TEVA Teva- Pharmaceutical Industries

Kevin Mannix Senior Vice President, Head Investor Relations
Kåre Schultz President & Chief Executive Officer
Eli Kalif Chief Financial Officer
Brendan O'Grady Head, North America Commercial
Umer Raffat Evercore
Greg Gilbert Truist
Elliot Wilbur Raymond James
Ami Fadia SVB Leerink
David Risinger Morgan Stanley
Nathan Rich Goldman Sachs
Jason Gerberry Bank of America
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.

Ladies and gentlemen, thank you for standing by. Welcome to today's Teva Fourth Quarter and Full Year 2020 Financial Results. At this time, all participants are in a listen-only mode. There will be a presentation followed by question-and-answer session. [Operator Instructions] I must advise you that this conference is being recorded today Wednesday, the 10th of February, 2021. to Mannix, conference of Senior like speaker to Investor now Kevin today Vice would hand over the your Relations. I President, Head ahead, go sir. Please

Kevin Mannix

Thank the today's GAAP Executive Kåre and measures to in review begin XXXX this ago. the available today's earnings Schultz, of call website as copy as and performance, recent financial supplementary the certain year of Management joining We the GAAP measures full hope evaluate its provides one of and going SEC. to meaningful everyone internally on note presented Teva's you, on uses of in hour non-GAAP the be an an business. measures the in operations facilitates company's A slides our financial quarter release can results. thank To financial a and at management that presentation. Teva's trends. priorities release being opportunity evaluating found is which release the had call measures to Chief issued to overview and non-GAAP provide Please fourth year believes of forward. disclosed the Officer today press today's by as both discuss for quarter discussion will full our and Further of understand defined performance non-GAAP you've financial on includes Sharon operations and call our non-GAAP copy us inclusion results information fourth by well analysis you the and was manage reconciliation to investors A better measures events, and financial company's

more providing will Financial results the overview Teva's outlook. detail Officer, Eli of then review Our financial XXXX Chief before an Kalif in

Brendan Head one Kåre, run that call presentation. the with available if you hour. Eli will Teva's that, Kåre please. I'll North call call session to who Commercial the will be approximately now question-and-answer today's would the the Kåre. Please O'Grady of note during America will turn today is that Joining and on follow And over

Kåre Schultz

welcome and review will I'm our we'll review XXXX thank call financials that and and Eli for have we key will for and all report in our Kevin of Thanks this time our key then very guidance. happy your everyone business Teva. then interest the to components of highlights I some financial you to met Q&A.

above $X.XX seen billion. at billion our $X.X you've EBITDA came $XX.X and the came non-GAAP and EPS operating $X.X As revenues The free at income $X.X in the cash at at billion, our the guidance in slightly flow non-GAAP non-GAAP came at billion. in

side, On things happen. of the business important a lot

of the minimal mention protect for doing also continue I'd and was to I'll supply the successful the chain treatment. do with You And first the employees. pandemic our and navigation XXXX get HIV treatments by utmost and the able the protect to pandemic so could our and for the by but Truvada overarching say AJOVY, very launch thing we product were versions disruption AUSTEDO, successful on like We slides programs TRUXIMA the COVID-XX back the company the following to our of R&D and Atripla by to of employees. our launches.

by So, launch. generic us the fourth successful generic those were products of launched US, in very versions a in quarter the

for we also results very our we generic. are Phase this We to complex with the the We're LAI. also launched in and got a Risperidone very approval happy just have III from pleased US NuvaRing

ready-to-use with subcutaneously thin product really suffering needle. a from patients better long-acting don't is reconstitution. this don't injected need to product, they long-acting know therapy. where a have schizophrenia they Where you problems have injections As intramuscular have And by

suffering people compliance improve convenience will hopefully from with strong for it benefits schizophrenia. and So,

the in people next US other We we their also move portfolio from of diseases suffering launched can very the these respiratory portfolio that asthma and whole then times to slide, treatment their European strange to sales from holding in can compliance hit you we pandemic improve outcomes. in lockdowns Digihaler products of comments in form XXXX bar, of revenue and unexpected of to extra health are we benefit to that help If give green the as e-health patient in level just sense the treatment the happened Digihaler, and the with I'll did and optimistic development. the we Europe. as Digihaler the have the a you And our QX a few had there see first year the in the the

was then QX, very give the lift We quarters, no up on also back So there. first going QX. And we Atripla. AUSTEDO the pretty of keep keeps changes have I'll as we the you were steady expect our in of in in If to the we had it basically rate We we than a saw And and do. see in in Truvada in move coming basically the and per of you And in normal same see strongly. then to lockdowns Europe would basically didn't the revenues slide, at launch the sold rest of QX. then In sort dramatic as over hard in over $X comments the And came XXXX. swings. And we $XXX the growing next the the we growing from strongly, that sort from few less we normalized AUSTEDO. to of XX% €XXX quarter then as guidance. US, at run year million And of the million XXXX didn't around we a Europe we business end will same Europe. normally the billion in our quarter. had more increase have

need dyskinesia. huge We the in in I we There's a medical in is And good of potential. good growth mention unmet have AUSTEDO tardive when talk sales. growth huge always what our prescriptions, form about the a

then from We be tardive see numbers the medical are the patients will of course surface dyskinesia. of estimating you around in US, one the tardive can everybody XXX,XXX we as if and But times. at needs the not competitor, all that scratching from dyskinesia only our and at we people treated meeting in suffering from only suffering numbers have you look are our patient

for a story next due power, an reason, roller to the not bit that If a I'm have launch. optimistic So years. a did had really then auto-injector. And the that continue then that could will fact competitive we US. have also say for you AUSTEDO we in AJOVY good lost the in We grow we the of move coaster coming to to we slide,

got launched we delayed were share And think down wise. I saw and best-in-class that then we very product easy launched both around use. better device, auto-injector, competitors with which with meant into an high-quality all Swiss XX. two of capture Then really that go new you XX%. XX We better auto-injector. you is share way our to finally an rate Our if which from the a regulatory to combine back NBRx our And NBRx

a this competitors. a efficacy, where market. in of of of and In do longer that duration combine longer better to we countries clearly and have fact high-quality action one-third by have the a the efficacy some already auto-injector. capture And launched longer bit. with duration aspiration getting we we of unbeaten long-term and action, convenient rate of US we many with And than way the duration of action our the you by If the have cannot see the any can AJOVY the monthly are that to a and where saying be unsurpassed due that increase And the potential of saying have launched since XX% that of where I've terms ambition the the in of early, both market. I market. quarterly the would And in upping I market in very I'm actually that's don't really we sort quite happy we with now think fits been and offer very get well close now. of countries I'm having optimistic launch the one-third the Then therapy. share. about of of we the for we that to some device the Europe why

say prove some penetration the to If last market been disappointment future with generic the many cornerstone about say ourselves to TRUXIMA, share could the prove the we has I've of remember talking a here, of you a US you get years. had to our presence had probably the overall on AJOVY. space. the that because could on slide, launch biosimilars that So to you over move been for five we good XX as the then biosimilars development share. could in for rate market we And There next in of good we

we can that TRUXIMA, I share. have the think proven with we get volume

think will to to next months. don't that increase. market have We think There's in XX% we I I share are that XX% up now. XX% we do a can from we the sustainable competition now. more XX go But

portfolio have slide. and it. very the expand which biosimilars, business We of also future a we actually And on is in very optimistic a think us. I'll market share this already. broad benefits we But have originator. next about solid for competitors good It's can two our the address We the we're

of waiting course ready biosimilar you you our Hopefully, has approval products, for us committee competing look I submit now can sometime product at pipeline advisory course, by them if pipeline, we broad get we years. specialty the and can fasinumab, that mention have very can and also that XX for So outcome here year. to you for then biosimilar half of see here submission overall a the with very many the PO up. tanezumab developments, can good And it are see made be getting of to we're in-licensing of Risperidone which very business for and a about we're next the there. see with what in will coming we and that came coming we excited launch own half this Alvotech we LAI, think internal an also them roughly we're

it file to with see be won't following Regeneron, all give hoping happens. thereby a slide there I improve and our we be of our exciting can margin partner you increasing the broad have details strategy our cornerstone but and the this product can and next then to see that that more operating cost portfolio of what we closely our terms and So biopharmaceuticals to year. biosimilars. will together And another comments margin. both any we'll efficiency gross in to the move If our manufacturing is of continuously we

what I've won't we're under mention I these two doing. elements. you sub these want to five things more It's not you you rocket we're when X,XXX science. projects sharing operation. than where to what about and do talk where before. manufacturing just you see clearly Now you improve I'll about your it all talked really categories. It's It's can with

the you happening is by chain and On the is And show reducing distribution overview times how the critical. number consolidation all of of manufacturing the minute say and manufacturing in course warehouse vaccination being your from we like Getting fast a support move course here not all Israel are in program based the the last to vaccination slide gone in playing we the of sites, years the you we'll been that here and of the IT that. logistics. promise that to by is XX Israel you next you at remaining able increasing vaccination around our the manufacturing supplier your the to on where we're I'd logistics and chain very into network we've use for can are to a securing that over securing supply Teva thereby manufacturing the chain given about I'll our the supply we've consolidation side, everything of chain I centers concentrating give have then and state patients but smart you company on COVID-XX that And and supply see the into very look could both developed the in critical. to Israel just products. the increasing supply just from benefits there. XX to scale the to and airport chain, give volumes. role And And stopping we effect the process into mention continue the all also reviewing XXX a from short happy on supply the doing has we key a three also vaccines sites What that's been its and sites If manufacturing sites. in

to us As bottom XX on reduction even that sites. XX at up you And that have additional either we more can a have sure examples. down divested for we have or can course I'm consolidation. the sets see different where they sites of later here announced And closed. will And be do we we then

Japan, Serbia in and such recently so Thailand, as divested have countries We on. Russia,

smaller sites So it's concentrating the you efficiencies. of manufacturing we lot and can slide. on and And that on getting a that thereby are see volume closing sites better the our bigger next

operating from COPAXONE operating development And you showing margin. the And can XXXX on consequence high how margin a basically which product. as our to the you XXXX a very you then fighting way are the I'm Here revenue back. negative of we was see can see loss of

that's end Moving from we at The XXXX target midpoint XX.X%. and guidance up firmly a this our are XX.X% to. the And in XXXX. 'XX long-term target for is committed operating to in margin of our XX% year XX.X% is of

firmly can our are committed and can I some you joined billion. then by slide next QX, you see see the XXXX we debt another net the in the have now to If until development where that development reduced we in $XX since company debt to the this reduction move you

here. You to financials could little denominated has should little We're current down the secure side And actually full adjustment to gone years, euro has And continue to the our an of our and raise order at a contribution XXXX. which is to the as there's last going in for shareholders some long-term business. flow again a our slowed quarters you number earnings debt to reduction the led here which three are of Apart last -- repeat want down ESG up The bit, three we And we the forward. the two no I'm debt course see it up cash little then margin debt the from income the to a If currency only in last is equity. will any we to the XXXX. don't course my than debt-to-EBITDA net of XX% circles. that's flat But graph reason remark that round on that change converted for have of dollar moved has use these We that increase green firmly strongly why debt. targets. but design, in slide. in to pick slide happy financial here the to the times. And operating slide here warming cash we to will, benefit which that next said more course, the of the pay to which I've end our below three improvements plan say XX% committed a the get move

have a to E the you. gases I to all I our comment our piece. greenhouse by show on like want on things so doing. just slide emissions I targets. we're on which the great to the won't last XXXX environmental I'd ESG, to review one-third. is picked focused Now cut briefly just speak long-term I One

us and together waste companies in is use by all a the project secure renewable with the material problems minimizing efficiency that both this a lot energy industry focused on reducing to to across of one pharmaceutical and then risk to a the continued also and we industry. the we focused the ensure of waste won't sources. really in in have And of then pharmaceutical and happening with that energy do of discharge. -- we together basically last of resistant the other reduction and antimicrobial It's on have energy working is Another recycling the increase

the to to Eli like would hand will I review financials. this who with over So

Eli Kalif

guidance of XXXX will fourth my a and of to to all results followed Thank I will you assumptions behind with being focus an our you, Kåre my some it. I This afternoon on healthy safe performance. our main begin and non-GAAP important and introduction the financial XXXX. review quarter everyone. the good have morning hope by be and XXXX

a my your way, trends few of end regarding with most upon assist presentation. While expectations of forward-looking modeling. the you I around And our will to the come at XXXX guidance the discussion touch spots along will

were the supported start review of and regard sales strong the GAAP well XXXX, was $X.X XXXX. versus fourth especially, our in million net income XXXX per XXXX GAAP In QX our The operating and $X.XX while slide Atripla a share GAAP So XXXX Truvada of fourth on performance $XXX income totaling of generic sequential QX lower launch million the the take the GAAP US strongest income as strong to per successful $XXX a QX the compared We million Atripla quarter the continued with net of please third in billion, XXXX. year-over-year Truvada was same by in of the of level XX% Beginning quarter in was strength versus XX. and in up $XXX flat compared in improvement by benefited we assets share quarter The in million of of recorded of The TRUXIMA. relatively period to intangible AUSTEDO coupled $X.XX generic segments, of of all quarter with which operating a earnings this. of note America versus to performance. version as of income, XXXX. growth North from launches the GAAP mainly with and and impairment. the driven earnings revenues $XXX

XX. slide to Turning

adjusted of non-GAAP purchased $XXX of goods the that net GAAP were marketing. of included of remaining fourth adjustment see assets and million selling fourth the for these can million. intangible in $XXX totaling cost million items sold $XX and with being million largest in the amortization $XXX quarter took the Non-GAAP of quarter You through in income and XXXX EPS were XXXX which

of we of $XXX at for same per beginning This million guided quarterly the and the million that quarter it $XXX accelerated we assets in to the which US. Impairment in XXXX. too impairment depreciation the to fourth identified the amortization rights of quarter with be XXXX $XXX amount product of expect is range the of associated mainly $XXX XXXX, and with million in million was aligned totaled of

XX. performance. slide our non-GAAP to We'll Turning review

year QX sold versus which We non-GAAP focus $X.X quarter mentioned of to fourth non-GAAP $XX.X a my of launches The due As beginning in was operating XX.X% XXXX, margin operating gross per quarter were was in the as quarterly increase XXXX. the was as at disciplined due due in fourth to target versus and strength XXXX billion was cost to the ended was generic compared operating to and XXXX. the launches compared fourth XX.X% flat the $X.X to gross quarter lower the The the the of Full X% with profit X% QX XXXX. billion, strong $X.XX, XX.X% non-GAAP the margin Non-GAAP fourth of aforementioned revenue decline of compared XXXX the Atripla year to gross increase continued growth earnings tax fourth quarter reduce profit revenues profit XX.X% versions on quarter to the the cost XXXX to Non-GAAP The structure. of versus higher income compared an our of of in XX.X% in I mainly annual The profit compared margin AUSTEDO XXXX. increase remarks, the of part our of Full and of was fourth as an in XX.X% share XX% our well and in year approximately was mostly US. non-GAAP a to XXXX, quarter the in rate. fourth to $X.X quarter was XX.X% operating XXXX. margin quarter XXXX. full long-term compared full in was XXXX. billion fourth quarter in year-over-year an due of of year of full our financial of year flat XX.X% Truvada the efficient margin XXXX gross our XXXX non-GAAP non-GAAP billion, to of XXXX goods efforts US increase in the was generic continued of of

the end For full increase the of share was $X.XX earnings our $X.XX XXXX per above $X.XX, year full compared XXXX year the and guidance. high to non-GAAP of XXXX, an

a take for decrease in We active modest had it Now than contributed overall see you year. operational lower a also goods can decrease that straight for of our moment of a to discuss lower related Lower our in the but million the third spend half our to sold was due cost expenses a global base. the well spend base Slide -- year management let's expenses. we declining more operating the annual fourth our to due to partially to of declined the quarter, declined full the on efforts operating On based $XXX to sales spend ongoing our to annual as ongoing transform network. XX,

to integration continue procurement to This by excellence, the of at to supply line further ahead operational margin XX% Looking expect our base XXXX efforts reduce goal operating the ultimate network goods due with quality being end-to-end lead but the decline, improvement model mainly gradual to operating and the we operating and cost of in XXXX, agile organization. to in sold spend overall a XXXX. our pace margin increase to ongoing growth through cost end along chain restructuring, will excellence, more and effort of top optimization an

slide assets Teva's million in was a as QX keep benefit one-time high the XX. was XXXX QX $XXX Now an unusually in to sale million mind, when in on flow transaction. interest rate well considering of XXXX XXXX. QX free decline due cash that flow as free versus cash to $XX year-over-year $XXX from Please turning swap million mainly

quarterly large the versus I'm years. done we in cash which full team cash which experienced year full free was free XXXX, flow $X.X the very work flow, previous year was in to XXXX. the has swings had our flat For minimize pleased our with billion,

results fairly quarterly As cash were consistent free XXXX. the you throughout can see flow here,

to XX. Slide Turning

Despite our higher of cash to unchanged, by for was full least earnings long-term in full flow are Our drop, goal of the track XXXX. was versus was year XX% cash cash to XX% versus at net for XX% end to XXXX. earnings but a achieve XXXX million XXXX year on $XXX we free XXXX year income as

versus our foreign Slide to by million on exchange was which $XX.X outstanding debt $X.X during a $XXX billion reflects in This billion debt offset billion XXXX. to Turning partially $XX.X repayment declined of XX. impact. Net XXXX, negative

Our times the of X.X versus net debt-to-EBITDA at X.X times the end at XXXX. end XXXX was of

very pleased progress are of with than XXXX. We X overall to the each to been our the under target ratio have by we lower year net long-term the end load debt debt-to-EBITDA of times closer our making bring

Looking cause ahead to XXXX, classified it will be senior senior to the under another year convertible that the balance were on on debentures able debentures Due short-term of settlement and X.XX to redeemed these debt the the of $XXX convertible net reduction redeem of sheet were date. totaling were a debentures debentures million share $X.X billion feature XXXX including Teva February our 'XX. debentures the debt. Holders Xst, at convertible to on are convertible

for having the will we repayments years later refinance bond liquidity for XXXX, next maturities As flow before including have and two expected stated cash our cover to XXXX. on since

for operating lowered mid-point million range of from guidance the the look the XXXX our the of earnings here to as original development XX. slide XXXX the present full year start let's at on Now and end at guidance of guidance up the while as of share. revised November well versus bringing revenue the our performance bottom the by income, EBITDA issued per where compared We and guidance the we XXXX $XXX results

pandemic. overall employees main these global towards to us that our very to well targets. financial of make of uncertainty the challenges the Despite by world as to allowed continue the with We was especially created given performance the our our XXXX, XXXX are the the in long-term as components outlook progress around five meet pleased efforts

our attention outlook first non-GAAP today. Now we the time are which XXXX let's our for to turn introducing on

the Here Revenue, cash key including on share as slide free and main XX, as income, EBITDA, five per you our operating expected revenue earnings will well products. for components additional flow outlook. range find the of components

despite significant we in face of its in made our with continue extremely revenue, pandemic I especially billion range customers XXXX reflects we With the the the partner world million an patients. XXXX. anticipate the site. The mentioned, note just the mind, And revenues to effect. was effective environment along overall begin from Japan divestment our with billion. $XX.X As in purchasing by amount and to the Please this manufacturing of XXXX utilization throughout virus, the XXXX products February July progress company of to evolving hard to battle which to of global industry for spread expect our expect the navigate and larger XXXX around between by we on announced and generics become total $XX.X divestment be Xst, $XXX this in worked

million year. offset sales We by have billion during to $XXX to XXXX. this in revenue, more decline a generic later COPAXONE should by The global of the XXXX than [ph] expected the expect our factored COPAXONE ongoing approximately of growth guidance continued third of approximately AUSTEDO into erosion to which the the in entrant we expected AJOVY. US decline decline is $X.XXX year full due the majority and The be

and of expected the the X.X EBITDA offering expected be total we expect spend Europe patient Global grow between the are further $X.X years. to after our billion. our both in in We will operating AJOVY $X.XX base, is expected AJOVY share to in billion of approximately revenue modest be earnings is continued per out first dyskinesia bolstered million between GAAP a two And million. to begin $X.X million range to billion expect of $XXX income then continued count to momentum US a expected which in $X.X prefilled in by non-GAAP with to shares, benefit decline of expected disease billion. growth AJOVY be share to is to auto-injector Furthermore, both Huntington’s last device, $XXX $X.X With and approximately be XXXX. to a roll tardive annual AUSTEDO in to from April approximately $X.XX. to Using sales syringe

not sales As about are not earnings and with of share how helpful will quarterly swing we our year. expectation due we that to trends down see do I pandemic. expect big same both the last to when a do experienced on thought and guidance, it we know, thinking the to we the Based you but you the year, we up provide global saw throughout be today, progression both

approximately of that the XXXX, Overall, half. will fourth will second first for XXXX first in be and sales the XX% XX% the of year that pickup earnings, on we of quarter. with in our sales we expect the and lowest would second the be half quarter Looking expect generated the in gradual approximately quarter the

per XXXX come earnings assist you will flow to of and the color cash billion the first to Hopefully, half $X.X range approximately is $X half modeling. approximately will in XX% the year. with your expected share second of in XX% at free this billion. annual XXXX the For be of

about of expect of second normal of coming flow be annual a half to to in the XXXX. free bond to cash down first business. the the inventories first due generated half the annual in course This and of one-third timing is two-third to paid and quarter due be in unusual We generated the payments

to we was at below guided the In XX.X% was which originally our tax XX% to. looking range tax. XXXX, Lastly, non-GAAP the XX%

And full financial range to XX%. our of we the and XXXX, XXXX the results quarter to Teva's of As reviews we rate this to XXXX look once concludes be expect fourth again in and year guidance. XX%

Thank call you. We will the you for questions-and-answer. up now will if Operating, open please?


Evercore. of Raffat go Please Your Instructions] the today from from Umer Thank ahead. question comes you. [Operator first line

Your open. line is

Umer Raffat

us. be could which disclose Hi. than as on in there shed for now an reported taking would I you the trends that question. Thanks If guys on some any color be basis may, gastrointestinal you antibody noticed of light give much. very if quarter-over-quarter if sales going well all seems a versus CGRP tell IMS curious, what volumes as as Thank was in on my – to Phase on specialty bit seeing you I there's a a I more that? I we're could on it, pipeline there you what to is on seems us so your much

Kåre Schultz

the address one, then I'll for address first Thanks two last questions. those let one. and the I'll Brendan

pipeline. early the tell year on for about of color. specific We But Celiac you exciting a have We is disclose don't project really the a color we some disease then give give So you. on But that the I this can a it's pipeline, about can't lot. lot I all you our a and might that day pipeline, and where tell I until then you an project. focus that's now R&D more from can we'll

the So CGRP trend? on Brendan you will comment

Brendan O'Grady

to. happy Good Sure, morning.

So about share you're in I increase the with assume is what AJOVY. talking

kind have XXXX. that. prescriptions that, our you've I doubled assume you're revenue when prescriptions will follow seen looking the and As total at new of And basically over

a on you if savings market, of they're program patient if AJOVY. for may a product on So about the Oftentimes, time. gets a they and our period enter think that's the sample then given

through While the we process. authorization they work – prior while through the work

by XXXX. to bit, revenue so We'll a our lag in bit increased share So a and tends we've access XXXX. in continue do quite to

you Thank as revenue So is our that a share lagging indicator. that, you'll and see the continues as grow question. expectation but for the follow to rise,

Umer Raffat

Thank you.


next comes question Thank your Greg Please from ahead. from of Truist. Gilbert go line And the you.

is line Your open.

Greg Gilbert

melting cube in it you an you. past ice by business generic bucket. the is the the about and you that me ice I've calling of Thank Kåre, corrected more asked

accruals, can is based still point the sort that think question you and you'd settlement, to you. it or anything parties? close on Thank So from about stands different as states years wholesalers where have you is, settling, out other by opioid carving maybe, you secondly, you dependent And are cetera. opioids, biosimilars what out? on comments stable separately in discussions? my Do are you open its factors coming Teva perhaps, have? then, ways, any et like their And the getting other new evidenced do on a business in on seems that say over keep to And their of

Kåre Schultz

Thanks machines ice business for those ice the coming the cube would would well questions. These have working on say, out. question, where North American bar a more I a call ice you in two generic keeps I machine.

the It doesn't so get doesn't so within North think don't you the don't ice. And go I and have overflow, same the always way American you melt It ice. dramatically ice. you So lose business. from $X That's more maybe $X business for, it's swings in said years, really swing years a various America. natural it's launches, with factors. billion And I think, roughly the two quarter billion now, North a roughly away, three I've other

world's going RAND pricing -- have is have have the also than report worst the when recently, if history, lower great get that remark, Institute seen we in than U.S., at was of by not might we are times, which, generic back on conclude the were. I but discussion. least we We have more a forward. they as where doing resulting to pricing It just proven the where but U.S. Europe, cartel and Europe. that many being lower have lowest, world's have not prices this prices rigging business U.S. you that another lower So would do side a in once in they in generic in said confidence in the cartel it, going prices, there's in a I that's are accused in to is the issued interesting be the

it your question, -- about situation. leads also opioid now is litigation, but me For the about to other which

So, I close are to a think, settlement. that we

unfortunately, So, of companies together close for something I litigation. I've can in And space being said difference the there's pressure before, But and of you need are everybody between signed, other a final get some to finally. this settlements think, getting say the do involved we kind opioid and framework? in

due get year system the of still ago or of pandemic. course been I to legal moved a talking year have had then, about scheduled we've to all far, good for was at so point the And trials in was trial, maybe York just that the delays reasons, It's one probably due to And that probably New pandemic. COVID-XX since about delayed. the the

states people there event about line. optimistic an settlement. agreement, quarters, that I'm probably on that the due kind the reaching of coming for imagine really not It's the is includes still that settling Teva So dotted And that ways some everybody system optimistic the with in way do the then upcoming to and in still elegant means finally the is framework a settlement. both about gets With that the a right about the Thanks get will final to that of parts pressure not legal most think pandemic sign will the all course, be not regard different trials. you will to running. of to I'm return settling some a would I result very the subdivisions and from it, up pressure questions. it. that optimistic it. And we better so for really the can fact But, that timing, simply right best I'm framework now. the of see other as Hopefully, but


your And question Please line James. next Elliot the you. from from Wilbur go of Thank Raymond ahead. comes

open. Your line is

Elliot Wilbur

dynamics, Good versions product for realized talking direct XXXX? just just regarding of color, expectation there in we moved to on key specifically, seeing we're Follow-up trends and business, stocking just prescriptions? time. also -- I the for in what's Certainly give terms If Kåre seeing in time but just at the that if level we new of any based provide terms date? should must have Assuming any about here of of bit retail Obviously, wanted in launches morning. your this could Forteo to kind in some around the COVID-XX should into year, the what other Brendan, Good some Thanks. strong your of see in you headwinds the target American Thanks. strong us afternoon. demand, about additional We've pretty erosion, increase range be generic seeing quite about settlements thinking what vaccinations, launches And commentary trends into versus a of market EpiPen there's tie thinking little what in North been of and ask get XXXX. about be NuvaRing price product there's Restasis commentary some terms XXXX specifically to would wondering but some more that generics contribution? NuvaRing be unusually for volume, thinking there. that your around sort more you're And just new visibility launches versus

Kåre Schultz

two those questions. Thanks for

and American on give then, So, overall the that an question take on generics. will some details North Brendan I answer will you on also give the EpiPen. And

generics, steady the So form biosimilars, launches if you I analogy of complex effective we that that of to ice time cubes way machine an generics. go in And is, into flow makes say, the look machine, over it launches, we be new then a have I back symbol at of the ice can means this have it market.

and They every here they day. course, don't there. come come Of

we machine And adding on quarter in a sometimes launches all there's than basis, really another. an products time. more steady MAT the one But launching have revenue

We to at and or not also very melting ice They're have cubes the fast they compared they ice container how for cubes steady used melting very the are in rate. melting a the slow to.

I So don't we this they have saw in melted where really phenomenon. we XXXX And XXXX, think fast.

all that erosion. So what's we had they're melting not at big not it's either. That's price But really happening. not

doing for billion around I that on going growth, that specialty sold. the our see And billion. think then but level more Brendan, the on repeating why very to that of of normal the products going we in Europe oversimplifying keep I modest you EpiPen. generics products world, have and you erosion, don't as in the we the big billion. generic and $X and natural. launches give that don't business keep course, know, I And see US$ that to steady rest have details. of Brendan we're some we we'll we X have I billion more it's think on and on $X doing mark. from products that's $X in and enough that. And our see kind get keep I And So US it, Canada. and I price this. whole I a on the the But competitors is get balance will Over specifics this and I staying I picture. repeating growth think of generic in to

Brendan O'Grady

Kåre. Sure. Thanks

the XX, you there's launched XXXX, In but value to much couple generics launches, think products. business. we launches. So, those the both was And or about In of think a of think launched of the different. and number when about ways value XXXX, launches I products XX XX we of it's

a So, was us Truvada was led and for by XXXX good that Atripla. year and

launched already we've products. XXXX, about two think we As

We get complex of course launch, a up we possible But which then going have we're ones XX we're won't we we generics certain to year. to know launch. maybe of And eight preparing another all to are get. six that stable or we not have we're this of that will

I Kåre's ice machine So, like analogy.

I think relevant. very that's that

did for NuvaRing be I year. will out a January was we last had approval good. to year it to launch value be with a launch us. and so on It been have that the very think products launched ago is but that nice years this the going year should should two it We're a we still we market, what little this than would product more isn't it, to good late start -- that be

is exenatide As possible, there's we octreotide stable I for cyclosporine's a mentioned, and XX, think generics a It's XXXX, possible, as XX possible. rest is about complex about them of talked some of the teriparatide we've while. of is possible,

billion of products business where the with that can grow It kind and a those is in timing that comment. now, a agree likely some So, billion come And Kåre's all occur quarter and low-single-digits. And I working of, all they ebbs flows depending $X we launches. there there's in the we're FDA upon in with the those. of but $X launches

provides that for color hopefully more you. So,

On a for us. as EpiPen, significant revenue we're generator comment. and seeing that the still EpiPen product

injections. you're a be think I event. think some COVID-XX major that with right could of as the stocking necessarily there I But wouldn't that

I the that here slight think add to EpiPen boost could don't significantly that's going that to think that but there, a I be franchise. overall and

you So question. your thank for


you. Thank

of the comes go ahead. Leerink. line SVB Please Your from from question Fadia next Ami

open. is line Your

Ami Fadia

taking one Thank Hi, one I had main question. question. and then you the follow-up morning. good for

the drive years, coming rest with about growth to What of refocusing of about additional Europe doing pulls are we and the in product? you talk in you deleveraging about maybe think regards So the you couple just question the opportunities about terms and to how inorganic is your the you U.S. pushes of the on the or growth outside thinking comments as And then, do next of to Can over secondly, some as years? Thanks. any main R&D, think growth adding drivers about think world?

Kåre Schultz

two those Thanks questions. for

below So deleveraging get fully our as EBITDA. when presentation, net three are using to debt saw we to in and it times cash comes flows the the committed to reduce debt to you to then

Now already that that assets any we're not been mean it doing in-licensing. not does late-stage buying not maybe that any that and doesn't we're doing any early not not big that in-licensing are and we're R&D But mean buying so stage companies have we on. approved

And U.S. the Alvotech of biosimilar out the in-licensing everything works big value and if We big example however, are upfronts you dramatic And attractive. that. we our generate for but look with portfolio the means instance working is if not commercial well. big are, upfront, companies value. that that's that footprint for a good a together needed can where but of at that No

of we that kind the that's like. So deals

We also lot do early collaboration a leads. research early on

into products we development. early So our take

doesn't product until in XX or now market from the that lead course that. something to years like Of

growth the say, drive two basis. to would us big on moves will I So do expect next years to don't five additional that

anything not we will the doing reducing committed stay we We can ratio. which debt us do the because will be small big will to but in-licensing, help and net debt-to-EBITDA

again by We in the profit also do and we're was general. still we optimistic about the steady ever the last Europe second as have the in Europe Once of that On in last reported terms future growth Eli half we then year. in year Teva say very it see very in of could the of outside a absolute you U.S. We had XXXX. business. highest

in simply won't Europe. normal third volumes below that overall maybe back market would year couple see naturally means the a that situation. due still fact dramatically, Europe we completely lot think So to that we have market in were the where continue first lockdowns we the and for quarter, And the X%, of quarters And this in that get still to X% fourth the of Europe. in but in generic them will we the not

hospitals economy, to means patients some will see single and volume of of we the digit growth thing America, growth we that Southeast probably for half. summer we'll being in world, means in do launched. Japan, generic volume volume that value and see space a expect term, second then, are We our specialty see growth to Latin do higher the the Longer from see goes the course, see after that optimistic growth low return the Asia, the we more rest products And we Europe. also to that in And will same there. open China, full which European in doctors

in So on It's national AJOVY Otsuka. our We've for AUSTEDO to is drug reimbursement in launched be with China. Japan launched the instance just come partner list. together going

will expanding contribute with to are, world, around we which the U.S. So course, of also of AUSTEDO AJOVY, the growth outside also

see over to years. to single-digit for digit growth the expecting So, coming single overall, the two low we Thanks mid questions. are

Ami Fadia

Thank you.


you. Thank

line ahead. comes Your David next from from go of question the Morgan Risinger Stanley. Please

open. is line Your

David Risinger

the very thanks and much, Yes, on very congrats strong performance.

all could on So And been litigation my second, that there's flexibility financial payments? claimants? impressive. settlement. a two define bit discuss you you. obviously, questions company’s are to first, Thank more the been U.S. has how you that, color ensure provide Could covers the discussion cash little it please comprehensive that and potential company's Kåre, manage progress of you future a

Kåre Schultz

that for Thanks questions. or question those

don't flow that debt where we've around. been than any $XX as have So in basically have means more we we of situation we a first all, of have free lying cash course, just billion reviewing which

have. we framework are us agreeing generics. settlement, have not basically been That's what And course, paying and just in we've on means tomorrow based Of that, why it which that we $X that that providing, cash a providing, at with negotiating cash. this sheet the we mean capability but have the a on AGs kind billion is a is don't balance component good of doesn't the we can't state that's of in

are offering So And going in that, states we they can from on That who can of therapy are people Suboxone. the United use generic all with get lives Suboxone to they suffering to means States. substance provide generic for save abuse. the

help And then, to other of we And improve will of think good they abuse. companies the it are situation, can like contribute way doesn't the So be I we able the because American help forever. individuals, suffering think who litigation aware contributing thing situation. this that to forever, cash. it's settled, gets to We benefit And not we really that. of the will are that's that the have anybody discuss be from to substance but a can that people

of the there day, settlement of what it's of likelihood Of entity settle comprehensive company a be There's to framework will end it's its is that, course, to course has and with legal each And understood coordinated settling discussions the of at company Now, we But each done be on. is negotiations legal on so a like in the that its, would own. terms entity, on settlement? companies. five it technically, and own. is, a involves a everybody. But

and So beneficial think should the both, states, we that the be everybody. subdivisions be should that for possible,

states. in around people this table, all the the speak. off to get all thing start So helping so And

still I'm is that you, reason told that the solution. is I involved. the the key So the framework I'm as right on XX states pessimistic that And timing. have optimistic, a little And you for

have You lot involved. a companies of

lawyers claim involved. maybe have You X,XXX

it who So you get lot have be people for would everybody. a a together. needs But idea to of good

if this delivered. the the question. think, line it to finishing signed sealed I we get and and were over push Thanks framework for

David Risinger

you. Thank


you. Thank

from comes ahead. line Goldman Sachs. Nathan Rich, question Please go Your of the next

Your line is open.

Nathan Rich

for questions. Good the Great. morning. Thanks

about year, points I us seems next you have to stable several margins facility about, year? help generics the business. margin this improvement. gross wanted you think positive business with guidance of tailwinds for like the the specialty just It American rationalization, Eli, additional could about to basis kind maybe in First, of to thinking talked operating of XX dig you North kind grow, no how continuing a you're

of gross kind So I tailwinds? of or wondering, Japan know those why XXXX, maybe a there see wouldn't just in given too. improvement kind divestiture, I consistent we was more with there's margin

then, the what follow-up mind? that we guidance on -- the was had wondering, are operating of as a AUSTEDO, margins than the just And on, swing anticipated. factors should on stronger we So in keep kind

XX% I a implies of strong growth year. it very about year-over-year year this think off

by you of this see that to is that into one improvement? to gave? And talked to about you the I just led opportunities year ability AUSTEDO. factors to maybe And doc it, that Kåre, guidance started to where impacted the you the So that continue offices. do being know grow Have you get see

Kåre Schultz

for those Yeah. Thanks two questions.

on I with start then, margin. I'll think, the Eli AUSTEDO. question And you'll operating take

Eli Kalif


Nathan. Okay. for question, Thanks the

that Kåre So, if on trajectory in -- part slide you on the look the margin. on the operating his

plans. And XX.X% XX.X% looking heading from we when on last Moving actually to our the to actually and introduced XX.X%. XXXX really year,

You pivotal of can see for a that XXXX become kind year us.

So say the margin, in margin XX%. of I gross the will was OP XXXX over kind

we're Now we our flow the OP actually more the be kind a came heading of margin to XXXX And from to, usually about, margin what gross on think to more kind than we did XX-XX. should a point. you midpoint of one the one than less look okay, to year-over-year close really can XX.X%. they’re on point than actually And XX%, but we heading saying

forward need we going here elements looking remember the that the versus actually year. we to revenue of for is last midpoint One are on

OpEx worked divestment really you structures. that have we the the If really, sure make year What on in did to we Japan. cost we this heavily remove great

on forward on looking in some next to the terms that's for are mix supporting of bit higher percentage-wise actually would moving OpEx of and revenue a kind better We year.

OP. I how sales grow the to looking margin into the it support of kind it through actually But flow still and from on to actually direction can that the XX% and marketing with we're gross flip more than So say is activities. would looking and we other

So think that's it. you I way about think the should

Kåre Schultz

comment give the I'll give details you just then overall also if want. some AUSTEDO, Brendan on you So and can

basically, strong we've So we're the trend AUSTEDO. seen very on continuing

that that we all So or who there patients suffering need. quality time. important we and lot help tardive it's everyday of is the can we not get is unmet can And What their huge why is a from continue grow reason change. There's be believe they dramatic therefore, dyskinesia, on treated. big treated And a so being patients of here to out it medical can life. a see not the new coming the in are

course, hurdles our pandemic. Of with had the during face-to-face some communication doctors we've on

different expect tactically how the tactics. that And overcome also we keep will But We some on that we bit AUSTEDO to Brendan comment in can you will a of see little US? we've through maybe degree. do some on driving growth the that of

Brendan O'Grady

Sure. Happy to Kåre.

quickly where detailing it we We've and virtual physicians to not impactful to a field certainly prescription. state video to certainly of the to necessarily I will far But pandemic return been with as the detailing role. outset the guidelines at and it's as able allow. move face-to-face played a were as able in new-to-brand as So think and person generating local

continuing to with we're engage So physicians.

far About market. As tardive probably for unmet treated the XX,XXX in patients the XXX,XXX as that between talked the patients. patient dyskinesia about population is medical two products need the number today in the Kåre range of are

So it's a little more than X%.

XX,XXX about disease, And a of then patients little So are chorea there's still Huntington's. treated, have US XX,XXX with than XX%. of Huntington's, in Huntington's those only X,XXX you less associated significant with them opportunity about patients there's And about market. in about the when so with tardive the a associated chorea think

significant there's dyskinesia So disease. and tardive both opportunity Huntington's with still

the this our of we market, I improves scratched think have on pandemic surface greater we've go continue XXXX details being will really as just to the percentage through and a face-to-face.

certainly in and XXXX the we coming and both in from good AUSTEDO, years So out see upside XXXX some some good growth beyond.

the you for thank So question.

Kåre Schultz

think getting will to hour. we set last questions we now the the I because are of So take close


you. Thank

Please Gerberry ahead. from America. comes final of Bank Your of line go question from the Jason

Your line is open.

Jason Gerberry

Hi, for squeezing good me and thanks in. morning

role in play opportunity Kåre, an first distribution XXXX for there bigger So question just is vaccine I is in a my guess, distribution. to COVID-XX ANDA

not resolution bit with pending the could an that to more court follow-up potential this getting or a or there broadly? Is And to You stayed for civil we still parallel think, the DOJ stayed, anticipate the the the that case. are earlier talked in that, sort of civil Thanks. that then matters matter one-off, both opportunities question my matter these And legal I pertains Israeli suit, question the a little other fixing is, to the referenced it get experience. price available about know as is was DOJ balked the the attempt matters I of at but legal or proceeding there year? you

Kåre Schultz

two relatively Thanks I'll them for questions. briefly. those to answer try

right ANDA it in It's yes. helping question be or the capability that good it. are possibility, the to to ANDA. do first sure. play and now, With case so of a criminal did a near that that, to nationwide I other have judge or that how on safe doesn't it? The civil health denied ANDA pharmacy -- doing to where get there systems is reliable sense something have Israel, I'm know such on imagine vaccine whereas the help potentially we offering defendants, need We're location since a will as said Heritage actually Yes, we believe been that have not focus a care wrong, and any a way. imagine, in case, yesterday a the as they to on they the development, a we other definitely companies. regard already the to that front. they has can the in any it's to the you case, then waiting, role explaining we we make states know Teva, need have We some explained it in wrongdoing distribution and something if to you and to was going fixing there whether distribute you can there on for can any and DOJ civil price judge case But criminal and

and defendants judge agreed it then that And including is some said the not then because, companies. relevant into Heritage will that make done. and other be It the of in they other have wrong case. of some to will actually take time on it It Teva. we'll that the of has there's be means done much And won't could what And sense layman's think on be something it focus So, have criminal then, stayed I case have and on to case, how focus years. But companies coming us the dig focus the to in to its more the XX sense, forefront Teva. and that civil on different Teva term, see they've not case at over you then companies. that the course say focus will will develops that in the doesn't that will

two you for thank So those questions.

Kåre Schultz

I this, interest will And all for in very you Thank questions. thank think And with we you. your the end much Teva.


p.m. X:XX and conference Time on you. for today Thank be Eastern until this March, Standard XXXX. Xth replay gentlemen, Eastern p.m. from Tuesday, X:XX will Time Standard through Ladies available

access system access and participating. XXXXXXX. code again by You XXXXXXX. code replay That conclude the conference the remote number +XX-XXXX-XXX-XXX dialing access the using Thank for you may That for today. our +XX-XXXX-XXX-XXX is does entering

disconnect. all may You