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|December 11, 2014 7:00 a.m.|
|Teva Provides 2015 Business Outlook|
In an effort to enhance investor understanding of the Company’s business performance, and to provide more clarity and transparency regarding its projections for 2015, the following assumptions will apply to the 2015 non-GAAP financial outlook:
Outlook for 2015 Non-GAAP Results
“We are pleased with the progress we have made this year, which has created a strong foundation from which our business can continue to grow while delivering value to patients. We remain committed to utilizing our strong cash flow to return cash to shareholders and invest in long-term organic growth while maintaining the flexibility to engage in strategic business development opportunities,” stated Erez Vigodman, President & CEO of Teva.
“Generics remain at the heart of our business, both as the cornerstone of the Company, but also as an area that has great impact on society. At the same time, we anticipate four specialty product approvals and five submissions in 2015 – which we believe will improve treatment options for patients, and add value for all of our stakeholders. As we look to the future, we will continue to deliver on our operational, financial and strategic goals to further explore the unique space Teva has at the intersection between generics and specialty, and increase access to healthcare to patients around the world."
Below are 2015 outlooks for our generics and specialty segments.
We expect 2015 generic revenues in
The profit and profitability of our generics segment is expected to grow
in 2015, as we focus our product offering, leverage our global portfolio
management function and de-emphasize less profitable markets. Both
profit and profitability will also benefit from our ongoing cost
reduction activities. We expect results to be negatively impacted by the
entry of additional competition for our generic version of Pulmicort®
Results of our specialty segment are expected to be impacted by the
introduction of two AB-rated generic competitors to Copaxone®
in the U.S. beginning in
These estimates reflect management`s current expectations for Teva's performance in 2015. Actual results may vary, whether as a result of foreign exchange fluctuations, market conditions or other factors. Non-GAAP figures exclude, among other items, the amortization of purchased intangible assets, legal settlements and reserves, impairments and related tax effects.
The non-GAAP data presented by Teva are the results used by Teva's management and Board of Directors to evaluate the operational performance of the Company, to compare against the Company's work plans and budgets, and ultimately to evaluate the performance of management. Teva provides such non-GAAP data to investors as supplemental data and not in substitution or replacement for GAAP results, because management believes such data provides useful information to investors. In addition, although stock-based compensation (SBC) is a recurring expense, beginning in 2015, expenses related to SBC and related tax effects will be excluded from our non-GAAP data.
Teva will host a conference call and live webcast to discuss its 2015
financial outlook on
In order to participate, please dial the following numbers (at least 10
minutes before the scheduled start time):
A live webcast of the call will also be available on Teva's website at: http://ir.tevapharm.com. Please log in at least 10 minutes prior to the conference call in order to download the applicable audio software.
Following the conclusion of the call, a replay of the webcast will be
available within 24 hours on the Company's website. The replay can also
be accessed until
Teva's Safe Harbor Statement under the
This release contains forward-looking statements, which are based on
management’s current beliefs and expectations and involve a number of
known and unknown risks and uncertainties that could cause our future
results, performance or achievements to differ significantly from the
results, performance or achievements expressed or implied by such
forward-looking statements. Important factors that could cause or
contribute to such differences include risks relating to: our ability to
develop and commercialize additional pharmaceutical products;
competition for our innovative products, especially Copaxone®
(including competition from orally-administered alternatives, as well as
from potential purported generic equivalents) and our ability to
migrate users to our new 40 mg/mL version; the possibility of material
fines, penalties and other sanctions and other adverse consequences
arising out of our ongoing FCPA investigations and related matters; our
ability to achieve expected results from the research and development
efforts invested in our pipeline of specialty and other products; our
ability to reduce operating expenses to the extent and during the
timeframe intended by our cost reduction program; our ability to
identify and successfully bid for suitable acquisition targets or
licensing opportunities, or to consummate and integrate acquisitions;
the extent to which any manufacturing or quality control problems damage
our reputation for quality production and require costly remediation;
our potential exposure to product liability claims that are not covered
by insurance; increased government scrutiny in both the U.S. and
Teva Pharmaceutical Industries Ltd.