Teva Exceeds Forecasts in Q1 2024, Showing Significant Growth and Profitability
Teva, a pharmaceutical company, ended the first quarter of 2024 with revenues of $3.81 billion, representing an impressive growth of 4.3% compared to the same period in the previous year. This revenue surpassed analysts’ forecasts of $3.73 billion, indicating that Teva is performing better than expected.
Despite facing a net loss attributable to shareholders of $139 million according to GAAP, Teva recorded a significant improvement from the loss of $220 million in the corresponding quarter. Additionally, the company reported non-GAAP net profit of $548 million, which represents a 20% increase compared to the previous quarter.
Teva confirmed its annual forecast for revenues, operating profit, EBITDA, free flow, and net profit per share. The company’s share price has been trending positively and increasing by 33.6% since the beginning of the year on both the New York and Tel Aviv Stock Exchanges.
The CEO of Teva, Richard Francis, noted that there was a 5% increase in revenues in local currency terms driven by growth in generic drugs and originator drugs Ostedo and Ajobi. The company also reported separate results for the US market that showed revenue growth to approximately $1.7 billion and profitability of $350 million. In Europe, sales grew by 7.4% to $1.27 billion with profitability increasing by 22.6%. International markets also saw sales growth of 2.8% to $597 million with a profit of $117 million.
Teva announced positive results in a phase 3 trial for the original drug TEV-749 (olanzapine) for the treatment of schizophrenia further strengthening its position in the marketplace as it continues its strategy to return to growth and achieve its milestones despite putting its raw materials division up for sale and expecting it to be completed in the first half of 2025.
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In conclusion, Teva has shown strong performance during Q1 2024 with revenue growth exceeding expectations despite facing some financial losses attributable to shareholders due to GAAP calculations while maintaining profitability through non-GAAP figures which increased by over 20% compared to Q1 last year
