Teva Pharmaceutical Releases Q3 2021 Financial Results, Reports Net Profit of $576 Million
Oct 28, 2021 10:25
CST Updated
10:25
Teva
Drug Developer
【Pharmaceutical Network Industry News】As October draws to a close, the third-quarter financial reports of listed companies are gradually being released. Based on disclosures from multinational pharmaceutical companies, firms such as Eli Lilly, Novartis, Johnson & Johnson, Roche, and Biogen have already announced their Q3 financial results, with overall performance being mixed. However, the innovative medicines segments of certain companies have experienced growth. For instance, Johnson & Johnson’s pharmaceutical sales in the first three quarters reached $12.994 billion, a year-on-year increase of 13.8%, with its blockbuster anti-inflammatory drug Stelara, CD38-targeted anti-myeloma drug Darzalex, BTK inhibitor Imbruvica, and psoriasis drug Tremfya all delivering strong performance during the period; Novartis’s innovative medicines business reported net sales of $10.628 billion, up 8% year-on-year.
On October 28, Teva Pharmaceutical Industries Ltd., a U.S.-listed company, also released its third-quarter report for fiscal year 2021. According to the financial report for the first three quarters, from January to September 2021, the company recorded an operating revenue of USD 11.778 billion, down 3.51% year-on-year. Net profit attributable to the parent company reached USD 576 million, swinging to a profit from a loss of USD 4.14 billion in the same period last year. Basic earnings per share (EPS) stood at USD 0.52.
From an industry perspective, compared with the same period last year, Teva's profitability and cash flow have both improved. During the reporting period, the company's period-end total assets stood at USD 47.851 billion, with a pre-tax profit of USD 833 million and net cash flow from operating activities of USD 342 million.
For a long time, Teva has been widely regarded as a "generic drug giant." In addition to generics, a series of its innovative drugs have gradually been gaining market traction in recent years. For example, as indicated in the 2021 interim report, sales of Austedo, a treatment for Huntington's disease, have increased compared to the second quarter of 2020; the global net sales of Ajovy, a migraine prevention drug, also rose to $70 million; and the U.S. market share of the biosimilar Truxima continued to grow to 25%.
It is worth noting that for many years, Teva’s core revenue has relied heavily on Copaxone, an originator drug for the treatment of multiple sclerosis. Following its launch in 1996, sales of the product continued to climb, reaching $4.2 billion in 2016. However, with the expiration of its patent in 2015, the product faced intense competition from Sandoz, Mylan, and Indian generic drug manufacturers, leading to a sharp decline in revenue. According to Teva’s Q2 2021 financial report, Copaxone’s North American revenue had already decreased by 36% year-on-year.
To this end, the company chose to focus its flagship products on two other originator drugs, Austedo and Ajovy, and launched a biosimilar, Truxima, in North America in 2019. As of the second quarter of this year, Austedo’s revenue in North America increased by 8% year-on-year, while Ajovy’s revenue in Europe tripled year-on-year. However, industry insiders also noted that Ajovy faces competition from similar drugs by Eli Lilly and Amgen in the migraine market.
To date, the company's technology platforms include biosimilars, novel biologics, small-molecule drugs, and a digital respiratory system. In addition to generics, Teva's specialty drug and biosimilar pipeline also covers therapeutic areas such as respiratory diseases, pain, migraine and headache, movement and neurodegenerative disorders, and oncology. It is reported that within the company's current pipeline, one adalimumab biosimilar is under regulatory review, two respiratory drugs, one schizophrenia drug, and one biosimilar are in the pre-submission stage, with an additional 11 drugs in the clinical stage.
According to publicly available information, Teva Pharmaceutical Industries Ltd. is a company incorporated in Israel, dedicated to the research and development, manufacturing, and marketing of generic medicines, patented branded drugs, and active pharmaceutical ingredients (APIs). The company markets pharmaceutical products in various dosages, including extended- and immediate-release tablets and capsules, extracts, creams, ointments, and formulations. Its primary therapeutic areas encompass analgesics, anti-infectives, cardiovascular, central nervous system (CNS), dermatology, and anti-inflammatory agents. Currently, its products are primarily distributed to chain pharmacies, wholesalers, distributors, hospitals, nursing homes, and government agencies.