Teva Pharmaceutical Industries Limited · TASE:TEVA
Teva Pharmaceutical Industries — Q1 2025 Earnings Presentation
60 slides from Teva Pharmaceutical Industries's earnings presentation, May 7, 2025
Slide 1: Teva Pharmaceutical Industries Ltd. – May 7, 2025
May 7, 2025 Teva Pharmaceutical Industries Ltd.
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: Business update & 2027 outlook
Business update & 1 2027 outlook President and Chief Executive Officer 3|
Slide 4: Agenda
1 Business update & 2027 outlook President and Chief Executive Officer 2 Financial update and path to 30% OPM EVP, Chief Financial Officer 3 Pipeline update EVP, Global R&D & Chief Medical Officer 4 Conclusion and Q&A 4| OPM = Operating Profit Margin
Slide 5: Pivot to Growth strategy pillars
Deliver on Step up Sustain generics Focus our growth engines innovation powerhouse business 5|
Slide 6: Q1'25 results
Revenues 5% Q1’25 results Adjusted EBITDA 3% Continued growth Non-GAAP EPS 8% Free Cash Flow 238% Net Debt / EBITDA 6| % revenue growth In local currency, all compared to Q1 2024
Slide 7: Quarterly Revenue Growth vs. Previous Year
Quarterly Revenue Growth vs. Previous Year 5% CAGR Q1’23 – Q1’25 +15% +14% +11% +7% +7%* Mid- +5% +5% Single +4% +4% Digit % +2%* Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 23-'27 Target CAGR with Sanofi without Sanofi -5% Growth in local currency 7| * Figures exclude th
Slide 8: Revenues and selected assets
Selected Assets $411M, +39% $139M, +26% Revenues $39M, +156% +5% $2,306M, +3% Global generics $130M, +2% Teva API % growth In local currency, all compared to Q1 2024 8| Teva api revenues increase reflects a reallocation of an immaterial business within our other activities, in line with our intentio
Slide 9: AUSTEDO continued growth and 2025 outlook
$1,950 (+$50M) - $2,050M 2025 updated revenue outlook Continued growth of AUSTEDO U.S. revenue U.S. revenue of $396M, +40% YoY AUSTEDO quarterly sales in $M in Q1'25 ($411M global, +39% YoY) AUSTEDO growth driven by +40% in U.S. combined effects of TRx and 600 AUSTEDO XR penetration (>60% of new pat
Slide 10: UZEDY prescriptions growth and 2025 outlook
~$160M 2025 revenue outlook unchanged Continued growth of UZEDY prescriptions Revenues of $39 million in Q1'25, UZEDY TRx MoT (months of therapy) +156% YoY, and continued 12,000 growth of TRx MoT, +177% YoY 10,000 8,000 Gained >60% share of 6,000 risperidone LAI market; future growth driven by share
Slide 11: AJOVY global net sales and 2025 outlook
~$600M 2025 revenue outlook unchanged Quarterly Global Net Sales Global revenues of $139 million in +26% Q1'25, +26% YoY Demonstrated global leadership 137 142 139 #1 preventative aCRGP injectable in 22 113 115 24 28 IM new prescriptions among top U.S 17 22 headache centers combined1 58 56 58 Europe
Slide 12: Global Generics growth of 3%
Global Generics growth of 3% Q1 growth YoY likely representing high-water mark in ’25 FX impact +15% +5% +1% +15% +2% Q1 '24 revenue Q1 '25 revenue $1,004 $989 $849 $808 $477 $468 Q1-24 Q1-25 Q1-24 Q1-25 Q1-24 Q1-25 United States Europe International Markets 12 | % growth In local currency, compared
Slide 13: Biosimilar products with potential to launch
2028+ 2025-2027 Today Additional 11 products in 10 products development 5 Products with potential3 to launch $27B Originator Value Coverage4 Substantial global portfolio: Q1’25 New Launches $55B originator value4 bXgeva bProlia 1 2 (denosumab) (denosumab) Providing accessible medicines bSimponi Aria
Slide 14: 2025-2027 revenue outlook
2025 - 2027 revenue outlook1 Innovative portfolio • AUSTEDO growth to achieve >$2.5B sales by '27 Continued growth (AUSTEDO, AJOVY) • AJOVY continued growth expected Innovative launches • Olanzapine LAI launch building a comprehensive LAI franchise (UZEDY, olanzapine LAI) Growth acceleration answeri
Slide 15: Modernizing the organization and ~$700M net savings
Modernizing the Prioritizing Optimizing organization resource allocation external spend Leveraging hubs, AI & Simplifying network, Consolidating suppliers, Digital, reducing layers to sharpening commercial optimizing procurement increase agility, speed and capability, putting resources through smart
Slide 16: Financial update and path to 30% OPM
Financial update and 2 path to 30% OPM Executive Vice President, Chief Financial Officer 16 |
Slide 17: Q1'25 ninth consecutive quarter of revenue growth
Q1 ‘25 ninth consecutive quarter of revenue growth Continues improvements on working capital and leverage On track for 30% operating profit margin by ‘27 in line with our Pivot to Growth Strategy Confirmed U.S. tariffs expected to have immaterial impact; absorbed in updated 2025 non-GAAP outlook 17
Slide 18: GAAP and non-GAAP results Q1 2025
$ millions, except EPS Q1 2025 Q1 2024 ΔYoY* Q1 2025 Q1 2024 ΔYoY* GAAP Non-GAAP Revenues 3,891 3,819 +2% 3,891 3,819 +2% Gross profit 1,877 1,771 +6% 2,054 1,963 +5% Gross profit margin 48.2% 46.4% +187bps 52.8% 51.4% +138bps Operating income (loss) 519 (218) n.a. 946 892 +6% Operating income margi
Slide 19: Cash conversion above 80% and working capital
Sustaining cash conversion above 80% while unlocking capital of ~$1.7B NWC % of revenues Cash generation Cash Conversion excl. 82% 94% ~80% legal settlements 15.9% Scheduled Legal ~0.1 ~0.5 ~0.6-0.7 11.9% settlements $bn 6.6% 6.0% Free Cash Flow 2.2 2.2 1.6-1.9 $bn 2019 2024 Q1 ’25 ‘19 – ‘22 Avg ‘23
Slide 20: Limited impact of current tariffs
Limited impact Substantial U.S. Differentiated of current footprint import mix tariffs1 • Impact of current • AUSTEDO • Majority of imports confirmed tariffs1 manufactured locally from Europe and Israel mitigated • Unique and largest U.S. • Limited exposure • Fully integrated in footprint among Gx t
Slide 21: Net savings impact
Net Savings Impact ~10% spend reduction Optimizing Consolidating suppliers, optimizing external spend procurement through smart spending & demand management 57-58% gross margin driven by shift to innovative and manufacturing lean ~8% headcount1 release program 30% OP Prioritizing Simplifying network
Slide 22: Growing OP$ & OPM every year 2024-2027
Growing OP$ & OPM every year 2024-2027 (in %) 2025 +330-440 bps 30% Growth & mix effect driving margin expansion 25.6 – 26.3% 26.7% 2026 (+125 - 200bps YoY) Accelerated transformation offsetting gRevlimid impact, growth & innovative growth driving expansion 2027 (+125 - 250bps YoY) gRevlimid revenue
Slide 23: 2025 Outlook
20241 2024 2025 Outlook Pro forma2 January 29, 20251 May 7, 20252 Revenues3 AUSTEDO® ($m) 1,688 1,688 1,900-2,050 1,950-2,050 AJOVY® ($m) 507 507 ~600 ~600 UZEDY® ($m) 117 117 ~160 ~160 COPAXONE® ($m) 503 503 ~370 ~370 Operating Income 26.2% 26.3% 24.4%-26.4% 25.6%-26.7% Adjusted EBITDA Finance Expe
Slide 24: Capital allocation priorities
1 Debt repayment and net working capital enhancement 2 Investment in our growth engines (AUSTEDO, AJOVY, UZEDY, etc.) 3 Investment in R&D and business development 24 |
Slide 25: 2027 targets
Revenue growth Operating income Net debt / adjusted Cash-to-earnings2,3,4 (CAGR ’23 – ’27) margin1,2 EBITDA2 Mid-single digit % 30% 2.0x 80% 1. Operating income margin = Non-GAAP operating income divided by net revenues; excluding potential impact of business development deals depending on timing 2.
Slide 26: Pipeline Update
3 Pipeline Update Executive Vice President, Global R&D & Chief Medical Officer 26 |
Slide 27: Next milestones and expected timing
Asset Phase Indication Next milestones and expected timing olanzapine LAI Long term study TEV-’749 III Schizophrenia safety presentation H1 2025 DARI (ICS/SABA) III Asthma Phase III results H2 2026 TEV-’248 duvakitug Ulcerative Colitis (UC) & III ready Crohn’s Disease (CD) Phase III initiation H2 20
Slide 28: Weekly titration for AUSTEDO BID and AUSTEDO XR
Total for 7 Weekly titration for AUSTEDO Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 BID and AUSTEDO XR weeks In # of pills/day & mg's/pill 2x 6 2x 9 2x 12 2x 6 4x 9 2x 9 4x 12 1 Rx 1 Rx 1 Rx 1 Rx 1 Rx 1 Rx 1 Rx AUSTEDO BID 9 Rx's 2x 9 2x 12 1 Rx 1 Rx 5 Rx’s↓ AUSTEDO XR 12 18 24 30 36 42 48 one
Slide 29: AUSTEDO XR patient benefits
Reduction in the daily pill burden for 50-75% ongoing patients (depending on patient dose) Of patients achieve ≥24mg dosage with >60% 95% titration kit1 of new AUSTEDO patients on XR3 Of TD patients taking AUSTEDO XR said it 98% was easy to use2 1. Cutler AJ et al. Presented at the Neuroscience Educ
Slide 30: Duvakitug: excitement around positive results
Walter Reinisch Excitement around positive MD,PhD1 results presented at ECCO Lead investigator of the RELIEVE UCCD study & DDW We’re highly encouraged by the significant treatment response. […] We could truly transform treatment for patients with IBD in a safe manner Targeting to start Phase 3 ECCO
Slide 31: Olanzapine LAI update
Efficacy aligned with oral olanzapine Planning to share safety data at Psych Congress Elevate later this month Productive FDA Pre-NDA meeting held April 9 NDA submission planned for H2 2025 31 |
Slide 32: Conclusion & Q&A
4 Conclusion & Q&A President and Chief Executive Officer 32 |
Slide 33: Targeting 30% Operating Profit Margin beyond 2027
Sustain growth Sustain growth 2028+ 2028+ AUSTEDO Growing beyond $2.5B Accelerate growth growth AJOVY Accelerate 2025-2027 2025-27 UZEDY & olazanpine LAI AUSTEDO targeting >$2.5B in '27 Return to Return to growth growth Biosimilars 2022-2024 2022-24 AJOVY duvakitug AUSTEDO $1.7B in '24 UZEDY & olaza
Slide 34: Continuing to deliver on Pivot to Growth
Continuing to deliver on Pivot to Growth +5% revenue growth, +8% non-GAAP EPS in Q1’25 Clear path towards 30% OPM and our 2027 targets Through innovative growth, stable Gx business, and Teva modernization with ~$700M savings Advancing our innovative pipeline with near-term catalysts olanzapine LAI s
Slide 35: 2025 Innovation & Strategy Day
2025 INNOVATION & STRATEGY DAY Introducing our updated strategic framework and key priorities focusing on growth and innovation Thursday, May 29 Details on Teva’s IR website or via TevaIR@Tevapharm.com
Slide 36: Q&A
Q&A
Slide 37: Innovative and Biosimilar Pipeline
teva Innovative and Biosimilar Pipeline
Slide 38: Innovative medicine pipeline by stage
Under Regulatory Preclinical Phase 1 Phase 2 Phase 3 Review TEV-’279 Anti-IL-15 Duvakitug Olanzapine LAI UZEDY® Neuroscience (TEV-‘408) (TEV-’749) Bipolar Disorder (TEV-’574)2 Schizophrenia TEV-’288 Ulcerative Colitis & Neuroscience Vitiligo Crohn’s Disease TEV-’325 TEV-‘192 Dual Action Rescue Anti-
Slide 39: Biosimilar pipeline and commercial products
Under Regulatory Select Commercial Preclinical Clinical Approved Review Biosimilar Products Biosimilar to Biosimilar to Ahzantive® 6 TEV-’285 Xgeva®3 Prolia® Biosimilar to (denosumab) (denosumab) Eylea® TEV-’261 6 (aflibercept)4 Biosimilar to Biosimilar to TEV-’289 Xolair® Simponi® TEV-’2941 (omaliz
Slide 40: Additional Information
teva Additional Information
Slide 41: Income statement Q1 2025 vs Q1 2024
$ millions, except EPS Q1-25 Q1 2025 Margins Q1-24 Q1 2024 Margins Change Revenues 3,891 3,819 2% COGS 2,014 51.8% 2,048 53.6% (2%) Gross profit 1,877 1,771 Gross margin 48.2% 46.4% R&D 247 6.3% 242 6.3% 2% S&M 622 16.0% 608 15.9% 2% G&A 297 7.6% 278 7.3% 7% Legal settlements and loss contingencies
Slide 42: FX effect on results
Q1 Q1 FX Diff net $ millions Diff 2025 2024 Effect FX Revenues 3,891 3,819 72 (101) 173 Gross Profit GAAP 1,877 1,771 106 (68) 174 Gross Profit Non-GAAP 2,054 1,963 91 (68) 159 Operating income (loss) 519 (218) 737 (50) 787 GAAP Operating income 946 892 54 (51) 105 Non-GAAP 42 |
Slide 43: Net revenues and non-GAAP margins by quarter
4,457 $ millions 4,332 4,229 4,164 3,878 3,850 3,891 3,819 3,661 58.2% 52.2% 53.5% 52.9% 53.7% 54.8% 52.8% 49.1% 51.4% 34.7% 26.1% 26.5% 25.3% 28.0% 27.6% 23.4% 24.3% 21.4% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Net Revenues Non-GAAP Gross Profit Margin Non-GAAP Oper
Slide 44: Revenues by segment and product
$ millions Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 U.S. Segment 1,725 2,110 2,225 1,975 1,910 Generic products 808 1,023 1,094 674 849 AJOVY® 45 42 58 63 53 AUSTEDO® 282 407 435 518 396 BENDEKA®/TREANDA® 46 41 40 41 36 COPAXONE® 30 81 69 63 54 UZEDY® 15 24 35 43 39 Anda 381 373 380 402 373 Other 118 119 115 1
Slide 45: Non-GAAP net income, operating income and EPS
$ millions, EPS in $ 1,546 1,214 1,168 1,020 1,056 1,011 946 892 785 1,135 798 816 677 697 629 602 548 457 1.00 0.60 0.61 0.69 0.71 0.40 0.56 0.48 0.52 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Non-GAAP Net Income Non-GAAP Operating Income Non-GAAP EPS 45 | Q4 2023 incl
Slide 46: Non-GAAP operating income bridge
$ millions +54 (+6%) +105 In local Currencies (+12%) -94 182 -20 -15 946 892 Q1 24 US EU IM Other Q1 25 Actual Actual 46 |
Slide 47: Non-GAAP operating income by segment
$ millions 1,214 1,168 109 19 1,056 (9%) (2%) 12 141 (12%) 73 (1%) 946 892 (7%) 2 373 (31%) 97 (10%) (0%) 117 (13%) 342 (32%) 438 (37%) 329 (35%) 423 (47%) 748 (62%) 629 (60%) 569 (49%) 532 (56%) 350 (39%) -16 -13 (-1%) (-1%) Q1-24 Q2-24 Q3-24 Q4-24 Q1- 25 Revenues 3,819 4,164 4,332 4,229 3,891 US E
Slide 48: COGS and OPEX
+18 (+1%) In local currency +68 (+2%) 2,945 $ millions 2,927 1,837 1,856 (62%) (63%) 1,071 1,108 COGS (37%) (38%) OPEX Q1-24 Q1-25 Revenues 3,819 3,891 GP% 51.4% 52.8% OP% 23.4% 24.3% 48 |
Slide 49: Adjusted EBITDA
$ millions 1,327 1,282 1,168 1,041 1,005 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 49 | Please see our press release reporting our financial results this quarter for a reconciliation of Adjusted EBITDA to its nearest GAAP equivalent
Slide 50: Free cash flow
$ millions 2024 Total: $2,068 922 790 324 107 32 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Free cash flow includes cash flow from operating activities, beneficial interest collected in exchange for securitized accounts receivables, proceeds from divestitures of businesses and 50 | other assets, net of
Slide 51: EBITDA to free cash flow bridge
$ millions (934) (90%) (232) (142) (192) 1,041 (120) (120) 53 17 (127) (394) 322 107 (105) Non-GAAP Interest Tax payments ΔA/R ΔInventory Legal ΔA/P & Other ΔSecuritization Operating Securitization Asset sales, Free cash flow EBITDA payments, net settlements cash flow reclass net; paid Capex gross 5
Slide 52: Cash conversion and FCF
3000 2,852 120% 2,589 2,438 2,387 2500 2,300-2,500 100% 2,243 2,068 2000 1,600-1,900 80% 1500 60% 1000 40% 600-700 465 522 500 20% 195 80% 87% 82% 98% 72% 91% 0 0% 2022 2023 2024 2025 Cash conversion Cash conversion excl. legal settlements FCF Legal settlements FCF excl. legal settlements Free cash
Slide 53: Gross profit, OPEX, operating income and FCF
Non-GAAP Gross Profit ($m) Non-GAAP OPEX ($m) Non-GAAP Operating Income ($m) Free Cash Flow ($m) 52.8% 24.3% 51.4% 28.5% 23.4% 28.0% $946 $2,054 $1,108 $892 $1,963 $1,071 17.8% 5.8% $107 $32 Q1 24 Q1 25 Q1 24 Q1 25 Q1 24 Q1 25 Q1-24 Q1-25 % represents chart metric as a % of revenues S&M R&D G&A % ca
Slide 54: Balance sheet summary
$ billions March 31, 2025 December 31, 2024 Diff Cash and Cash Equivalents 1.7 3.3 (1.6) AR Trade 3.4 3.1 0.3 Pre-paid Expenses and Other Current Assets 3.2 3.2 0.0 Inventory 3.2 3.0 0.2 Fixed Assets 4.6 4.6 0.1 Intangible Assets 4.2 4.4 (0.2) Goodwill 15.5 15.1 0.3 Other Long Term Assets 2.6 2.6 (0
Slide 55: Gross and net debt
$ billions (1.4) 0.2 (1.7) 17.8 16.7 15.0 Dec 31, Debt repay FX and Other Mar 31, Cash balance Mar 31, 2024 2025 2025 Gross Debt Gross Debt Net Debt 55 |
Slide 56: Net debt / EBITDA and leverage
$ billions Net Debt 16.7 16.4 15.7 15.0 14.5 4.9 5.0 5.2 4.8 4.8 EBITDA MAT Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Net Debt / EBITDA MAT (x) 3.38 3.30 3.04 3.03 3.10 Leverage 72% 74% 75% 76% 73% 56 | Teva's Net Debt/EBITDA MAT covenant ratio limit is 4.00x for Q1-Q4 2025; MAT = Moving Annual Total
Slide 57: $ billions
$ billions $35.0 $33.0 $34.0 $31.0 $29.0 $27.0 $25.0 $23.0 $21.0 $19.0 $17.0 $15.0 $15.0 $13.0 $11.0 $9.0 57 |
Slide 58: Debt maturity profile
$ billions 3.4 CHF 2.9 EUR USD 2.5 2.1 2.0 1.6 1.0 0.8 0.4 - - 25 26 27 28 29 30 31 ... 36 … 46 Gross Debt $16.7B Net Debt $15B Duration 5.7 WAC 4.55% 58 |
Slide 59: Non-GAAP adjustments Q1 2025
$ millions Q1 2025 Comments Amortization 145 Impairment of intangible Mainly related to products in the US. 121 assets Impairment of tangible Mainly due to a favorable adjustment related to the classification of our (44) assets API business as held for sale. Legal settlements 83 Equity compensation
Slide 60: We are all in for better health
v We are all in for better health
Teva Pharmaceutical Industries — Q1 2025 Earnings Presentation on 6ix