Teva Pharmaceutical Industries Limited (TEVA) Bundle
A Brief History of Teva Pharmaceuticals
Company Overview
Company Overview
Teva Pharmaceuticals, established in 1901, has grown to become one of the largest generic drug manufacturers in the world. The company operates globally, with a significant presence in the United States, Europe, and emerging markets.
Recent Financial Performance
As of January 31, 2024, Teva announced a projected revenue of approximately $12,315 million for the first nine months of 2024, reflecting an 8% increase compared to the same period in 2023. In local currency terms, the revenue growth was reported at 10%.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenues | $4,332 million | $3,831 million | 13% |
| Net Income (Loss) | ($390 million) | $77 million | N/A |
| Gross Profit Margin | 49.6% | 48.1% | 1.5% |
| Operating Income (Loss) | ($51 million) | $344 million | N/A |
| R&D Expenses | $240 million | $253 million | (5%) |
| S&M Expenses | $626 million | $574 million | 9% |
| G&A Expenses | $298 million | $268 million | 11% |
Geographic Revenue Breakdown
In the first nine months of 2024, Teva's revenue by segment was as follows:
| Segment | Revenue (in $ millions) | Change (%) |
|---|---|---|
| United States | $6,060 million | 11% |
| Europe | $1,265 million | 10% |
| International Markets | $613 million | 4% |
Cost and Expense Analysis
Teva's gross profit for the first nine months of 2024 was $5,943 million, leading to a gross profit margin of 48.3%, up from 45.9% in 2023. This reflects a focus on cost management and operational efficiency.
| Expense Category | Q3 2024 (in $ millions) | Q3 2023 (in $ millions) | Change (%) |
|---|---|---|---|
| R&D Expenses | $240 million | $253 million | (5%) |
| S&M Expenses | $626 million | $574 million | 9% |
| G&A Expenses | $298 million | $268 million | 11% |
Debt and Financial Obligations
As of September 30, 2024, Teva's total debt stood at $18,980 million, a decrease from $19,833 million at the end of 2023. This reduction reflects ongoing efforts to manage liabilities effectively amidst fluctuating market conditions.
Future Outlook
Teva's strategic focus remains on its "Pivot to Growth" strategy, which includes divesting non-core assets and investing in high-potential therapeutic areas. The company plans to complete the divestiture of its API business in the first half of 2025.
Shareholder Equity
As of September 30, 2024, Teva's total shareholders' equity was reported at $6,383 million, with a breakdown of ordinary shares and retained earnings as follows:
| Equity Component | Value (in $ millions) |
|---|---|
| Stated Value | $58 million |
| Additional Paid-in Capital | $27,860 million |
| Retained Earnings | ($14,956 million) |
| Accumulated Other Comprehensive Loss | ($2,769 million) |
A Who Owns Teva Pharmaceutical Industries Limited (TEVA)
Major Shareholders
As of 2024, the ownership structure of Teva Pharmaceutical Industries Limited (TEVA) includes a mix of institutional and retail investors. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage |
|---|---|
| BlackRock, Inc. | 7.4% |
| The Vanguard Group, Inc. | 6.9% |
| Wellington Management Group LLP | 6.2% |
| State Street Corporation | 4.9% |
| Invesco Ltd. | 4.5% |
| Other Institutional Investors | Approximately 30% |
| Retail Investors | Approximately 25% |
Institutional Ownership
Institutional investors hold a significant portion of Teva's shares. As of early 2024, the total institutional ownership is reported to be approximately 70%. This indicates a strong interest from large investment firms, reflecting confidence in Teva's market potential and recovery strategies.
Recent Changes in Ownership
In the last quarter of 2023 and the first quarter of 2024, there have been notable changes in ownership. BlackRock increased its stake by approximately 1.2%, while The Vanguard Group slightly reduced its holding by 0.5%. This shift indicates ongoing adjustments among institutional shareholders in response to market conditions and Teva's financial performance.
Board of Directors and Executive Ownership
Members of Teva's board and executive management also hold shares in the company, which aligns their interests with those of shareholders. As of September 30, 2024, the executive team holds approximately 1.5% of the total shares outstanding. This ownership structure is intended to foster a culture of accountability and performance-driven results.
Market Capitalization
As of early 2024, Teva's market capitalization stands at approximately $10.1 billion. This valuation reflects the company's stock performance and investor sentiment, influenced by its recent financial results and strategic initiatives.
Stock Performance
Teva's stock (TEVA) has experienced volatility, trading between $7.00 and $12.50 over the past year. As of the latest trading data, the stock is priced at $8.50. The fluctuations in stock price are attributed to various factors, including market trends, earnings reports, and the competitive landscape in the pharmaceutical industry.
Conclusion of Ownership Structure
The ownership structure of Teva Pharmaceutical Industries Limited is characterized by a diverse range of institutional and retail investors, with significant institutional stakes reflecting confidence in the company’s future. The continuous adjustments in ownership percentages among major shareholders indicate a responsive investment strategy aligned with market dynamics.
Teva Pharmaceutical Industries Limited (TEVA) Mission Statement
Company Overview
Teva Pharmaceutical Industries Limited is a global pharmaceutical leader specializing in generic and innovative medicines. As of 2024, Teva operates through three primary segments: the United States, Europe, and International Markets. The company employs approximately 37,000 people across 58 markets, focusing on advancing health outcomes through scientific innovation and quality medicine delivery.
Mission Statement
Teva's mission is to "improve the health of patients by delivering quality medicines through innovation and a commitment to excellence." This reflects their dedication to the development and distribution of affordable medications that enhance patient care globally.
Financial Performance
For the first nine months of 2024, Teva reported revenues of $12,315 million, an increase of 8% compared to the same period in 2023. The gross profit was $5,943 million, representing a gross profit margin of 48.3%.
| Financial Metrics | 2024 (Nine Months) | 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| Net Revenues | $12,315 million | $11,389 million | 8% |
| Gross Profit | $5,943 million | $5,230 million | 14% |
| Gross Profit Margin | 48.3% | 45.9% | 5.2% |
| R&D Expenses | $751 million | $726 million | 3% |
| S&M Expenses | $1,891 million | $1,726 million | 10% |
| G&A Expenses | $859 million | $870 million | -1% |
Strategic Initiatives
Teva's strategic initiative, referred to as the "Pivot to Growth" strategy, aims to enhance its innovative pipeline and streamline operations. R&D expenses accounted for 6.1% of revenues in the first nine months of 2024, a slight decrease from 6.4% in the previous year.
Revenue Breakdown by Segment
The following table illustrates the revenue breakdown for Teva's segments in 2024:
| Segment | Revenue (2024) | Revenue (2023) | Change (%) |
|---|---|---|---|
| United States | $6,060 million | $5,465 million | 11% |
| Europe | $3,749 million | $3,493 million | 7% |
| International Markets | $1,802 million | $1,750 million | 3% |
Recent Developments
In January 2024, Teva announced its intention to divest its Active Pharmaceutical Ingredient (API) business, aiming to align with its growth strategy. The divestment is expected to be completed in the first half of 2025.
Market Position
Teva's market position as a leader in the generic pharmaceutical sector is bolstered by its extensive product portfolio and a strong commitment to R&D. In the third quarter of 2024, Teva launched the generic version of significant branded products, including Abraxane® and Vyvanse®.
Challenges and Outlook
Despite growth in revenue, challenges such as increased competition and legal contingencies remain. Teva recorded a goodwill impairment charge of $600 million in the third quarter of 2024, indicating ongoing pressures in certain market segments.
| Legal Provisions | Amount (2024) | Amount (2023) |
|---|---|---|
| Legal Settlements | $450 million | $314 million |
| Goodwill Impairments | $600 million | $0 million |
How Teva Pharmaceutical Industries Limited (TEVA) Works
Company Overview
Teva Pharmaceutical Industries Limited, a global leader in generic and specialty pharmaceuticals, operates in various segments including the United States, Europe, and International Markets. As of September 30, 2024, Teva reported total revenues of $4,332 million for the quarter, marking a 13% increase year-over-year in U.S. dollars, or 15% in local currency terms.
Financial Performance
In the first nine months of 2024, Teva's revenues reached $12,315 million, an 8% increase compared to the same period in 2023. The company reported a net loss of $1,684 million during the same period, compared to a net loss of $1,082 million in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Revenues | $4,332 million | $3,850 million | $12,315 million | $11,389 million |
| Gross Profit | $2,148 million | $1,851 million | $5,943 million | $5,230 million |
| Net Income (Loss) | $(390) million | $77 million | $(1,684) million | $(1,082) million |
| Earnings (Loss) Per Share | $(0.39) | $0.06 | $(1.26) | $(0.91) |
Segment Performance
Teva's revenue generation is segmented into three primary regions: the United States, Europe, and International Markets. In the third quarter of 2024, the segment performance was as follows:
| Segment | Revenues | Segment Profit |
|---|---|---|
| United States | $2,225 million | $748 million |
| Europe | $1,265 million | $373 million |
| International Markets | $613 million | $109 million |
Research and Development
Teva continues to invest in its research and development (R&D) initiatives, spending $240 million in Q3 2024, a decrease of 5% compared to Q3 2023. R&D expenses for the first nine months of 2024 totaled $751 million, which is a 3% increase year-over-year.
Debt and Liquidity
As of September 30, 2024, Teva's total debt stood at $18,980 million, down from $19,833 million at the end of 2023. The company’s cash and cash equivalents were reported at $3,319 million, up from $3,226 million at year-end 2023.
| Debt Metrics | Amount |
|---|---|
| Total Debt | $18,980 million |
| Cash and Cash Equivalents | $3,319 million |
| Financial Leverage Ratio | 75% |
| Average Debt Maturity | 5.5 years |
Legal Settlements and Contingencies
Teva has incurred significant legal settlements, amounting to $450 million in Q3 2024, compared to $314 million in Q3 2023. The total legal settlements and loss contingencies for the first nine months of 2024 reached $638 million.
Market Position and Future Outlook
Teva's strategic focus includes a pivot towards growth, with ongoing collaborations and licensing agreements aimed at expanding its biosimilar and specialty drug portfolios. Notably, Teva entered into a licensing agreement with mAbxience for a biosimilar candidate, with potential milestone payments totaling up to $320 million.
How Teva Pharmaceutical Industries Limited (TEVA) Makes Money
Revenue Breakdown
Teva Pharmaceutical Industries Limited generates revenue through various segments, primarily in the United States, Europe, and International Markets. For the nine months ended September 30, 2024, the revenue breakdown was as follows:
| Segment | Revenue (U.S. $ in millions) | Percentage Change (2024 vs 2023) |
|---|---|---|
| United States | $6,060 | 11% |
| Europe | $3,749 | 7% |
| International Markets | $1,802 | 3% |
| Other Activities | $703 | 3% |
| Total | $12,315 | 8% |
Product Revenue
Teva's revenue is significantly driven by its generic products, specialty pharmaceuticals, and over-the-counter medications. The following table details the revenue generated from major products in the United States for the nine months ended September 30, 2024:
| Product | Revenue (U.S. $ in millions) | Percentage Change (2024 vs 2023) |
|---|---|---|
| Generic Products | $2,924 | 18% |
| AUSTEDO | $1,124 | 38% |
| COPAXONE | $179 | (20%) |
| AJOVY | $144 | (6%) |
| ANDA | $1,134 | (4%) |
| Total | $6,060 | 11% |
Cost Structure
Teva's cost structure includes significant expenses related to research and development (R&D), selling and marketing (S&M), and general and administrative (G&A) costs. For the nine months ended September 30, 2024, the costs were as follows:
| Expense Type | Amount (U.S. $ in millions) |
|---|---|
| R&D Expenses | $751 |
| S&M Expenses | $1,891 |
| G&A Expenses | $859 |
| Total Expenses | $3,501 |
Financial Performance Indicators
Teva's financial performance indicators for the third quarter of 2024 showed a notable increase in revenues but also reflected ongoing challenges with profitability:
| Indicator | Value (U.S. $ in millions) |
|---|---|
| Revenues | $4,332 |
| Gross Profit | $2,148 |
| Operating Income (Loss) | $(51) |
| Net Income (Loss) | $(437) |
| Earnings (Loss) per Share | $(0.39) |
Debt and Cash Flow
As of September 30, 2024, Teva had a total debt of $18,980 million, down from $19,833 million at the end of 2023. The cash flow generated from operating activities during the third quarter of 2024 was $693 million, reflecting improved operational performance:
| Financial Metric | Value (U.S. $ in millions) |
|---|---|
| Total Debt | $18,980 |
| Cash Flow from Operations | $693 |
| Cash and Cash Equivalents | $3,319 |
Market Trends and Strategic Focus
Teva is focusing on its “Pivot to Growth” strategy, emphasizing the development of innovative products and biosimilars while planning to divest its API business. This strategic pivot is expected to enhance its market position and improve profitability over time.
Teva Pharmaceutical Industries Limited (TEVA) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Teva Pharmaceutical Industries Limited (TEVA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Teva Pharmaceutical Industries Limited (TEVA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Teva Pharmaceutical Industries Limited (TEVA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.