TEVA Teva- Pharmaceutical Industries

Kevin Mannix Senior Vice President, Head of Investor Relations
Kåre Schultz Chief Executive Officer
Eli Kalif Chief Financial Officer
Brendan O'Grady Head of North America Commercial
Balaji Prasad Barclays
Gary Nachman BMO Capital Markets
Jason Gerberry Bank of America
Umer Raffat Evercore
Greg Gilbert Truist
Ronny Gal Bernstein
Elliot Wilbur Raymond James
David Amsellem Piper Sandler
Nathan Rich Goldman Sachs
Daniel Busby RBC Capital Markets
Call transcript
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Good day, and thank you for standing by. And welcome to the Teva Pharmaceutical First Quarter 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that, today's conference is being recorded. now today hand President, Kevin Investor would to conference Head I Relations. speaker your Mannix, Instructions] like the to over of [Operator Senior Vice ahead go Please sir.

Kevin Mannix

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

XXXX in will financial the our more including Officer, Financial Our Eli results Kalif review Chief outlook. detail, then

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

Kåre Schultz

you of all afternoon in. good and Good morning, dialing thank for to you

We to today QX financial highlights. XXXX solid have numbers to And present are we of presenting you. a set

billion, a see is and as Our came the result the in the at $X COVID-XX revenues given which pandemic marketplace. effects it having continued we in good

our and billion, line line come at with diluted $X.X are and what in non-GAAP EPS in seeing at our business. as in diluted again expectations $X.XX improvement the in the of our we meeting EBITDA at $X.XX adjusted expectations. see came We The GAAP EPS came in our with continued

the is that our And we had will but pay-down Eli We in now debt. and net later more some continue and the bonds to in details to on We debt US$XX.X reduced one outlook our XXXX reduce presentation. not period some you billion. reaffirm least, convertible on show last then

please. slide Next

I'd couple look quarterly and remind a like of things then Now, you when the that's if revenue, of take we a look back compare. happening been at to we

dark green a quarter normal run to European America see year significantly higher on $X and were than that of $X.X billion have they back the in last then in coming the We billion. billion But the in go around Europe. around if at you first rate you $X.X of normally numbers North

That products million was the QX of of $XXX Now level reversed related COVID-XX the hoarding year. to the start that last pandemic. patient in

billion. instead you to sort of the $X billion So Europe dropping see $X.X normal down of

and that a we of swing more challenging the of that have launch of course quarter quarter very the America. comparator the of Apart the ATRIPLA. cases see that, That from of second that successful our of first is generics the than the it was That's in XXXX. means quarter is the and you was fourth that couple XXXX quarter TRUVADA TRUXIMA both XXXX. of very really in North that's launch So numbers special successful factor in can XXXX in first also of and the

third good less first go that see kept in continued things the is the and this to underlying expect ease in we we see to for the move quarter to of go to in volumes year. hopeful but Europe fact result quarter, really here year those the to this Europe. next second people during If quarter return the to normal the fourth the the the slide, versus mind please. dip is the of This quarter quarter. simply people in year. first less the the the due million We to On of AUSTEDO, still in always doctor, the quarter. saw lockdowns $XXX first We first in in hospital, a do due volume So COVID-XX XX% reduced a of the last see increase sales of an XXXX. US lockdowns that we slowly We have

you of in see to and And of the where that XXXX can You also in that elements resumption quarter. script have quarter growth in the other and and of resets then consequence fourth typically the into once you in get third these and XXXX. happening second, deductibles US, volumes that's insurance system lead a lower a really first the

to We are this that see year. expecting also

We AUSTEDO, patient are growth quarter dyskinesia, prescriptions and the number. access also especially expanding this now of population. focusing to seeing availability tardive the more and future continue in of we to on XX,XXX than first We're see

but you tardive so patients delivering AUSTEDO fraction know XXX,XXX in a targeting this of targeting suffering population. not we to only from far dyskinesia US and actually there's around only or are As

we So in strong AUSTEDO months. coming a we this be will this that behind hopefully, of year. the the advertising DTC driver for will be And foresee starting growth further

continue regard see With our here, count. to you growth can in TRx we as see AJOVY, to a please. slide, Next

NBRx to small be rate of and scripts XX%. and Of seen pack an further the around million our in do a of in and first course we this do and North the to but total want seeking we quarter, a a coming sort development we'll sales it's in million variations America launched AJOVY strong of and taking in million convenience try of $XX year of who in underlying TRx number Europe. some higher $XX globally now right to we see working once uptick $XX sample And In new-to-brand is dosing hard months. by this the migraine are January quarter. therapy preventive which the so a our that offer for drive quarterly we just their and patients triple We've

majority now markets. at stage please. we European have in of Next a launched the slide, We're also where

launched growing. is markets. see can as from So the XX slide, we have now market now And in European European you this

last to grow. total basically it expect continue year the to have has market to we left You the and within doubled the

when launched, to a share. as expect it did we class grow. our in taking seeing in to share we growth been growing see not we this company are it's We in nice can But And launch We the that and start very, continue first very we Europe. steadily.

Germany, strong especially UK of have the other in positions We Nordics, some markets. main and

So on this over to regard market with target have time, I we our share. AJOVY, market last we I'll the years. have do still what repeat bullish said as an And that are of one-third a coming to just aim

sales to the Next slide, when showed TRUXIMA. you we of strong see nice very please. continue launched we we and on had effect TRUXIMA penetration I a

as have biosimilar up quarter are than the also the rituximab now on for market. the share And know, indication is has to the XX%. you of market, a point of our latest only an RA. This more we are we that We data

So continue that the be we strong we'll in years. a optimistic for coming are market very the to TRUXIMA position in

please. slide, Next

I'm nicely it for we've between novel portfolio, risperidone subcutaneously results people. molecules. as for long-acting be with better And is balanced this earlier for people very, discussed very got you from versions a see on need biologics novel we better a as or is we Our two such happy compliance LAI. improved And will especially This month that and risperidone. therapy different of small therapy good where these suffering schizophrenia dose and can to a beneficial biosimilars,

very filing market know coming as over some that launching of to AUSTEDO. from cycle next we life and and Apart the fremanezumab list biosimilars, hopefully So moving years soon both looking much and year. this for it the have into management very long a you exciting forward

slide, please. Next

the the you targets as sure, line, from and know, XXXX the loss going reason our the level we're is why end this I'm as XXXX out. of margin XX.X% in really key from also generic for down, XX% speak and One to is of down really Europe. at showing COPAXONE this of of US was probably the And where also around came down bottomed in the target our of XX%, in so set we've margin you it the targets, all on drove know operating And that margin. revenue long-term significant of the most our financial to The end year graph. that

to nice see a continue We improvement.

margin XXXX. on firm standing this XX.X%. an we And quarter an for still as are actual example of We target the had

Next slide please.

So financial XX%, here. talking three margin and operating times. not target cash income above new is to debt-to-EBITDA about for long-term They're earnings net completely the below unchanged. much targets XX% The

here. raise debt plan utilizing to to do to new still nothing and We're we committed flow So down cash pay equity. not

Next slide please.

only X, always access lot to our come and how Now at focused on ethics dedicating of environmental Teva transparency it. topics. we And our taking ESG encourage steps detail report our better reporting next soon the you and minimizing to are good can -- and we we on look and been actually to social out governance a what our it at both are medicines, this has more other how and are It will good report will I we are ESG very to how impact much we're in a doing. May on and actually getting been. take a of But always equity ourselves issues. explain at business We've is everyone's quality secure lot on next environment,

and Eli over us them whole here. see that, numbers. a coming it's shows our But report dedication week's who that give the of a time can will be out hand more some progress You With ESG. some will I strong in to details that will to long on

Eli Kalif

hope good with XXXX. to to great business a I comparing Revenue like from from as This as everyone. first impact of due AUSTEDO. by Thank well having to you the segment BENDEKA/TREANDA Revenues GAAP review the start and generic as in morning, was our when our America you, X% quarter was XXXX Kare, generics in first the distribution financial XXXX. year-over-year COVID-XX of COVID-XX in and as also well approximately Japan pandemic. performance. I decrease I our in on revenue revenue first XX, decrease COPAXONE mainly of segment to that North our would and note by higher billion, performance, included revenue totaling all respiratory XXXX. $XX sales OTC, from afternoon offset to significantly and This million segment. a QX of slide were were quarter my in are the remind the lower starting results full please you Furthermore, begin please from Europe the COPAXONE approximately XXXX lower $X XXXX generics, partially of North and America quarter a affected quarter the first benefited that our of revenues. that year from the high note the for related million $XXX XXXX product compared

In we to to per asset GAAP XXXX, the manufacturing due earnings earnings lower quarter partially during a and profit were XXXX. period net intangible movements in hedging in XXXX of versus QX a million XXXX share income and versus QX settlement income, recorded million of of the of net site operating of positively compared higher share a legal $X.XX XXXX charges, lower divested million $XX $XXX quarter the with year impairment rate first As and The revenue versus offset income in in on GAAP year-over-year net earnings effects along $XXX $XX same a million ago. of was first by per with income XXXX, million a QX in in of Europe contingencies. products February impacted GAAP GAAP XXXX. mainly Exchange calls, $XX $X.XX these our operating communicated Japan. loss improvement the as QX along by we X,

slide to Turning XX.

which EPS were $XXX see can XXXX that $XXX income or of versus non-GAAP the GAAP for the quarter first You with adjustment first of XXXX million items in the intangible largest million in Non-GAAP the cost these $XXX exclude net the of were purchased totaling net in majority amortization being of of goods sold. million XXXX. assets to quarter included adjusted first the is quarter of

the million of Impairment $XXX and million This $XXX range of of an depreciation asset of million $XXX XXXX. quarter This guided is amount million includes settlement. -- below and impairments quarter the the a that in quarterly a in year. to for amortization note we to the million for at to was first identified million the the I quarter expenses also for expenses contingencies. first per of totaled of compared accelerated intangible assets slightly the $XX quarter we recorded that of $XX $XXX XXXX, expenses expenses of mainly of in a quarter first XXXX. provision the in at the loss potential to legal in patent settlement loss related an would start The

Slide our revenues, performance. quarter approximately which totaled the first non-GAAP I billion. Kåre to to have review moving already Now, XX $X and reviewed

profit versus of QX relatively of XX.X% gross goods to profit, in XX.X%. product our look margin operating compared sold. improve due Despite margin XX.X% gross to So, a gross with to XXXX profit let's QX $XXX ongoing We at X% The to as decrease year-over-year in well in flat and decline the as margin XX% operating non-GAAP in non-GAAP first in the year-over-year to mostly profit earnings lower non-GAAP non-GAAP the was favorable their and operating to due $X.XX, our versus versus margins. improved to XXXX total share quarter of quarter. our a partially non-GAAP increase ended the base per million efforts operating cost a of move the mix counter a down P&L $X.XX helped profit. expenses decline a our resulted A

While touch quarter in guided had my as I it the first that later in on I the came expected and in will presentation, as will guidance we note to February. we

of was sold were XX. spend quarterly on had Now, $XXX let's spend take change reduction reduced cost operating a Year-over-year our million. The a expenses for at on impact as brief this a goods driver base slide declined cost main decline greatest in our look The base than by sales our the flat. year, goods sold partially more in of base of by gross in improve we quarter billion well margin come our for network. on in as supported half our XXXX. expected modest Based the our second operating approximately spend transformation believe an will the uptick $XX the of expenses efforts ongoing to the in first at as through our

in $XX slide XXXX. on flow Teva's $XXX XX. cash the was million first versus cash free quarter to free QX flow turning Now, million in

As billion. in the guidance to free segments. as be are Europe lower at timing provided range increase out to the from cash of annual working timing well expected receivable free flow and accounts billion due first in we headwinds of which quarter. Please in as the in the our recall mainly year in flow Teva's to $X was inventories to the net is our cash of face flow profit XXXX $X.X you today. tends the February XXXX reaffirming free and items cash know due start to capital But especially large of usual headwind resulting in paid bonus payments quarter, first

up capital this pick during as part inventory we expect quarters next cash free of three We items. driving other the as improvement are working flow

flow remain our our of was as cash targets. lower the quarter, we relatively long-term While on our or greater for flow XX% of free objective conversion first part cash financial free

the end $XX.X slide XX, of at versus billion $XX.X Turning debt on to net to debt billion our declined outstanding XXXX.

TRUVADA slightly times COVID-related billion debt first in Our at from were QX QX XXXX. times of XXXX QX. to in the quarters average the Recall higher from the the fourth XXXX to QX sequential drop X.XX to launch sales in worth moving in net totaled $X.X strong particularly generic EBITDA X.X EBITDA and and of increased billion XXXX. noting end benefiting in It's versus that of $X.X

to quarter times primary as of first of quarter of lower in to TRUVADA annual The billion be EBITDA second generic reversal forward XXXX $X.X we which continues cash debt-to-EBITDA stocking resulting of COVID-related net push end our billion ratio a decline by XXXX. both use and main be the maturities the the in third our include fourth covered reduction saw cash the quarter expected and Debt our saw will moving sequential to of and of sales in the total. in focus in Upcoming XXXX efforts liquidity by under quarter continue $X.X bring flow. and the our X

So total $XX.X billion now revenues that turning earnings billion on to February, $X.X. and in slide we our including our all $XX.X financial to reaffirming for are components outlook XXXX presented $X.X of XX. guidance to Today, per was share of between annual

that of a throughout February. the both expected the in color Looking approximately XXXX four lowest quarters at to the in the be expect the sales quarter will progression the quarter, year, first provided are expect we half. first not of Overall, second XX% second pickup the that We year for the of the we sales and which earnings we in XX% the the and of following will changing sales earnings. our approximately gradual and is be still in generated half

earnings approximately results. For approximately the first XXXX per the half share second annual of first XXXX quarter and Teva's in will And our concludes review half come this XX% of of the XX% in year.

for We and you will will open Operator, questions please. up call if answer. now the


Balaji question Barclays. Instructions] the from Thank Please of line first comes the And your Prasad you. [Operator from question. ask

open. now is line Your

Balaji Prasad

morning the and This thanks Good Hi. is Balaji from for questions. Barclays.

just Walgreens come have to So, through have and Teva the have by time quarter. on key that by Sandoz side from what comments one touched generic to the just And this drivers XX% especially firstly, and been wanted from goal the there understand markets on And seem XX% touched to frame? of of considering to it likes core a yesterday. which share on deflationary and almost would what be you drive doesn't market all question growth going Europe sense AJOVY, in what's quick

helped can recently? weather deflationary So were us Thank offsetting trends understand which you, any you. what of, the here help generic kind factors you

Kåre Schultz

Thank you very much for those two questions.

the we or is you growth if XXX% in last one the drivers. with year. growth So key on grew as the see key drivers. driver Then is more underlying the how market volume saw growth first Europe over that we AJOVY start and the market growth One do and the two than

all We nice uptick in almost expect this to There's this class. of continue. a markets

have pricing. real in there no there's good So as that's And very you quite much. doesn't quite then element. means product change you It so really have Then just that offering. we stable, one Europe very, know expected. a matter really That good

We or the we acting have that fact take it's a that longest product, month like once months. to The it the have possible every three basically that. they which experts means once

fact really sleek a in have competitors. nice our device. our in get It's have for that our we from unbeaten labeling of the case have Switzerland. We issues We any the side. have And profile don't product have we all we That's fact a labeling. a It's that not really the the we safety on an Auto-Injector. safety

the that strong So position force market with and continues with means our neurologists historic all we we with shares these to combined a that that sales have up. factors Europe, fact tick in see basically

market. in very not previous that I'll European seeing And be And the your share expect back I over expected in market years. machine graph continuation deviations, regard some before call. XX%. second those hit to when to continued introduced uptick means With to say, I of I ice will that deck. It's the really that coming question, smaller will you're we'll So many then a XX% with we years the get reach before the that in a it we see our that

in, this machine you're big in the a one and two, maybe more as a the becomes one, ice So had and the new with where market. cubes U.S. patent. And they're off of competition profitability into the out you a goes erosion brand otherwise gradually they new. they're lucky market there's and that new days, significant you're to hit starts price with cube And less alone first it's that It contribute and to machine melt more is drops for and comes to once so three enter in file lot if you so XXX companies less because it down. competitors the And generics then ice ice generic revenue the marketplace. all

say ice made and a year that quarter in some last we classical of with a you in get that And will Now we that's you complex TRUVADA generics. product. generics They the within the fourth quarter. ice had they for it's I I When make not EpiPen. for and the the sometimes in cubes cubes case, the we see would contribution say complicated to And generics what much made first launched. could then you fourth what melting will competition talk typically ATRIPLA would complex good see products some call slower have the contribution And also then that's you instance, quarter. nice the because simply as

a is of market nice EpiPen So version and generic nice we that share. still have having revenue,

of a ProAir. an inhalator authorized an generic it's We product. also generic also respiratory have a a product complicated because That's version

has also that position. So good a

can of melts difference say a a faster get it's which a it If goes traditional a typically how complex solid then ice erosion. lot dosage relatively a competition, it's in means if little cube there’s you oral form that the generic price So fast little slower. you generic

of for that generic meant really of a these quarter. nice it's the that our we the business had combination question. factors in performance Thanks a So first

Balaji Prasad

Kåre. Thanks


question Gary your line next BMO question. the Please from comes ask Thank the you. Capital from And Nachman Markets. of

Your line is now open.

Gary Nachman

that doing Thank much and to lower physicians, have get working you first big cash going year confidence. that be talk Biosimilars more could can talked Hi, you target navigate the And been guidance? how contributors the the to free what you're for TRUXIMA to in the flow able the about explain you behind you So dynamics follow-up, What payers which some you help good make you. throughout then How with more a the change scenes. gives to the quarter, about to successful? you've in doing the the capital and launch impacted just been that forward. the morning.

Kåre Schultz

then those Thanks first answer Eli for one. the answer second and will the Gary two one questions. will Brendan

So you over to Brendan.

Brendan O'Grady

thank I just think to channel think you too comment general retail that I want of our TRUXIMA, through there will go in biosimilars don't TRUXIMA of pharmacy really a more medical strategy about channel. biosimilars you. but to you about in much will general, when and or So there's a on commercial away will give say through biosimilars be that go

strategies think that. have are the business. So somewhat very And specialty position has strong of different obviously generic. as strong if to navigate a And, how you course, Teva a Teva, you about we in dominant

together So launches the have I way biosimilar organizations capabilities recently TRUXIMA. the successful both way in of we've it's of structured those those approached the the us think bringing with we're that made of that

there. So I leave think I'd it probably

launch years decline, that continue and with a think the well-positioned are out then out as will TRUXIMA, probably biosimilars. I TRUXIMA slow in We'll do we well over XXXX. flatten to which we to in new we'll grow XXXX replace

I that probably you think So answers question. Over to Eli. the

Kåre Schultz

Thanks Brendan.

have comment cash on Eli's Let's flow. the

Brendan O'Grady

Eli are on you mute?

Eli Kalif


actually terms payment actually to on demand that of revenue in inventories trend say by revenue. that how that sequential inside X% question. resulted increase also terms for annual with in mix and are the in due revenue, X% if this is a And we of I we I bit Thanks the will Sorry. the one. versus average would say due to behavior working capital revenue that mainly our one QX up this would our contributed the to and

those stabilize as consider one non-recurring event underway. it a working we're swings Although, it actually a lot already we to that of with actions

Kåre Schultz

Thanks you, for the questions. Thank Eli.

Eli Kalif

Thank you.


question. Bank Gerberry America. next of Jason the comes from ask And your you. Thank question from Please

Your line is now open.

Jason Gerberry

for guess, first margins. I was gross my just question guys. Hi, question. the taking on Thanks

curious about you TRUVADA It phasing. seasonality dynamics. pharma which an kind Just offset if quarterly you're has about of seasonally seems could how against AUSTEDO conceptually XQ the like talk soft the was thinking

back just So just And curious give with about oncology question alternatives dynamics my potentially off? operating what where coming prescribe proportion lower exclusivity from thinking selling gain a Can you as TRUVADA right effectively US second where to Thanks. given perspective. where margin then participate a of markup progression the us is, gross could average prescribers to the biosimilar TRUXIMA how providers capitated highest sense comes constructs or the the traction? market of the of you're in aren't cost now sort value-based drug price

Kåre Schultz

margin Jason I'll TRUXIMA Brendan those the we'll gross for back two then again. and on get address Thanks questions. to

your So fourth on the the days TRUVADA cubes that is how margin to to the ice TRUVADA rebate margin gross that moment the just XXX then the to at give clarify four, market, the first bought little have, some launch you you wholesalers a you that sales three, main you have two, But with just the of you to matter. flow gross the for and product the of to will products sell not you get explain basically record bit again in launched because is the And a competition. TRUVADA make is quarter. don't five reason marketplace the about a Atripla And have that then then exclusivity. the in in you in sure a in after the quarter works and steady days technically generics number who that will to order know XXX the element

more So there in TRUVADA the that they are why in first quarter. significant mentioned the them fourth quarter, they the in I sales beginning are but that means That's that the -- the something But quarter. then quarter. something in gross course you the really influences there's up could sales And not bump dramatically in that fourth in the US margin. of first the see

get we like then hoarding patient more level efforts couple course, projects by our our doesn't to overnight. in a can tune is swings you So we margin gross margin. to you product that course, that And know why the operating you footprint, the then a hundred that rationalize constant and we or also I is are then something margin. little you our the improving on performance it sub manufacturing And of our as times bit. because of points have improving the affects want maybe affect is that improving we a little should we would want do keep small operation. way manufacturing margin and expect operate we our But our from a basis to gross expect doesn't go portfolio say And million We we once bit underlying quarter-to-quarter I've to of have we on operating margin there. based said that reason year. the come optimize this some improving could It keep some many further. XXX if it and is said to come small we sell stop really to all is the of rather you way don't thousands of the XX% driven you a our that committed handle launch have, total gross to XX of hit on will can But that per really improving manufacturing sudden XX% easy. This see, you the that we product

TRUXIMA. year. underlying steady XXX So on With improvements to that to basis over some quarterly fluctuations, XX nothing you dramatic Brendan points per

Brendan O'Grady


those products at matters. the look you you biosimilars when commercialization think launch So about of order and

first launch significant going to value. you you're or if So second, get

get You some third to going you're and launch fourth, value.

You fourth the rapidly. value and launch after declines

But product first, getting an had difficulty they the we So of ASPs the have got significant And second market. to you then about. make as ASP. didn't inroads in then out, launched traction. They course, talked when TRUXIMA came we some were able

it and they keep an had we the So grew that us had. advantage share more cost share to

time period a don't or much there traction the market. makes, in So be gain And have will to one do. it where an new so and entrant like allows that's they they keep of because erodes your time generic. the to them price your where others share your more discount advantage speak. a very it it the really dynamic. have ASP It's That into comes share, some Each market, the to expensive

It a very a just really like that's market. So generic works dynamic. much

see we'll XXXX we and continue into go grow think share when flatten at probably XXXX, XXXX. time. we'll look that again, decline TRUXIMA, I as And as you over through to slowly then get we and

Jason Gerberry

you. Thank

Brendan O'Grady

that Thanks for question.


the Please of And question. from comes the you. line next Umer Raffat question your Evercore. ask Thank from

line open. now is Your

Umer Raffat

just quick much back Kåre have for a offer a questions. cities counties my you curious One so on Thanks and on Sandoz and the where ask than – call? commentary far a year wanted on couple are come because lawyers I yet understand what you much. to And I'm guys opioid thank the guarded of hearing a side. Hi. generics baking in for the coming appeared this couple counter that. full for also, And one what really. stand with very taking you for So for Europe. out I'm on things about, so more you

Kåre Schultz

litigation of four keenly California, Francisco in we you're active are Yes, there. entities with sure I'm Umer, aware in in – San

can't that, substance due I And from this suffering make benefit the we the still to settlement that a to people are seeing specific really supporting all in sort the agreement of since States. solution the as you tell abuse United have only of active issue. So comments in in any can the we into to we good litigation. went that, are framework the fact I we time

I So that's much really how can say.

that, here as continued OTC in the Europe reduction quarter, of generics With generics, you year. in on to call, the a volume the we and commented and fourth Sorry regard of last Europe details more in that. then this saw we quarter third are beginning in give can't in also I as I first seeing

That's big in the have case lockdowns So second here we the not quarter. of the out still in come markets.

having France, still So are level some instance we Germany, Italy, of lockdowns. seeing for

However, very fast rates up in vaccination eventually come Europe. seeing now are also we

by in gave basically second is to first lockdowns I Europe? that for basically of and be the of year, will patterns we quarter, Thanks third quarter volumes And that and expecting prediction, of see which of sort volume doctor OTC fourth which quarter generics hospital and the So more so normal the normal OTC questions. Europe ease last and are the to affected visits we'll and reduced this such are generics and that more we sticking on visits a on

Umer Raffat

you. Thank


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

now is open. line Your

Greg Gilbert

be already execute your but become then benefit? sort of to us NARCAN. turnaround happens that curious, in sort it part cash And number you cetera we margin can part assets settlement potential of given framework and is about pacing? of et opportunity answer in could bolt-ons investment. would Thank we for in if beyond Board of as you My of what I'm you Can of over amount terms phase progress thinking Brendan of bird picture answer that already Are underway later on and licensing and growth whether are a the make good curious knowledge as considering the have? a on generic on the Kåre the of you. outflows And in the the positioning much of whether would how and it, it's had party Is identified liability a time and there set you a the question had as – update hand the on Thank bring uncertainty? the the one next you a of company I'm you. broader years? your different, curious, settlement if perhaps can't that be bigger you've progression if with first well things for beyond, decade hand what x Just we've to seen, that, spending and different, of now, energy your worthy and Teva list a you size with you can discussion because

Kåre Schultz

for questions, Greg. the Thanks

one first goes the Brendan So on to NARCAN.

Brendan O'Grady


So of I update on don't really an NARCAN. have much

it. on work to continue We

as I'll legal to we the a whether market, issues will through But be work to not, certainly on or just continue that we let know. it. I have we're that basically, when answer. we're settlement to of with Kare leave But I part it some to into ready introduce you to real think, broader working still And could NARCAN.

Kåre Schultz

it's really include continue fact focus really in to I leadership probably are answer our due your forward. see potential that question Yes. second the NARCAN, do it. settlements litigation, how that And about, boring we can with on to strategy active comment regard the the on to going same we I can't comment as And including And in biopharmaceuticals the in and that's for company to in on. licensing That biosimilars. generics leaders as you M&A be so you now. and know, for really it's strive of might our course, suggested vision on

then the We And if linked we those within do but is to dividends that, related However, debt reducing to about times are consider all get we settlement of then have, that to we very further cash to totally buybacks, such on want our very such we will after position that probably the continue three period probably opioids and in we things point, get that position not debt-to-EBITDA. which financial net or be our we times financial that mission extent, down, you'll share to EBITDA. is once really the before three 'XX, we're net committed have the lies a or vision in-licensing. really and we course or our below whether, debt not, And past below think strategy is see possible disciplined, then capital it's M&A targets. as when to do continue going disciplined and to

early We have been stage in-licensing assets.

different in-licensing biosimilars. been have We

just M&A. and Phase don't So, buy it's we products. do launched any do don't III don't or that out it. But already not products go we We

at will targets. Greg. our course the we So where until end of hit capital. for questions 'XX, disciplined long-term we least will in financial very the stay those in Thanks are the we And how we of that, hit we allocate

Greg Gilbert



you. from Bernstein. next your question ask line comes the of from the Please Thank Ronny question. And Gal

Your line is open. now

Ronny Gal

and for question. my guys taking much very you, Thank thanks

or that two and Just CGRP scripts have couple market? for a in first or the the is revenue in I that see is your reason broadly if there inventory happened of if stopped of a more agreement then is the wondering, like licensing that products two And you It to established kind what a match has or branded looks companies significant payer down can was the product wave sales doing adopted the if I that. if logical like clarification be then there you second why we track second price some looks scripts force as with kind of the QVAR. around the reporting a in you for had and wave clarification considered strategy, of peers China the questions And And Coherus a the does Kåre, quick The oncology have Have dividing by questions. wondering, market. deals you strategy PD-X. in seems just drove reduction strategy those licensing three we was that guys example comment on of a that from Teva? or this biosimilars, agreements with quarter. not is opposed that adopted have to by markets I an why? way Then of

Kåre Schultz

get first Thanks for you questions, more question? didn't completely your I exactly it. Could clarify Ronny. those just once

Ronny Gal

number? QVAR your you reporting in reporting is QVAR. simply stopped I was wondering, not just that No and anywhere guys if

Kåre Schultz


just a of so firm my refer thresholds on. Eli do the and But it discussing know. something fill it's the us there. in have thresholds what revenue been maybe But can just don't to I'll that I've guess. it's I to in isn't why he to you So and on really answer that. That's with not are I guess something involved and to let

have that So specified? is any QVAR? it Why Eli, comments not you to do

Kevin Mannix

this is Ronny, Kevin.

product, threshold to Just -- really just it the we just dropped sales not are the still we include a did a have is level it. and supporting but

Ronny Gal

Okay got it.

Kåre Schultz


strategy. patent-protected products, it's nothing you a we're licensing, So happening Then say could Ronny, on wave within of pursuing second this specialty not there. so not really dramatically the our really

that the every we'll and And products have year, of biosimilars limited is is we size and launch. we launches of pursuing can product year, seeing our that specialty given what a that second generics. pursuing are our you'll once we a portfolio, of then own a So once number probably course, are be

is strategy. a it So possible

at. really You Thanks adopted not what that's what could questions trying are to we're the – Ronny. but we have for aim


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

open. now is line Your

Elliot Wilbur

morning. Good

First and question perhaps for Kåre Brendan.

recent and seems XQ has prescription of guidance the of to performance in AJOVY, the obviously of AUSTEDO a about full Just numbers. half particularly to kind light trends, acceleration there with get like in for those be year to significant year AUSTEDO, back thinking

or of seen just I something mainly about company's what we've Kåre, numbers guess about think not for volume, us terms the And in be just the happen in swing there substantially confidence your may of help to And fairly in thinking might in Is year-to-date? in maybe has favor proprietary I sort scrip there? thinking Just hidden is it of value those about that half? pricing then net second given pockets potential your that pipeline. what

going in where the You area you paradigm have programs Anything about say kind and biologics XXXXX respiratory and couple XXXXX. the fit of novel in those current can maybe of treatment against? a what asthma some potentially data there? will update of out XXXX up or late And there be the Is competitor that those when might an it or be earlier? there products Thanks.

Kåre Schultz

those questions. for two thanks Elliot,

of but AJOVY, I'll our in for in expect a we is we And which for I'll of see to The just the it first AJOVY the business AJOVY both one we very end this US But course also bulk of positive add that we're color I'll This it. Brendan be AUSTEDO. seeing get the say and the guidance I'm about. approval and will to growth the still in you course US very But see are case how confident at of to Europe, steady Otsuka of partner over just do you piece also the in our to give the AUSTEDO, the on on year. AJOVY Brendan. hand of launch over Japan some with

Brendan O'Grady

we share as doubled if XX% assistance as XX%. since at that I in we we've first in to to into AJOVY we're that auto-injector basically share grown get XX% patient – we facilitate new-to-brand we you so, the can the new-to-brand hovering Taking think around sure. investments share to to that and significant And share right we now well nicely. do up is made access we've about the range. of grow AJOVY, share. the total mean think continue But prescription launch growth. Yes to And share as

in then to as a balanced the have and we'll of revenue generation. improve back growth move XXXX we into as half XXXX, regards well our to more As access as approach share we

you the think put still out it way. that is that guidance of think I that we Kare can So said believe we're achievable. certainly as And

If know growth you as Typically quarter-over-quarter. in they're February, in a first bit had AUSTEDO quarter unusual. think They about XX% people's to January, is started out maybe It the not fourth which share demand see also little slow AUSTEDO, the quarter. change a you benefits. increased in going

kick is starting of think built here see start. million that make here you in the tardive that and just May campaign that in of that is we're that couple of we with do around next awareness which dyskinesia you health into a But a slow target month aware the month of campaign somewhat I'll mental is DTC off of and So here $XXX you're weeks. direct-to-consumer number in AUSTEDO, something will not a an achievable aware it the starting

to So guidance we we the you a think be will us that significant get for that question. that that Thank put helping out. to catalyst

Kåre Schultz

these efficacy development. in better mentioned Phase the Thanks convenience are that clinical you biologics that is and II patients. better what Brendan. really is offer products respiratory, them to two With are products regard two in And behind they thinking for

be that sure on gets part of these as them the we details early also certain the are really we be But in to on now, the to too biologics. share convenience biologics to asthma that the there's hoping so, with able efficacy where we're products we're not to what and it. position population benefit you it's to they're do that think patients. being of I'm and a expand do what and able to a in to is but a right way is COPD So share by them give expand hoping of might both to Because and really superior know, the any way population

to it some II remember in the but the of year exact some not will this it hope these, see I in but of Thanks date, Elliot. publicized we and I data We on have for some think Phase XXXX. can't XXXX of questions, it.


question Sandler. Thank ask of from David comes from Please Amsellem you. next Piper the And line the question. your

Your now line is open.

David Amsellem

Thank you.

high-level So starting a as question point.

perhaps To volume drill business one. is heavy So given a you about we to even in you're about there how those number and business? broadly majors I'm on more and focus divestitures thinking clear of a the that yourself. thrown around US hear the the the And about evolves potential and including terms a question the then evolution into by asking of As to penetration generics VMATXs lot be direct-to-consumer do number sort a complex biosimilars think of wanted that's and two How down -- just needs that any, is low are of And I though worry that more hearts terms minds signal the for that of, maturation on AUSTEDO, community. on be winning rates the lifting over function in campaign. trends? psychiatry and for

process help the thought Thank you. understand Just me there?

Kåre Schultz

pass and Thanks, David. on AUSTEDO I'll I'll Brendan. answer the then the to first question one

we really explain all restructuring. And when sold the was OTC basically businesses. process bits We generics in that sold few sold in So left. it's products old not with our pieces. connection thought in those. everything we important major talk a strategic. to we've divestitures looked at There might sold left had been our nothing just through we about we there's have then Japan be and and we've some But few small bits pieces and We've a The Scandinavia. we've

of business. big the that of So a sudden don't chunk selling announce all to are we us expect a

and solid will committed also be years. to the we in a been committed remember over We coming off-patent of it to to biologics are has both the last classical we're the forms And years generics. but dose biosimilars, as generics that dosage five complex our part have increasing oral


we from Nathan Goldman our And ask from Sachs. next you. question. Rich of Thank Please your will the now line question take

Your line is now open.

Nathan Rich

this could of Just price this FDA off this over the competitive in kind the you in of your dynamics wondering of if past gross us continue follow-up the And margins That's you there'll then back progress ask erosion the can good be margin. year? think I gets to the that and to in in course think year? Thank change US you any quarters. on fairly remind build as stable in morning. you expectations be you to to the do Kåre, assumed normalized gross US? expect for generic guidance of wanted inspection Eli, nice several kind made a more you that you guys over do on activity? this said level the And You've US.

here. think were the you out I dynamics first quarter also favorable mix called that in some

I And of, of, year? a the balance the of margin you. the just wanted Thank so moving what on pieces gross over to kind are key line get the sense

Kåre Schultz

need We the you in then operator. answered about questions from answer cut US. Please, the the we introducing the next got and question off to AUSTEDO divestitures by answered the We before we the David. DTC question and about

are introduce by reach saying, we But I'll the U.S. due tardive you'll fill the DTC this US. in doing with in dyskinesia. people answer not your the get of David on AUSTEDO So on in AUSTEDO DTC AUSTEDO, to weakness but to please more for now in simply Brendan any us

Brendan O'Grady

this a in US. this see We've right. XXX,XXX AUSTEDO. We've dyskinesia The in about X%. patients reason the Kåre, got looking estimated of is as the XX,XXX are There strength Yes, currently we market DTC think real in DTC I with time. patients treated tardive lot opportunity for reason market. a in that's of and exactly the been see about for at period And we

upswing the So and the potential huge. is

sensitive of and allocation. be it's been DTC advertising has resource a to just shown matter it So to really

AUSTEDO We not to able makes think some we is advertising trends on patients that be patients' So could there's out may strong. who it and treatment that they be aware to tremendous we've a significant lives there the that value. of impact available even direct-to-consumer something seen with have be it, a think that educate put for this are -- necessarily to

will which the to So year. in this up QX forward results DTC that's the and look rationale QX to we those and probably show behind start seeing really

Kåre Schultz

you, Thank Brendan.

the I'll this key to about next is two two that we'll erosion answer first reiterate And of the our different. one. questions generics the asked. move Now And on is that and course one were markets just in

price stable. to So level price a of patent, things It's we level go off don't that question really then shift in price much and another Europe, see relatively when is erosion. they

the price little US, So others. of no course often say we the ice ice complex do I a faster And it's whole the get some analogy, changes like won't repeat less cubes competition. that dramatic melt been basically so just there. machine we've In see generics erosion and that but discussing than

keep of they good course analyze on also get normal to they from down they time, the launches attractive period year. last see of So compared prices more a as for the older. five get erosion We generics. significantly. three, we level year see But years the two, this for launch pricing products products business price longer a generic of we of pricing new of competitors a in where few goes simple way change There's and dramatic the no four,

I'll we that gross there. So and Then all question Eli. a on have in big all, no changes to the refer question margin

Eli Kalif


we XXXX operating on our what we to X% is So gross This margin did our in additional contributed gross planning the year. when point on see in talk that as actually for the margin we margin. now one

like XX actually that the and it level XXXX, it at be So expect least to will by so versus in plus of XX.X% X% contribute to we call OP.

So on still track. it's

Kåre Schultz

Eli. Thank you,

we think question. more one have for I time


Busby the is Capital Daniel Please Thank your last from you. ask from And RBC Markets. question question.

is open. now Your line

Daniel Busby

that. hear about me? Can you Sorry

Kåre Schultz


Daniel Busby

Thanks me squeezing in. Connection for Yeah. issue.

on fasinumab. question First

outlook remind you be meeting or the the advisory for the us just safety a When potential are tanezumab. that Thank here? whether And on there. we earliest see long-term still we committee on next or trial on what is expect civil plans generic price the month's could data that side when your if for DOJ side? that fixing curious, second last could steps we're litigation, you. date And And waiting have product Just following data? changed should

Kåre Schultz

questions. two for you Thank those

but REMS, the product it's right could the together product for on nonessential all negative are different the you now of we with the it hold a we're speak for there the tanezumab. having So REMS, clarification came costs watching view vote was to class. are to the so discussing Regeneron. we a with disappointing been sort fasinumab, looking whether were course, was There of the with hasn't And any of FDA's itself and point sufficient product definitely on of out that was tanezumab on forward complete say and vote AdCom on course

looking product We to are forward discussing the with FDA.

course, seen. it be are to as remains the for an for indicator results AdCom difficult that fasinumab. So But of tanezumab is disappointed we about path the indirect a of forward

same. that fixing the on don't be the period -- have pretty much schedule when side, litigation, time think it think I COVID-XX On the legal any criminal will side, trial, generic system. clear fair time to significant basically the of I slowed civil move in that the in And happens. price for a this the legal it's it proceedings but pandemic the before will And it's on say the would we a US that down I say on to has means

updates things in the So back the to and with now have pandemic as in the how reducing gear the system We'll getting no impact progress on real US see legal its wait timing. is in just the US.

thanks So Daniel. for questions two those

Kevin Mannix

for everybody us. joining you Thank

we'll connecting soon. with available rest Take questions we look be forward the of all throughout always, you As and to to take week care. day, the