Teva Pharmaceutical Industries Limited · TASE:TEVA
Teva Pharmaceutical Industries — Q1 2015 Earnings Presentation
29 slides from Teva Pharmaceutical Industries's earnings presentation, Apr 30, 2015
Slide 1: First Quarter 2015 Results
1 First Quarter 2015 Results April 30, 2015
Slide 2: Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995
Safe Harbor Statement under the U.S. Private Securities 2 2 Litigation Reform Act of 1995: The following discussion and analysis contains forward-looking statements, which are based on management’s current beliefs and expectations and involve a number of known and unknown risks and uncertainties tha
Slide 3: Erez Vigodman, President & CEO
3 3 Erez Vigodman President & CEO
Slide 4: Q1 2015 – Financial Highlights
4 4 Q1 2015 – Financial Highlights Strong Results on All Fronts Q1 2015* Q1 2014* (1) Change Revenues $m 4,982 5,001 (0.4%) Operating Income $m 1,533 1,381 11% Net Income $m 1,165 1,051 11% EPS $ 1.36 1.23 11% Cash Flow from Operations $m 1,354 898 51% Free Cash Flow $m 1,213 673 80% *Net income, op
Slide 5: Making Progress on Our Key Priorities for 2015
5 Making Progress on Our Key Priorities for 2015 5 Generate $500m in net cost reductions Deliver on the promise in our specialty pipeline Continue solidifying the generics business, improve its profitability by additional Strong focus on business development 400bps and drive organic growth Continue
Slide 6: Generics Highlights
6 Generics Highlights 6 Continued Growth and Improvement in Generics Significantly improved profit despite FX impact - 59% increase to $799 million Revenues $2.6 billion, up 9% Major improvement in profitability to 30.5% US - Successful launch of generic Nexium® US - Solid performance of the
Slide 7: Continued Growth and Improvement in Generics
7 7 Continued Growth and Improvement in Generics Continue to improve Execution of growth Clear strategy operating profitability market strategy for OTC More focus on key markets Sales force effectiveness and portfolio management in key markets 50% 45.2% 43.3% 43.5% 41.3% 46% 40% 30% 20.2% 19.9% 21.9
Slide 8: Teva Specialty pipeline - pending Auspex deal
8 8 Teva Specialty pipeline - pending Auspex deal Phase 1 Phase 2 Phase 3 Registration TV-46763 (abuse deterrent) Laquinimod Laquinimod CEP-33237 ER Hydrocodone (abuse det.) Pain Multiple sclerosis (progressive forms) Multiple sclerosis (relapsing remitting) US - Pain TV-46139 (abuse deterrent) Laqu
Slide 9: Delivering On The Promise In Our Pipeline
9 9 Delivering On The Promise In Our Pipeline Q1 15 Update ProAir® RespiClick NDA approved - first and only breath-actuated dry-powder rescue inhaler for the treatment of acute asthma symptoms. Launch expected in Q2 15. Reslizumab IV BLA submitted for the treatment of moderate to severe asthma.
Slide 10: TEV-48125
10 10 TEV-48125 Chronic Migraine Episodic Migraine • TEV-48125 is the first anti-CGRP compound Two active doses tested to report positive data in the disease Endpoints – Decrease in migraine (primary) • The two tested doses were positive on and headache (secondary) days at three primary and seco
Slide 11: TEV-48125
11 11 TEV-48125 • First anti-CGRP antagonist to show positive efficacy results in chronic and episodic migraine • Four dosing paradigms tested across the two conditions. All positive for primary and secondary endpoints, and at 1 month of therapy • Only monoclonal antibody anti CGRP that has separate
Slide 12: SD-809: Significant Near-Term Commercial Opportunity
12 12 SD-809: Significant Near-Term Commercial Opportunity SD-809 Provides Substantial Addressable Market Opportunities with Significant Commercial Potential Estimated Patient Population % of Physicians who suggested Other Considerations (U.S.) they would prescribe SD-8091 Only one approved drug i
Slide 13: SD-809: Favorable Side Effect Profile; BID Dosing
13 13 SD-809: Favorable Side Effect Profile; BID Dosing Frequency of Adverse Events: SD-809 Placebo (%) Depression 4% 7% Somnolence 11 % 4% Akathisia / Restlessness 2% 2% Anxiety 2% 2% Irritability 7% 13 % Fatigue 7% 4% Insomnia 7% 4% Parkinsonism / Bradykinesia 0% 0% QT Prolongation: < 5 millisecon
Slide 14: Eyal Desheh, EVP, Chief Financial Officer
14 14 Eyal Desheh EVP, Chief Financial Officer
Slide 15: Q1 2015 Results
15 Q1 2015 Results
Slide 16: Q1 2015
16 16 Q1 2015 Q1 2015* Q1 2014* (1) Change Revenues $m 4,982 5,001 (0.4%) Operating Income $m 1,533 1,381 11% Net Income $m 1,165 1,051 11% EPS $ 1.36 1.23 11% Cash flow from Operations $m 1,354 898 51% *Net income, operating income and EPS are non GAAP results. (1) Adjusted for exclusion of equity
Slide 17: Foreign Exchange Impact
17 17 Foreign Exchange Impact Q1 2015 Q1 2014 Change ($m) Fx Effect* ( $m) Real Change Revenues 4,982 5,001 (19) (368) 349 $m Operating income 1,533 1,381 152 (42) 194 $m *Includes profits from certain hedging transactions
Slide 18: Cash Flow Trends
18 18 Cash Flow Trends $ million 1,752 269 1,424 1,354 +51% 206 141 1,053 Cash From Operations 898 171 225 1,483 Asset Purchase, Net 1,218 1,213 +80% 882 Free Cash Flow* 673 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 * Commencing Q4 2014, the data presented has been conformed to reflect the revised def
Slide 19: Quarterly Revenue Breakdown by Segment
19 19 Quarterly Revenue Breakdown by Segment $ million 5,001 4,982 489 - 10% 405 - 8% 1,044 - 21% 1,032 – 21% OTC & Other 1,070 - 21% 924 – 19% Specialty ex-MS MS Generics 2,398 - 48% 2,621 – 52% Q1 14 Q1 15
Slide 20: Quarterly Profit Breakdown by Segment
20 20 Quarterly Profit* Breakdown by Segment $ million 1,674 1,826 3% 3% 21% 17% OTC & Others 36% Specialty ex-MS 46% MS Generics 44% 30% Q1 14 Q1 15 * Segment profit consists of gross profit, less S&M and R&D expenses related to the segment. Segment profit does not include G&A expenses, amortizatio
Slide 21: Generics Segment Gross Profit and Profitability Evolution
21 21 Generics Segment Gross Profit and Profitability* Evolution 49.0% 43.5% 44.3% 43.9% 41.7% 30.5% 23.0% 23.0% 21.0% 21.3% Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Profit Margin* Gross Profit Margin * Segment profit consists of gross profit, less S&M and R&D expenses related to the segment. Segment profit do
Slide 22: Quarterly Revenue Breakdown by Market
22 22 Quarterly Revenue Breakdown by Market $ million 5,001 4,982 865 - 17% 794 - 16% 1,267 - 25% ROW 1,507 - 30% Europe US 2,629 - 53% 2,921 - 59% Q1 14 Q1 15
Slide 23: Quarterly Revenues
23 23 Quarterly Revenues $ million 43 32 368 431 48 109 5,001 4,982 Q1 2014 Generics Specialty OTC & Other FX US OTC* MS Q1 2015 ex-MS All data, except Fx, are net of the impact of foreign exchange fluctuations. *In July 2014, we sold our U.S. OTC plants, previously purchased from P&G, back to P&G.
Slide 24: Copaxone Revenues Evolution
24 24 Copaxone® Revenues Evolution Revenues fluctuate but demand in the US is stable 1,200 35% 1,000 286 33% 254 800 192 31% 600 29% 400 816 835 732 200 27% 0 25% Q1 14 Q4 14 Q1 15 $ million US sales Ex-US sales US TRx MS* * Market share data, including historic data, is based on IMS March 2015 data
Slide 25: Quarterly Operating Income bridging
25 25 Quarterly Operating Income bridging $ million 90 312 28 42 1,603 1,575 1,533 1,533 1,381 1,381 Q1 2014 Generics* MS Specialty Fx Q1 2015 ex-MS * Segment profit consists of gross profit, less S&M and R&D expenses related to the segment. Segment profit does not include G&A expenses, amortization
Slide 26: Liquidity Trends
26 26 Liquidity Trends Gross debt increased by $0.7B from Dec 31, 2014 $ billion 12.2 11.8 11.2 10.6 10.3 11.0 Debt Equity 22.6 23.0 23.6 23.7 23.4 22.7 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Leverage 35% 34% 32% 31% 31% 33% Debt/EBITDA 2.16 2.04 1.90 1.76 1.67 1.73
Slide 27: Teva's Dividend Payments
27 27 Teva’s Dividend Payments 350 $0.40 Q1 2015 dividend per share of $0.34 300 $0.35 $0.30 250 $0.25 200 $0.20 150 291 299 294 290 288 281 268 276 272 264 $0.15 230 237 214 100 203 203 204 190 164 167 172 174 $0.10 50 $0.05 0 $0.00 Total Dividend ($m) $ per Share Total dividends represent payment
Slide 28: 2015 Business Outlook: Increased Despite Currency Volatility and Approval of Copaxone Generic
28 28 2015 Business Outlook: Increased Despite Currency Volatility and Approval of Copaxone® Generic 2015E Net Revenues ($b) 19.0-19.4 Gross Profit (%) 59.5%-61.5% R&D ($b) 1.3-1.4 S&M ($b) 3.3-3.5 G&A ($b) 1.1-1.2 Operating Income* ($b) 5.7-5.9 Finance Expenses ($m) 250-290 Tax (%) 19%-21% Number o
Slide 29: Thank You
Thank You
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