Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) has introduced that it’ll lay off 3,000 workers worldwide over the following two years. The surprising announcement got here in the course of the convention name with buyers after the corporate introduced its first quarter outcomes. Teva has 36,000 workers worldwide, together with 3,320 in Israel, so the deliberate reduce represents 8% of the workforce.
The corporate’s share value opened 5.4% larger on Wall Avenue, giving a market cap of $20.4 billion. In latest weeks the share value has been transferring up, though it has nonetheless misplaced 25% since reporting its fourth quarter 2004 outcomes.
In its first quarter 2025 monetary outcomes, Teva revised its 2025 steering with decrease income however larger revenue. The Israeli pharmaceutical firm now expects $16.8-17.2 billion income, barely decrease than its earlier forecast of $16.8-17.4 billion, and non-GAAP earnings per share of $2.45-2.65, as a substitute of $2.35-2.65.
Within the first quarter, Teva reported income of $3.9 billion, up 2% from the corresponding quarter of 2024 and under the analysts’ expectations of $4 billion. GAAP web revenue within the first quarter was $214 million, swinging from a loss within the corresponding quarter, whereas non-GAAP web revenue was $602 million, up 10% from the corresponding quarter. Non-GAAP earnings per share was $.052, beating the analysts’ forecast of $0.46.
Free money circulate within the quarter was $107 million, and Teva’s debt fell from $17.8 billion to $16.7 billion in the course of the quarter.
Grew within the US however hit in Europe
Geographically, Teva grew in its core market, the US, however was harm by alternate price actions in different markets. Within the US, each income and profitability elevated quarterly. Income grew 10.7% to $1.9 billion, primarily because of the contribution of the unique medication Austedo and Uzedy, and a 5% enhance in generic gross sales. Profitability elevated 52% – from $350 million within the corresponding quarter to $532 million, due amongst different issues, to the product combine bought.
In Europe, income fell 6.1% to $1.2 billion, and profitability fell 22% to $329 million. Income was negatively affected by forex actions, and profitability was additionally affected by the product combine. In worldwide markets, income fell 2.5% to $582 million, however excluding alternate price adjustments, income would have elevated 5%. Profitability fell 17% to $97 million.
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Teva president & CEO Richard Francis mentioned, “Teva had a stable begin to the 12 months, with its ninth consecutive quarter of income development, delivering international revenues of $3.9 billion, a rise of 5% in native forex phrases in comparison with the primary quarter of 2024. Our key progressive development drivers proceed to point out sturdy momentum, collectively producing revenues of $589 million whereas every rising greater than 25% 12 months over 12 months. We additionally achieved stable generics efficiency throughout all areas with biosimilars rounding out the portfolio.”
He added, “Now getting into the Acceleration Part of our Pivot to Development Technique, we now have a transparent roadmap to proceed Teva’s transformation into a number one biopharmaceutical firm with an anticipated 30% working margin and right now have introduced ~$700 million web financial savings by 2027. We’re accelerating progressive development and strengthening our generics enterprise, whereas streamlining our operations, sharpening our enterprise and optimizing processes. With these outcomes, we’re revising our 2025 outlook and reaffirming our 2027 targets.”
Revealed by Globes, Israel enterprise information – en.globes.co.il – on Could 7, 2025.
© Copyright of Globes Writer Itonut (1983) Ltd., 2025.
