
September 2024 October 2024 November 2024 Upgraded rating to BB, Affirmed Ba2 rating Upgraded rating to BB with positive outlook Upgraded outlook Maintained positive to positive outlook Gross Debt $19B Net Debt $15.7B Duration 5.5 yrs WAC 4.5% 29 | Debt data as of September 30, 2024
Slide 30: Quarterly revenue growth vs. previous year
Quarterly Revenue Growth vs. Previous Year Mid- Single Digit % +15% +11% ‘23-’27 +5% +14% Target +4% +4% +7% Q3 2024 CAGR Q2 2024 Q1 2024 Q2 2023 Q3 2023 Q4 2023 Q1 2023 30 | Growth in local currency terms Q4 2023 includes the impact from an upfront payment received in connection with the collaborat
Slide 31: Non-GAAP gross profit, OPEX, operating income and free cash flow
Non-GAAP Gross Profit ($m) Non-GAAP OPEX ($m) Non-GAAP Operating Income ($m) Free Cash Flow 52.7% 6,495 51.6% 27.1% 25.7% 5,878 3,333 26.9% 3,162 24.7% 3,063 2,816 62.5% 51.1% 1,278 902 Q3YTD 23 Q3YTD 24 Q3YTD 23 Q3YTD 24 Q3YTD 23 Q3YTD 24 Q3 YTD 23 Q3YTD 24 as a % of revenues S&M R&D G&A Other inco
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