Teva Pharmaceutical Industries Limited · TASE:TEVA
Teva Pharmaceutical Industries — Q1 2024 Earnings Presentation
57 slides from Teva Pharmaceutical Industries's earnings presentation, May 8, 2024
Slide 1: First Quarter 2024 Results
Teva Pharmaceutical Industries Ltd. First Quarter 2024 Results May 8, 2024
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: Q1 2024 Wins
Deliver on Step up Sustain generics Focus our growth engines innovation powerhouse business • AUSTEDO® revenues up 67% • Olanzapine LAI efficacy • Generics growth across all • New Teva api management Q1 2024 Wins study met endpoints; geographies and organization in place • SIMLANDI® preparing for ~8
Slide 5: Olanzapine LAI Phase 3 efficacy study readout
SOLARIS is a Phase 3 pivotal study to evaluate the efficacy and safety of three doses of Olanzapine LAI, designed to avoid the risk of PDSS Exciting The efficacy study met its primary and key secondary Olanzapine LAI endpoints for all dose groups vs. placebo Phase 3 efficacy study readout All doses
Slide 6: U.S. Schizophrenia Rx market, current atypical antipsychotic use
U.S. Schizophrenia Rx market, current atypical antipsychotic use MoT TRx Others 16% LAI Share ARIPIPRAZOLE 8% Invega® LAIs 61% QUETIAPINE 10% (paliperidone) LURASIDONE 13% Aristada® (aripriprazole ~87% lauroxil) / Abilify® 34% ~13% (aripiprazole) RISPERIDONE 16% Risperdal Consta®/ 18% Perseris®/UZED
Slide 7: Q1 2024 Reaffirming 2024 Financial Outlook
Q1 2024 Revenues Adjusted EBITDA 5% 12% Non-GAAP EPS Net Debt / EBITDA 18% Reaffirming 2024 Financial Outlook 7| Growth vs. Q1 2023, revenues in local currency
Slide 8: Global generics revenues $3.8b
Global generics +67% +9% Revenues $3.8b +5% Teva api +18% +2% % growth In local currency, compared to Q1 2023 8|
Slide 9: AUSTEDO: reaffirming 2024 revenues outlook of ~$1.5B
Reaffirming 2024 revenues outlook of ~$1.5B Continued growth of AUSTEDO prescriptions AUSTEDO quarterly TRx U.S. Revenues 80,000 $282M 70,000 60,000 50,000 U.S. Revenues Growth 40,000 +67% 30,000 20,000 10,000 TRx Growth 0 +28% Revenue and TRx data is compared to Q1 2023 9| Data represents AUSTEDO F
Slide 10: Driving Awareness and Education to Engage with Patients and HCPs
Driving Awareness and Education to Engage with Patients and HCPs Driving Awareness and Patient Engagement TD market in the U.S. is largely under- diagnosed and under-treated • Continued investment in a television Direct-to-Consumer campaign driving awareness of tardive dyskinesia and 785k Tardive Dy
Slide 11: AJOVY: reaffirming 2024 revenues outlook of ~$500 million
Reaffirming 2024 revenues outlook of ~$500 million Quarterly Global Net Sales $113m • Achieved global revenue of $113 Q1’24 +18% million in Q1’24 • Strong competitive positioning in the $95m Q1’23 U.S. with 27% market share and in Europe with 31% market share1 • U.S.: #1 in new prescriptions for pre
Slide 12: UZEDY: reaffirming 2024 revenues outlook of ~$80M
Reaffirming 2024 revenues outlook of ~$80M UZEDY Prescription Growth • Differentiated clinical profile we UZEDY TRx MOT (months of therapy) believe to be attractive to patients 4,000 and HCPs 3,500 • Broad access in Fee-for-Service 3,000 Medicaid 2,500 • Strong commercial effort to drive 2,000 aware
Slide 13: Generics revenues by segment
$ millions, Q1-23 as reported % in local +8% +5% +16% Q1-24 as reported currency growth growth growth Local currency impact 1004 932 808 747 477 477 Q1-23 Q1-24 Q1-23 Q1-24 Q1-23 Q1-24 United States Europe International Markets % growth In local currency, compared to Q1 2023 13 | Commencing January
Slide 14: Biosimilars: current products and pipeline
Near term growth sustained Phase III pipeline positioned to support future growth Current Products New and upcoming + 1 * * * 1 2 * * ~$14B Originator 2023 U.S. revenue3 * In collaboration with Alvotech for the U.S. market. 1. Truxima® and Herzuma® are in collaboration with Celltrion in the U.S. and
Slide 15: Olanzapine LAI, Anti-TL1A, ICS/SABA progress and milestones
Adressable Ambition Recent Progress Next milestones patient pool Positive primary endpoint Olanzapine LAI Potential to be first long- Phase 3 read out acting olanzapine with a H2 2024 – Phase III results ~1M3 (TEV-‘749) favorable safety profile Funding agreement with Royalty Pharma Patient cohort Po
Slide 16: Portfolio Pipeline
Portfolio Portfolio Pipeline Marketed Legacy Preclinical Phase I Phase II Phase III TEV'279 & '288 TEV'192 Emrusolmin Olanzapine LAI TEV'2861 TEV'749 Neuroscience Neuroscience MSA Schizophrenia Potential disease Potential first long- TEV'2871 modifying therapy in acting olanzapine with Parkinson's D
Slide 17: Teva api: back to revenue growth
+2% vs. Q1’23 Strong traction Strong interest Back to revenue on CDMO in Teva api's growth1 business differentiated technologies Teva confirms intention to divest Teva api with expected completion in H1 2025 17 | 1. TAPI Q1 2024 vs Q1 2023. CDMO: Contract Development and Manufacturing Organization S
Slide 18: Healthy People, Healthy Planet, Healthy Business
Healthy People 7 $40.9B programs to increase access to in savings from medicines launched to date generic medicines across 20 countries (2025 target: 8) Healthy Planet 27% Top 4% reduction in scope 1 and 2 ESG ranking by EcoVadis greenhouse gas emissions vs. 2019 (target exceeded) Healthy Business 1
Slide 19: Executive Vice President, Global R&D & Chief Medical Officer
Executive Vice President, Global R&D & Chief Medical Officer
Slide 20: SOLARIS Phase III trial powered to confirm safety data
SOLARIS Phase III trial powered to confirm safety data Large sample size: 640 Acute treatment phase Long-term safety phase patients2, ~3,600 (8 weeks) (up to 48 weeks) injections Dose 1 TEV-44749 q1m Dose 1 TEV-44749 q1m Long-term efficacy and safety to be confirmed: Dose 2 TEV-44749 q1m Dose 2 TEV-
Slide 21: Accelerated Phase III trial with positive primary endpoint
Accelerated Phase III trial with positive primary endpoint Potential to be first LAI olanzapine with right safety profile Accelerating Phase III trial Efficacy Phase III study in patients with schizophrenia met primary endpoint for all three doses, with a mean change in PANSS score* of -9.71 points*
Slide 22: IMPACT-TD real-world observational study
IMPACT-TD is a real-world observational study that will drive our understanding of the relationship between severity of movements and impact of TD on quality of life Includes diverse representation of Multicenter study and TD patient populations largest TD study known to date Age Race and ethnicity
Slide 23: Inhalers alone do not address airway inflammation
Rescues Inhalers alone do not address airway inflammation, leading to an increased risk of exacerbations & asthma-related deaths1 2022 Asthma Patient Population (U.S.)2 Significant patient population – Asthma is one of the top chronic Treated diseases in the U.S. with majority of patients needing a
Slide 24: ICS/SABA designed to treat constricted airways and inflammation
Designed to treat both Constricted Airways and Inflammation associated with Asthma Attacks Clinical collaboration between Teva and Launch Therapeutics initiated, rapidly aligning to accelerate recruitment Trigger ICS + SABA Abingworth to provide strategic development funding up to $150M SABA medicat
Slide 25: Potential treatment for Celiac disease
Potential treatment for Celiac disease, which currently has no therapeutic option Celiac disease: IL15 over-expression driving Large burden of disease with no therapeutic option expansion of IELs and gut tissue damage Number of U.S. patients in thousands (2022) Celiac disease prevalence 2,006 Diagno
Slide 26: Differentiated preclinical profile, executing rapid patient study
Differentiated preclinical profile, evidence of Il-15 suppression, executing rapid patient study Early evidence of IL15 blockade Celiac Phase Ib Study – 52 week Potential for differentiation • Phase I in healthy volunteers1 • 14 weeks of gluten challenge • 2 weeks after a single SC dose • High affin
Slide 27: Upcoming pipeline milestones
Olanzapine LAI Full Phase III safety results H2 2024 TEV-’749 Anti-TL1A Phase II interim analysis H2 2024 TEV-’574 Anti-IL15 Phase I FIH SAD/MAD HV results H2 2024 TEV-’408 Celiac PoC study fully enrolled Anti-PD1-IL2 First patient enrolled in Phase I trial H1 2024 TEV-’278 ICS/SABA Phase III result
Slide 28: Executive Vice President, Chief Financial Officer
Executive Vice President, Chief Financial Officer
Slide 29: Q1 2024 GAAP and Non-GAAP results
$ millions, except EPS Q1 2024 Q1 2023 Q1 2024 Q1 2023 GAAP Non-GAAP Revenues 3,819 3,661 3,819 3,661 Operating income (loss) (218) (13) 892 785 Net income (loss) attributable to Teva (139) (220) 548 457 Earnings (loss) per share ($)* (0.12) (0.20) 0.48 0.40 Number of shares (millions) 1,123 1,115 1
Slide 30: GAAP to Non-GAAP adjustments
$ millions Q1 2024 Comments Amortization 152 Impairment of intangible assets 80 Mainly related to the classification of a business in Teva’s International Markets Impairment of tangible assets 599 segment as held for sale Mainly related to estimated provisions recorded in connection with certain Leg
Slide 31: Q1 2024 vs Q1 2023 results
$ billions, except EPS Q1 2024 Q1 2023 Change Revenues 3.8 3.7 4% 2.0 1.8 9% Gross profit 51.4% 49.1% 2.3% 0.9 0.8 14% Operating income 23.4% 21.4% 1.9% EBITDA 1.0 0.9 12% Net income attributable to Teva 0.5 0.5 20% EPS ($) 0.48 0.40 0.08 Number of shares (millions) 1,143 1,128 Free cash flow* 0.03
Slide 32: Number of Teva manufacturing sites by year
Number of Teva manufacturing sites by year 80 18 31 49 5 45 13 4 40-42 13 62 13 49 44 36 40 32 27-29 2017 2023 2025 2027 Final dosage sites & Bio sites API
Slide 33: Free cash flow
$ millions 2,387 1,486 632 229 41 32 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 33 | Free cash flow includes cash flow from operating activities, beneficial interest collected in exchange for securitized accounts receivables, proceeds from divestitures of businesses and other assets, net of cash used f
Slide 34: Net debt and leverage
$ billions Net Debt 18.5 18.0 17.7 16.6 16.7 EBITDA MAT 4.4 4.4 4.4 4.8 4.9 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Net Debt / EBITDA MAT 4.25 4.14 4.03 3.45 3.38 Leverage 71% 73% 73% 71% 72% Teva's Net Debt/EBITDA MAT covenant ratio limit is 4.00x for Q1-Q4 2024; MAT = Moving Annual Total 34 | 2023
Slide 35: 2024 Financial Outlook
Revenues Tax Rate 2024 Financial AUSTEDO ($m) AJOVY ($m) ~1,500 ~500 Diluted EPS ($) Outlook UZEDY ($m) ~80 COPAXONE ($m) ~400 1,146 million shares Operating Income Free Cash Flow Adjusted EBITDA CAPEX Finance Expenses Foreign Exchange Volatile swings in FX can negatively impact revenue and income 3
Slide 36: Long-term financial targets
Revenue growth Operating Net debt/ Cash-to- (CAGR) 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. All meas
Slide 37: Return to growth, sustain growth, accelerate growth
2028+ 2025-2027 2023-2024 Sustain growth • Innovative launches Accelerate growth (anti-TL1A, anti-PD1-IL2, anti-IL15) Return to growth • Sustainable innovative pipeline • Innovative launches • AUSTEDO and AJOVY continue (olanzapine LAI, ICS/SABA) • Focused business development to show strong growth
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Slide 39: Innovative and Biosimilar Pipeline
Ive Innovat and B ilar iosiIm Pipeline 39|
Slide 40: Innovative medicine pipeline
Preclinical Phase 1 Phase 2 Phase 3 TEV-’278 TEV-’408 Anti-TL1A Olanzapine LAI Oncology Gastrointestinal (TEV-’574)2 (TEV-’749) Ulcerative Colitis Schizophrenia TEV-’279 TEV-’192 Crohn’s Disease Neuroscience Immunology & ICS/SABA3 Neuroscience (TEV-’248) TEV-’288 Neuroscience Emrusolmin Asthma (TEV-
Slide 41: Biosimilar pipeline
Commercial Preclinical Phase 1 Phase 3 Approved Biosimilar Products1, 2 Biosimilar to Prolia® TEV-’285 (denosumab) 1 3 TEV-’191 Biosimilar to TEV-’261 Xgeva ® 3 TEV-’289 (denosumab) TEV-’284 / TEV-’2941 Biosimilar to Xolair® TEV-’292 1 (omalizumab) 4 TEV-’295 1 Biosimilar to TEV-’2961 Eylea® 1 (afli
Slide 42: Additional
Additional Cc O ‘yp a) ‘= _ O q = teva 42|
Slide 43: Q1 2024 GAAP income statement
$ millions, except EPS Q1-24 Q1 2024 Margins Q1-23 Q1 2023 Margins Change Revenues 3,819 3,661 4% COGS 2,048 53.6% 2,079 56.8% (1%) 1,771 1,582 Gross profit 46.4% 43.2% R&D 242 6.3% 234 6.4% 4% S&M 608 15.9% 546 14.9% 11% G&A 278 7.3% 296 8.1% (6%) Legal settlements and loss contingencies 106 2.8% 2
Slide 44: FX effect on revenues and operating income
$ millions Q1 2024 Q1 2023 Diff FX Effect Diff net FX Revenues 3,819 3,661 158 (39) 196 Operating income (loss) GAAP (218) (13) (205) (11) (194) Operating income Non-GAAP 892 785 107 (11) 118 The data presented with respect to operating income (loss), income taxes (benefit), income (loss) before inc
Slide 45: Revenues and non-GAAP margins by quarter
$ millions 4,457 3,884 3,878 3,850 3,786 3,819 3,661 3,661 3,595 58.2% 54.2% 54.4% 53.0% 54.2% 52.2% 53.5% 49.1% 51.4% 34.7% 27.7% 26.9% 27.2% 29.1% 26.5% 26.1% 23.4% 21.4% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Net Revenues Non-GAAP Gross Profit Margin Non-GAAP Oper
Slide 46: Revenues by segment and product
$ millions Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 U.S. Segment 1,677 1,892 1,896 2,266 1,725 Generic products 747 884 839 667 808 AJOVY® 46 52 56 57 45 AUSTEDO® 170 308 339 408 282 BENDEKA®/TREANDA® 62 67 56 52 46 COPAXONE® 71 56 98 72 30 Anda 424 392 367 394 381 Other* 158 131 142 616 133 Europe Segment 1,1
Slide 47: Non-GAAP net income, operating income and EPS
$ millions, EPS in $ 1,546 1,130 1,019 1,011 1,020 1,013 977 892 785 1,135 754 791 658 629 677 609 548 457 1.00 0.68 0.59 0.71 0.60 0.55 0.40 0.56 0.48 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Non-GAAP Net Income Non-GAAP Operating Income Non-GAAP EPS 47 | 2023 figures
Slide 48: Non-GAAP operating income bridge
$ millions Nominal +$107m (14%) +$118m In local currencies (15%) 9 9 77 12 892 785 Q1-23 US Europe International Other Activities Q1-24 Markets Commencing January 1, 2024, Canada is reported under our International Markets segment and is no longer included as part of our United States segment. 48 |
Slide 49: Non-GAAP operating income by segment
$ millions 1,546 2 109 (0%) (7%) 461 1,011 1,020 (30%) 33 117 892 132 (3%) (11%) 2 785 (13%) 117 (0%) 108 338 (13%) (14%) 334 (33%) (33%) 423 345 974 (47%) (44%) (63%) 511 571 338 (51%) (56%) 350 (43%) (39%) -6 -5 (-1%) (-1%) Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Revenues 3,661 3,878 3,850 4,457 3,819 US Eu
Slide 50: Revenues, COGS and OPEX
+51 (+2%) In local currency +78 (+3%) 2,876 2,927 1,865 1,856 $ millions (63%) (65%) COGS OPEX 1,011 1,071 (35%) (37%) Q1-23 Q1-24 Revenues 3,661 3,819 GP% 49.1% 51.4% OP% 21.4% 23.4% 50 |
Slide 51: Adjusted EBITDA
$ millions 1,660 1,125 1,134 1,005 899 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 51 | Please see our press release reporting our financial results for the first second of 2023 for a reconciliation of Adjusted EBITDA to its nearest GAAP equivalent 2023 figures include the impact from an upfront payment
Slide 52: EBITDA to free cash flow bridge
$ millions (973) (97%) (120) (257) (193) (248) (95) (369) (22) 20 (169) (136) 1,005 (170) (15) (458) (124) 295 32 (124) 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
Slide 53: Balance sheet
$ billions March 31, 2024 December 31, 2023 Diff Cash and Cash Equivalents 3.0 3.2 (0.2) AR Trade 3.5 3.4 0.0 Pre-paid Expenses and Other Current Assets 1.9 1.8 0.1 Inventory 3.9 4.0 (0.1) Fixed Assets 5.6 5.8 (0.1) Intangible Assets 5.1 5.4 (0.3) Goodwill 17.0 17.2 (0.2) Other Long Term Assets 2.8
Slide 54: Gross debt and net debt
$ billions 19.8 0.2 19.6 3.0 16.7 Dec 31, FX and Other Mar 31, Cash balance Mar 31, 2023 2024 2024 Gross Debt Gross Debt Net Debt 54 |
Slide 55: Debt chart
$ billions $35.0 $34.0 $33.0 $31.0 $29.0 $27.0 $25.0 $23.0 $21.0 $19.0 $16.7 $17.0 $15.0 55 |
Slide 56: Debt maturity profile
3.4 CHF 2.9 EUR USD 2.5 2.1 2.0 1.8 1.6 1.6 1.0 0.8 - - 24 25 26 27 28 29 30 31 … 36 … 46 Gross Debt $19.6B Duration 5.7 Net Debt $16.7B WAC 4.6% 56 |
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