Teva Provides 2015 Business Outlook

Teva Pharmaceutical Industries provides its current outlook for non-GAAP financial performance for the year ending 31 December 2015.

In an effort to enhance investor understanding of the company’s business performance, and to provide more clarity and transparency regarding its projections for 2015, the following assumptions will apply to the 2015 non-GAAP financial outlook:

• Compared to 2014, foreign exchange rate fluctuations are expected to have a $700 million adverse impact on revenues, while reducing operating income by a modest $60-70 million
• Copaxone 20 mg/mL is expected to face two AB-rated generic competitors in the US beginning in September 2015; earlier entry by generics could reduce operating income by $30 million to $50 million per month
• Continued adoption of Copaxone40 mg/mL in the US in 2015
• Copaxone 40 mg/mL will be launched in the EU and additional countries outside Europe commencing in the first quarter of 2015
• Generic Pulmicort will face additional generic competition in the first half of 2015, resulting in a decrease of revenues by $400 to $500 million and a decrease in operating profit of $100 to $200 million, compared to 2014
• The costs of equity compensation will be excluded from our non-GAAP results starting in 2015. The corresponding adjustment to 2014 is expected to result in an increase of $0.08 to 2014 non-GAAP EPS;
• The company expects to spend approximately $1 billion to $1.2 billion on share buybacks during 2015. As a result, the number of outstanding shares is expected to be 850–860 million.
 

“We are pleased with the progress we have made this year, which has created a strong foundation from which our business can continue to grow while delivering value to patients. We remain committed to utilizing our strong cash flow to return cash to shareholders and invest in long-term organic growth while maintaining the flexibility to engage in strategic business development opportunities,” stated Erez Vigodman, President & CEO of Teva.

“Generics remain at the heart of our business, both as the cornerstone of the Company, but also as an area that has great impact on society. At the same time, we anticipate four specialty product approvals and five submissions in 2015, which we believe will improve treatment options for patients, and add value for all of our stakeholders. As we look to the future, we will continue to deliver on our operational, financial and strategic goals to further explore the unique space Teva has at the intersection between generics and specialty, and increase access to healthcare to patients around the world."