Teva Pharmaceutical Industries Limited · TASE:TEVA
Teva Pharmaceutical Industries — Q4 2024 Earnings Presentation
62 slides from Teva Pharmaceutical Industries's earnings presentation, Jan 29, 2025
Slide 1: Fourth Quarter and Full Year 2024 Results
Teva Pharmaceutical Industries Ltd. Fourth Quarter and Full Year 2024 Results January 29, 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: 2024 Wins
Deliver on Step up Sustain generics Focus our growth engines innovation powerhouse business • AUSTEDO® U.S. revenues • Duvakitug (anti-TL1A) • Continued generics growth • Credit rating upgrades by Q1 2024 Wins increased by 34% vs. 2023 positive phase II TLR across all geographies Fitch; outlook upgr
Slide 5: Quarterly Revenue Growth vs. Previous Year
Quarterly Revenue Growth vs. Previous Year 8% CAGR Q1’23 – Q4’24 +15% +14% +11% +7% +7%* Mid- +5% Single +4% +4% Digit % +2%* Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 23-'27 Target CAGR with Sanofi without Sanofi -5% Growth in local currency terms 5| * Figures exclude the impa
Slide 6: Return to Sustainable Growth
2024 most recent non- 2024 GAAP outlook Revenues 9% 2024 Adjusted EBITDA 9% Return to Non-GAAP EPS 10% Sustainable Growth Free Cash Flow 10% Net Debt / EBITDA % revenue growth In local currency, all compared to 2023 6| Figures exclude the impact from a $500 million upfront payment received from Sano
Slide 7: Revenues
$1,688M, +36% $507M, +18% Revenues $117M +9%* $9,461M, +11% Global generics $553M, +3% Teva API % growth In local currency, all compared to 2023 7| * Figures exclude the impact from a $500 million upfront payment received from Sanofi in connection with the collaboration for duvakitug in Q4 2023 Teva
Slide 8: AUSTEDO: 2025 outlook $1,900-2,050M
Deliver on our growth engines $1,900-2,050M 2025 outlook U.S. Revenues Continued growth of AUSTEDO prescriptions AUSTEDO quarterly TRx’s $1,642M 100,000 90,000 U.S. Revenues Growth 80,000 70,000 +34% 60,000 50,000 40,000 U.S. TRx Growth 30,000 +34% 20,000 10,000 0 Ex-U.S. Revenues $46M, +199% Revenu
Slide 9: UZEDY: ~$160M 2025 outlook
Deliver on our growth engines ~$160M 2025 outlook UZEDY Prescription Growth UZEDY TRx MOT (months of therapy) U.S. revenues Q4’24 $43M, +387% YoY 10,000 +22% QoQ 9,000 8,000 7,000 6,000 U.S. revenues 2024 5,000 $117M 4,000 +419% YoY 3,000 2,000 1,000 0 9| Source: IQVIA NPA (TRx normalized into patie
Slide 10: AJOVY: ~$600M 2025 outlook
Deliver on our growth engines ~$600M 2025 outlook Quarterly Global Net Sales Global revenues of $142 million in Q4'24, +18% 142 +18% Growth 137 22 Strong competitive positioning among 121 24 113 115 injectable anti-CGRPs IM 19 • U.S.: 29% market share, #1 preventative 17 22 aCGRP in new prescription
Slide 11: Step up innovation: assets, phase, milestones
Step up innovation Asset Phase Indication Progress Next milestones and expected timing olanzapine LAI Achieved Phase III targeted Long term study III Schizophrenia H1 2025 TEV-’749 injections without PDSS full safety presentation DARI (ICS/SABA) Phase III adults & pediatrics H2 2026 III Asthma Phase
Slide 12: Biosimilar pipeline and originator value
Sustain generics powerhouse Expanding our biosimilar market presence globally 18 assets in pipeline by leveraging our commercial infrastructure 2025 - 2027 2028+ 7 assets expected to launch ~$80B Originator Value ~$20B Originator Value EPYSQLI® U.S. 1 bXolair bEntyvio (eculizumab) 2 (omalizumab) (ve
Slide 13: Sustain generics powerhouse
Sustain generics powerhouse Strong Generics growth across all regions driven by new product launches Substantial improvements in reliability of supply enabled good launch performance in 2024 Implementation of value acceleration program, which is reducing COGS and expanding gross margins 13 |
Slide 14: Global Generics growth of 11%
Sustain generics powerhouse Global Generics growth of 11% +15% +6% +15% $3,926 $3,599 $3,664 $3,138 $1,932 $1,937 FY-23 FY-24 FY-23 FY-24 FY-23 FY-24 United States Europe International Markets $ million, % growth In local currency, compared to FY 2023 14 | Commencing January 1, 2024, Canada is repor
Slide 15: Focus our business
Focus our business Growth Growing Divestment accelerating to pipeline of APIs process mid-to-high and substantial continues single digits % CDMO business 15 | API sales to third parties in 2024 reflect a reallocation of an immaterial business within our other activities, in line with our intention t
Slide 16: Capital allocation: meeting commitments while funding growth
Focus our business 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 16 |Meeting our commitments while funding growth
Slide 17: Executive Vice President, Global R&D & Chief Medical Officer
Executive Vice President, Global R&D & Chief Medical Officer
Slide 18: Duvakitug Phase II results in UC and CD
Step up innovation 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
Slide 19: Duvakitug: statistically significant and clinically meaningful responses
Step up innovation Detailed results to be presented at ECCO Statistically on February 22, 2025 in Berlin Significant and Clinically High Potency in vitro1 Meaningful Responses High Selectivity1 Observed in Phase 2 for Both Low Anti-Drug Antibodies2 Ulcerative Colitis Rapid, Profound, and Prolonged S
Slide 20: TL1A biology and example diseases
Step up innovation TL1A Producing Cells Target Cells Example diseases where Marketed Products Inflammation TL1A may have a role None approved for all implicated therapeutic areas IFN-γ, TNF • Crohn’s Disease Stelara® TLR • Ulcerative colitis (ustekinumab) stimulation IL-4, IL-13, IL-5 • Rheumatoid a
Slide 21: DARI asthma opportunity
Step up innovation 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
Slide 22: Dry powder inhaler vs measured dose inhaler
Step up innovation No Priming, No Shaking, No Hand-Breath Coordination, No Spacers, No Complicated Cleaning Measured Dose Inhaler Teva Dry Powder Inhaler 1. Shake (MDI) (DPI)* 2. Open 3. Prime 4. Check inside 5. Co-ordinate pressing the canister and inhalation 6. Close 6. Disassemble 7. Wash 8. Dry
Slide 23: DARI Phase III study design
Step up innovation GINA guidelines recommend use of dual action inhalers instead of single-action inhalers – Patients >4 years of age with >1 exacerbation in the past year Patients with moderate Fluticasone propionate - Albuterol sulfate High Dose – Primary Endpoint: Time to severe asthma Randomized
Slide 24: SOLARIS study design
Step up innovation SOLARIS study design randomization Screening and Period 1 Period 2 follow up 4-week Acute treatment phase Long-term safety phase (8 weeks) (up to 48 weeks) primary endpoint Last patient, last visit expected imminently Long term full safety released data in Q2 2025 NDA submission H
Slide 25: Step up innovation: assets, phase, milestones
Step up innovation Asset Phase Indication Progress Next milestones and expected timing olanzapine LAI Achieved Phase III targeted Long term study III Schizophrenia H1 2025 TEV-’749 injections without PDSS full safety presentation DARI (ICS/SABA) Phase III adults & pediatrics H2 2026 III Asthma Phase
Slide 26: Executive Vice President, Chief Financial Officer
Executive Vice President, Chief Financial Officer 26 |
Slide 27: Q4 2024 GAAP and non-GAAP results
$ millions, except EPS Q4 2024 Q4 2023 Q4 2024 Q4 2023 GAAP Non-GAAP Revenues 4,229 4,457 4,229 4,457 Operating income (loss) (29) 755 1,168 1,546 Net income (loss) attributable to Teva (217) 461 816 1,135 Earnings (loss) per share ($)* (0.19) 0.41 0.71 1.00 Number of shares (millions) 1,133 1,137 1
Slide 28: Q4 2024 non-GAAP adjustments
$ millions Q4 2024 Comments Amortization 144 Impairment of intangible 81 assets Impairment of tangible Mainly related to the classification of our business venture in Japan and our 436 assets API business as held for sale Legal settlements 123 Equity compensation plans 34 Restructuring 22 Goodwill i
Slide 29: Q4 and FY 2024 financial summary
$ billions, except EPS Q4 2024 Q4 2023 Change FY 2024 FY 2023 Change Revenues 4.2 4.5 (5.1%) 16.5 15.8 4.4% 2.3 2.6 (10.5%) 8.8 8.5 4.1% Gross profit 54.8% 58.2% (3.3%) 53.3% 53.5% (0.2%) 1.2 1.5 (24.5%) 4.3 4.4 (0.7%) Operating income 27.6% 34.7% (7.1%) 26.2% 27.5% (1.4%) EBITDA 1.3 1.7 (22.8%) 4.8
Slide 30: Full year gross profit, OPEX, operating income, free cash flow
Non-GAAP Gross Profit ($m) Non-GAAP OPEX ($m) Non-GAAP Operating Income ($m) Free Cash Flow ($m) 53.3% 53.5% 8,814 27.5% 8,470 26.2% 27.1% 4,361 4,329 25.9% 4,485 82.4% 4,109 2,387 72.3% 2,068 FY 23 FY 24 FY 23 FY 24 FY 23 FY 24 FY 23 FY 24 % represents chart metric as a % of revenues S&M R&D G&A Ot
Slide 31: Deleveraging and credit rating upgrades
Consistent focus on deleveraging with sound execution on our Pivot To Growth strategy paving the way for investment grade rating September 2024 October 2024 November 2024 Upgraded rating to BB, Affirmed Ba2 rating Upgraded rating to BB, with positive outlook with positive outlook Upgraded outlook to
Slide 32: 2025 Outlook
2024 2025 Outlook Revenues AUSTEDO ($m) 1,688 1,900-2,050 AJOVY ($m) 507 ~600 UZEDY ($m) 117 ~160 COPAXONE ($m) 503 ~370 Operating Income Adjusted EBITDA Finance Expenses Tax Rate 1,150M 1,168M Diluted EPS ($) shares shares Free Cash Flow CAPEX Foreign Exchange Free cash flow includes cash flow from
Slide 33: Long-term targets 2023-2027
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 34: 2025 Wins ahead: deliver on growth engines
Deliver on Step up Sustain generics Focus our growth engines innovation powerhouse business • AUSTEDO® $1,900-2,050 • Duvakitug (anti-TL1A) data • 16 complex generics • Focused capital allocation Q1 2024 Wins million 2025 outlook presentation at ECCO on launches expected in ’25- to highest return Fe
Slide 35: 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 • AUSTEDO ‘24 revenues outlook • Innovative launches: olanzapine surpassing ~$1.6B outlook LAI, DARI
Slide 36: Appendix
36 |
Slide 37: Innovative and Biosimilar Pipeline
Ive Innovat and B ilar iosiIm Pipeline 37|
Slide 38: Innovative medicine pipeline
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 & Schizophrenia TEV-’288 Crohn’s Disease Neuroscience TEV-’192 Immunology & Dual Action Rescue Neuroscience Emrusolmin Inhaler (DARI) (
Slide 39: Biosimilar pipeline
Under Regulatory Commercial Preclinical Confirmatory Study Approved Biosimilar Review Products Biosimilar to Biosimilar to TEV-’285 Xgeva ®3 Prolia® 6 1 (denosumab) (denosumab) TEV-’261 Biosimilar to Biosimilar to Biosimilar to 6 TEV-’289 Eylea® Xolair® Simponi® TEV-’2941 (omalizumab) (golimumab)1 (
Slide 40: Additional financial information
Additional Cc O ‘yp a) ‘= _ O q = teva 40|
Slide 41: FY 2024 GAAP and non-GAAP results
$ millions, except EPS FY 2024 FY 2023 FY 2024 FY 2023 GAAP Non-GAAP Revenues 16,544 15,846 16,544 15,846 Operating income (loss) (303) 433 4,329 4,361 Net income (loss) attributable to Teva (1,639) (559) 2,860 2,898 Earnings (loss) per share ($)* (1.45) (0.50) 2.49 2.56 Number of shares (millions)
Slide 42: Q4 2024 income statement
$ millions, except EPS Q4-24 Q4 2024 Margins Q4-23 Q4 2023 Margins Change Revenues 4,229 4,457 (5%) COGS 2,109 49.9% 2,041 45.8% 3% 2,120 2,416 Gross profit 50.1% 54.2% R&D 248 5.9% 227 5.1% 9% S&M 650 15.4% 610 13.7% 7% G&A 302 7.1% 291 6.5% 4% Legal settlements and loss contingencies 123 2.9% 34 0
Slide 43: FY 2024 income statement
$ millions, except EPS FY-24 FY- 2024 Margins FY-23 FY 2023 Margins Change Revenues 16,544 15,846 4% COGS 8,481 51.3% 8,200 51.8% 3% 8,064 7,645 Gross profit 48.7% 48.2% R&D 998 6.0% 953 6.0% 5% S&M 2,541 15.4% 2,336 14.7% 9% G&A 1,161 7.0% 1,162 7.3% (0%) Legal settlements and loss contingencies 76
Slide 44: Foreign exchange impact
Q4 Q4 FX Diff net FY FY FX Diff net $ millions Diff Diff 2024 2023 Effect FX 2024 2023 Effect FX Revenues 4,229 4,457 (227) (8) (219) 16,544 15,846 699 (257) 956 Gross Profit GAAP 2,120 2,416 (295) 3 (299) 8,064 7,645 418 (187) 605 Gross Profit Non-GAAP 2,319 2,592 (272) 3 (276) 8,814 8,470 344 (187
Slide 45: Quarterly revenues and margins
4,457 $ millions 4,332 4,229 4,164 3,884 3,878 3,850 3,819 3,661 58.2% 54.2% 52.2% 53.5% 52.9% 53.7% 54.8% 49.1% 51.4% 34.7% 29.1% 26.5% 28.0% 27.6% 26.1% 23.4% 25.3% 21.4% Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Net Revenues Non-GAAP Gross Profit Margin Non-GAAP Oper
Slide 46: Revenues by segment and product
$ millions Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 FY-23 FY-24 U.S. Segment 2,266 1,725 2,110 2,225 1,975 7,731 8,034 Generic products 667 808 1,023 1,094 674 3,138 3,599 AJOVY® 57 45 42 58 63 211 207 AUSTEDO® 408 282 407 435 518 1,225 1,642 BENDEKA®/TREANDA® 52 46 41 40 41 237 168 COPAXONE® 72 30 81 69 63 29
Slide 47: Quarterly non-GAAP net income, operating income and EPS
$ millions, EPS in $ 1,546 1,214 1,168 1,130 1,020 1,056 1,011 892 785 1,135 791 798 816 677 697 629 548 457 1.00 0.71 0.60 0.61 0.69 0.71 0.40 0.56 0.48 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Non-GAAP Net Income Non-GAAP Operating Income Non-GAAP EPS 47 | Q4 2023 in
Slide 48: Q4 operating income bridge
$ millions -$378m Nominal (-24%) -$398m In local Currencies (-26%) -405 32 18 -23 1,546 1,168 Q4-23 US* EU IM Other Q4-24 Actual Actual * 2023 figures include the $500M impact from an upfront payment received in connection with the collaboration on our anti-TL1A asset 48 |
Slide 49: FY operating income bridge
$ millions -$32m Nominal (-1%) +$72m In local Currencies (+2%) -25 -5 -98 97 4,361 4,329 FY-23 US* EU IM Other FY-24 Actual Actual * 2023 figures include the impact from a $500 million upfront payment received from Sanofi in connection with the collaboration on duvakitug 49 | recorded as revenue
Slide 50: Operating income by segment
$ millions 1,546 2 109 (0%) (7%) 1,214 1,168 461 109 (30%) 1,056 (9%) 19 12 141 (2%) 892 73 (12%) (1%) 373 2 (7%) 117 (0%) 342 (31%) (13%) 438 (32%) (37%) 423 974 (47%) (63%) 748 629 (62%) 569 350 (60%) (49%) (39%) -16 (-1%) Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Revenues 4,457 3,819 4,164 4,332 4,229 US Eur
Slide 51: COGS and OPEX
+731 (+6%) In local currency +884 (+8%) $ millions +150 (+5%) In local currency +179 (+6%) 12,215 11,484 3,062 2,911 7,730 7,375 (63%) (64%) 1,910 1,865 (62%) COGS (64%) OPEX 4,109 4,485 1,046 1,152 (37%) (36%) (38%) (36%) Q4-23 Q4-24 FY-23 FY-24 Revenues 4,457 4,229 15,846 16,544 GP% 58.2% 54.8% 53
Slide 52: Adjusted EBITDA
$ millions 1,660 1,327 1,282 1,168 1,005 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 52 | Please see our press release reporting our financial results this quarter for a reconciliation of Adjusted EBITDA to its nearest GAAP equivalent Q4 2023 includes the impact from an upfront payment received in conne
Slide 53: Free cash flow
$ millions 2,387 2,068 1,486 922 790 632 324 229 41 32 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 53 | Free cash flow includes cash flow from operating activities, beneficial interest collected in exchange for securitized accounts receivables, proceeds from divestitures of busin
Slide 54: Q4 free cash flow bridge
$ millions (492) (38%) (83) (178) 247 (128) 108 (412) 4 (129) 340 (260) 1,282 790 575 Non-GAAP Interest Tax payments AR Inventory Legal AP & Other Securitization Operating Securitization Asset sales, Free cash flow EBITDA payments, net settlements cash flow reclass net; Capex gross 54 | Q4 securitiz
Slide 55: FY free cash flow bridge
$ millions (2,714) (57%) (828) (478) 166 256 (522) (826) 28 4,781 (498) (1,302) 1,291 2,068 1,247 Non-GAAP Interest Tax payments AR Inventory Legal AP & Other Securitization Operating Securitization Asset sales, Free cash flow EBITDA payments, net settlements cash flow reclass net; Capex gross 55 |
Slide 56: Balance sheet
$ billions December 31, 2024 September 30, 2024 Diff Cash and Cash Equivalents 3.3 3.3 0.0 AR Trade 3.1 3.5 (0.4) Pre-paid Expenses and Other Current Assets 3.2 1.6 1.6 Inventory 3.0 4.0 (1.0) Fixed Assets 4.6 5.7 (1.1) Intangible Assets 4.4 4.8 (0.3) Goodwill 15.1 16.1 (1.0) Other Long Term Assets
Slide 57: Gross and net debt: Q4 movement
$ billions 19.0 -0.7 -0.5 17.8 -3.3 14.5 Sep 30, 2024 Debt repay FX and Other Dec 31, 2024 Cash balance Dec 31, 2024 Gross Debt Gross Debt Net Debt 57 |
Slide 58: Gross and net debt: full year movement
$ billions 19.8 -1.6 -0.4 17.8 -3.3 14.5 Dec 31, Debt repay FX and Other Dec 31, Cash balance Dec 31, 2023 2024 2024 Gross Debt Gross Debt Net Debt 58 |
Slide 59: Net debt / EBITDA
$ billions Net Debt 16.6 16.7 16.4 15.7 14.5 4.8 4.9 5.0 5.2 4.8 EBITDA MAT Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Net Debt / EBITDA MAT (x) 3.45 3.38 3.30 3.04 3.03 Leverage 71% 72% 74% 75% 76% 59 | Teva's Net Debt/EBITDA MAT covenant ratio limit is 4.00x for Q1-Q4 2024; MAT = Moving Annual Total
Slide 60: Debt chart
$ billions $35.0 $34.0 $33.0 $31.0 $29.0 $27.0 $25.0 $23.0 $21.0 $19.0 $17.0 $15.0 $14.5 $13.0 $11.0 $9.0 60 |
Slide 61: Debt maturity profile
3.4 CHF EUR 2.9 USD 2.4 2.0 2.0 1.8 1.6 1.0 0.8 - - 25 26 27 28 29 30 31 … 36 … 46 Gross Debt $17.8B Net Debt $14.5B Duration 5.5 WAC 4.65% 61 |
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