TEVA Teva- Pharmaceutical Industries

Kare Schultz CEO
Eli Kalif CFO
Kevin Mannix Senior Vice President
Sven Dethlefs Head of North America Commercial
Umer Raffat Evercore
Elliot Wilbur Raymond James
Ronny Gal Bernstein
David Amsellem Piper Sandler
Balaji Prasad Barclays
Navann Ty Citi
Nathan Rich Goldman Sachs
Ash Verma Bank of America
Gary Nachman BMO Capital
Call transcript
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Good day, and thank you for standing by. Welcome to the Teva Pharmaceuticals Third Quarter 2021 Financial Results Conference Call. At this time, all participants are in listen-only mode. After the speakers presentation, there will be the question and answer session. [Operator Instructions] Please be advised that today's conference is being recorded. now speaker hand Vice today, Investor would to conference President I Relations. first our Kevin Instructions] like the to over of [Operator Mannix, Senior ahead. go Please

Kevin Mannix

quarter today And discuss thanks joining results. us everyone Teva's for third XXXX financial to

you evaluate understand investors provides of in information trends. and the financial and operations measures facilitates Please earnings approximately Teva's manage meaningful Company's measures Further, Chief measures performance, financial release Company's an review Schultz, inclusion call the evaluating the non-GAAP measures A operations, the be was by We the today's by the Joining analysis defined Officer, certain in ago. GAAP business. please. to Chief an over the hope hour and internally and Please with at Sven you Officer, believes turn slides and Eli release me of its includes reconciliation issued Head this to in being to would financial Officer, Executive Dethlefs, as financial of the better that in call call hour. of Financial found www. the got disclosed today's Teva's that, supplementary presentation. Teva's to Executive to is Schultz. And non-GAAP results presented SEC. our Chief North of can order is on which call discussion run Dr. today's available management note one note about website press Kare call measures release, on and non-GAAP on Kalif, Management our America if Kare, that in Copy today's on will uses I'll our Kare opportunity non-GAAP GAAP Commercial. now both

Kare Schultz

Welcome everyone, Teva. your Kevin. in and Thanks, interest for thanks

focusing in with I'll revenues. year, following stopped slides. underlying our Our came lot compared stable last a the we which be on Revenues reviewing but to in financial of highlights, QX XXXX dynamics,

EPS also billion, in very a to $XXX at valued million. $X.XX. at in in ago. came GAAP came EBITDA very in came $X.X EPS last cash year valued to Also, stable adjusted flow strongly Our came non-GAAP at compared Free $X.XX, year. close at

We continue refinancing. few support a and in to had highlight some next which being essential KPIs a the been world, KPIs. and other side. a bonds, to them. and debt-neutral now here the we're billion. environmental debt reduced leading announced course, $XX.X net we to that also low could it's If we reduction with that's $X by very dynamics issuing just can has you access revenue Today, we to debt believe we middle-income generic And It's slide. a are see and medicines, fund ability billion to Company and countries And of we refinancing showing linked the I'll a to say, believe the move commitment special, you this offering. on see strong of sustainability-linked

AUSTEDO usual little commenting suspects on And it COPAXONE can you we AJOVY declining at year increasing. slides. ago. I'll below say, the of driven that basically was is AJOVY in and you If North It's a see you AUSTEDO and is bit American America, North revenue a be is the what by have that the could which coming increase look and

COPAXONE, year quarter key In in and to the see this pandemic in as or really and COVID-XX the If second fourth Europe due Europe I you volumes compared the drivers ago, fluctuation starting and have in less basically that quarter. is AUSTEDO. can the we continue we're sold know, that you you some to We're up at up and seeing said, of a to markets, first unchanged year. the means quarter we seen third look and volumes lower pick international we Europe the so more AJOVY that to volumes to here, in again increase as here expect

the to next move slide. Let's

Here, you the can the U.S. see development in for AUSTEDO

As last quarters, a also track psychiatrist. offices quarter. there see the in this can their to was More have lockdown, COVID the second you first the growth strong related slowdown three see, revenues nice, were that closed see really we We're this here the that on you during therefore, a patients in but And slowdown strong the we can in because were growth. going you that the was and psychiatrist saw now. growth and back in seen

you to in that population ensure is treated. on XXX,XXX more tardive being campaign we and get course, still therapy. can the the see patient our currently can continue. expect script of You only around suffering and that activation numbers. to U.S. on tardive there This dyskinesia very can much the on we're dyskinesia also revenue focusing people And estimate on from that's fraction will also that it left, a the patient very see both We development DTC is small this with people that and of

development we basically due good the of quarterly, that the that and of both the growth to as continued very total We is very also If quarter-after-quarter. in in the of growing increased most X/X believe quarter-over-quarter. in now launched dosed And monthly still long years. regard to I an a also superior, a AJOVY U.S. which or to ago, market, of can our one know growing for Europe, ambition AUSTEDO, the had quarters X/X the we two the that U.S., and we the profile of XX% we And likely very we you And U.S. be very in with that's to for the the profile terms ambition, can nice of with steadily, several market move of on has reach So countries volumes in nice see launched it it's next market. acting in we AJOVY development future are see share we very scripts about we been safety means drug, European optimistic think initial and and Europe have. AUSTEDO. and slide, and that AJOVY

Also, as strong that you'll because sales numbers. had from revenues AJOVY Japan, America, and development Japan, positive a in that related launch the very Europe, we and in with we milestone So in in the to in coming AJOVY of numbers, total have that's will the which note is means AJOVY. actual the quarters North Japan

the on move next So let's slide. to

R&D One We're which through by and two mention let it been risperidone, Here accepted long. pipeline, has long-acting too specialty you in me we're would won't risperidone that just LAI, it happy biosimilar But go pipeline. I take FDA. very showing with product our is interesting projects. all,

for Our suffering to of for a from form approved next subcutaneous in the have has capable year. schizophrenia review. accepted file been is new and long-acting We benefit This major a hope risperidone. people it

schizophrenia. the bringing suffering to to of from So we to benefit look the market, forward people that

We also next have new just it's And that. tell arrangement if you a shown I'll X about a move bit Phase and to little interesting here the in And slide. license we AnleXXXb.

development of very Parkinson's We a are have MOPAC, in excited a the and And treatment regarding compounds license about it's agreement we're German MSA two and this. with that for disease. Company,

have very and of long a very, turn work, history potential As we to Alzheimer's. If they are long-term. know, could a hopefully these have in in then out We interesting treatment you also projects think Parkinson's. they

our portfolio. to addition exciting really a that's So

move the slide. Let's to next

growing target we the operating margin we're turned a our for XXXX of with now growing of know, course, in and and COPAXONE, and happy our As report long-term you have our we're line we XX%. we operating margin margin the I'm restructuring around the expectations. to decline during that with loss And in of saw then margin,

close can committed guidance happy to And end XX.X to years if report take the of the see interest also we're close of On Teva. to I billion X It's today in years billion, still -- we've actually the QX, we've XX.X. it's You reduced you next and target rate yesterday $XX at here, XX of $X X together. that in and all XXXX XX%. midpoint since those joined our slide. to it's And the years, by some in the to four paid those XX billion very debt actually to very I'm

to hand close $XX 'XX. can we cash the to have on want to times do been to you our because see slide, below bond like targets. unchanged order long-term And take the to net as have operating about billion we'll the XX%, no have note, for earnings and we that three the that XX, next need equity. to on continue have Eli reducing something the do and need I flow reduction we of debt holders. We we raising end to returned debt-to-EBITDA keep that the so, And So financial before, basically at in needed generate said strong, the the debt. And committed on over income margin cash to we cash to use be we And plans so Kalif. I'll XX% of be to as

Eli Kalif

Revenue you, the morning afternoon our revenue continued results decrease to in And [Indiscernible] on in compared by segment, mainly from Europe Slide quarter XX. customer's XXXX of partners. revenue partially pandemic ongoing third and This XXXX performance. third on everyone. the X% the higher of to generic talking due of and Revenue to X% were in impact XXXX. local decrease currency America was due I be had to and Kare. and products, affected or COPAXONE [Indiscernible] the of begin financial a We will terms and North review Thank segment markets and good quarter mainly of on lower in AUSTEDO. quarter COVID-XX to of $X.XXX the our first bad offset billion, purchasing by generic

to approximately sake for XXXX would generic million Japan like year product XX QX a of totaling comparison, XXXX. million full in year-over-year sales the and that I For the included XXX note

Japan. have Xst we as previously this of communicated, with divested February towards in site XXXX, a product As manufacturing along

XXXX. third net XXXX, billion QX was XX compared positively Foreign to exchange third the million impacted Operating revenue in XXXX. quarter QX the movements loss X.X compared a income a during including XXXX, million million of QX effects X.X QX in was of in billion loss by hedging compared XXXX, in of quarter to XXX XXXX. XXX rate to income of Net

to Slide Turning XX.

XXX non-GAAP You in billion XXXX, of million XXXX. can versus QX see third approximately X that in net the quarter were adjustment

goodwill impairment these per the impairment and XXXX recall operating intangible exclude were being in non-GAAP unit. quarter intangible purchase, will and the million, XXXX and loss You Non-GAAP were assets, charge reporting higher goods of largest of to adjusted QX for North of included XXX our majority share earnings which assets is to items with American cost totaling the due a sold. net third of related net which amortization were the to in mainly loss income that

Slide to moving Now, XX.

approximately totaled For and I billion. Kare reviewed non-GAAP the performance review which the of third revenue, X.X our already quarter

efforts our and profit higher move profitability P&L goods generic optimize ongoing of quarter offset cost non-GAAP products was Let's and QX partially and Year-over-year from by from -- and profitability XX.X% improved in the our to flat, and by COPAXONE lower ANDA. to in QX gross profitability margin, the North gross improved change portfolio in gross from total AUSTEDO lower The our the mainly to down sales of for improved mix, the were margin. resulting segment, due look sales product XXXX. of AJOVY, our by sold, our in America year-over-year non-GAAP in driven third XX.X% increase compared year-to-date, mainly margin at and profit both profit

was profit spend increase the mostly to per with non-GAAP in margin The operating $X.XX gross $X.XX XX.X% base. ended earnings mentioned XX.X% higher We share by large non-GAAP a due our was Our to compared quarter driven ago. margin a XXXX, of versus above. QX year

see million our Turning to base that declined We FX. or million XXX by spend base of approximately our spend Slide quarterly XXX XX. on net

of comparison, Looking first at of XXX spend current will the estimation, year-to-date to we XXXX billion FX. net by for our come XXXX. declined million months and Based XXX according base XX our the our the in million at believe on or spending X approximately

sequential the in free free million recall and billion cash of Please is cash we X.X guidance, XXXX provided quarter flow generated XXXX and million the which we in cash XXX our X Now, today. on flow in QX Teva's the in was flow third XX. July XXX February, to XXXX million, turning first of free be free rebound flow which extending saw April respectively. expected QX, and and to billion. re-affirmed re-affirming Slide XX to range cash in

flow keep cash of the on free expect driving we end We with a up of through to as optimization working our high pick capital inventory XXXX focus improvements.

offering we we morning, to management. XX, refinancing X are used existing Slide about like of of launch will to talk announced Teva debt. This which billion Turning transaction. of This serial notes, I'd announced debt our for and proceeds its leverage. be includes expected is to consistent clear to commitment the their And you debt today. been financial They really with offer that a which was strategy, very de also know, neutral has extend as the long-term

bond have cash on reflect just and XX debt directed We Teva's debt business repayment. generated net debt by efforts and We operations XXXX. executed of our links your core our we proactive as more this is represent maturity to with intend With years, operational euro offer did ever the and QX Today align billion continue last in financial transaction, in offering XXXX and significant dollar link reduced a focus debt performance refinance target. delivering denominated our notes. to commitment objective The majority during to to with our sustainability goal of our for first our main today our announcements we our the four years QX by profile coming long-term maturity, to announced we ahead U.S. the on this as bond. than sustainability

the approach ESG integrating evolved has strategically, For to responsibility Teva aspects core business in corporate years, last its its several operations.

the transparency. advancing health to ESG Teva, optimizing the operations footprint means our medicines For across planet and business, quality, our on equity and and of ethics ourselves dedicated and through our

by to method link to regulatory of income ambitious low submissions greenhouse countries we environmental matters measure emissions access part gas volumes set to contribution our KPIs and and have As to expanding product sustainability middle in reduction. regarding absolute our offering, bond medicine social through

QX can proceeds for refinancing debt end debt exchange was Slide link next the month. in during our general billion generation at be On expected and Our we net to the our mainly billion Upcoming flow decrease a the direct of at maturities to set existing X.X services, bond XX, intention will as will for our as XXXX well of is corporate XX.X responsibility to was corporate that quarter, to years. include XX.X between due see end our dedicated fluctuation. cash you strategy. coming used QX of billion compared which maintenance This XXXX. founding the maturity The free rates

year, be towards X debt-to-EBITDA of 'XX coming on would to net negatively end be I the make financials our in can to X.XX targets XXXX touching Our revenue like presentation on we which times year. has Slide by that for to QX the times to my our you continues for outlook progress impacted here end as XXXX, by to pandemic. ongoing see decline, continued under our XX. Throughout by COVID-XX continued the the --

struggled their mix pattern. our others purchasing seen have its have pattern. product on stocking return on of products Certainly, and impact geographic - some and COVID market We launches, and customer more regions, to than to pre

patient interactions patients more been The this and has than by COVID-XX AUSTEDO. treatment Nowhere tardive physician for from by personnel diagnosing visits our due to In physician XXX is penetrated. population has and U.S. million in guidance which the our apparent very reduced by less suffering resulted market July, prescribing dyskinesia, XXXX. decreasing under in we million XXX for for doctor sales to

are sales were $X.XX lighter QX to X.X occur my XXXX. While X.X to QX. reaffirming non-GAAP said revenue same which XX.X expect to annual for billion, we the X and The and expected, of for of range billion, include other AUSTEDO Therefore, $X.XX, of of of are an we million. bit billion, flow XXXX to operating be billion guidance still our we of pleased outlook, in in a X.X with concludes XXX billion per the are free total of earnings This of income XX of we share billion cash all seeing billion. results a third to to non-GAAP EBITDA at acceleration components what than can in our billion X.X Teva X.X review quarter

will the please you questions? for answer. open We questions the call call for open would and Operator, now


you participants, your Instructions] first of limit will Evercore. ask of the line to Thank kindly Instructions] [Operator from now We two. [Operator to from a Please ask question and questions the question Umer we will comes session. question. you. The begin Dear your Raffat answer maximum

Umer Raffat

Hi, the expectations they have got questions. attorneys my taking guys. been and Thanks bigger are the to hold-up settle, about and then Kare, were would behind settlement they big to for who wanted after it companies, confused in the the much are And sales versus XQ, have private jump guidance from money somewhat table companies rebased Volumes consensus. so the XX%, really have their to expectations for are actually have quite? that it now for the like up seem AUSTEDO many they I'm quarter-over-quarter, negotiating attract trying versus hearing. XX% not X% a or I'm means track the slightly out. what at on But commentary get secondly, XQ have yet to as up to the

sustainability then just on I very projects could to was, supposed could specific or upcoming proceeds be bond, of used refinancing one to clarify Thank debt? bond the much. had you that. And towards sustainability the also sustainability they If finally you questions be isn't

Kare Schultz

and I the take Australia Umer. of the you, the Sven, will and North Thank last question. America then, Head question take will first

parties. to the re-basing have reached There's state that the yet to of think a we the small next about, we we that complex. regards can are next come the AUSTEDO will whole AGs hand to that dialogue, I'll active say hope the happy of there's settlement are only could course, see plaintiff been you in it opioid I next lot still and complex. discussions the but Then that's is, you right, in, in settlement change opioid within involved reach apart haven't And We're fraction with So discussions, we're on it and a settlement which the seen, to XX a discussions. But optimistic a very of XX you we months. the state, one over active fruition Sven. over or from We're course, any of with question, don't lawyers. with months.

Sven Dethlefs

the Umer question. Thanks for

second XXXX based plan diagnose effect in on the DTC X assumptions. So And which X one psychiatrists to based second AUSTEDO of half starts separation person. into patient we've going in a offer the of the the going started our is and now QX May, for towards campaign out returning the QX What to on year. is is accelerating on new of the seen starts is new trends. patient baseline from in the we patients significant

for So reason to end that and with sales an have of the QX in to year strong we expect acceleration AUSTEDO.

Kare Schultz

And committing we're of And We're There's impact bond activities. And Sven. sustainable a your medicines doing what to same doing. you are bonds, investments in to. say, countries do low that's not UN you're the you we right. the sustainability-linked with green high-quality emissions committing and what greenhouse environmental you that really in of you and income -- environmental gases. regard at we we're essential say, reducing being where called of you provide to And to something something purpose would footprint, linked development. Thanks, doing would we're also linked, the are That's our the the the for to, bonds, which improve to. time, the initiatives improving bonds. to it's goal are generic to way in middle that's help we Company able where because to world are And leading the able world,

two of essential a income to commitment strong that's to to to these middle portfolio in a think in and access and think position really low these medicines we're we our So unique countries products. areas, through our to we signals improve

in and that happy with reporting we targets the course, the most essential be of showing We are we're Company will an issuance medicine. medicines them them of proud ongoing on course, best, line committed and We're we're meet ourselves. essential of of world on how meeting has our and list the expect And that of in commitment the very be the will to basis WHO hope successful the the we and bond we're we are for to today. setting that very

for question, the thanks So Umer.


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

Elliot Wilbur

morning. Thanks. Good Good and Sven. for afternoon. Questions Kare

behind Maybe $XXX has specifically just terms of and contributing below the [Indiscernible] obviously America some million mark, time. Just break which decline the in generics. give sequential in the the where us been perspective North stable and some for primary factors

very whether more product The Just curious it as just specific. base? erosion absence accelerate it's, to you of call it Is approval. the across would

just there picture thinking would about as some question in the for be And Just whole. Kare, then helpful. generics bigger terms business maybe of color a U.S.

assuming cumulatively spend I'm generic to would considering half any probably level, segment, R&D in to business. about at return. just X% -- high or XXX roughly pegged billion million a about around U.S. it that a noticeable annualizing it's looking need a rethink of generic American sales. somewhere X years, little seems the towards the recalibrate be And the to in thinking spend. real million, North tied Just over last R&D like generating XXX of that not about just is I'm investments your Thanks. just and dollars the over wondering very

Kare Schultz

will I'll one for questions. first one. Sven address those the second and Thanks then the address

Sven Dethlefs

Elliot. Thanks,

of are generics, factors reminder, generics a the as influence One just generics, X current And U.S. biosimilars the business. the the erosion. combination we U.S. price America that report is sales Canada trends. North For and there

For our price portfolio, I can scenario. stable say relatively have erosion that a we

Truvada that competition, by in relatively stable. more generic facing our reason. remarkable influenced and Atripla course, complex Overall, have environment we the pricing Of but for generic resilience portfolio is

reduction due the volume. led is and basically restructuring plant portfolio coming We're now factor to consolidation. consolidation second of to end that network our to volume volume The

also launches. this the year forward. course, say, number here most we of [Indiscernible] stable And us environment going important product of the is a expect, So for

year. influences that of the also we the FDA see, [Indiscernible], this and the industry for for overall, but for one for number is us, approvals that that factors the performance got Here of we

Kare Schultz

the And in R&D U.S. on the leaders Sven. generics and committed segment the U.S. to overall longer basis. very question in in on generics. return to showing being worldwide and generic fully Sven, with is a we're R&D being regards good spend in Also, Thanks, leaders a generic the our

We patent, biologics and that. manage off have target XX% our we a doing or whether basically aiming goes up to [Indiscernible] at it's are what R&D

have between R&D As of a and think And projects more we than we good combined course biosimilars thousand generics, know, you and generics. on have majority return in we a it. being

in We committed space. in $X billion that launches, quarter. that we're accelerating revenue this seen the last average some the think approval. It's years, had we North like and on haven't quarter the had ago, We over the weaker are we we and price and launch, any had generics is over coming as it correct we still launch, you've fact due regulatory to years we that the launches some that. the -- to really have American biosimilar EpiPen we've not having Truvada It's to case. launch due than waiting are generic our slightly Atripla and But meet major TRUXIMA noticed for have we can erosion years the then a therefore,

see We are the coming optimistic we'll in quarters. that them

amount very The so of speak, the stays up very and weakening of amount unchanged, see come. don't grabs, the that head we we're the generics structural years off revenue segment, that committed to U.S. goes to in So to a that's for high.

questions. doing research the it. support on all think necessary is the and we'll to for we So this business keep Thanks good

next Let's question. the move to


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

Ronny Gal

stay little on to Good scene morning. business. that of for bit Want the a generic

that the XXXX, at been driver increase have is it biosimilar for in and Looking of few for obviously, Rituxan -- the in that price XXXX, another is a -- you big you over of line. erosion business impact enough seems launch generic it's erosion? about the billion for that that XXXX, will months, the -- the XXXX the Rituximab over it's some growth terms last products and don't you offset see that may America talk large $X generic North Otherwise, XXXX. of other tough in launch to reaching just Can you in overall to

you're in projection offering rates where can us the a a interest you second, versus and be just you Eli roughly, at you financing. being point, going. that discuss this do assuming but the know ups of will ring are of should that -- business. feel And the talk able for XXXX You can little about to I bit it's debt have can it's XXXX, a that give downs range here, what

Kare Schultz

Thank for you one Sven questions, will one. Ronny. answer will those answer the Eli and the first second then

Sven Dethlefs

approved we about for launches XXXX. this Ronny, Yeah. XXXX, rolls did are that generics we complex to Every generic we business, up. XX the naturally foresight U.S. product have product lined get not already of the that these we into this round in generics XX get or talked And don't approved year over about earlier year.

now and have total for year. of -- in Quarter launch the changes have to ENGEN in value we that the now early. course, right, and environment strategy XXXX. you're next Zibambwe we where we're three for we finance a move Pfizer that TRUXIMA For expecting maximization January, also cost the pricing the the since situation XXXX. biosimilar space, we took product And expect don't competitors, In

Eli Kalif

So accordingly the 'XX to you see would we mission, Ronny, our follow to so and that XXXX say, I if see changing. consensus, we billion also keep in we're of what one in [Indiscernible] the terms going don't X

Kare Schultz

next questions. move to the Let's


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

David Amsellem


be will How stage terms of assets? terms and the given ready assets, So you'll you biosimilars, I is, structure some is, in-licensing on over of the obviously, regarding here like think agreement, -- pricing to or then you Do of particularly of markets? on generics, of the philosophically business even aggressive the commercial or they'll ultimately do, and X. have the opioids, going the size, do stage these more back what we a And of in what and you cap acquiring given can time. of talk over are license in even for number will in guess specter mirror happen? do just stepping That's footprint liabilities, question robust wake development, time? what acquisitions, to Can there? just think MODAG that and look you complex Thanks. terms think you in is margins seeing question erosion you the what what think see will remain or What can you commercial in pricing you

Kare Schultz

offer to the in revenues future keeping, form say makes know and and thanks turns those our a out -- in correctly us is that and one upside, getting expertise, offer payments in you track and have interested cashing X we in just what attractive. lot the in in the and knowledge a David, are regards now, development some We by groups we actually for cash commercial them as we And coming like our fees. have cash form really of our because our footprint, commercial of out really With of could cannot there's basically [Indiscernible] some CNS but that just we that have big patterns have in in best that you capabilities. the or a capabilities in interested ever can discussed, sense we a block and areas of of up-fronts, the lot base But had staying we they of questions. companies then know-how, note. PE not license it quite project are the research strong big that record solid

and But the rights a nearly the of to guys, if royalties opposite. very pharma pay and sometimes big take we all some low succeeds. they upfront big prefer the offer can it And

goes thing biosimilar we'll say, succeeds. and matter, That's we're in-licensing the low for for be generic paying upfront, expertise, that lot a that course, And strong then, doing. same we're doing. the if for of lots footprint, You could that commercial of royalties some of that it in-licensing the

If gives [Indiscernible] at you the the upfront. take do same look Company We to out-licensing take in the and we commercialization commercialization whole Small value or in-licensing, us. that's to part idea. that

money can not keep doing do that are the where put lot to on we we're of we we So deals optimistic going any a on table. And that.

end significant personally. least you two the can 'XX Sven of even take talks cash give scientific hurdles and way add and net should in then that more we business share relationship more you We perspective it. Biosimilars target are on to I reduction some that comes biosimilars, could When to are totally debt-to-EBITDA any the U.S. of really until committed and higher. contemplate up go I'm development. the we we'll I'll thinking to before with in my hurdles, times to regulatory three times and we can it debt below reached to are develop expensive stay at complex lower

we've said, rather competitors an a small simple will dropping you will would competitive competition. generics start So sense, generics. be competition enter. is consequence attractive. a a the is, price price so they out that simple could in go with in What and And product less. same, classically, therefore, like from of the generic are enter, than But is you expect between that, pricing the levels generics but seen But they what that you will will down small occurs, are line I then more as as be trend a what will of more specialty the complex competitors lower And expect the somewhat as that pressure a course, biosimilars what far and traditional less you is getting than discount absolute see more old-fashioned say, from development would mix that

the it generic, initial price lower the discount, erosion So and simple slower. is has launch has X price a and normal

I say, for to generics. simple And like is as that you It's know you're more to don't it we an instance, is right? example, complex we So as more situation on generic attractive right. a of that look an situation, would generics in for such -- a, give that I if our it it's attractive. that see then just example of pricing depend, So those, sense, some Truvada, if some add I is biosimilars more correct development Sven, And can think at for like than think complex absolutely more the details.

Sven Dethlefs

our I is the drive nicely, we Yeah, biosimilars, we launch it business in X cases already for main of model think you so up value categories think sequence. to summarized all when creation

important is for or first, generating to the are third fourth or we actually So factor second value. market, most

or between TRUXIMA, the for this are example, HERZUMA case, in fourth-to-market. or that in we our first-to-market, You see difference

in the behaves, of analogy terms the it it because U.S. decline, last Kare European generic in already price is market. biosimilar said, In than the we as Europe, see years complex we model to what But more market over established a like more market.

we So for significant competitors believe But much decline then price you are lower, have and generics. the a of tailored these basically stronger come it value the drugs market. more trickles into normal because new overall, value as the upfront creation than down is

Kare Schultz

Thanks, the Thanks questions. Sven. for David

next the to on questions. move Let's


Thank you.

from comes question Prasad Balaji Barclays. question. your line of ask from Please next Your the

Balaji Prasad

thanks questions. me. and everyone, Two morning, Good for from the

you on Just the of of out there free Are the the around research million impact variation designation a for how two with commercial With with Thanks. -- Kare? have business? million-dollar week's influence on have million for Secondly, in -- a for your the blocks Also, just and can to interchangeable any in XQ. for due, that on ATVXX follow-up material flow current getting months cash Cyltezo, to XXXX, does last guide market? the XXX are you, range for Boehringer's plan landscape a the $XXX variables thoughts this it XXX left biosimilar what million, to road which front.

Kare Schultz

it. questions. will cash comment two question. also I'll on handle Eli give top-line those for you I'm Thank a but first sure Sven on will this the flow,

Sven Dethlefs

prospect -- are designation about think yes. buyer Yes, on interchangeability the growing for on I our that Biosimilar it was fact they the that garden first the Humira based question, biosimilar,

So competitors up whole a lined we first then have know, July of for of range course, launch. will and ENGEN come we

started on the the XXXX. also the interchangeability come time study don't before, believe will products, favorite I we'll driver. for market said believe value in I to sequence so launch that As concentration and that high designation main ENGEN be we changeability here within

that a Alphatec formulation. product interchangeable And be it from high-concentration sorry. will own be will we Our -- licensed

be this product should we space launch. in good So pretty for a

Kare Schultz

you typically raised se if it, the flow, free to go you question, reflected answer as if a because can working that capital But a you had have course, regards your Thanks, have earnings, and receivables, uncertainty the quarterly them. you your With accounts cash don't on influence, a of accounts the payables way, which quarterly the million to flow you same very on, on and -- how free XXX is flows, cash actually Sven. cash in cash all high just at that and million your on per vary, actually impact historically flow. the swing cash earnings of have have have swings simplistic XXX big the our in small can let's look flow, have elements and you back not those the so you inventories, you in they just say

negative, on quarter, went where wrong saw say flow, free just You capsule maybe flow. you the cash low had had of it negative word, the very the we against first the but cash sort we is widen in a free the could all so movements

actual can fuel how I'm movements Eli You've are seen the explanation capsule overall. But flow, elements other for give some cash free these to so much really these working cash the positive the details on quarters capsule where all of sure flow. items is on of the working the free effects move that the more you

Eli Kalif

the we in Overall, moved our view year-to-date, saw QX We no. then, our still for our according We well. and in of above behavior. area patterns. I how in but course improvement variable the it related of the saw We inventories All-in-all, terms some as Yes, revenue year. conversion, that running we're demand that saw to shipping on say actually the and would went XX% see that more the -- to mix in collections nicely. Thanks. the that of

on track. So that's

Kare Schultz

Thanks questions. Eli. Thanks for the

to questions. Let's the next move


Citi. Ty Navann comes questions. ask from question next The you. Thank Please, the line from of

Navann Ty

opioids. my Thanks on taking have for follow-ups two and generics I morning. Good questions.

U.S. If discuss you generics outlook. further could the

You the previously in going, did likely bonds? first nationwide given a that York performance? conditions also, on maturity Thank coming see of change settlement can back QX the is all and then saw new change half no trial after New I opioids, market at year? June, in material volumes next how could or the more And the you. we in And the the back ask just of in please ESG 'XX, half

Kare Schultz

Thanks for questions Yes. Navann. those

take I think and Sven one, first the the will will take one. second one, third take I'll Eli the

Sven Dethlefs

Yes. Thanks Navann.

the share about the you the management XX so by consolidation. and to because the think answer for question primarily points if portfolio little X driven the was of that launched, the X.X and for of development restructuring, from volume points over market about underlying analyze the was last this volume years a outlook business, we broader generic to XXXX. let me since U.S. But causes our I support that, decisions round course,

not high portfolios basically Going our because is strategic from forward, us volume to customers, for buying believe, I buying individual broad value molecules.

also business, the us a serve then or in volumes to objective efficient, the captured. level generics value to more volume going for value. that's alone to in not driven operations is in overall, and say, want generics U.S. we of strategic So But higher it we to occasions the of for business. needs U.S. I try making monetary course, optimize monetary go course network And but always believe the our because of some volume also purpose forward, would if to I capture

Kare Schultz

York and regard New With settlement Thanks, great. discussions the to Sven. the it's opioid then trial,

course, for the reaching are trigger towards a we positive We in New a always will very New trial. trial the actual trial the the could verdict. month some that's have can And time, never but York, you of it settlement. trial in near a settlement ongoing and to be the it -- in future, proceedings an get coming settlement. a for a jury be a know we But won't once a in York trigger close

We plaintiffs. are with with and state constant AGs in dialogue the the

currencies, that So you within month, next can the in reach happen happen we can we realistic think it the it that I I are think will next tell the I Eli that what a the so And nationwide timing. optimistic is question I can't on. it's settlement. XX cannot I on but then bond the months, the and specific last offering, more maturities, be about

Eli Kalif

X-years USD Euro Thanks tenure, that more and cash coming Europe the that years. flow into to to Yes. one, between for to I way for we're we, do new to it, pay and support USD X-years maturity issuing the create to on equating our Actually, sure able floating to generation. and the years, capital [Indiscernible] X-year our our we and questions and are the X-years XX ten look That With both use portfolio the enable going in for to see in a of we say, us be free Navann. our get the actually to make XX. will modest, that the will maturities. allow to to years [Indiscernible]

Kare Schultz

and Eli for questions. Nathan thanks Thanks,

the to move Let's next questions.


from Sachs. the you. Rich Goldman question. Nathan ask The comes Please question line your from of next Thank

Nathan Rich

questions. and you have few I good a Thank morning.

Truvada in First, U.S. follow-up generic pricing maybe Atripla the generic trends pricing excluding on It for Sven dynamics the changed, you with generally and a haven't that sounds like mentioned. maybe

stronger the quarter, you So you maybe but then quarter, seem saw in know just quarter? third I out step we a see. as what like and a the implies you it fourth about what And talk the typically play in think seasonally could up bigger it's about sales guidance does

that's between could year. how us to XQ outlook? if and with just you I you've factored could about you. what Thank labor input seen help Eli, don't And just then or think this XQ on cost comment So the maybe if and respect you into cadence either trends, your lastly, know costs, API

Kare Schultz

Nathan. Thanks,

first and the one Eli think the Sven one. will I second take take will

Sven Dethlefs

you Okay, Thank the for question. Nathan.

generics track in pricing the in course, industry Of U.S. our in we portfolio.

Sandoz, had of is to we because supply price us two in said, the So We in the this different Truvada main quarter, than the because see more they major driver third quarters number and the Sandoz we've were on leveling what portfolio pricing our seen the for portfolio. into off. the also of portfolio resilient we've don't Atripla seen pricing structure effect in ability have are the as year. reported same you complex Plus, this the of factor trend is because a we stable more is first -- and they yesterday also environment course what has. In U.S. generics, The market.

is That's [Indiscernible] the element. of of forward, factors. basically observe we discontinued two Going inventory set terms in stability because One one off suppliers drive or pricing bidding. what are price environment management, inventory in

new acceleration into trends. generic, is But driven. we the FDA The here, for of have we approval basically already where see any one it's the so generics second don't rates segments, coming

So going can reason pricing U.S. forward, our the environment actually we for relate business stable generics. XXXX for for that within

Kare Schultz

quarter Thanks, quarter? Eli, from will change comment Sven. fourth in And you to on third revenue the

Eli Kalif


So for question. the Nathan, thanks

mentioned, the what we And this the is so we element. one we they're specialty see portfolio, one of see accelerate. actually in which mainstream That's as area, going that to one

in generics from to the the which and actually is [Indiscernible] QX biosimilars. is dynamics the between And stuff, and to contribute other our to international second other Europe the increase including QX. -- The where the element what, mentioned, more as I actually, markets. two regions, in Those going

Kare Schultz

part the can question? a fourth in think pattern you the buying there holidays, also the by was this, in we've years, one tradition that to last to that more I yourself, also been reason historically, Xst is the that s demand you have also that general as seasonal increases we there's And and and have of of the terms, marketplace, in of XX typically build-up for fact is holidays the Nathan, so wholesalers stronger around seen, of stronger we've demand. you That's seen just said U.S. course, which adds add January. for speculative always the because price And the before quarter years. the inventory that one it then your course many

Nathan Rich

what comment been you've input if just could seeing. costs, Just on you

Kare Schultz


relatively say, in seen reporting raw fact that relatively is lot affected piece small of of lesser would I to, they total see cost piece that energy, such transportation of the given course, again, energy's is input but we So reducing also on. cost We've and dramatically labor, a related But by And are relative inputs which our stable base. course, our increase also base, simply materials, as that so of to industries cost, the on costs. a extent, of that. a of of comment are I'll our to most transportation, transportation small cost

see anything effect that inflation to we will cost seen haven't really we of a to So It's be be forward early going might seen. on predict. dramatic. labor, too remains that It

OTC can inflationary be You spend hours you U.S., generic -- all is course, because with that actually U.S. that. And our into it more prices important is we economist whole flexibility get in products. subject portfolio, discussing observing that it's if the and pick. increase that environment, these important We'll any of can specialty price for our our on instance, in portfolio to portfolio whole we

move for on thanks Nathan. to let's those next. the So questions, And

the it think I be might last.

Kevin Mannix

two have We left.

Kare Schultz

questions two more people. -- more Two

the So next let's to head one.


The next comes please Bank question of line question. from America, Jason ask your you. from Thank of Gerberry

Ash Verma

on Hi, for thanks for is Ash this our Jason, Verma questions. taking

on one So litigations. opioid

opioids Louisiana imagine has would the Op-end have a So deadline can visibility you by you which talk any the second for that known subdivisions? political recent I settlement about the Do into that that a in for would of benefit so does the the informative terms be question of for with LEI, respiratory subdivision. much And subcu the the is what provide Xnd of happens rest the process? here? how states

Kare Schultz

the repeat Sorry. provide? -- just risperidone How executive LAI last does Could you much what bit?

Ash Verma

not a subcu well done does formulation here? of subcutaneous market. provide has How you Yeah. of much As know, other the the the one in benefit

Kare Schultz

Thank very you much.

of and then what mirror we to reach happy settlement Louisiana, seeking and So It a settlement. to settlement. offering I very we're I'll about regard basically both this the a think opioids handle the of is With nationwide in these. as are

over that's pro option. a you discussing XX the of it cash it's products years. a off for whereas of is, paid or rata to also nationwide it settlement. abuse That misuse. course, people Same So product used important opioid we're includes And amount because win

happy we're about it. very So

This the all Louisiana the Then been Your that sub way that's sub-divisions, divisions the negotiating specific assumes are with included. it of we've in about been state. question state the the

that will cape a optimistic are this with case, We Coming be the line.

there haven't the because doesn't it the included. need just get case. divisions also we it we really need in to But course, confirmation otherwise, best we of that any yet, assumption discussing, that some settlement the all where think sense. be are will make nationwide that, And reached I subdivisions for we're that

take schizophrenia, benefits really you to and for. well, what little your you to little give confused, every that the risperidone So because the going cognitive you injectables a bit feel of it's only medication. and And in long-acting tablets, you time get you of With for risk, you daily a if relapse, and your on then you regard a stay a some that what you There's get to need that's brain from start get tablets When it I'll all skipped that important very LAI are bad and really other get a your marketplace, we're very is explanation. compared you exists harmful the sudden, a psychotic, functions. relapse

A and to it's a long-acting are important long need that and a medication are quite stay you therefore, invented given intramuscular So into of typically were quite Depo muscle speak. effect these needle it's to because the very initially. the kind thick needle, tissue. so these all injections get They therefore, you your products injections, and painful it on

but not secures this very covered instance effective, for a undergo, because very So of it X to thing you're nice is it's course, months. that

really the trials, have volume. and of subcutaneous, a way. but Now, then we've Phase and product, the It monthly III a the major thin in excellent benefit. it's main very needle, so III once Phase so month, very do that's that's our is we a very, the injection small in efficacy, it's showing get nice once convenient to And it's low clinical clinical case a very, improvement and second benefit, the easy that done efficacy it's because you both of very, data, level strong really every it's strong more very pain,

to So those questions. last the Ash, thanks questions, and for now


BMO question of comes Gary ask Capital. Nachman line last Please from The from the question.

Gary Nachman

Good Hi. morning.

Then, are stocking where the about trough that should customer big be targets AUSTEDO your in out. other that will the confident the core, XXXX the levels revenue patterns, of year-end? going when you that ex-U.S. Are launch or a are whether question, happened markets some and What will AUSTEDO guidance should with or year be Then the Japan, are that markets seeing contribute purchasing AJOVY there? much opportunity What the should markets of both now First as this could set in what's different be and markets year, in approaching you we're second Thanks. normalize COVID-XX you AJOVY we thinking how EBITDA? you still from in into? US. be for China contribution and XQ? most impact to the outside What than

Kare Schultz

Gary. you, Thank

second can think first take on the Sven and I'll it, also one. I comment I'll the then take one.

So overall, high details course. level I'll to to XXXX. the long us about of there's back because with COVID go lot of then high impacts, level, of a you do so to has think the all it now been But that have it COVID-XX we if way course

made XXXX were hope vaccinations in we of QX down. in and you a effect XXXX,. Then markets in quarter after first the second of, And that were QX see normalizing patient for the that the we patient this then You in Then would the seeing of the third XXXX. volumes took levels destocking year, had lockdowns of both all we year. U.S. fourth we basically remember the quarter of and had hoarding when on say, products, Europe XXXX, in that we which quarter a in then guidance we had and at the optimistic specifically Europe last of d would we we coming the of

and before up. All showed both those lower in are of on. levels quarter. because the we up. psychiatrist open have expecting thought numbers quarter, subdued Europe, we But we third doctor didn't go Stable We up. move you in the all the got less are AUSTEDO why we moving start U.S. the quarter. U.S., starting and you were and so are Also lifted. see mandates, would of second we at of fast. infections visits, course, had initial scripts the scripts to point they've of rep prescription We psychiatrist, this did of moving AUSTEDO on lockdowns, scripts, below prescriptions it were lockdowns we I the as We high of labels know, visits been in all get QX had didn't that on. normal which so these second to Now, happening volumes, see and be In stuff that that. time, that have more at in year end Europe the or the continued of so where in in staying and a mask That's normalization sales visits, a to of

So and we the had see third European in up, fourth quarter. started up we volume in and European volume the coming then hoped quarter already that picking but accelerated second

in continue fourth Now in quarter. will all third we're the the seeing guidance in we these quarter, and our are that happening things expecting this

the to here Europe, good to I getting that me, of we're because believe back not seeing with any seeing script have the very so can say, reasons we the Then levels we're the market. aligned ought we're not to U.S., new XXXX are where you new for And of We they to be? lockdowns continuation in think ask in year we're actually any levels. our lockdowns the normalization there a predictions the close in will

expecting in European let's of see, be However, low growth normally a growth. course, volume, total that's a would say we script we because what single-digit

that 'XX. We where low single-digit XXXX, lack growth were to with we're haven't of sort we of in up caught in XXXX, back but

in it be, in U.S. in below once QX above that at where that COVID. we've the COVID slowdown 'XX we quarter, psychiatrist close first we the so fourth were for see we're in look since before seen. just be will speak doctor to get into below doctor now QX, to you QX, the in we visits that time offices used were getting psychiatrist in will If then, that to visits I'm we started And optimistic

a So would us would, year course, on year, is the lot in based think next details, that normalization. of but it it of I affected normalizing. is has drive, QX to on cases continue really trend-line. Any severe This to see this is low see to Sven in top continue we a of we'll that hospitals, which current strong that? see that of the relative and comments continue destination level assumption a we

Sven Dethlefs

and a No, cold for business, didn't or I and or XXXX-XXXX only respect have is cough see portfolio, that the basically, generics, think European should normalize cough and it. cold U.S. to the I we actually that -- in year. OTC exhausted next the for because that's you would say also I XXXX real due but also season happen social distancing,

Kare Schultz

think Japan. about In Thanks, we're the of on in has Japan and potential. AJOVY the happy for for Japan going great prevention be in China, very you There's products the market Japan hassle AJOVY government would the which is because first get I get the of lot this with the a is we'll and say you Sven. big by migraine. steady, a price, AUSTEDO of you We China, Then launch it so in have way approval, and don't pricing. penetrates there's, and set slow

like You pricing had that don't already. negotiations that, you have

to but for China. it's in on Japan AJOVY AUSTEDO. hospital you the and get need listings same Actually, and pattern [Indiscernible] what's called that's both So

there, listings, all You start and get hospital buildup. and the to work the gradually scripts take then through your on product off you

or and major Joe when But So in are a marginal, not quarter still we in status in will fourth happy Japan said this impact. have markets, be to year, and they will launch the steady it cases about XX the sales comes a a China, of will It's happy the we're good be over development more major years very the and so accelerating products in buildup. numbers questions. for the reaching then next Gary, thanks it's about markets. both both

that I the end think over operator. call we with will to the


further our remarks. to no closing speakers are like call questions. I for hand over the to There would

Kevin Mannix

for the today. Thank you us joining call for everybody

care tomorrow, the today, As questions weeks. you to be always, we're happy coming in well. any Take and and have take


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