Teva Pharmaceutical Industries Limited (TEVA) 13 Feb 192018 Q4 Earnings call transcript

Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to today's Teva Pharmaceutical Industries Limited Fourth Quarter 2018 Results Conference Call. [Operator Instructions]. I must remind you that this conference is being recorded today, Wednesday, the 13th of February, 2019. And I would now like to hand the conference over to your first speaker today, Mr. President, Vice Senior Mannix, Investor Relations. Kevin ahead. go Please

provide Teva's financial the measures of and supplementary operations understand to evaluate forward. financial disclosed Executive Teva to joining Thank on and measures and discuss non-GAAP begin to results non-GAAP well financial issued We of an GAAP earlier both and today's on the to presentation. for earnings available note Kare discussion this which A by be measures going evaluating press our full found in uses management financial in better inclusion reconciliation performance, presented press you, as Please Thank you, results. release meaningful by the opportunity as XXXX had non-GAAP the measures our you've of call company's as company's Operator. financial this us hope our Teva's information was XXXX believes and the call, Management earnings www.tevapharm.com GAAP release, facilitates today being our internally Relations slides measures copy at that year a performance, on analysis everyone, Schultz, review of the recent as investors operations includes trends. website copy fourth release app. manage this today's defined Investor in will Further, its business. morning. To and of A Officer, and through certain of an priorities is quarter overview SEC. today's Chief to events can the well the call provides non-GAAP as

in quarter before follow-up Mike fourth the more of financial an outlook. Chief will overview McClellan, financial Officer, by XXXX Teva's Our detail, reviewing providing Financial results

today earnings will over Please available you follow X O'Grady, will to Kare. run that Joining today's please. hour. And session if is Kare Head the America, I'll North who call now during note Mike will Kare, the call the Teva's presentation. the be Commercial, with that, of Brendan question-and-answer call on and that would, approximately turn

and meant at everybody, meet In This revenues quarter. see Welcome the or XXXX that came guidance. you and thank listening the we billion, third components XXXX, a our fourth did of and financial the we quarterly in exceed between in. of $XX.X our stabilization sales did the all for

cash a still keep Our spend versus to $X.XX also the it's know, non-GAAP important order the $X.X flow generating that guidance, way all out lower. a you organizational that EPS structure at and simplified in organization R&D of see was a very reduce net very, we serve efficient, billion. guidance we billion The to debt deployed as free had the is in base AJOVY. and new the did the and which $X.X very with. in unified keep manufacturing significant. organization. we and very We also spend reduction are we are base launch, strong had And down we billion. the a reduction United a the States, $XX.X in In We that and We seeing saw launched to organization, by marketplace XX%, development the debt original as significantly came at and still of commercial of we cash came met approval, satisfied And the XXXX.

can with the talked markets. a seeing JP again we the stabilizing, decline strong stabilization. but And what North it are January it in what today as to Huntington's spend that continuous been continues ago that's the and and revenue about billion all and probably at see last growth that AUSTEDO, expected, we a the all very roughly rates happens confirm we the a our made this of we the more volume simplistic. it generic at at simple. stabilization I a On quarter-by-quarter. around a of in going kind that revenues since make the the exchange We of dyskinesia, generic gain USD revenues. overall And after North in tardive are billion, used have mentioned remember decline you we If in then significant We we base, did to is are plan, over and American details, year we we third a COPAXONE, take we X U.S. total was quarter in a did seeing quarter bit disease a for we market, per the are that were than level Morgan, look to also significant high restructuring announced do American we we see share and in total to it maintaining will already generic drug compared it market XXXX, I when said spend it matter American $X reduce seeing in to momentum we which X had no the had years. North European

This, I a set easy. and spend to a the by gross rates Now functions target come of are, into classical we $X no that. by base billion organization. where we are We mentioned well our reduction $X.X has had matter had different we on already headwind. plan what XXXX all But do billion the exchange and foreign of said, unifying billion. way of exchange as I course, we're not the the reduce will $X.X functional of meet in the one then

And reduce we've this, we started have in been by the As than been a we company the of or footprint. net significant since a to employees restructuring also able will couple there movements. more manning XXXX, look and XX has We've divested we manufacturing take seven debt, closing If closed the facilities in reducing XXXX. be at plan. remanufacturing a of XX,XXX more consequence the the been total been

moved used new loans issuance loans, maturity. term cash issuance. term also all the was effect we that AJOVY from turn down our billion. into the the now. from to this the now you of you And driver. reduction a say, we last right pay some and the First is, of any remember, by we spring, If all, as flow a bank of The we could net of don't a any growth meaning course, proceeds then to, $X.X have probably all did loans, new of debt longer key of a drivers, future bonds We

drug of XX%, up in drugs XX% of to number cases basically know, average class all you AJOVY with reducing clinical days on reduction is some XXX% migraine by days. fantastic the the As efficacy, in a migraine treat chronic of new that migraine

offering this patients. So is really to a fantastic

First XX new time there therapy migraine. for real a that years in is

two neutral we of course, month, going class maintain base together expect and with to basis patient brain competitors, very capture be are and and we of on we this capture the We coming around the are see. patients, this We a we XX% now satisfied able years. to roughly lot forward. are steady prescriber in every level hope, A we of see with that grow over to coming new prescribers the

important very very are future for is about AJOVY we outlook. the optimistic So growth, and our

dyskinesia. in And movement AUSTEDO. share is also strong Huntington's in it's market disease, Huntington's, a Another in disorders I it's as growing having in high tardive driver but said, strongly

really a competing market new one therapy and this AUSTEDO where also dyskinesia been approved is in and We competitor that's no basically have product. there's tardive before the

it's So tardive U.S. sort we from here market, And million suffer up people opening new the a probably dyskinesia. are of market. a X.X big in

the years for had do to fact couple of we on the expect, course, it's numbers that also on know, a the drag patient keep AUSTEDO to competition, $XXX that years, and 'XX, on of keep we expect key the is, expiry now that's So revenues on keep coming course, we target the the of Then the XX-milligram. growing. In million, do is of also generic all this as and over XX-milligram you this, of many the had the patent due COPAXONE, that we've move we of to both that forward. and the exceeded growing If we a of and the going since of last to year. and growing our on have we drag the drag will consequence revenues

at scripts. something And around the you of will sort count, annual that a an that XX% revenue, If ballpark on XX% at on XX%, you around probably pricing altogether TRx moving of you on look of see losing if ongoing the we're the total, in the then look losing we're basis. deduct can probably you

what more stable situation. that XXXX. the modest the at We in reduction a a year, we less like of in at We have It's lot expect important XX% U.S., similar say And we're of the do revenue to COPAXONE. in on as consequence had still, to to this of the have level but we a happy a U.S. course, we're a share. very that something And Europe, seeing have end conclude continue we decline outside volume it's of that than will, during a

going price but I'll as talking we've and what generation. of of important business, headwinds base stabilizes a course, of and so year to reduced stabilization of well in that AJOVY the you new launch loss U.S. to the for a products, geographical to 'XX. resources Of And this of a AUSTEDO, as is I and profit they're but on in working the It's execute be again always, couple our mentioning not and what of we and AJOVY at reorganization its maintain. we best we in Actually, years think, seeing launches had products, that old look had also course, doing the as Europe the the in Teva those about AUSTEDO. only are we marketplace. is, from We're that which during have revenue 'XX right and have, then COPAXONE in explained are for of focus is generic somewhat XXXX. probably last the will secure focus are it during ever terms broadening that's why also worth on key the the just Europe now also removed long seeing on If striving where operating course, I just mention generics. about lot offset we're you course, in mention to areas, Europe, we here, in that

We where do revenue ProAir see and being continue on COPAXONE generics drag launched. from from authorized HFA the to have a we franchise

keep expense the to have $X reducing are the a having of plans billion meet we target side, That's XXXX. our On reduction total versus spend. will on we to why

is, with challenges divesting in sites, be operation. that have see to inspections continue moving of making We production negative to we we perfect course, we by any year what Florida, we inspection recently to our where have warning it Davie, also and we a have continue and a consolidate it, some sometimes lot working on have business. quality, sites don’t short-term sites rectify had strive compliance an and was now, and we letter, and sites expected do which got which GMP manufacturing site of our Right We we're closing to having effect a for. in and and in that sure other last

pipeline, projects. We targeting innovative our generic in and our development portfolio in constantly we are biopharmaceuticals are are we targeting of biosimilars, investments both optimizing and investments and

debt to side, over our debt years. continue the cash coming and to down utilizing to so to the do are On committed we pay

issues we as And liquidity $X.X also net for XXXX. have coming not in that's We in years. will the have will paying have debt no billion scheduled we with repayment down

trough to plan. we return year on expect on in we launches in the do overall that we coming than This and a out more profit. are since the completely we of so and is basically, we yes, beginning of being plan that continue for This bottom as operating growth in year the based the to a with year -- XXXX, financial And ago. is created outlook have the the So new years, well, is where the revenue a to saying line products.

to these successful like financial just are our three for have the financial company. I performance the explain out most targets set briefly targets, of We important long-term why and

say, level and a course, years, years. as of to We'll First but the go ways lot of of income will solid of lot our one the for ensure do the a earnings rather be that to optimizing coming generics base of a within on of XX%, we reach businesses of way then of ensure innovative debt, the target honor able goes cash a stuff, not lot of improving, generate will and getting generate have have will we we is That's margin strong net lift only that that new and could do these targets, XX%, companies. a income, our be the in the debt, we we have will we have a plans operating on margin out committed be are a to new all, have we When which to X pay why be don't It and you and a be It's Right a to have to need expect the it. that EBITDA, that in X and typically products to we now, to to long-term and to than combination adding debt. reduce earnings the launching than cash buy order cost generics. manufacturing any our are our margin. two we and own saying business to focused need from cash to that Xx a we high consequence optimizing in And coming equity. which to debt, a here it. things, is we to need do below below higher by that raise to years, improving these basis, you the manufacturing the net without will earnings we above down

CFO, Now now having will financial targets, Mike about I the McClellan. over hand to talked our

of to $X.X the loss assumptions per a XXXX $X.XX and fourth on the GAAP brief our a then with you start the We guidance there. XXXX. performance. quarter morning on GAAP billion a review Good We XXXX of snapshot important with the QX, take GAAP approximately results loss quarterly basis our share posted Kare. through a of for a and net I of you, summary now will Thank follow and everyone.

following As charges and detail recurring I'll the in by GAAP impairment results were amortization. the slides, impacted mainly

our to see of Mexico. by our and goodwill turn approximately impairments of the as related approximately products. A significant Also, as well billion. QX, if billion, non-GAAP So related the our you Takayama plant trends Japan, negative of see of to In currency in adjustments. we $X declines large a Russia from is to we value international coming here tied intangible decline to a also this impairments percentage Japan driven other and markets long-listed can next to we saw $X.X slide, and mainly

the We also lower acquisition. a majority in reported. the have of intangibles XXXX, three revaluation U.S. the EU, have of of as seen of first international million than charges Restructuring markets, and were significantly Actavis already in primarily actions been the from $XX quarter quarters the

non-GAAP contribution is the partially of remaining generic as COPAXONE of Slide was XXXX. in in QX & our was driven business, higher as offset on declined business. our specialty billion, Europe. This compared a in and divestiture gross North launches profit well decline Sensipar well divestments by of had Health by U.S. mainly Cialis various Operating margin. Women’s So from from quarter-on-quarter. in margin We the and to and the Gamble change partially This FX in and and COPAXONE $X.XX share to in of in later new in due non-GAAP declined in declines XX%. Health Compared the a we OTC an by a Procter the in experienced cash million trends We'll U.S., Gross was which QX distribution divestitures XX.X% decrease the of QX partially profitability, in by AUSTEDO as as $XXX looking America. U.S. The compared a the were a generic of revenues with XXXX, in the of operating tax revenues and JV margin decline the XXXX. our of of The to our compared Generic XXXX was XXXX. generics mainly about decrease flow was business to products presentation. approximately products pertain the EPS profit new decreased which million, a and negative QX lower income, the profit to ended which brands activities. loss bit in impact and attributable revenue $X.X of more our from Anda the to at Net talk Quarterly XXXX with XX.X% $X.XX, launches our Women's majority generic QX XX% $XXX the offset the U.S., to performance European gross higher in attributable FX, was and increase QX business discontinued revenues rate. XX% to offset and decrease decrease That in competition to a the XX. discontinuation mainly

turning So XX. to Slide

a of currencies that exchange quarter. to on be movements As in fourth we the a the impact had our quarter during revenues $XXX profits rate XXXX in of more guided movements continue peso, rate Russian November, lira see fourth impact was modest. negative the much Argentinian headwind operations We exchange and euro, The against the relevant the main our value were on dollar operating U.S. and Turkish decreased ruble. the to while million,

We'll that Turning some XX. to a last in revenue the trends we've at been through the quarters. Slide the look segments different of seeing take

quarter shifts return utilization launch in generic an Our of of of of U.S. ProAir quarterly including generic quarter markets sequential following Markets its HFA, quarter I of compared XXXX. own due XXXX QX in in to for generic due reserve generic antagonist pricing competition fourth in mainly the International version its compared down in generic net potential usage the authorized North Ventolin taken generic Generic adjustments. flat XX% decreased the And QVAR in up reserve when XXXX. well address strongest impacts Cialis. the drugs, fourth were ongoing and short-acting pace taken to for to and the as to of launch dropped risks, a have our by we to the relatively assumption launched XXXX, review our customers January minutes inventories. the the picked as both had for XXXX beta Europe business our and third to select pricing trade on revenues erosion year, the largest as in by of in saw American Sensipar quarter approved XXXX. few ProAir in supported to drop the COPAXONE million of $X exclusive the these I'll Revenues the of and class

XX. Slide milestone was to versus Turning of due decrease payments. million, $XXX QX or XXXX, to and $XXX AJOVY Free legal flow a $XXX higher launch the quarter primarily cash lower net income, for of settlements million level million a --

the For the flow free capital which billion with Allergan in cash which legal items and was from to XXXX, benefited attributable the quarters. previous full the settlement $X.X in billion, year with in working onetime $X QX, we've mentioned Rimsa, adjustment

So Slide see if able initial guidance. turn full development to the guidance were as as we our for will Despite well year the exceed to XXXX we headwinds, expected the XX, year. performance we

business continuing especially rate tax COPAXONE benefited well to expenses Our our from lower-than-expected and as erosion reduce of as efforts favorability.

So XX. to Slide turning

putting U.S., found versus press decline of by The expect expect to million the full saw prices. of also outlook, our introduction our offset assumption assumptions in the will by the which and we the on an the the below to present release. which we're competition but of drop also year due I launch XXXX now to of sales ProAir in generic morning's about for to products, approximately fourth few our spoke $XXX own in is introduction slides significantly of of generic seeing be albuterol global XXXX, We XXXX mainly notable some somewhat ProAir. we the quarter, XXXX ago, Europe we main due most version pressure authorized in competing be revenues, COPAXONE this A can products

in last XXXX launch our on based the initial approximately in to sales $XXX million We expect seen momentum AJOVY to we've September. nicely grow since

also XXXX. We million in approximately sales $XXX to growing see AUSTEDO in

we'll EU of On year XXXX, of the which to and XXXX exclusivity volume data profit million this slight decline launches. declines, businesses, and impacted our exclusivity to will expect Turning from patent to through continued full like significantly of the continuing have see on as In protection to see the our offset $XXX impact in adverse sales versus expect million Markets also for Slide our by insurance by -- Japan the America optimize mainly effect as with currency by the impacted $XXX international and erosion in the are which we from And other generics dissolution the will will our Europe, products revision of continued we in periods. to we year well foreign negatively health due headwinds. from year our results. operating national portfolio, pressure impact headwinds. total the decline we by continued assumptions a the price that expect North erosion International full expiration continue our and sales be long-listed $XXX on to efforts XX, JV highlight currency products. new be our impact to In of million. OTC sales, Markets generics, be International in also market to XXXX These by in due exchange, approximately we XXXX lost I'd income, slide, will including

and to financial turning billion. assumptions billion now So to expect for be we I revenues just $XX.X outlook Based between the $XX on reviewed, XXXX. XXXX our total

earnings billion our approximately share $X.XX the billion billion, to $X.X per between $X.X non-GAAP $X.X to be billion is With while Using a count completion of operating billion. in of of the range $X.XX. between EBITDA we shares, we to and $X.X expected expect to be program, cost-reduction X.X expect income share and be

of in $X.X concludes flow my free be cash XXXX billion billion. the Lastly, $X This to is to presentation. now expected range

first for question. now questions will call please answers. the ask open Operator, up We and the if you'd

of first from question comes Our Gerberry. Jason line the

number. bit about to how fair return on pretty question of little There a I is Can growth? the in you you talk COPAXONE guess, first 'XX amount drive still just XXXX.

return if you just QVAR, about So And secondly, little bit annualizing XQ $XX million. is broader a can 'XX about consensus sales you then are at for talk million, growth? see to how $XXX on about just

a of how on about just provide bit thinking So little color can in QVAR you 'XX? you're

Yes. you will Thanks to and Brendan some -- give then XXXX the for color what's those happening address I'll questions. with been QVAR. two

you can So assume situation, oversimplify year mentioned, is means then dropping that would you say, on a reduction drag you sales. the they're from per you on or if say, continued down. revenue that in as COPAXONE the drag pressure there revenue goes XX%, just around that And at absolute let's

year, had we again, absolute this whereas So terms year, a drop again. smaller we drop in a current have smaller big it be will drop next in year, the of will and

by growth new of products, generic in of the growth all growth AJOVY Now of of offset is the of new that and being business the drop growth launches. in the AUSTEDO, our terms

being on the pretty X then of are lead small, this they're that and on lost course, we get in balance, of on. growth continued and look the more operating of significantly we and growth that see total loss at year, gained and XXXX, that other clear So full that at a losing close the would in it's to then than benefit if in get AJOVY we'll year, believe we a will of Whereas so And being AUSTEDO is to where the get end that balance into COPAXONE XXXX. are means XXXX, growing you to on that we and AUSTEDO, the you COPAXONE is we than profit products worldwide. and revenue getting once marginal AJOVY

and XXXX. what on Brendan, was forward? expect that comment seen we could on with we've QVAR you the going QVAR, So On what

Yes, good And morning, Jason. sure.

adjustments, with which first product that throughout a In year, we And noted. significant So further the is ticked the RediHaler throughout got the MDI you'll returning system, to share during fourth net quarter, but MDI bit range QVAR And which product, you period transitioned very continue transition about why to took the as a sales and the share Medicaid from pipe and the hold so is do occurred net little that the million prior good it claims of last quarter. in QVAR, sales, longer $XXX for we through year, we the see some QVAR year. the you the down that so in saw if to obviously, which see we glean to share came XX%, in for that or QVAR. impacted the

The next line from David comes Maris. of the question

were versus current a Street what's expenses? maybe know, expenses AUSTEDO look maybe Mike, separately, the And in EBITDA were in than you $XXX broad bit baulked largest those of repeated? the any little or at what maybe difference? question. see there expenses don't of, million scale of million your for other $XXX I up you that And XXXX more the guidance, -- assumptions do the When a the scale XXXX your or were new where of or AJOVY that then being aren't

Yes.

expectations. see some at I'd a of of We JPMorgan. where Street bit So in presentation little headwinds these differences stab take a versus at did the our mention

the that bit below written we competitors, Definitely January what this as at and authorized being generic little a of saw in ProAir, was generically to script. are. is majority launch COPAXONE our one expectations to there for we an of almost think the I of have class our a look

and So significant that's a coming decline there. big we causing change, a see

a other go a of we out little of putting bit also a And little billion this cost-saving income was would target, there we some think to we then, $X that further that's even I think in we again, the expectations a see are and but the that. I meet repeat than pressure. of XXXX going bit that don't have

we the continued see a continuing So seen through pressure at come strong the I being that those we effect think I see the combine the and we currency that it. second of things. And same of half 'XX XXXX as impact, look that main and are with in models, when think, we've you as into has don't external some the

So the main things. those are

flat had period 'XX rather did the a operating in see we did actually But reversed to bonuses XXXX versus have remember pay we expenses, you expenses, not of 'XX. in QX bonus we where QX. of as we a terms In that QX year-to-date

the of in will have the in was the spend year good of with little start first but the artificially a start path, We're to QX So the some and been last base out, the decline stabilize half. still we the -- first half a second to -- see deflated. bit the after actions majority taken 'XX on

things ask take the can that are to we those from So want there? see. I points you Any other

No.

I this think a the say, the I guidance. as a XX% sandbagged." premarket. on seems just that follow-up number gotten so down pointed is already And of e-mails guess, well, "Okay, stock I've just

on do Just low kind think could and of that conservative go would What guidance, to your end? is that this you thoughts on get wrong you low end? how the conservatism,

average So needs mind it's get in my realistic and a in terms to fine. if then of the overall conservative. time, guidance, second where of gain be It's sort guidance not right you every it

can't guidance meet will you you that XX-XX. with So the out come

important goes some them. you a have here, a things lot that and of just we in need of most parts there's and your could you to that credibility wrong. you your important some have part meet that think So very guidance. I it. we covers And guidance a It's range talked downward that discuss what are also moving if of And can can assurance happen some you when realistically you that's of about say

how You generic. never the goes know product fast

slower. that assuming it current are it faster, stays trend, go could on COPAXONE the could go We

go go never ramp have fast how when better, could worse. product a You know you AJOVY X up could competitors, you AJOVY

a in assumptions have you then then, and parts someone's result, the when of you parts. you why but explain these lot of estimate affects a guidance, So we that explain to educated all you worse our take guidance. moving course, give have, moving turn that's assumptions assumptions the and better, actual of or the you out a And if be

Louise line question next comes Chen. The the from of

noted trough few. XXXX My question a your you first Quite as was that year.

just the is U.S. is, brand in the going thing give qualitative? for in period? then, generics, what are a outside XXXX how trough you Teva, the longer this focused include what magnitude the sense you do in of then your terms think Can on of about margins U.S. we us forward it's year just for inflection XXXX? generics? in the after even vision upward of And And last you in and So second a if the guidance for should

Mike, think, last one. I the question So and take the if first and the you take take second, I'll Brendan,

Yes.

So see at do we point. the as this XXXX trough

and then as return to will and profit We out. beyond probably in to in still in XXXX an But depending U.S. a there. accelerate drag well digits I we're growth. into revenue have potential would We starting how the XXXX, single talking turns the situation see XXXX expect operating growth BENDEKA on

And wild or of be XXXX the course, bit little how a that. develop. a versus in negative positive card depending that's on So then, markets could currencies of the

see And shaping well new so I very to we in regard launches think generic for up XXXX, XXXX potentially.

really regulatory know but out, some Of success, have of play new you are planned XXXX. launches do technical going never course, to any a where that's generic significant legal, for we but and mix launches

see generic new year fairly think as as go. good far we launches So that I overall, a should

pipeline really in have that's is look then therapy in In continue on Regeneron fasinumab and to data in safety AJOVY longer-term biosimilars the is and there possibility launching put innovative the coming non-addicted And pain you what's then and people course, with coming exciting both be as we if coming, worldwide pain project of a you then, which worldwide. There to if world will launches the U.S. really, say, therapy, turns gets come be strong approved, a at rollout And is to out years. this European we year good build rest both could on and for out a and biologics. leaders of worldwide and the in want of is XXXX, -- will biopharmaceuticals, to development success Regeneron, then together exciting meaning be out with the vision generics and good. our have be and to together with an that this an in with product

exciting a of So there happening. is lot things

a also that launching the have years. we'll be We broad coming pipeline biosimilars of in

both and continued then biopharmaceuticals. in complex areas in generics be So it will leadership those and simple of generics,

of XXXX-XXXX point, progression. half would quarterly to we starting in XXXX through add to back And the Yes. inflection see the the the actually

The next question Gregg of comes from the line Gilbert.

want couple One year? XXXX the on TREANDA assuming deals will about and acquisitions. material are further the that and potentially Forteo flexibility certainly your items. on And on the that? are are time are to why how What and And Do are bolt-ons focused on on branded franchises, you generic you then, happens? treating you to clarification cash a when Kare, large guidance understand you generic And company smaller launching or is, later flow help you that? of you risk points the don’t side, in side? on you operational spend Two positive whether the do launching particularly confident to licensing I that or have

Okay.

if and last Forteo, question. So I'll you suggest TREANDA, the that Brendan I Mike, then cover answer

Yes.

likely before doesn't So a XXXX. TREANDA the from generics include our impact not launch they'll material because part guidance it's of late very

that we're it don't is If TREANDA just a upside we we there market, our partner, be orphan in actually by being in off it forward the exclusivity be the from, handled minor but for BENDEKA discussion their impact. to see the authorization So Eagle, the to expect there. is could put directly drug for do keeps is what as That and BENDEKA marketing legal we not involved material. XXXX, generics there slight a

to as but plan. along. have it proceed is half continues new appropriately in Forteo, as anticipated, we to continues risk-adjusted If year the second move our overall it regards per In it in of the to numbers, it the

absolutely acquisitions, basically of no kind. of terms any we plans of the money our have on doing We you're reducing significant right, acquisitions any debt. spend In

pipeline business that And course, the However, development in generics, deals and to also opportunities our an we course, makes course, all ideas complex on support ongoing can of do, we of we fill doing open pipeline early that basis, that are going biopharmaceutical sense. are early of the local get forward. can we ensuring in-licensing on in arise work that might

business just big not deals, talking it's active specific it's not the it's we in-licensing, in product development that corporate not So a about. we're are area,

of line The the comes Chris next Schott. from question

can if drug. question thinking for of first thinking be XQ update that impacts on saw you've better we sales couple topic, Just far nonpreferred expectations for can of the strong us the in obviously was, market? that's then But factor about from provided see could. your relative the you're should drug? you a of gross about just the the national into you been sense to product net to very second this on point? you're get XXXX had how free amount how I'm the that the we how a on just just being, I landscape trying for at to this product. the competitive questions outlook just guess, I And to formularies, And same uptake point so a AJOVY, seen for think, the the you the on does the I for product at that of two how talk ramp

net. So just to a gross little bit on the

discussions to lot early are again that going at throughout and continues the AJOVY be I fluid. quarter as is that keep we get of is evolve 'XX, to the access of XXXX. decisions mind They're in year the as to things A There fourth payers look to ongoing. the made to in is still is payer XXXX. early it important that in So going think continue to one of

mid-XXXX. see that some decisions change you'll think I in will

So course, landscape payer of that similar X aggressive solidifies have rather it have same products time, efficacy, all like really when the XXXX. I until think probably you payer all very a this launched And at the for environment. makes don't

to be continue will it fluid. So

that we of think ongoing have payers many discussions I currently. with the

discussions are there the ongoing. that are announcements some think of that that I have come still out

anywhere. not excluded really are We

the and appropriate So need amount the gross you the to with balance to balance access in this is discount net. of all

say the as AJOVY I is coverage in you would we about have at that think I which fairly look sector, today, XX% So commercial good.

recently. we're add wins access think $XXX to that need that I We've million. the to we communicated continue to And that have we'll got the hit, think looking the plans I first appropriate around some number Mike just quarter. earlier hit We overall, throughout which

of line Randall from comes the question Stanicky. next The

committed U.S. Kare, confirm from to secondly, Can think, on the would directional And are U.S. leverage guys the points add the can notable by million there? going $X How reason And the Xx up if some or case? just still towards I pruning gross wouldn't margin. that's margin? then end revenue I to because imply in case. the a unprofitable to you generic the billion going much basis of a color just you of that of if EBITDA, see XXXX? step up net is that, step a below forward. are ask the ramp we gross $XXX that's give hundred several you in should Maybe comment

that XXXX net So get you're the debt-to-EBITDA XXXX. to right a of your takes performance Xx first question on the of the at absolutely bit end in XXXX, end of to strong at that it

exactly most it's won't long-term towards at hit There'll so over could be years. target, and X slightly It no to the Xx What's important able will debt-to-EBITDA, going be X firmly it below XXXX. our in we to I later. change sure fourth our of that for So net you end tell that of quarter Xx, which that progressing course, we'll of financial the is, next is the be strategy. be

gross we margin, margin. The continue we a will reducing when see picture, at remains you volume be our reduction which of that say but I reduced. that over being important coming have debt which the drag in we sales generics, timing the the years. positive that this it driver the our would key what in negative there gross look total So driving price seen, then margin the see a high-margin then is you you on our U.S. effect means We've comes on effect and COPAXONE are the is numbers, towards marginal guess, When on to and the positive generics seen the other exact gross to from the the to we the are fact years. the can effect constant a is, way, product margin coming goes a on

to add could I if debt the question. And Yes.

pay expecting at look getting we the in and our credit $X.X July facility not we of of core front hand. second, our actively reshaping down cash revolving being out maturities starting refinance. First are discussions to in the And billion to on operating current. cash it group all, window get expect to XX-month through to flow to banking with We're

we working hope we're to early on in that, XXXX. and So on conclude that

The from Vamil the next line Divan. of question comes

questions. Just maybe the following up and commentary AJOVY on

Aimovig. nice Europe target know on mentioned is you pushback from some and also you here, Just saw market a I

should timing U.S.? and So to there we think just expectations going also the net sort of to and in maybe launch trying about compared to of of pricing see we're the as are there that terms what what expect your pace in

for you question. Thank that

We very EU are, of course, expecting to have approval the final soon.

We have opinion. positive

the care So that governments, course, the health you means have something you is that's And and actual need reimbursement within you the really because way but with in of X approval. because months, EU have you reimbursement launch the each because systems market-by-market in not don't Europe the we countries. will is, the and settle approval, of

price will to easy good So it's to reasonable a launch is and expect of launches. at product, value will see the compared relatively early the and what in fair the you where markets you

the have to you that's have negotiations, the at might Southern this the countries countries, take the the up is so in net end especially the you it fact these the that get a and a that like countries guess, with. be now see slower also have to than it, launch. to could of actually years you competitors, the X Germany, might product. markets, to up a If for Scandinavian pricing us then we pricing, a situation situation say some before X for like seeing year, be you other where we will we our instance, see U.S. you So launching here similar European look negotiations with looks prolonged up very organizations In how U.K. negotiations first, you I U.S., countries, higher in but however, it's where but you ramp Europe local it's European that huge. where into Europe which due in even the unmet right per in need patient is would in looking price end But

good see expect business. U.S., with a the but in positive up solid margin will uptake, we with slower and a and the than healthy but So you on a operating ramp

line comes next David question from Amsellem. The of the

a couple. Just

This did going to market to beyond, I but and want and how the but first, other play how the and it's can entrants to to specifications. risk-adjusted, will thinking get the of your about And flows? be that is on is about more wanted ramp of extent to your market out? So Forteo. on for the EpiPen get and wanted are thoughts thoughts back cash be? in crowded product? One know I product stream the that a and this also will generic on you potential XXXX And talk a that how product you which for that's guidance the question on dynamics circle to of sustainable

Okay.

the for you question. thank David, So

-- So address me first come to let Forteo. I'll then I'll EpiPen and

goes, shortage is in EpiPen of and supply. an and market far the overall course, build to we're continuing As still epinephrine, more manufacture of as

have the we'll end I EpiPen And think quarter, normal time launch course, the the coming quarter second see we or late then June second quarter. of you'll by us Jr a of early more supply to in first frame.

continue out to we So build available. better. it And it's getting supply. we It's there and have

they that on for it's nice order customers progress it. need to So available And making are we EpiPen.

good that to around pretty who feel But pretty we'll the wait and question make, an with your about Forteo, we have it. about coming and feel overall, to easy competitors in see, not the to and Forteo, product good the it see -- we we is market are runway Forteo As and have we'll XXXX.

then, I And may just if one. Okay. sneak another in,

or In launches our radar call think competition you're limited that key year of are that should we other year opportunities? should terms be any that willing early out, on to sort there or about exclusivity of this next

can I you couple mean, of I other ones. Yes. think think,

awaiting Restasis with with that we on us We're see is think product. this a FDA go action for where year. FDA. that launch We'll the hopefully I

other as as be would we're this looking a as So product one that at nice well the that well year. could be NuvaRing

Ken next Cacciatore. line The comes of from question the

seem be doing very ask the AUSTEDO well and to and wanted to on where you AJOVY really Just performing back strongly. again

Aimovig AJOVY, talking on to than understanding expected. they our specifically a bit suffering constipation it's be higher consultants some of may Just originally that in from

on maybe now And from wanted you continue big AUSTEDO, from AJOVY? in And for the you if dosing you then seem break versus you So percentage in product just nuance be to it HD TD on you point? benefiting to nice how or marketplace the going force the much to think you're any marketplace? issue advantage? TD your as us an that at are market Again, right What's on could that? give potential as sales they is of How down can understand acceleration showing well. this what hearing

here, this specifics on then a would marketplace I sure, just be U.S. into is us European is dyskinesia. both before been differentiation ongoing we dyskinesia, comment any quite for When side overall been has slight an tardive have Aimovig insight different -- It's, more safety labeling never side have a a Brendan just where of it to it's it and and believe tardive will where It's you also from unpleasant and we for don't effects have database that. the give in do and give I'll mechanism the on game, clear to not projects a brand-new action, and then And product has and a product benefit some course, constipation can has they type of comes benefit side that follow-up that because think comment fact X well-known you which questions. have then there evidence, effect is, don't anecdotal of market. on one the effect. in will that a those for Thanks as that the have. drugs have say But from we on long-term, it any the you have to in it it you us to because clinical details. trials say, the a this to difficult like safety I issue an for negative that could X-player treat that's that there our work and And documented.

benefit medical huge and bringing we lot maybe a to a it's So but for time, that long give of Brendan, some you be details. are think will going can I people, more it

Yes.

first a on -- So comment quick a AJOVY. just

said the Aimovig is were that relative other with think when approved AJOVY. AJOVY of first, X of close everything out I part But regarding that in products proximity I these Kare obviously, other launching So that think it with the is, accurate. with X

see access. I how of think they the to products AJOVY and easy that are the practitioners to and if really designed prescribers and world or of of to and actually differences. use physicians patients We to different look it are see for the in AJOVY use there the result going at some in real the different products launch going some to make

samples office. put So we in the

course, way Of inject is the prefilled very to a simple syringe the product.

and the in significant uptake centers happy for with And ultimately, presence seeing early there we on our headache neurologists So bodes AJOVY. we're think are very I success. that the with our that well

So drug. launch going effectiveness with we're we're happy to AJOVY. the physicians the regarding what around and the overall patients trajectory And continue We're back from of with we where hearing happy very we're are.

out, disease that Kare it's As dyskinesia. I'll about we just launched X very that's months the market. early and and later for market we for pointed add large underserved AUSTEDO, a market about tardive very AUSTEDO talk as came a then And first Huntington's in

dyskinesia. see tardive So we're potential happy that with for the we

sales in continue presence that will significant indication We drive force market. have that to around that

from comes of Risinger. question line David the next The

have I a couple questions.

business company the were outlook? but than think, stabilization, respect talk know performing started First, that I And the XX that on to about you you is you said hear the could U.S. emphasized facilities you manufacturing, And scratch, have weakening. globally. have recently appears international you'd please that then from It Teva, worse comment Kare I international business second, that joined when said you previously when you -- didn't expected. with you international had the I if

Could you that company targeting understand about think at be help XX. won't us XX? I to go why the is to

we we been two international business those our headwind first, then now, a the long-listed led it's One we have bigger in we some out in If reporting is for say I call reforms questions. that the correct and right which have price pricing key reforms what pricing take guidance. And would Thanks are I in in the The also included two would called products. on drop to what's -- had things. Japan. is Japan what

they've those down branded the So pricing until kind And is you been a in these these of recently. use more generics, are high are of on Japan, authorities pushing tradition than say. of doing could products there and

So negative. could Latin the like, Then their currency whole of in there's there significant for have that's which currencies. International Markets, have a currencies. element seen a weakening a markets weakening is say the where Countries the you lot countries many instance, of of and American Turkey had

underlying main say, problems, driver. these us underlying really it's So is the you the that's pricing could specifics the it's demand currency not it's that in on market not the really causing volume, and

course, you do correctly. do as would quoted On a And we a to and we a me company, if thing, thing us. case we one or manufacturing absolutely I closed start setup, they I it joined more. but thing of that didn't as from greenfield for And have -- manufacturing around had XX facilities. they start, could is And about the that's And a the do how the manufacturing dozen have the same most today, side, X we is doing we're not companies you close mentioned definitely scratch. not did when

validations, going do get But you of have of sometimes the complex have won't specific course, down at close that, mean around all restructuring. doesn't have equipment. the because when to the facilities you all regulatory anymore end But you very So it's we existing approvals, forward. down XX we'll the probably that

But our time, the and next not So you to continue period. in you it many efficiencies in we dramatic the reduction see improve see as will, restructuring will manufacturing of for consolidate takes many, but course, same the years.

basis. business manufacturing sites, you striving number see modest a will reduction margin in generics improve the will of You to us constant on a more and gross of the see our

Yes.

we thing that There add impact $XX Let recently half last in quick another about the the about the week, $XX had to is of drag. will announced and XXXX, business, first have divestments. be million me Health still which [indiscernible] International was Teva Women’s Markets. million divested We sales of one

So overall, divestments about $XX business. this is million to related of

from line of Ronny next the question The comes Gal.

them I in. if can three, have I sneak

coverage has there access. analyzing seems in the 'XX covering -- quite formulary multiple a sclerosis, finished First, XXXX big we and it shift been XQ just starting about

decline seeing bucket further guiding of Is from this that XXXX. product like to I extends heard so, close your financial sharp Just older TRICARE, for were should are guess, more so does in And impact in you How a the of kind saying? Is And this been down, XXXX wondering XXXX I'm we existing external Essentially, about true? this post just share competitive some how this like biopharma is United it's and we of a Cigna ESI. there Is This start kind of billion on much you fines branded kind some also demand seeing volume CVS for ready here, just Aetna? looks to And this be cash if is any close, is for insurance of loss the sort in ESI the we is demand in our from side a of down for the the, that it for Or number that XXXX? we're products litigation? from pay Second, lower consolidation pure ready business free more lot, or your like to significant always branded trajectories? on especially we've projections? you're has not actually flow coming pay which includes the in all markets? concession third, volume debt your lost pretty you assumptions on which coverage right? kind of the versus side, this penalties does side. $X.X have than what case of in we from and are giving

take X and Mike let then Ronny, I'll X number and I'll So three. answer

our think As see we far this to Express worked in as into numbers tricky think a question, the it you formulary I TRICARE always plan us are we next goes and things overall Scripts, COPAXONE both little which for bridge that Scripts access, anticipated the it I a Express bit COPAXONE there. is the those of can UnitedHealthcare. built and year, in. And a of that will We more answer as

that going depending to play in PBM based would necessarily have any just see one various you payer. on any how we formulary the or and upon covered with is out with is I actually assume particular So it formulary what agreements because the particular different you numerous in life [indiscernible] payers

meeting ESI As as a there. with -- the to and result question the they I response your had, wasn't a that to

and they've meeting that brought -- week expectations kind I but their and think last studying merger obviously Cigna to down asks as new or they we're rolled week their occurred ESI landscape are. heard, and I what or the what I what do last the manufactures with are, the of communicated have then acquisition before where to out

Medicare may there this probably I manufacturer an is some I there and significant price pretty CMS that aggressive, be to think potentially I that be will consider, implications think overreach, think a fairly impact. given know overall study from to team we're see back I going what bit it. need push my it more to of and new, little I when is But and

I'll hand to it and that, the flow. over Mike, you cash can with answer So

Yes.

million income we I capital if billion about So earlier we look $X.X $X.X down guidance, the mentioned working actually items billion came $XXX to off say realized that the at compensation. that between difference so $XXX million, and billion of from that XXXX midpoint Allergan is and roughly special that the in Net the the Rimsa $X drags.

happening the not if year. have But abnormal payments for for forward cash out, restructuring the 'XX probably less have XXXX. in the We 'XX rebates do net in bit bonus we you're looking thing on we little we all in will an have a but XXXX cash a is generation that see did 'XX bit half for receivables will that is drag in a which year, XXXX of the the will second of have of the been increase of little of of overhang

So in cash drag XXXX. dissipate $XXX to over million $XXX the should first quarters couple we'll that million

expect billion, So probably which that's would is models. payments where think in the drag the between cash $X.X you difference the on the to what rebate that we I external get

The next Liav the question line comes Abraham. from of

of about update your rationalize you You comment earlier else Anything talked you thoughts on cost opportunities the you grow? plant little on I on a once this, AJOVY, formulation? but beyond written to expect on side. can can And some $X apologizes on the could what the number can then quarterly XXXX? that that Kare, billion scripts potentially and to we bit update us if being for percentage base are us missed opportunities secondly

Yes.

our -- commercial then that are is promotion, so when look very terms probably of those spend, I of restructuring, the so saying base spend, we've there R&D still the opportunities. majority so on, end at on at 'XX. of we current actually we the margin. I'm will are in have it first, will reduction, our So reason the course, spend The look completed of be the reduced at when billion. $X situation once sales by And we gross competitive The

of an it's is We We term. And do sold cost fix the million of something make very than So XX,XXX have products as complicated. day. the long different from technically We very, cost to before, ongoing level every a serve no fact due I sold XXX quick we'll that do be million very majority working basis. very do XXX is generic on There on this patients of really more the to because to high have margin. the comes we from said volumes. gross this goods high goods

reason basically we gross a my you big the improve can XX%, we'll, roughly previous you scripts course, that expect points point counts a to can really optimization to So you have are is, that on the just firm this that XX% XX quarterly and that are say for that say given good -- the basis the experience of is patients, if dosing, from any dosing. year, in course, would that you for When get as of of I a some script. possibilities the Based I we it per quarterly dosing and XX% AJOVY dosing week, it's of seeing quarterly yet, place. you X program XXX the are at a about a and number That in having now. from roughly if if script year that parcel, but view, certainly tell difference comes won't you monthly are of it means for to the it. margin look there on the improve

but a the months. script, counts If quarterly X for dosing, it X you covers get script as

we therefore, patient the normalized So have thing XX% script numbers, this could quarterly in dosing. and those say normalized the you numbers, patients are numbers, call we on roughly of

Rajavelu. The last question comes line of from Esther the

AUSTEDO. understand had specifics so are for the market plans there, you one if help quick sequential change well? And the AUSTEDO revenues you as us versus your in OUS helpful mentioned I growth reported one for you be quarter? on any also then provide on in that patient can would numbers Can what AUSTEDO,

Yes.

little wholesalers the when they on in would numbers. to if the ship see the there's to ship always it swings numbers there and with actual there. products look patient pharmacies, patient want there's in reconcile you revenue, growth sense actual some of be to of the can fluctuations then, at a patients in that you we specialty minor And pipeline you bit the the revenues, uncertainty the actual course, to So

the going strongly. patient If AUSTEDO be then And between growth the growth sort and you at strong in it very do in out and you a scripts a of we see growing revenue. the expect look average there numbers, correlation longer to growth time, in forward, is

are our for saw rough up that from around year. we XXXX You last in we assuming assumptions million, $XXX sales $XXX million did the

a also suffer gives optimistic AUSTEDO of you the long-term growing. actual from is the numbers we than on XXX,XXX more Americans product. that our the about to are reason compare we about patient potential growth hint to the why And So expect that then dyskinesia if that long-term keep tardive fact the you

path the the get product the material impact on U.S. any in going there Yes. to as to near the markets, the term be it not at regulatory comes we're When is ex to market. looking still

the will years. So a not really the AUSTEDO something coming in that big it's have in factoring uptake

everybody. right. around seeing look of today. Thank the be call in questions, everybody We'll weeks All in coming tomorrow in take participating appreciate you, future. you we and forward to any I today, to the you. the your Thank

recording of may XXXX-X-XXX-XXX-XXX, and all available Thank the conclude a and for is you code this you. by Ladies This access participating, Thank does disconnect. conference gentlemen, the dialing conference you for today. XXXXXXX. with