October 27, 2021

JERUSALEM (Reuters) – Israel-based Teva Pharmaceutical Industries reported third-quarter profit that missed estimates, citing lower North American sales while Huntington’s disease treatment Austedo and migraine product Ajovy continue to show revenue gains.

The world’s largest generic drugmaker said on Wednesday it earned 59 cents per diluted share excluding one-time items in the July-September period, up from 58 cents a share a year earlier. Revenue fell 2% to $3.89 billion.

Analysts had forecast Teva would earn 65 cents a share ex-items on revenue of $4.03 billion, according to I/B/E/S data from Refinitiv.

Teva reaffirmed its 2021 forecasts of adjusted EPS of $2.50-$2.70 and revenue of $16.0-$16.4 billion, compared with adjusted EPS of $2.57 and revenue of $16.7 billion in 2020.

Sales in North America fell to $1.88 billion the quarter from $2.02 billion a year earlier, but sales of Austedo rose 19% to $201 million and Ajovy sales gained 31% to $46 million.

Overall generic drug sales in North America slipped 7% to $859 million, while sales in Europe grew 9% to $1.22 billion.

Teva’s debt level dipped to $23.8 billion by the end of September from $25.1 billion in June.

The company also plans to sell $4 billion of sustainability-linked senior notes. The offering “further demonstrates our commitment to the environment and to securing access to medicines in low and middle-income countries,” said Teva CEO Kare Schultz.

(Reporting by Steven Scheer; Editing by Ari Rabinovitch)

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