Teva Pharmaceutical Industries Limited (TEVA) 7 Nov 192019 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Teva Pharmaceuticals Third Quarter 2019 Financial Results Conference Call. [Operator Instructions] I must advise you, the conference is being recorded today.

I would now like to hand the conference over to your first speaker today, Kevin Mannix. Please go ahead.

Thank you, Laura. for everyone, you, thank joining U.S. And discuss to Teva's Third Results. Financial XXXX Quarter today have to an press hope had We you opportunity release. review earnings our of Teva on our A as at www.tevapharm.com on release the as website app. call the through well, copy our this found copy presented Relations slides be as can as being Investor of a well

and financial Management call as defined measures, internally note Please uses GAAP and Company's certain both includes manage that non-GAAP the understand operations discussion non-GAAP the financial evaluate to to measures the measures its on SEC. disclosed today's the by business. better

management reconciliation analysis financial measures by of measures is GAAP Further, operations our financial provides facilitates evaluating of in of and Company's to release presentation. the non-GAAP information the today's believes in and in investors performance, available inclusion A meaningful earnings trends. non-GAAP results supplementary and

Teva's call, follow third Teva's, will Financial today's Officer, Kare begin and To session Executive Question Schultz, McClellan, Mike Officer Chief presentation. results. answer the and review Chief quarter the will

Joining is of Brendan Kare O'Grady, call today the America Commercial. Head North Teva's Mike on and

will that, now the to Kare. call I Kare please. if with And over you would turn

Thank is to the a quarter everybody. welcome review you, highlights. pleasure and third Kevin, It

bit at Our revenues billion, quarters in very much with than came in the we been more discussing $X have line as three last before.

We are seeing our now development stable a nice revenues. of

share in accrual third the $X.XX quarter. per primarily was opioid for the the diluted affected litigation. was loss by Our GAAP This

and very the a than were by a The in to estimated quarters. non-GAAP billion. change bit The tax the last three On - again, a our around per that It EPS $X is change primary the non-GAAP basis, reduced was is the there more $X.XX. earnings full-year stable, $X.XX. around EBITDA diluted tax share for

here we saw profit We on cash message stable a are the flow and of we been stabilization have see million take the we also in can is rate the quarter. talking really the operating third about. some seeing $XXX operational home that is, So run nice the

happy we financial all in the about are results. all So very

touch I we touch on AUSTEDO; and we upon will having then I is new course then positive net launch are in of and North our will generics. topics. nice of Commercially, biosimilars; the restructuring American a growth seeing a on are TRUXIMA, debt. The few which upon program; development also

restructuring But and on the take status let’s that. first go a to

it if take So we look was billion. spend here can the XXXX, base at a actual in $XX.X

by we might of restructuring bring this announced recall, down to As in an absolute of XXXX. two number would we some $X the we nearly ago, when billion billion promised you years $XX.X

We track that. are on perfectly doing to

complete all indications have more now can we initiatives You go come billion. will $XX.X course the here year that when through billion we of thousands the FTEs we and and This than $X of actions down the that swap world quarter hit has right course fourth this of around quarter XX,XXX. by fourth see the year as cost of see and number last seen can from year is we the with MAT But we the the reduction.

closed in process sold or also sites or of closed period, have we five end XX the the are sites manufacturing XXXX. network. we now in by process more of have, the announced continued of in right divested And have we are And the down they that restructuring and we our where being

satisfied also is with. just the and process, XX background but of So of manufacturing for and that we in that a above are approaching the spend is very, reduction which the complex very level, are course we ongoing sites course,

I'm the to change There to been have by three. by flow show period, our reduce debt the continue of reduction you far, of far restructuring to our the that there. same debt-to-EBITDA we and long-term able no allocate, below in most And debt The here to net billion. a target so $X.X happy reduction cash remains in is we

here. If we also look at the global stabilization see then you generic sales, can a

always the seeing. sales little actual bit will Of we course are that on depending quarter-by-quarter, launches swing these

number we this have a fact year. In seen very of high launches

I think launches. year-to-date have U.S. in the we above alone XX

anyone in in a driven launch leads we international healthy that projects see level markets. So the of a U.S. the very the fact we pipeline naturally activity generic in basically in the have to Europe business, that by and high more and and than both else

and both stabilization I'm satisfied goes Europe it So overall the North on hand-in-hand America in generics. very that an in environment, and with of pricing with stabilization

both at of successful AUSTEDO, If for and dyskinesia we then for penetration tardive the continues look Huntington's the market dyskinesia.

little And the more up a that elements down revenue, and of is and at so look but quarter, if to on. is due shipments It random per you

patient continue we expect have have and tardive population, Americans some I dyskinesia. of growing. keep before a told in tardive suffering And product to to strong estimated dyskinesia we growth see potentially we from the XXX,XXX that an you

receiving And competitor, one U.S. level have the but very competitor, still we of one have in low U.S. we treatment patients a and only between that

keep So foreseeable the that future. growing we quite are convinced this on product can for

move AJOVY AJOVY, see then good to We is we increased revenues. off very If a to start.

around We right TRx have XX%. a of normalized share now

see is seen the We more an penetrating Auto-injector. a of of class to share. an and deciding contribute that go and having this as Auto-injector the lack have weakening for have patients products we more to We U.S. new-to-brand the

clarification Europe. the our positive in a Auto-injector opinion the CHMP the we on a for FDA expecting have approval U.S. with positive months of and just received coming in are We from

Auto-injector the in So we will also launching the months. in Europe coming be

We share as a both North America quarter. sales happy numbers in third the with COPAXONE, in as to very you saw the well development stable for On Europe. I'm

So this is positive. course of very

and business will see both to count significant that we the a continue We North America, in in COPAXONE, are a and slow optimistic Europe. TRx we America in maintain in North in erosion

is XX the Will biosimilars. first rituximab our approved and oncology label. will leadership in full because know, of made strategy the is This this you as including the U.S. in launch be with November TRUXIMA, One such launching biopharmaceuticals, biologics as announcement today anticipated very part exciting, we on is biosimilar the of be

And so biosimilars penetrating United we in Europe. been in than the far less seen penetrate have they have States

We reasons of you order you penetrating. footprint dedicated need there support commercial services is that reasons are that area also and need one the you believe also but and penetrate the where course are in that pricing, several a you to need in for good of competitive patient and

due long space States. in And patients both United the in the and oncology, position we penetrate benefit market payors in believe the oncology this of that strong to our we to know how experience to and

going I months you be end is how and exciting be this sharing to very actually So with we will performing. in up three

everybody's the mind opioid I'm one litigation that is thing situation. sure on is that

that We United Attorney a is X, but believe to the Generals. the We even States the group happy agreement the agreement way settle we or in more principle were with see suffering principle addiction. from of are best people happy in Track to the in the an patients forward

that of the commitment next who Suboxone whole this We use our can be element believe in suffering get all to an to we the product can supplying addiction process. people and their out generic XX-years addiction from for to

help and it framework That misuse will from is alleviate States. together we of of forward. United that materialize opioids with way the materializing burden hope this the some that best able the in defendants, will all We the to be

such are the then increasing brands and we the of We to new from on look sales our course, we and and core launches. should remain businesses. our working that on of remain we the If focus maximizing AJOVY the future I the as present profits add focused existing focus, on focused AUSTEDO

in We are AUSTEDO coming we countries launching also more the speak and as in period. AJOVY and

course more that as will and well will with you efficiencies biopharmaceutical secure do and flow optimization. R&D of our We the focusing to be delivering And manufacturing of on repayment. February, share sharing strategy, on with are strong in of this secure free and And in be executing will all our debt course which we you I cash strategy I February. of

warm turn done One like to is the a for I everything collaboration over extra Mike him Teva. I and before with to And elements. has a years over have for add great had last to would I Mike, for the thanks he few two

leaving Mike stay company the and committed grateful know, very on for I'm for personal is to until that. reasons and he today you As

Kalif, We for then, December elements on have CFO has announced a be manufacturing today Eli background will CFO. I also will who relevant strong as until in be XXth new the finance and that your we of appointed have and other a as us. Interim well starting He

Mike. I with hand So it will over that to

Kare, good Thank and everyone. you, morning

of $X.XX and XXXX. XX. share always, a on the review Teva start quarter the per third of As with loss $XXX loss GAAP posted we performance a basis on of GAAP million Slide a quarterly GAAP of for the

associated results next litigation. detail As were the an to impacted mainly legal GAAP I the by will provision ongoing update with in opioid the slide, our

So the assets. turning charges income. rate XXXX, in litigation; $XXX $XXX $XXX normal primarily provision for million quarterly to adjustments on impairment the adjustments XX, third quarter settlements three opioid net is legal us; for related Slide amounted The from non-GAAP of a intangible items; and run impact million to which came generally of to to $XXX amortization million million,

opioid like a to provision take litigation. settlement would some legal ongoing as you how it to give the I calculated into insight and we minute relates

unique million characteristics, settlement considering would we determining As further size evaluated we settlement you take. and the recall its had that with the scenarios the provision, after outcomes in and $XX the potential Oklahoma of purpose of QX, for we the

with to requirements we estimates scenario in was approximately minimum the time, single probable And which most considered accounting was that million. $XXX at as QX in accordance of no recorded be these

have Ohio; settlement points, had finalized nationwide with framework announced X agreement data principle on two a are; which the Track on counties the October B, XXst. in A, Since we in then, additional settlement yet our and not two

by billion. approximately into other ongoing its taking settlement and These points outcomes resulted about factors were the which evaluation increasing in scenarios provision of potential million to data of current and our $X the total $XXX consideration

the in most range accounting to of scenario is no with we estimates. requirements, of when As these the probable, required are considered accordance record minimum

of to Generics this impairment IP rights of to we quarter, as impairment which mostly well product related number year-to-date and billion as comprised addition, $X.X $XXX brings approximately acquisition. an assets intangible assets million, intangible took Actavis These the In R&D on are assets. the

Slide The billion, X% non-GAAP to $X.X or due revenues revenues to decrease BENDEKA the our TREANDA and offset third decrease performance COPAXONE, quarter US. trends were strong and was the in Japan. of launches the by partially higher U.S., the in AJOVY our and in Anda and lower our AUSTEDO This revenues QVAR, of on of in was to in in compared Now a from and million progress recovery sales to XX; generic of decline Russia competition turning $XXX a mainly a quarterly from XXXX. business

Gross partially in and change driven U.S., AJOVY. the our XX.X% same compared in growing for to margin AUSTEDO generics XXXX. bendamustine period was by the offset of margin American which the revenues were in was XX.X% and sales gross COPAXONE The improved North and business by profitability of in decline

quarter in offset and compared the of same of well XXXX. as was Operating the of X% to decline declined in as AUSTEDO increased other were mainly partially specialty reductions decrease in attributable brands. sales income U.S. COPAXONE by the by The cost the Europe to period declines These

expenses. share Non-GAAP the partially year. tax operating offset to last financial than mainly the of $X.XX by lower decrease earnings The $X.XX, higher lower period was expense, were in and per profit due quarter same

annual describe like for start XX%. approximately development XXXX. to XXXX expected would we we the rate for of tax to take closer guided rate the tax are XX%. of year, though, At to tax for the now expected I We an our minute, seeing a of our rate what be to expect in

The tax have U.S. increase of and disallowance by which development our to reform do benefit, is which U.S. interest coming losses, from accounts mainly in a tax other the changes driven further expense not positions. tax the

the as EPS in The $X.XX, Kare rate QX tax earlier. of XXXX by QX in change mentioned our for the quarters plus catch-up the approximately reduced first two

currencies. XXXX our Turning we on several to in sales come our U.S. the dollar now, for approximately XX, February, been highlighting since provided stronger revenues dollar quarters impact in of from guidance our the of non-U.S. XX% Slide have including denominated results in

We the $XX the at on revenues, million value during movements operations third at about see smaller of that was dollar while U.S. relevant where $XX in profit 'XX exchange at negative main currencies X%. a the X% against to The of the quarter euro and the decreased impact impact that our the million. on pound rate operating the had most

of remainder dollar for the We expect that U.S. remain the the strong will year.

quarter XXXX. the to free in million year was significant previously I Slide versus in increase flow cash the of cash the flow increase mainly of at came guided to The XX, $XXX that free for improvements Turning in in second an working $XXX the million, expected capital quarter attributable to.

remind you of capital the drag in and first $XXX that was and quarters $XXX I on would million a cash second working the the respectively. in million amount

neutral However, XXXX. basically working was of in quarter the capital third

So turning debt-to-EBITDA of debt Slide $XX.X XX, quarter net ratio we third of to with the a X.XX. and net a ended billion

Actavis We are first see ratio. the especially is this the upward seen previous we ratio that in time pleased of from have decline acquisition reversal four to as since trend the a the of the a quarters, this

and borrow under we QX repaid we In $XXX such credit facility of XXXX, subsequently of did million the revolving course $XXX million our borrowings.

have $XXX revolving we no the repaid we the million, today, facility. and credit draw of During as of our outstanding October, on month remaining

to main financial are months our and quarter. Today, based the the seeing financial first the for of XXXX. outlook are five on the turning So what for fourth targets performance revising we nine we

As you end can our outlook, all see on ranges of parameters. of of bottom the have we the brought basically the up updated

the ranges these year. rest product penetration in be generic business mainly the trends, COPAXONE foreign in the of the up exchange effects, the U.S., for determined launch will our our TRUXIMA end we and Where in of mix by

a would position have to my note, is that to proud the and will that talented marks personal work grow CFO. my especially of company this stronger So a company you lastly, the And in been on Teva's of call know, privilege as future. say group two the final in as honor the in today It real serve earnings like employees I dedicated great and years. accomplished. I'm I this in last believe only

thoughtful has possibly of always have I concisely role, the can. takes members I as always be been we and wish our investment and investor the continue community, will and success and your helpful with and important over communicate to Eli Kalif goal questions feedback this to clearly he great to the appreciated investors as relations

now Thank answers. you. up we and And for will the open floor questions

Please Thank from you. [Operator comes first line question Elliot of your the ask question. Instructions] Your Wilbur.

of to over a Mike, the gross and specifically Thanks help best for good morning, years. you and couple of this and there respect past retained wishes that margin lighter to with Question quite bit ultimately a that than margin has given is, expected know important how and little your quarter, thanks the operating you all of your in been on I target. bit focus morning, performance sort

I terms bit, that guess of international drilling exception the a little is everything down with sequentially down basis through was it about the looks XXX segments like of flat points. the numbers in business, essentially

accounted and on could of don't a what I but function a that about down plant relative bit for the So exchange or know you maybe if just there. utilization, just drill those is dynamics softness of more talk little sort

Brendan. I as a and guess, for then Kare, follow-up And

of kind kind flat I new-to-brand the is but months. positive U.S. that of basically we for X,XXX guess the every CGRP still on is market some thoughts week, maybe see eight overall been in RXs Just dynamics

to overall spots trends just relative growth of market. on Teva's market So maybe Thanks. just of the sort share opposed

Thank you very those much questions. for

think I a will that. and will will Brendan at first and add take the then give ones one go Mike the then to I second it

you go Mike first. So,

Yes.

a we sequential have dip. So did

last to but margin in QX had QX percentage, look If we year. you the also that gross

expect is the in and It a the toward So normal a of get We pattern back QX year. the will the bit little that full-year do XX%.

a that drives things. what at of the look actually QX couple in we If

of there, to gross Japan. markets profit percentage we You mainly a little are lower international saw a related bit right, the

is the mix bit that quarter. there, a in little product light We have seen some

a bit for are have you some on for and higher summer tends still QX. But should and have in of versus write-offs months quarter write-offs the we year what track in also around happen had level see in that the XX% that we little We plant good QX. That reevaluate we the they roughly to you in products. feel the shutdowns as

from And perspective, just the are efficacy. in reception optimistic in dynamics overall segment. U.S., about of good We on this see the marketplace in still that the we overall say very an will I CGRP very terms

flow as means the market continues that constant see mentioned NBRx, We accumulate. good which yourself, a you in, or to

segment are optimistic internationally. still So we very on also and this

only starting are we rest to just but in this world, We worldwide Europe the will strong launch be segment. in and of the believe a

have further do Brendan you comments? any

segment saw you demand. have you at pent-up Kare is mentioned, just And if would said think It the of think I comment Kare was Yes, going a of I early a look effective I play coaster. that that growth. very roller bit a And I levels market class lot as will since medications. do XXXX in beginning, that I to a continues part think and grow we the that little of significant bit the a a be and to think out I

Thank you, Brendan.

the of go question next line line Please Your Ken ahead, your open. is comes Cacciatore. from

you resolve that U.S. great Generals dealing much. But progress part of some? to Attorney this give not we Kare sense agreement have. so early any trying are you this a litigation. Are doing just making versus job with of are you that those with all Thanks can a

that progress or impacting just any ability of also of you years, refinance be as Thank try them tent. bring litigation in your of And there can have this due those to work under the how about in being next then, the the is debt So rest terms talk you on the made upcoming you. you to couple debt obligations? may

been that is the that course much is I'm everybody's on on would been X based the the it case you that what Cleveland. of in and coming up, litigation question. sure has with have to frame that partied for as opioids was you four that been on this on that AGs together Thank Track and was mind, sort of very say the developed It I know, started work

basically framework there and from a people you suffering the serve that everybody will agrees is to say will the well. could that It the very And serve way public is American addiction developing that is and

a XX-year suffering commitment to people key made have in pattern a We for component from addiction. supply treatment the

the day to of be the resources to who a way good of feel, significant period people made problems will matters we also from some time. I And provide addiction. if is over this [indiscernible] of of the alleviate financial at burden have because the the very a on, have very, what Some move longer commitments with end really

Now the is of said, that It That It I this process interesting I behind us. to been everybody work have is best to is end that the ongoing. comes it. together. of of being have to much hope realize course, I will public, was idea that the we dynamic the high only everybody very involved. everybody an but come the if a what process. will that succeed But That American hopes I'm is that in whole best signaling AGs the also will and sure together.

to secure that to is have Now, you major in refinancing we and challenge think It debt, I a need comes say serve when we don't ongoing issue. it the could order our to

there a willingness what look I the is matters XX-year here longer here order to period to like to resolve in issue. look is at think a period at that a

basis, discussed, then ratio, have solution fact to, debt on and ability that fact you an is comment. have a our as a given refinance for we net And just Mike, short-term the longer-term debt-to-EBITDA And that we debt. basis on maybe, we positive high were that looking means high have we the of ongoing our a a course a a at that

on debt. out latest we market first And the the front sometime I plans, assess we to comment like but regularly this of past in in maturities think of refinancing mentioned half conditions they the we as specific the our would can't relate next get have year. at we point, that Yes, refinance in to XX

look the when it refinancing to continue conditions monitor will market makes at we sense. and So

both We secondary our encouraged well as recent rates. have rates the market in as moves broader the been own interest by in

will time that things comes. assess some there and as the So is the at look we market

you. Thank

from Esther Please We go will line next of take of the now Oppenheimer. ahead. our question Rajavelu

morning. on the AUSTEDO, Good ones, Tourette of A readout? couple you quick syndrome U.S. can on update

sure. Yes,

patients the the communicate have course we we the we the of information, any to of Tourettes to suffering At results further them really course a Tourettes. half very much final have as outcome hope year market. final first the time don't So, but of positive point we the to in next soon will expect this for and results, as of have from of in we benefit

Got see we are in release R&D projects. understand investing then flow some Can to mentioned might and you on those? press of they in And able the help the early U.S. when be stage you. what you news on some

Yes.

are strategy a pursuing we R&D where in We biopharmaceuticals. have

exciting strategy as It Now that is portfolio in in communicating that and a as we now innovative say But projects with I I biopharmaceuticals we footprint the It with announcement. comments also will the connection that Right is very portfolio be can have such on XX don't today. biologics any and and depth and I have full-year think biosimilars well. in commercial R&D all further our is our approximately more February biopharmaceutical fits is

price-fixing any the And lastly, then Okay. updates litigation? on

update is there. There real no

of in Justice. the Department We dialog ongoing with are

them. course of with documents a have than million shared We more

We part we price-fixing, have of remain collusion Department any way course dialog any found of in not we with any structured or evidence in Justice. of that the but were

you. Thank

your Thank you. from The ask next question Please Gilbert comes question. Gregg line SunTrust. from of the

to Ops know Head I on Kare, did weeks a your in February you. Thank few you Global this, ago. you replace plan update but of

of of goods. U.S. you and more hoping cost in launch at Forteo is Nuvaring, second months. provide frontier that can coming do is next activity hanging My a general When Teva, Thanks. the and picked update in in terms of for generic versions update reduce cost seems on color other to So fruit, the It low like of Brendan. streamline you the little in lines. on U.S. probably your and on the I already given was you and global goods expect you progress your cost operations expected reduction could question for approval

So, question. thanks that for

absolutely right. are You

long-term is we It secure U.S. had in our the that improve course our you could And to Head operating of and in the our margin Of a recent and gross change key margin. Global for manufacturing. topic say

that a with In very, experience very person very CFO, very in-depth choice not competent very, long in and in a person experienced, competent change, a and And margin experienced very with new we complex we global person. secured also of have manufacturing a very and replaced our improvements.

So I'm convinced that will strategy the more in management February. have more team you will be positive our long-term it with and will about effects able our the so margin be to on manufacturing gross color, inform detail we and doing

priorities right, absolutely key It by around are cost P&L we simple XX% sell, manufacturing. for dollar very our one we reason, basically means our element margin $X.XX every the you is is spent that far the gross the and biggest But of our in on

February. But more in of going forward. So U.S. you area key on a then, on details focus it is for that And Brendan. course to

Yes.

launched mentioned, Kare XX year-to-date. we generic So, products as have

just We Restasis; have day, XXXX. kind don't the we another Nuvaring those Restasis XXXX complete half plan. be likely that in won't second five of year. of know Forteo has and end on the by to one. to are launch moved eight been really we We any none will out of Forteo the before Nuvaring, of XXXX could the and that

So whenever the to we are FDA approves go. ready it, operationally

color. the Thanks for

you. Thank

question open. Stanley. line Risinger Morgan next ahead, from Please our take now is go from your David will We

much. Thanks please. questions Two very

standpoint the settlement, could just Teva free the $XX explain you opioid to respect exposure XX-years Suboxone proposed with accounts billion in over financial First, reserves. from a in how for

So changes opportunities AJOVY, to know you then, to Any into And respect how you reserves about do that that potential XXXX? talk formulary should its we improve that you. reserves. book book could Thank into with not position in or about?

AJOVY probably take you the it going first then Thank and Brendan and to to very will I'm formulary question. Mike then add will something one the much. address

in first So point as if that the you had we half but settlement the you know you will and the back way rules are time the for a have result issue, accounting you know, you announcement at whole if really the have in Oklahoma. be year the settlement. And go the partial end have to what don't that settlement,

you what of outcome, are do the then the you that is are. And supposed if scenario. likely range likely the of of are end is supposed are the which sort you most assess to outcomes will is pick within Then what there not outcomes the lower to one likely

So since then, have of we two had course, things happening.

been in the And been sort the it out. we have we we exactly don't We to meaning settling have form, a don't final Cleveland. in It then going X still of finalized, play and Track not has have which that framework, know how is

of to have Suboxone. we the these pricing all $XX at things which we deliver So to to much taken under framework, - account, including billion hope will the commit fruition very into commitment come to WACC under the framework

And of have but account I'm made possible some you then led didn't get that a the of comments been taken range into it and end outcomes, accrual, we all to lower and please. elements the if an range. which matches Mike, then have that, those further all right, has But, sure I have

you have think got substance, I No, right. the

mechanics some get on just of me Let the it. to expand

of that book will cost So, our the we future whether cash costs a expectation for reserve this would be of is goods. the or cost it the settlement,

rate to value. Some an elements back appropriate those using will a present discounted of discount be

any future the rates, outflow. thing of settlements liability. or on reserve basis other evaluated that is cash see time of that for over as reserve Over against of will then an changes as what may years, well inventory in be part produced cash course you as the released, ongoing be interest changes And goods, that is, change in taken cost and as will it will

our But is will see that everyone much is clear settlement, to there you eventually, a final a number. with expectation more once

have as other minimum range the point, nothing is And we expect. of we at got probable more what point this we of booked mentioned, than point. any this the a Kare As have estimates on range at

position formulary don't access for major AJOVY XXXX, into negative our far as to going we So any expect formulary XXXX. changes

access We we have of hope we go acceptable coverage would acceptable to into that, currently continue XX% especially and call what as to we about improve or XXXX.

major that on Plan and there January there segments lot have in of know We well help. as so we in our improving one although that'll also. are Xst, Medicare And looking D, those Blues of Medicaid Part coverage in we coming volume not at is a

you. Thank

line Thank of you. next the question. ask Please your Bernstein. from question Gal The comes from Ronny

everybody. will quarter. enjoyed And the you. always Congratulations we Michael, We morning you. Good with Yes. on working nice miss

the I that product which And U.S. from TRUXIMA, the you share pricing. mind, partnership this will roughly have margin it a don't you if as know with, be can topic, bit your is pricing is launching as the you let sales I can If WACC you you same was was got U.S. with ASP? on about making really innovator wondering that current all same came are is with the wondering three, same but what now if I more commercially, Celltrion. about

probability. or - the up AGs down the passes flows AUSTEDO Are Then we if country can with pricing let settlements, give U.S. just the the a of we if the drag agreement situation. And be so have is, the a more U.S. roughly that up the contracts following just actually share on four or opioid it will the U.S. of AJOVY contracting you model with will in, that the know of a flat feel can step of XXXX, up agreement we given with that you going or for on being a came question for trend. entire moderately couple XXXX, just as kind the end can the for is what cash now pricing and questions

those The questions. the question, opioid the I framework, It with you, answer I TRUXIMA Brendan. too will Thank the first. really to flow. opioid AUSTEDO will early question cash this a handle But Ronny, leave firm to just you the regard for for give And and is to Okay. on

there be fine lot volumes how simply ramp got how and the on up a on really is the we be and you will could that because will it say, details print executed. haven't about to - actually And is of it

you cash give the to a number too actual for is So flow. U.S. It early for

firm the hope. that I much Assuming very results framework agreement, in which a

addiction. people As to the benefit American I suffering said, and people of from

will We Brendan over a both you precise more on And you. cash has that happened and course accrual the as of to effect flow. the as soon number update on then, with on

Sure.

release So below vial, listed the milligram represents on It vial. which there, brand TRUXIMA the a Ronny, XX% has $X,XXX.XX is for so WACC. milligram the is about believe reference prices in XXX WACC for $XXX.XX press the the I XXX It

how are going that do sell get specifics that go. than and channels into it to are we course, and will going aware how you I won't likely But Of so of something for are the to of we that. this will do I we the kind exact of less forth. think

as Celltrion the the the As U.S. we and far profit split Celltrion. BLA were is developers. margin, acknowledges the this between our profit They that on partnership split with FDA and submitted Celltrion. a the to deal have our

that. all And comment I so that will is about

AJOVY. and AUSTEDO to regards In

of AJOVY off paid I see on into as patients and coupon patients will improve don't margins any think prescriptions improve we we the see on formulary access, as margin continue head in the cards, real we XXXX. to AUSTEDO convert we have I our you and significant to change more

if on add modest. AUSTEDO, AUSTEDO, we to on take just it maybe price be will adjustments And

Thank you.

Thank you.

question Fadia next from your of Our Leerink. line ask SVB question. comes Ami of the Please

for Eason Thank for taking you my is questions. Lee on This morning. Ami. Good

sort Just a the customers. couple of of on

ramps and is You patient in different and gotten I and know have sort have you biosimilars, some to acknowledge the priorly different their know, Neulasta U.S. durations. they we that or - populations launches different seen Remicade of off

So the are these? launch versus these curve of thinking sort how of about of some you Rituxan biosimilar just dynamics, given

pipeline, on you. is of When your maybe other then hit to bringing some the the pipeline? And of to expected into the market? a biosimilars in what Herceptin. just longer appetite biosimilars this is then additional your sort question on And broader Thank term,

So I ones two one, and will specific the last I I address then broader question think for will the Brendan. leave

for biosimilars appetite to marketplace. an So we bringing actually the have specific longer-term,

successful We the in It marketplace, with product-by-product in situation to and let’s we the commercial realize commercial be footprint market. that firmly the order U.S. need in a order the believe you to to penetrate biosimilar is say - and unique that insight have

oncology before very of the we with several I and believe the with we in case, all chain in that with our as space TRUXIMA, the long due that long-standing a experience good the different chance to the relationships parts marketplace commercial in In this U.S. of said have so. value products doing

And same with we the in that the able future, also biosimilars. different believe do we will be many to

innovative is on but specifics, new biopharmaceutical on the part over work both a strategy of to we Brendan. that So R&D say I also biologics, biosimilars. on - that would But you our

Yes.

in launch As biosimilar of a you is the interest been there can Rituxan. of imagine, lot

is there on will lot course of been in of interest and after TRUXIMA a So us. Pfizer follow

here So the there too distant two future. the market not would in in be

remains pricing out, I are to mix to uptake advantage still it. the we and shakes right is that what share. But the determined optimistic on how we think be take fairly of it have

are that a with who we is, have Teva brand a organization, like an And course in are biosimilars and If we somewhere product a the you that business. an oncology of think a GRANIX as familiar product we the very acts and biosimilar. portfolio, have we have generic. about - much And then that business generic had very between we

commercial this the right think structure better have we may of strategy we So take the uniquely fully right most. marketplace, to and be than advantage

be in optimistic may we get see all good we showing past see biosimilars. are than forward when market seen February, the we So what there will we it will where but fairly better some results We to uptake to with goes. this we look you that and have

launch which asked - believe, it and to is we Herceptin, for HERZUMA. when Herceptin, be think our product will date our to were oh, is regards late you Herceptin is QX, planning I I the In

Thank you.

Guggenheim. comes line Our Please Dana of next the of question Flanders from ask question. your

in Hi, thank lower can And about out have generic the this Kare, be It launches. you know talked be you being I My first much the pushed lumpy. sales. trending seems to about $X very it annual know questions. I U.S. billion some business for is, you year and

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will I share questions. then will the one the first and I think Brendan one. for and you take Thank the second I

So It important all terms time. the been billion, is in of the remember to have just saying $X what we

States America, It are Canada so the United saying not detailed into look in in North generic It you alone, well. have know, strong Canada. we United you as And as We numbers, is is business States if a and very

American a and So the close rate, bit a has per which say to and North is as it correctly, billion quarter. $X business run very be you can up down

for total have expectations next same and this very the be year. think rough close will it I I in billion $X year to

that of the in We course, February will when you more with for come give XXXX. insight we out guidance into

sustainable business. strong you absolutely But right. and see we are And a do

will launches get move of Some will Orders delayed. our up.

EpiPen than and better that get expected will EpiPen do - get we they else will finally disappointed be Junior they when and there like delayed. or Some

is regards with think let I I go that will AJOVY, of in just that game the name the So to with generics. And Brendan. one, you

Sure.

always us. have for CGRP market, a we phase launch AJOVY two specifically the at launch looked the So as

patient So of Auto-injector. the largely, is that the we a of preference course that believe the a decline the in market. early syringe pre-filled in early saw we seen We have the of share. lot new-to-brand quick launched - months, demand, several into last and we And due to

are physicians profile, we with about to of prefilled patients to talk speak them clinical much they the to respond downside don't they happy certainly a the the syringe. AJOVY side way the we when really very and it profile, see So effect and in

course the going of they the we see a to a fact, keep that, to you launch continue we front of because the the the that. pre-filled of to syringe products benefit higher are In very market is Auto-injector once prefer things on over I of patient, Auto-injector big ask in syringe. one they the and put we pre-filled at seem all when a three But the are rate

for largely the So And the think in I is reason we share. that what new decrease is brand seeing. are that to

care bump will But in sales of AJOVY. and we the when force Auto-injector curve force, a to do coming launched we So months, I kind actually have sales the the in of care AJOVY. here the launch think comment the up we your a second continued see primary primary regards about selling in

two AJOVY. We selling have forces sales

calling well decile which we we salesforce, centers headache neurology on is primary then and headache our on writers care call neurologists high have specialist. decile that our and We high have as specialty what as calling non-neurology salesforce is

So but as we deeper our primary we as promotional feel right sales some relationships rep mix that we with don't standpoint, certainly the have from competitors. have got care a of

little a So think take is to going bit to market. It U.S. I longer penetrate that

Thank you.

line Thank JPMorgan. your the question. question from Chris Please comes ask of you. Schott from The next

questions. much very the for thanks Great,

follow-up are Maybe driving a on the franchise. first obviously the AJOVY, few Auto-injector before. topics you on a the is Just reacceleration for from highlighting

do little that launch bit, understand Auto-injector how will a help uptick. the post Just quickly see we expect U.S. you

So almost do quarter are going monitoring happens to something is be immediately for important a that that two need is this you evaluate? to how the to or we or is franchise, give

and was the Thanks rate just for taxes, patients a think to question tax largely stepped Is that second that a do a my to Teva much. And very one on XX%. opportunity on start existing the think And to opportunity. convert this there potential new go-forward well. run or Is you TRUXIMA about as on basis. a decent up really quick is rate you

the Thank you questions. for

and you the Mike, I two last you the one. first then will take take think Brendan will

Sure.

the up Auto-injector we of new-to-brand and don't AJOVY, I expect in as with a XX%, share. XX% sudden that all pop the will far to Auto-injector as XX%, we So will launch

the a to see far are we I know. expect will it are to the new-to-brand XX% for. in back that looking immediate, that we steepening don't I takes? don't that think XX%, climb but that long to How into think it we that expect be grow looking of as I share. and to kind that and will new-to-brand for growth do share continue XX% see to I of to we curve continue XX% XX%, I AJOVY as

TRUXIMA As far therapy. conversions patients currently of expect as that goes, see you any on I would won't

whether It it setting, in by starts. mostly oncology whether an is to going I think new is patient TRUXIMA that driven be biosimilar is any or probably

Yes.

I rate say in So some toward that when see the we pressure did to and tax it rate, the we would XX%. the tax on comes get would past eventually the

range in of there than thought I this But we year. gotten years. a more little next be quicker We range we XX% is bad the think couple not have for XX% thought. a the would We

we given next In able the that be business of with outer will little with, new couple reasonable But changes rate years we the of for dealing the bring are in our a it no significant bit. tax down course, maybe and given rules a is legislation, to XXXX years. back run

Thank you.

Wolfe Tewari from comes question Thank Please you. of The next line Akash ask Research. the question. from your

thanks Hey, so much.

$XXX it if consensus is your you, it billion million that So say your guidance long-term OpEx we look revenue embedded margin. order there next line years. to be projections, in of projections is an baked top to over just Can in cut operating put the and to seems Maybe for $X at few we the

that maybe on Thanks. next what and a for the of you of can you kind over we sense cost few of the is still growth U.S. can U.S. structure wars for years and Teva's CGRPs, given the cost be cut margins is kind give products? are how of are much what of trajectory Teva's line on And those U.S. of the a that sense the pricing Can possible? give other business, current out seeing line

we try and see, comment think Mike will on will will the I I don't part handle that. then but first and the comments much on margin have progress, So, we

target targets, look you right an than we our if are So, long-term which operating margin at course higher XX%, now. we financial have where of of is then

will margin cost also mix the would from come which three improvement that network, margin. from, thereby again sources. optimizing to there down One would manufacturing gross course the that the improves basically product the then gross basically have is improvement on main the you effect is imagine the say of Now, come and takes gross of that and of you manufacturing margin sources a

increasing goes generic down. down course the generic up. COPAXONE your goes then and goes flattened and are roughly your your flat, business and stable has is and When is margin COPAXONE When of out sort margin AJOVY of gross AUSTEDO gross then and

course of course elements of two us. operational have then rest of you they those cost. So the And the optimization help your ongoing of

of out improvements right, and of can't for looking we but $X And billion taken forward. just have we going do on the course, that more, once base can are you we spend and optimization will doing and keep we be so

that? think in we comment but... don't so, U.S., do the other line on On Mike, the I

products, basic remaining all which many the you there. is are competition. the think already This of No, I trends sales generic can facing see

decline. good we don't margins So have see products. them to tend because slowly behind invest operating They these you will

the gotten that to throughout So can of and year. has over been number last is the pretty the that but see It something, couple course years amount is of a down stable reasonable you

drag, see fall not the is will off of a face It going but earth. you the So slow to

Great, thanks so much.

ask Thank Jason Please of from comes your Bank you. of The next question. the America. question Gerberry line of

Okay. my Thanks for taking questions.

not potentially out Journal report legal you with into while Street to Just opioid for are a experience first and consolidated at Kare, but counterparties. possibility proceeding comment bankruptcy to opting to filing work Wall ago mechanism bankruptcy on months that just few offer all contemplating can curious U.S. a would your leveraging the if seem legal about that themselves manufacturers proceeding, produce came which you a that

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question. that for Thanks

could theoretical opioid say of expanded you on being the is cover opportunity litigation. absolutely - right sort whole a bankruptcy of you there that So are to seeing situation the the Purdue

what that is However, are today, pursuing. we as of not

framework As and the we with believe the and most with together have together way that today, is we and AGs the defendants other of developed strongly forward. that best likely State hope that the

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some view Of proceedings which say participation some could would right, the from resolution overall there all of in another the of point kind you this a be is of course defendants legal of you deal. legal framework, bankruptcy under are

as not I now. think solution best that is really I see what right the

State is more the momentum have general AGs. that together think the behind we with I there framework developed

next you. Piper the of Jaffray. comes line David Thank ask Please Amsellem your question. question The from of

Thanks.

So, do term the you pretty aggressive on longer Auto-injector, to AJOVY year one. irrespective particularly think your in with given of you just competitors aggressively more need being how contract are contracted, Lilly [indiscernible]

is is competitor And going trial that number be a on your now number to running in chorea. two, one. So then AUSTEDO, Huntington's

you INGREZZA gets in extent So there. particularly a in longer Thanks. see see have How you the unique label label with a do that do evolving that expansion how where the chorea do competitive for you that mind, to Huntington's Huntington's term? landscape,

Okay.

the AJOVY first. obviously So I will question take

access. we and we approach on hope access I share. taken to grow you AJOVY, I access at said well we as on regards to XX% and in that to we have our - that. it a bit as have I But And think look been focus has continue as that if earlier, continue think profitability acceptable little to different

AJOVY we contracting think I So with don't aggressive that necessarily be successful. approach a more need to

going and but again commercial plan whole things. Auto-injector AJJOVY, be host a is around includes do I targeting have which to not physicians strategy of and kind revised everything, think of a the we

don't think that aggressive contracting a to net play fine. And I we think expect So that the I new is access. gross for

But the think with now only the if we we or you AUSTEDO see. will are get are right, you cross INGREZZA not, as goes, I see far will goes Whether ones bridge indication that indication. that we HD where - we when gets INGREZZA As right we to will and it. that

they If do, in foothold market working. has that certainly AUSTEDO position. is AUSTEDO pleased a with be that way the to Seem fairly

So perform they will while likely idea share, that increase no how take will competition some in have it and market. I

you. Thank

the Evercore ISI. from your is comes question line from ahead, line Umer Please Next of go open. Raffat now

thanks question taking for if layers a I and question. still much of need on us settlement I wanted alignment appreciate give Kare, to opioid And framework. Hi, of to so two-part ask possible color that them. on see each you two really my happen would could

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unless way. six and their trial have to there dollars the deadlock. toward next theory, or to months those in a lawyers that imply cities a the counties just is in no understand is So path get resolution coming credible so? to there incentives I'm theoretically trying Wouldn't align

Yes.

suffering the table said purpose the forward on overall before, interesting not that that the serve is is, way discussions. completely But I best a all course, I in of believe start since from I'm to that addiction is the party to helping question, as people the can't framework if in very answer the details, situation, which that So of United and I possible from we those the States. now all

that. I think the see AGs state

from I some addiction. American is way, suffering see that end and think will the the defendants exactly what the and Public there people don't prevail what other but us, might be will for best at subdivisions the for the of and see hopefully that, who we day, it be

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I So need here. we think a solution holistic

of case. everybody that and that to way is hope the be It benefit I very the think will to that I much do

you. Thank

Next question Nachman ahead. line comes Gary Capital the go Please Markets. from of from BMO

to are trough will XXXX Thanks. year year, know But most guidance growth of you Kare an terms how both you, to give I behind a year and of thinking as potential and revenue the return in February. you next in EBITDA. ability with about

of give the Just some pushes major on front. that pulls and

that then of expected. And follow-up. Part is better one up that COPAXONE just than holding is

year? So franchise. dynamics that we thinking can explain scenes and the the declines behind that there be Thanks. of What sort maintained should about into with next be

Thanks, a very interesting question.

right. absolutely are You

said, and more of view, the result natural have in year were decline I or a combined actually, from automatically guess we the trough point joined the that since to the being going of with this As less COPAXONE I year. do restructuring I would restructuring

the And of is in and development operating revenue development in flat and right are as is what seeing you know, bottom the the that in terms now we a trough at profit.

very operating $X the see basically the at above being just of the profit of having level and the revenues the at quarters stable above last billion. we $X billion and You level

stabilization. you of early then year, right, been is about are quarters seeing one guidance. COPAXONE give think stable. It course question U.S. have can't second then we very are the too last elements is of to And a Basically you might you And next we of COPAXONE, because if guidance? the three why give Now your for ask,

are this. marginal And very the We Europe a if of and TRx XX say will milligrams in know we any don't Right volume. stable we COPAXONE. a we but U.S. we in the going in parts evidence have happen. We you decline first, the will of that have we when see see more competitor there have now unknown one generic the to that is is factor moving take that in how don't short-term, then lot a can development

factor. swing one is that So

and new Now that is then likelihood contracting also coming that high no pricing in, a the If competitor relatively environment situation is there will stay the will the pricing. stable. there affect

effect that environment. third competitor, positive all sudden an a is will on Now of that next a approval COPAXONE then from for outlook of of have negative the year. pricing effect if a there a the on course has

major don't there. pretty of development, any upsets steady. expect it share terms In looks I

is situation that And have course confirmed patent, that in as patent we the of the a a covered have XX is that where basically patent Europe, terms a European In of which we been means European positive. milligram speak. we by system, is

lot in right I elements hand, now positive. where of they But actual some And dynamics can you on have On the other Europe. other factors would all-in-all, there. level But you are a look swing say how then there how the you path speculate that AUSTEDO. develop. will you will exact country have whole they It exactly much it of will to on progression have on the but And gross sure, how net grow. that the will. will we grow AJOVY, currencies, thing for develop, exact have

a trough But we everything have I happening, in improvement that our and operating negative a we else have unless next year we will year being equal, believe the then don't still major marginal see profit. firmly

We that on orphan happened outcome it got which been are the is also has could the we BENDEKA from that waiting happen appealed has we drug that have both competition. proceedings court things generic have And as that and TREANDA the litigation. actually of and and Eagle such protecting designation have BENDEKA for

would factor. Eagle's there orphan a could But be We be that drug hope the so to situation no it BENDEKA has that that an will way go designation. swing also change

expect but and year confirm that forth, we and equal, year. totally lot I we a in that of the trough So the else marginal backs be say, next would operating will a see being this I to profit improvement everything

Okay, you. thank

forward announce the our So, much from and earnings so our quarter. quarterly listening now, hopefully R&D with future to we talking months will biopharmaceutical results look you call for strategy strategy. you when most the our third also this and three manufacturing share look Thank on of much in. completes full-year to for I very you

does you. today. conclude conference the That Thank for

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