Teva Pharmaceutical Industries Limited (TEVA) 28 Jul 212021 Q2 Earnings call transcript

Good day and thank you for standing by. Welcome to the Teva Second Quarter 2021 Financial Results and Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. would speakers to today, I over the And your to and Instructions] now hand like conference [Operator Mr. Kevin of Mannix, Investor Head Relations. Senior Vice President, Please ahead, sir. go

Thank joining everyone, Teva's you, quarter thank to second results. today discuss for financial XXXX Ella, and us you,

that, Kåre is Executive turn A that Chief today's with you earnings presentation. one the reconciliation to provides and investors the inclusion issued by the today's a is call as opportunity well release, approximately Officer; on information Officer; management We disclosed GAAP Teva's performance, Financial both available Please of call Schultz, Kåre, Teva's evaluating Brendan non-GAAP release its to non-GAAP Please Officer; better presented call measures hope on the and evaluate operations an financial the Further, America facilitates non-GAAP trends. to Commercial. being measures at of of I'll O'Grady, GAAP press Teva's about includes you've release analysis manage and today's Eli would, financial on Chief defined and was on to a Teva's website in results supplementary call And an as note Kalif, financial SEC. Company's review ago, found copy measures be measures Company's Management me our call copy the financial order believes discussion hour. of the note business. non-GAAP which today's Kåre Joining North our can the over in had and in in Chief Schultz. understand uses will slides and the that www.tevapharm.com. Executive hour to meaningful Head of this certain internally our please as by run measures operations of

all in the highlights. start Teva. by I'll Welcome financial to of

and AUSTEDO. slightly billion, ago, driven And competes. and to much by the COVID-XX roughly extent, as it which and the Our lower at the volume AJOVY generics very also OTC, affected and due also revenues AUSTEDO is Europe by in AJOVY in continued same to some really was and came SEKX.X market it in script lower segments was a where restrictions in year total

So overall, satisfied the with at in adjusted EPS in. $XXX in revenue The very came much situation, line estimate. came diluted non-GAAP with expectations flow a they came and $X.X the free at the our we million, EPS $X.XX, at were in this very and given the satisfied with. cash GAAP The we as were at billion. And EBITDA diluted also $X.XX came in number consensus

of plan, billion laid impact ratio to Our $XX.X X.X. billion. The from debt ongoing years the lower according is reduction to XXXX continues, down is $XX to debt-to-EBITDA reflect as to ago the now our billion, $XX.X down and several outlook we've to out revenue $XX.X to net COVID-XX billion

However, EBITDA, EPS guided. flow remains income, as operating cash and free already

If by you little the of beginning from development it's the do the to from we 'XX. can that we AJOVY COPAXONE first really we market, we on up, to will the in and nice in volumes of sign we down reaffirmed, expect into of two do have total basically a last hopefully less on depending We products, getting will that quarter. AUSTEDO the it's Nothing the going spend. as billion, year first situation, that of and and been the have within second $X be next the we've year, in one that this have Europe the effect in also the $X 'XX reason revenue means And sanctions And see have U.S. can see and sanctions, our to total this AUSTEDO that just consequences doctor growth see continued course, next to have and to next patients quarter. term, picture. we longer still the in will a We now and AJOVY, of it minimal. And the share changing or of have And very be the decline the to of really course, we due on here and negative little more COVID-XX relative COPAXONE But due we to trend. then can the the change is, market And down of our changing billion plans, as a growth our quarter, you around with seen, months. to we a lifting year, the market lifting means of 'XX, hospital see between and that is to around had a with awaiting drag see as of launches. on therefore, this COPAXONE. this cautious the you been the is on we COVID a and and course, go want growing stable dynamics per year, not So, just year. for the phenomenon the less the in positive change. and first second basically see much slide, of can we it's a but the the since expected

slide, please. script numbers, here had numbers here we And can in to where the continues the new the all-time quarter. see Next AUSTEDO a total high second you script quarter, per grow.

little of up in And they You down. some there. rebates can also see are per true-ups and the there are and revenues a quarter,

is as the We sometimes, little which a first say, trend May, a growth you the been second some you would of DTC purchasing there's wholesaler And new stable we corrected quarter. the strong campaign started say, a a could there's in a with there, aligned are, TRxs. lower see pricing. which bit we we the see in in targeted there's suffering starting initiative, people Underlying, which swings at, unmet in treated of tardive could quarter, States, has wholesaler Sometimes a, from tardive only dyskinesia. say, it in And and of XXX,XXX is need we United course, around dyskinesia the a a fraction is, you huge so continued we and far. on and are in resulted to will in this growth prescriptions also continue far consequently has so in sales. growth optimistic that expanded activity The our campaign drive estimate sale websites,

outlook As compared to million from of a we development year $XXX have for slower a down million. full lowered expected consequence market what $XXX the for to the state we the

sales based U.S. the on AJOVY net Next it's slide, really growth 'XX, and please. and in second both European shows performance. of solid quarter the the

the to is here growth. see performance showing is quarter-over-quarter, the of can in record can level. now you we the increasing America. and steadily have has in how as where to around in in saw a steady I grow. TRx sales last we up case very Europe, The terms to U.S. quarter, high the here a thing the you left, also As market couple you see from share. we gone XX% same years, the North and It's to show we said And share And XX%, ambition around in see changed expect this continue our

share therefore, of an level years. that both be think efficacy acting and quarterly. and is we within X/X ambition the of that market doable product this the are in so and it XX%. safety Europe is having based a We of in And U.S. good very of very, the the both the monthly market, now AJOVY the longest product the profile fact and only dosed also and on can coming

and AJOVY. and XX%, the If sort as strong improve, we growth are total expect of improve has course, to in in very which future it launch. indication slide. market we year. very RA about now, been If shows it and then to after continues TRUXIMA only over slide, started share such, can in the quarter, to the overall share probably competitive, development next has first first we biosimilar around our it we hold Right has our in it in rituximab, biosimilar the next go the on a biosimilar, of to optimistic market believe improving continue the to to the this, we And TRUXIMA, the is we major slowdown market. and COVID related and here how also So the to a of go to we grow shows

good As financial say long-term our margin an with you with a comes is and good Company. it operating the when margin. conversion I know, basically order operating can situation a And ambition cash debt with to to financial really in secure for the a stabilize decreasing the business to ever

out well XXXX. are in since underway it We bottomed

very are margin. improving XX% this that aiming been is the And of we target have in which of just right XX%, we're the are now, And operating year. for the can for we this And for target XXXX. shy we course, significantly. We meet it confident

operating then standing down the currently mentioned come and ratio at we above go are unchanged, talking the want debt-to-EBITDA course, of margin by They earnings, was I we about and to the just to long-term achieved end next targets. I to of be XX%, of XXXX. XX%. to the they want that be Let's income below that's slide. Cash net And are just X.X% financial our X.

And condition insurance them systems They see get that when can And use And Matrix course, the health a can patients another some to billion And on every have to care highlights the or execute two treating of in well that for report see benefit we've aspect other in they in an is a authorities that generic system to to have. medication to any you here. companies started The medicines create $XX access the we the report individual, there's whoever very, you more company are the medicine. ago real of state. sustainable leading health by company. to we've that independent I'm company what important we done we or few a we our world help here, it save the can going pharmaceutical And have just Global high-quality pays world. we for when very But who get from also the products, snapshots product is it Now medication, do private And where sustainable just activities. is to serves find you economic the business, that's, our than U.S. some day. care more Advisors. online. the pharma a you and deliver years show the the XXXX. what we external It's chance available, to affordable

got billion, the patients to it state significant also the some to the them directly so the health U.S. of private some details health up care with $X and out-of-pocket you system. reduced contribution that were We insurers, in savings government, care a and co-pays just with and on, have the so ended the can by them savings, report. some of they of the But see that

Now lot very, the can would have a but said of generics we countries. in that which can big growth of the do countries. for also we where course, money. of health don't in of countries for and countries same did the form form on society, be do that lot nine the here, top saving see the activity, also of we creation it we economic means same support various And be job very And of in We of and to task, in a basically do the but care when this, That the savings in GDP system, the the all a report economic contribute to pattern been Europe. all you operate. not countries on we only form biosimilars, in also we create

So a little this teaser. just was

take report, But financials. at interested with I If look the on you're think a a online. you can more it to at the this, have we find should this, look move in

So Eli our I'll hand Kalif. over to CFO,

from second of of you, decrease XXXX good local afternoon a GAAP X% starting and quarter the or financial XX, $X.X North Slide by related billion, in X% in products mainly resulting COPAXONE second the revenue segment, foreign our an results positive were decrease to also the revenue XXXX. quarter OTC, impact increase currency Revenues review in and performance. was Thank to This and COVID-XX ANDA terms on of and pandemic. generic Europe a in XXXX of mainly by begin in Kåre, were due I higher America AJOVY certain demand affected our products, from as to impacts changes segment. for currency quarter Revenue everyone. with compared second our of of lower my well morning partially COPAXONE to offset as the approximately

the and million Our full year for QX totaling generic product in $XXX of XXXX XXXX. includes sales Japan $XX the million approximately

impairment XXXX versus QX The earnings operating due mainly million $X.XX a were versus income products the site movements manufacturing XXXX, of along during Exchange second and the these restructuring income as a other have charges February Japan. of $XXX in year effects quarter we the As by and positively communicated, divested with previously to the of million net in profit $XXX per to revenue was lower impairment, GAAP $XXX we other in including same per partially by million of GAAP a charges. $XXX hedging higher asset quarter X, rate our XXXX, higher versus XXXX, recorded year-over-year in items million QX million of XXXX. XXXX. impacted net segment improvement GAAP in $X.XX share compared earnings ago. second and period in intangible assets operating QX of share income, Europe and offset income GAAP In $XXX

Turning XX. to Slide

million quarter cost goods the $XXX intangible the the which of that totaling the see of second quarter were XXXX assets XXXX. $XXX XXXX. share Amortization second income includes expense million the million XXXX largest quarter items, to with compared net $XXX expenses intangible exclude totaled per net $XXX assets second of can second for in XXXX. the of adjusted $XXX purchased impairment of quarter the being adjustment and This identifiable of in to of of of these million, in of for sold. $XXX non-GAAP impairment earnings million of You million in in quarter majority non-GAAP is versus Non-GAAP included the were assets second an

quarter Slide We to XX. billion. have non-GAAP review which the our approximately and $X.X performance. second I already Kåre reviewed revenue, moving totaled Now

The network to A by down to Europe at the profitability margin resulting in increase mix well move increased let's was XXXX. in the from higher as quarter profit mainly change lower offset by year-over-year non-GAAP second look X% optimization in international and our margin gross So the gross to and profit P&L XX.X% partially margin. profit the of the non-GAAP as driven portfolio profitability markets from total and XX% COPAXONE. improved activities, gross year-over-year by product compared in

above. driven versus non-GAAP the non-GAAP due a higher XX.X% margin with Our was in ago. operating gross $X.XX increase the The of mentioned We the gross per profit earnings compared year by higher XX.X% margin profit. to ended QX to was $X.XX share mostly quarter XXXX,

base XX. approximately base million a by our $XXX take of XX Year-over-year, at million let's our look Now brief or FX. net spend on Slide spend quarterly declined

main at than base change than of Based efforts come had looking $XX on will billion as margin by XXXX. transformation months XXXX decline and operating reduced to sales cost for slightly spend current impact sold of gross sold, in estimation, six the to comparison, our spend expenses our approximately our However, cost our net we goods partially year-to-date our declined goods ongoing improve reduction supported base FX. was million according in $XXX through of by more the believe $XXX for network. this million up. the of The our first were greatest The on in more the of the driver our or

cash on Now Teva's XXXX quarter turning was XX. rebound first of generated the $XXX from Slide to free million, the flow a $XX the quarter. in flow in million nice cash free second

range cash Europe the out XXXX due typically at well to flow large profit reaffirmed billion annual before, headwinds first February, accounts cash first our working the from but recall in cash the in As billion. net Please is which be XXXX and quarter, to resulting in payments was the capital today. $X guidance, start the due and of items, flow of merit year quarter, provided in inventories noted we Teva's the have to faces reaffirming we timing our the of lower $X.X expected in the to timing the in headwind a segment. are as as receivable mainly few April free free increase flow free first usual especially of paid in

keep on flow focus during high pick expect cash of free quarters working with improvements. next a inventory two our up capital We driving as the to optimization we

debt last total, in at I'm reflected versus $X.X outstanding our of upcoming to Slide Turning end pleased billion, the report billion $XX.X that week, which repaid we is including XXXX. XX. debt additional to billion just additional maturities, the an $XX.X in Net declined to quarter. on billion not fourth $X.X quarter-end the

debt of net of our and for to be net continue our to Xx main as end coming XXXX. in Our XXXX. push bring our continued by to decline EBITDA to focus X.X efforts to debt-to-EBITDA Debt the reduction we use in cash continued ratio at primary under forward QX

for So turning XXXX XX. outlook to financial on Slide the

experienced the unfortunately global pandemic, in recovery some effect While our we in business. not of have seen nice from have products everywhere a countries we and this the

reason still products of sales lowering midpoint our $XXX we billion. are to $XXX the large $XX.X feeling the by on year range overall $XX to lowers to an for $XXX global this our the first is pandemic range adjust of and our billion adjustment guidance results believe by billion to for The had six new includes mentioned new at of AUSTEDO, purchasing Kåre million. that million $XX.X has our markets million expectation which billion range lingering of Based $XX.X the months pattern This full the Some for by year effects for range global our we utilization of the full to to the earlier. are it revenue time, on the XXXX, guidance range the patients. for original customers from and prudent of

the free in the April. For in cash per ranges EBITDA, XXXX financial for we targets and flow, other income, provided reaffirmed reaffirming are first our earnings current share February, operating

determined rate by each the of quarter product the end and rest the by by for of concludes We up second mix as XXXX year. for be purchasing our guidance. the financial our recovery generic pattern of mainly utilization my as will review -- the this the will and overall these results in with the of well patients range business in And

for open questions call please the for will and We would now questions. Operator, answers. call you the open

Capital [Operator Thank go from Nachman line your of you. Gary question from Please first BMO ahead. is And Instructions] the Markets.

gross reducing you're much at cash lowered EPS then EPS the the cash you free from flow? on Thanks. a for free of built you recovery more? guidance, likely do improvement do pressure to than that be margin could versus had the the end about bit lower With and you EBITDA, to just, maybe maybe how And first also see bit is regionally? little what second maintain are COVID? elaborate flow half you guidance ranges revenue little doing that And into OpEx? if and And How the How you playing out? saw the what half arguably talk see guidance, anticipated? more a EBITDA, What's

Thanks it Eli if for by answering further comment, and has the to I'll question. add. elements then can start he

of of So what to regard anticipating question was, course, And actually, that would second uncertainty U.S. really was quarter, restrictions the the out our your and corporate is that result to quarter, with and there second of both extent came which when the resume activity the were what marketplace. first beginning with from we year situation would huge the so on we vaccination the a affect restrictions and would guidance the activity was in script that economic visits so Europe. in in second doctor drive and lifting in

spend knew speak, Now on so we into because little a area. flow specific an the of to earnings just insight the and then able COVID in view situation were we a we course, should overall view, we, magical be point cash continue, slow manage on point nothing cautious be the if We specific from would have went that a manage lower come of so will the restrictions pandemic various countries the in we develop. of to no to P&L, the how to way the that for spend pattern, was

there of Now was restrictions, it's restrictions on oil see doctor a there the we maybe lifting not did lag scripts. U.S. a we lag on a so -- lag out but from in a consumption, lifting then visits that was and turned and of

It scripts answering question in did of an seen and I'm in over an sort two seen. are we've come second months the late April. So in the the from into next optimistic we combination see in improvement really we've switching your here. quarters all way of the U.S., say, We improvement, quarter, last but it first you'd the on based didn't came two about and the what

it's in the that up most we restrictions Europe, lifting because in very the had generics a ago on improving countries. the first sanctions. long to in OTC based Now of seeing the only not major is volumes all really little And signs situation way we're of there, the now different in and terms

the then restrictions. our the Now the is year year might of situation with continue The rest the we that what's ask, of lifted the this guidance? for assumption in rest guidance for you assumption our in

hospitalizations likely volumes you So, level will where to are we places and not need so variant terrible and in masks But on. we you travel some deaths where dramatic right will to most points have a due U.S. wear restrictions, Everything restrictions guidance get some into Europe some can governments are baking script the and or severe something at not that. to the new still see and/or are we that affect to lockdowns that some lockdowns reversal to restrictions that like now place in there actually that revert

that's So we the really have. assumption

the hope the assumptions, way but we that revenue. I handling earnings So, the clarifies versus the also are

Your next Citi. Ty go the Please question of from from Navann ahead. is line

is one first I on opioid, may. My if

plan Thank not during Teva on part settlement. promotional settlement? able agreement you just with if campaigns of and distributors, the progress question any other the I quick on Are So rest of possible part And a of global share to a was year? you. the you XXXX was stand-alone proposed have in recent DTC principle AUSTEDO, J&J the another but or

those questions. two Thank you for

to when right Cleveland distributors, absolutely in dialogue years constant that three at there first was were ago you're the the when And framework, in framework the J&J nearly us. opioid have with time established, higher we and two the the been on So, think then, in the in lawyers, plaintiff say AGs and interest from immediate I companies the than amount, fair four that cash and the has it's therefore, been plaintiff the our lawyers. offer. Since the

offer from hopefully, for the free know, I without by to abuse to into all charge get any help substance that's people is XX-year attractive our really can a the suffering states. substance giving to in this for U.S. substance help Suboxone, you a a life they're As products abuse. which the And from of on, states back, offering get the wean abuse the product, generics period them think off we and off have been bad provide And offer them very

why because, you offering However, debt and to first second. of probably of they take it and the then have the more know, since of our actual cash companies then are a much than that's other are, have as on less, course, decided we fees move $XX billion, not course, related we four huge attorney to to

We have in AGs dialogue, both said, lawyers. I and the plaintiff with an the as ongoing been

settlement optimistic right now and that coming all gives that a Americans will think We the substance good parties be think settlement settlement, to cases for are We to the a the are benefit reach a incentive can we the during abuse. we for all court that a suffer year. from that ongoing reach

moving us. basis are settlement of we on a towards that a optimistic for cautiously are ahead sort we nationwide So,

DTC for continue AUSTEDO AUSTEDO for tardive On the campaigns will we dyskinesia. question, the

we unmet As time important I suffering there's million that Thanks good will the very of being do the said aim of and the having is X.X a It's of a treated from in resulting sales tardive more dyskinesia, And huge with is to only that also earlier questions. need, on, a nearly fraction benefit for U.S., a dyskinesia the and, increased to therapy therapy. treated. patients of the first AUSTEDO. for in so tardive people continue them, this course,

Thank you.

Please of James. go question Wilbur the Your from of next ahead. Raymond is Elliot line

what for with currently provide but an I around generic on just or in expectations just know pipeline the us the of American specifically that erosion a half? And launches. just can let and XXXX, commentary then update percentage could current teriparatide these around maybe being there's the us your what yield base on trends then seemingly you know second respect Byetta AUSTEDO, and for opportunities, follow-up update what fact, previously of you to And pipeline for product just you've base current for of now you and opportunities if in maybe potential generics, in opportunity Rxs you in to are, global expectations in new the could relative terms generic maybe dyskinesia? approval for tardive outlook given that the the erosion launched U.S. frame to terms China, a help gain trying product. for volume shift an seeing as outward market terms continual generics new just the of with Kåre, price complex talked complex on business, trends the in about North you're this that

Brendan you give two then Thanks I'll give for details. some will answer questions. I a those and have broad more

as competitors on erosion space the in times, old on this, more price say, because many constantly a erosion have because new is competitors space North said you come come also I've products and volume as old biosimilar American we in. So where products and generics

We are erosion or seeing a not lot market been not more in seeing conditions. dramatic traditionally. seeing we're a any changes not And less or more we've suppliers. than We're seeing lot the less price

potentially And a roughly biosimilar to little. maintain $X So forward billion basis business grow space. of we to year the that a a billion America for I on expect going quarter, average year. having $X North having tune generic are this patients we would annualized quite Basically, and more an it say a in the

right everybody. generics delayed, being are just absolutely complex that of You're a not lot ours,

the other think complex the approval with comment how NuvaRing, rest for only this But the products, sees we Brendan all have he with I I'll the of regard generic let to just generics. probably year year. U.S.

Thank I well. that, I mean, framed it Kåre, up Kåre. you you, think

volume. I erosion price U.S. generics think see that and we'll

highly It the come what on orders is would historic I to portfolio month back what dependent think coming to mentioned is your saw as much see pretty of Kåre think erosion earlier of due kind is, June. in back that We we I we've COVID but wholesaler price norms. the seen during as levels volume what pre-COVID call.

the we as have complex previous mentioned XX approval, year, up of Kåre complex still was call decent new We'll launched date, we When table calls, we one year. mentioned, has To half in products XX. maybe be launches, So second the NuvaRing, generic what second launches. generic a the think comes about see we as which but the only I of potential some there's of FDA when we've in that on ours. approved year, to which what was started could half product the

last XX some launched products. I think generic we year,

I of fine, overall, and the approvals we're up trending second hopefully, we half see, So in the pick should think just year.

Thanks, it's U.S., the initial than outside a that launched take-up. in China, nice does, we've China Brendan. a for absolutely and longer U.S. it the With regard in to in right takes have we instance, AUSTEDO It lot

on the the the there. product reimbursement start work hospital serious then will to also to move you a Then need you list. eventually, First, you doing well national your provincial drug way. listings. to through We're way in have very list And get and on see

some it's years off to be see our will profitable. very it good it's of So state you big on but before China, a meaningful, out numbers

-- I Huntington's have the don't tardive know that. split about think feeling numbers. your that have really would don't exact Brendan, I what's about don't whether But it. split the we have and dyskinesia, to say we you what and because happy we're I With regard So exact between

Yes.

about about is XX% on X% we're the that's Kåre, of the about treated. because AUSTEDO, Huntington's of -- X:X, been you dyskinesia. tardive think for about with dyskinesia why tardive AUSTEDO split X%, And are estimated scripts course, and between disease population has nearly So product dyskinesia XX% the if bullish tardive of

there's there. So, growth room for significant

line Next Please question is from Steinberg Jefferies. go ahead. David from the of

I some product up and know the opportunities to less focused I'm in questions. a cash struggling sales not component. this offered on you're but or in any expect past the shoring but to Two mostly discuss either payments products via know through if on assuming manage cash, new and say settlement co-promote you that flexibility Thanks. litigation debt just pay And to going bring the in settlement just the future? leverage global the be ventures then assets, And your and clarify, Suboxone structures? down type be could you've to Kåre, indicated infrastructure in of you other you year? secondly, cash litigation any I will revenues. you've there so, did joint opioid you're buying

for questions. Thanks those two

framework. J&J is all, framework, now So the in nearly on radically in with what years first agreed initially you if opioids, not at as I it which the different you the the nearly, distributors look two up ended framework, is say said, then old, of they the for what can from

at billion somewhat list So generic cost, look way at our $XX years, billion, was back, at $XX if deal XX was billion probably course, and the Suboxone, was net less over estimated XX is you at which than over framework it then price, of billion $XXX $XX price, Suboxone the that. years. at manufacturing million it $XX And demand whatever

of you remember, have those I at look years they I a the a deal you where resulted cash we period years the to years. than order four longer And have something say they be than a over can't in means over if that component with I less we initially that here, if money stretch a if more that. that or get a believe would companies, over five paying also over like would the years. something you lot XX pay like longer And some like on out surprised over do, the we maybe pay then Now framework there's flexibility the pay up XX of period. not with J&J, not since distributors course, XX And if payments we could then, which, so we in to that course, to settlement, end discussed,

us benefit push So with that have trying to will are which anybody. will anybody cash benefit not our to basically, payments, I situation expect any because that financial from not in line don't

anyone. will really extent will any positive but and might I have way our structural way liquidity So of component that the interest in will problems that that good cash I with the see don't our a in the we be it that's best to because in really don't a affect serving increase, debt think not

what business we Now based to say, generate regard to on, could our do can revenue more with you footprint.

the examples, I least think in the not good some are there biosimilar space.

You saw over the the which deals potentially we Alvotech, will U.S. years. coming with did give new in us the biosimilars

that biosimilar did we Europe. a saw You in Lucentis on recently a deal

you don't footprint infrastructure. our that can these Europe that who on used looking revenues the products. I of not And kind blockbusters I'm the optimistic a but be but more can So it think some North have by with in supplement America be their have say, where companies own, of tend coming years. our marginally questions. people we commercial as find and we'll these over good for kind commercial then opportunities, product, deals are They to do huge we Thanks will for

Please Gal question ahead. next from go of is Your line Ronny the Bernstein. of

Good morning of questions. and thank you for them. Two my taking

would in. regarding you've talk about also the you the material Thank three use the XX% can and other this Should like kind any working the you market it, thanks is injectables if XX for of and a been little market progress here. few years in goodbye mentioned expect bit for five from like -- pipeline be, AJOVY, are public months? to big the First, say see share. market against years call which my how if then to oral you on branded I there CGRP the the of there? products, against Brendan the things you that And to of oral to for in all wondering products, next of out we extend you consider prophylaxis pipeline or prophylaxis kind prophylaxis coming would And just O'Grady, overall. injectable general, -- secondly, I'm you. service with is the thank also question, And a

approved Ronny, us good to the pipeline luck first, of that risperidone and super is, and questions, branded future, good in hopefully luck you delivers. LAI, get important launched will and to the happy that those should year. for next course, And be Thanks we development will be in order also good to

but really lasting people it's a It's So course, of news, of sense rejuvenation or subcutaneous, suffering that an from clinical the is the for current in a months, that's, part than pipeline. therapy. so which can a product not it longer one of not be super And schizophrenia it's two that's important intramuscular injection.

avoid to suffering can where due but of long-acting lot there's people a think benefit things convenient we relapses of more convenient therapy, get short So, schizophrenia this term. to lot therapy exciting they sort from other a a happening

of attenuating the to know that You of is oncology being we it's Takeda, we is exciting that in sort oncology really the have out product. license have principle very frontrunner a concept a and

results. a a So product will then and kill in sure wasn't year, of so cancer so that cells. to have to a not make and toxic cells the targeting product. you the basically body, to were that sort the it down would a the the our rest you work, have be but And the validating supposed you cancer hopefully, oncology have And works an own is is and where basically have toxic turned the we the turned is it to within of Takeda And they idea that And down, a too have we'll to pipeline. kill-cell mechanism very off own we that have be speak. interesting is effect product then And able to you of technology concept. turn positive, the special have way our if then see we

outcome the validate this trial, will the Takeda So that's concept. to very exciting see of which

IL-X could that's efficacious, also long-acting. more more the upgraded IL-X clinical in We version which for have be of development, and an really respiratory disease,

things have then of in about excited that. lot we're we early have going fibromyalgia. we So on, a And

are fibromyalgia. at We AJOVY whether can in looking work

exciting early the years, early I'm many where little pipeline also in biopharmaceuticals. But always excited things next very in because happening So of a and in too stuff early difficult our two course, really about the it's happy to it's get phases.

cost-competitive think So then about The basically on little therapy. say way tablet remember a very to I very, there's out, would segment. but a distinguish that, switch have your a I is the along, you comment positive. when therapy then day, can't injectable now, all is And here my out injectables. like if the bit all every very, day where every three injectable give And injectables I'll Brendan When second the cost second question I very tablets cost I supplement. we comes because think AJOVY, that's because you at high can a then And also quite or take sort take of we really XX% then the what you something high. of have to preventive have prevention X/X to and the of it

have to about the If significant be very phobia it also an there's of and cost therapies the for and get these needle injections think it's convenient so tablets I will high. Europe. type who these U.S. don't think quite the insurance company because it's like pay difference can on, injectable taking they go segment therapy. even it's do time. between they take will People to oral it, a for who and have injection, the though then their not because all think actual you subcutaneous, sure to is for of I it's

Europe very I prices seeing think orals. in it's in going very, to on the we're the get to difficult be U.S.

whereas in We also are European to expensive orals other are in compared very, Europe, in the meaningful therapies comparison injectables to same more very the space.

want orals, I'm about. I think the but to differences, So comment specific of on going it's be some answer to segment if injectable X/X I talking give there's the Brandon. don't know a regional you to

Yes.

comment. a So core, I'll make

impacted entries But that if see will the the growth So we about there's Kåre talk the when speaking first, the probably, market, migraine over talking market, sure. you a we're of market. we we're been segment, what really as think words. orals. To injectable thanks It's mentioned, the Ronny, now for When you migraine extent, X/X multiple pleasure years. nice to about the will not do by about overall think the injectables be the and the we about

indication, advantages oral an of one There's not is think. an versus the and a product about when injectables. lot it has talked as an injectable think preventative might also complexities Kåre I straightforward oral necessarily to acute of

market, went So and in from starting we share, little right? dosing injectables see about little as I the longest the but down the sales, is regimen And what because gives I volume product we pandemic. a to to maybe the is to the clinically increase longest the separating grew three-month was us talked which see of share you're coming don't migraine were into starting we're that. And we think the in to a that least growing others AJOVY other starting due pandemic, -- see has acting at we're acting that have. bit, bit

$XX coming XXXX that XX% of of QX versus we're Now QX of in out which it, we million is XXXX. this up and did versus of up QX year, XX%

AJOVY think is on I So path. right the

between wait But and or advantages orals quarterly I are think see And there's injectables. orals -- absolutely get might we'll goal to think, to think injectable one as lot of we'll to what market. split X/X we monthly and a kind a of not I again, is as it's the straightforward and our of of have injection. the with the

So question. the for thanks

next is line Please Raffat from ahead. go from question Umer Evercore. of the Your

because there there not J&J ask reports are I counties, is state of AGs and any and of certain Kåre, blowup a current et few of participating. still chance And the settlement a by cetera, distributors?

to on by cash put be entity the what your bad I up you your Teva of expectation base may percentage there? and Thank would case there have covered them? much. thoughts there's lingering between catch just be Can what up us necessarily side? percentage balance AbbVie that's And be a know gauge that or whether good on still former litigation you wanted the secondly, thing some to on has and opioid I perspective? potentially And lingering liability litigation of So to Teva now Allergan from then what your very by

for the questions. Thanks, Umer, two

of distributors first and between been that three So the settlement nationwide J&J. has all, the overall announced

that, blowup which clear everybody, then of since states on a is because out state it will potentially of And years. a including that low. the XX, with a negotiated with of have And say with the the really AGs. it the lead of is could framework risk lot why next we and me be majority was I this reason there participate behind there quite call otherwise, extremely drag going is that lawyers basically settlement, scenes if X,XXX cases, say us. the There's the wanted come or been to think participation to lead that good you realize the a plaintiff court anything, was has what the will lack it's I majority where out XX to of work going to global over because you the

might And or Court, they some, they a there might loss. some win, way Supreme make meantime, lose. where be win might to In the it a the will its

population terms unpredictable totally what going it's it's And the in substance happen. those U.S. help people to of who So abuse. from not suffer will

help money to then want can improve have to we on. substance the from of Colombia And that of is of the very, suffering medication. from many fentanyl, the in to any on you everybody, you to And that, years that and so and restrictions from sad that in going since been has the the avoid everybody if of it's use by all they help form been and situation. kind against prescription situation, China, and can there's about to all do abuse something If from the place to need for We today therapy coming form of people coming the the fight this very Suboxone, coming it. doing majority help put statistics from abuse it's people in and illegal, know the illegal want fact all Mexico, methamphetamine so

some therefore, we're will majority. holdouts at core the the blow not will it. political/legal situation it, work end a can't core There a admit, day, of is the the the kind the only must now this is for and subdivisions. societal I of of is be situation practically, really solution. legal see might also think the I of political I this at seeing a I this up So, this really think how at And resolution, because politically, which in And

of I'll in an I the for if pressure in think because to your the this join pressure don't saw lot wants for whatever of a Cleveland or because also on indirectly think Cleveland, already details of course, supply overall all the region, join, you in we case on lot all put saying, judge the he for subdivisions tribe I and putting see this And subdivisions you put, you judge the on settlement. a to county, native should to is. your should you these that's work pressure it your

the owned real year. a it Actavis its when on owner I within own what coming all There a On component was to no said it it comes case the that the to and litigation So, I the said situation say, of Teva. has blow Right way, Allergan states, settlement do it either it's has that at part think within If of that's a or well still on it top I is, course, whatsoever. think Allergan, I by so that's plaintiff risk And this has And always see why which up. the actual product opioid to of and to California always this. liability, of hard up, Actavis New there's with with of year, then, all going has in I'll legal When and the two independent didn't blew would And believe. Teva timing. and to entity, a I sold of years, I comes have cases, case. Actavis it coming predict. now, means course, And it's don't as is clear be we York. The only to a they us actually what that will case It's lawyers taking of big Teva. within Allergan Allergan course, a it and a we of say nothing with component also have this. of not thing cut has component that,

is settlement. likely an in most states the with will end that in be it at look I way independent up the plaintiff the Allergan/Actavis lawyers settling So

We an will be settle and end with independent settlement, that in them will the that. of

thanks those two questions. So for

of is of the Bank Gerberry ahead. America. Your from go line of Please next question Jason

morning. Good Thanks taking my question. for

Umer's a that there's It opt-ins with rulings the question opioid get on type we'll York the cases that West from timing seems involve California, for follow-up Virginia, the aligns these with New consideration a like for subdivision deal. Just subdivisions. when

do coming there important that think And their how is in you so, what of to of I'm order a of these between the outcomes these deals. mention all was Or at in proceeds options? subdivisions those agreements think do levels, is the legislation how sort realize of to states wondering reasonable that important settlement subdivisions full kind of in the the or you magnitude corralling and

to subdivisions out if I create it of court. conceptual of more a big high-level some to going here comes a billion, So, of try $XX it's is on seeking question which part California, number in out. wonder the motivation that's

Yes.

a it's So good question.

me it's let So how now. working try explain and right

for First of within California XXX both And then opt subdivisions any absolutely all, you're the for not days on in will opt days to clarification damages cases right New the have days. York and in. to the the in XX states court whatsoever about the XXX

the California, two-step jury in judge and it's a there's in So no trial. a bench trial

XXX within determine whether can is the not but And whether part So at plaintiffs way all. it question there's might even the basis story. causality there liability. a California, any decision might, it proven be have discussing which in will by might first anyway, not. of judge be or for that the some there liability on That not in end because determining days, will probably substance trial will trial, abuse only products will any the that's going damages the between the trial such really the the then timing is damages. the another And another but any and be actual But there you

it's first, dollar in the means any that, same on that of a verdict, on thing not way than California a will trial. they later York, also therefore, go decision trial jury that, this complex, be within days. monetary It's there's will you XXX people New a damages because will So amount, that while for And could In amount involved. lot XXX be a it's quite days. say, any

the to on together So thing. most having they likely with plaintiff is this at to this interest lawyers, AGs, happening is up think it way that doesn't has key keep what the time the make the a look significantly these is It going. for because wrap cases. will small that I Nobody on lingering sense money state in a the cause damages most with be, any less, an settlement proceed course, cases lawyers benchmark be a likely, The heavy sort as leaning the will tail of a of there this. to of of global will lot

that So before California decide. not will a Does states pressure, York the the with the any and there situation? from be on I see lot New the think, time they join to subdivisions they have in will clarify or of to numbers

Yes, That's phase? that's just and liability liability really consolidated or helpful. California sure damages helpful. was if I wasn't phase

separate. It's

key they to put the settlement, a because So for all thinks the state here I think it's could say, on economic basically I will the lawyers. think on the country. it's where also it's for the basically, planes pressure in the you outcome key participate the average everybody this situation plaintiff best plaintiff think it's psychological best AGs And lawyers,

to billion. the You that have $X.X to are remember AFPs

of talking lot for a money plaintiff the we're it's lawyers. about So also

from go is Piper of Please question Sandler. next the Your ahead. line David Amsellem,

wanted on back come So that. I AUSTEDO, just to to

the extent a how label having or you, to competition of that could which year jump just that patients and access on competitor Huntington's, data through elaborate to with in efforts tardive in Kåre, extent improve group in mistaken. access, on talk have access your the you payer Thank then not extent pressure this what about And and terms the particularly, is like about talked there secondly, I'm AUSTEDO You later is you competitor expansion in your in, and dyskinesia? to if Huntington's Can that have get see to problematic setting? you can in practices

Thanks those for Yes. questions.

an and can it give Brendan then answer I'll So overall supplement.

they first, freedom to are the using So product, of the last think degree medical some those impact. the don't preferring then pretty have if They disease. also doctors course. Huntington's choice, that it probably a for convinced major I use in about it's have to look at going we who disease competitor Huntington's I'm the question already are of

get business a big of to the that actually and details where, lot we now of already. that is support leads So how dyskinesia, we tardive about the right it's Brendan I which secure let and the get activities think explain to on Brendan? of that said, But I'll me the potential can question, you XX% patients it's happening the it's to actually product. really on on a in secure of product, your part, course, some as we small Brendan our patients only And have do first

Yes, sure. Thanks, Kåre.

So you at yes, look I mean, if access. AUSTEDO's

Part XX% it's is I pretty D, Medicare commercial think, it's has coverage AUSTEDO coverage, and XX%. in close, that's preferred and

and on coverage upon means be the depends And There times payer getting authorizations. coverage. far as AUSTEDO has depends they're the really it, Many across that there plan. patients prior could it it's fairly an it certainly what that board, that So to as read and closely one process, have or process. specific smooth it, with very make sure onerous those patients a access to work it's but we payers not it's is, whether and HD it's TD

bit a have I dyskinesia. competitors, think in we've we tremendous Huntington's payer our agree there's there still a there's big with about disease, happy what growth Kåre. with opportunities And AUSTEDO. with talked coverage. tardive where we're think it'll I a happens We little significant and So stand impact don't opportunity.

you. thank So

go Please of of ahead. RBC question next Your Markets. the Capital Daniel from is line Busby

I've got two.

we achieving is little bit you talk market you're you market on be mentioned product, hate you. for genericized But there point. a of about the given opportunity move that LAI the in with that settlement of potential a below order you forward? a level I a said belabor as First, and to part percentage deal, thinking follow-up of opioid to minimum a the happy And how Can would earlier. global you about think understanding a today? nature be may there is plaintiffs I differently, that be would truly settlement about be second, risperidone for litigation, needed Thank just some difficult? that that XXX% risperidone highly the to

those questions. for two Thanks

a this it subdivisions, XX about but certainly of legal the participate, I about to take the distributors the I way, the participate, the of say, of that we more a minimum the for way expectation litigation that think bigger that once structured number than participate made it states, first states payout, could theoretical participate. than more the the a participate, that should the then that. that if have the So is needs hopefully, because one the is state exact the twists opioid higher basically of you of will the number you and some to remember again, the subdivision and there's the can't to deal max in And there's have out think states, that amount. J&J lot And XX of sort

of that negotiated both they would the it's and to a some For for than have more it's states expectation subdivisions. you clear participate. threshold deal is representative you the lead then is that the done not states, into with states, But talking And and negotiated these that is groups a for different isolation. this remember are all that's about in lawyers aggregation all the the to This unclear be from of have some XX%, plaintiff my all by This don't for groups. and lawyers.

good is think very, not states. the for LAI, pricing is stable the level really think opportunity to see completely for above that is And very likely we marketplace. and both of that in and I better products. LAIs big the I a XX% risperidone how it's the big it's gone because on for If the you'll switch subdivisions and then quite opportunity? pricing this quite generic the So of LAI new

average will a price be that the launching branded So probably means we patent-protected price that with that's of LAIs.

why product the reason of of action done a an new that's it's of do why good have I'm a subcutaneous weeks, profile data, much And or to prolonging injection drug. can That's intramuscular. much have and is more it seen. lot a this You but improved And month needle, into mechanism it's you've that it two why the we sure much remember a very months. why last And last pleasant. the very, thinner, new research of that's a doesn't instead smaller two clinical we which can

we products. very I market you what So, get XX% share optimistic corresponds at patent-protected of than can level by that we and pricing -- LAI that say, do -- the to are total could significant significant a mean, I current, a mean more

So that, actually a both suffering do opportunity, also that that schizophrenia. lot our from benefit means, of a which you on if math it significant the revenues, course, of will but is benefit people

thanks So that for question.

I think last we time for question. have the

question Nathan Rich your from Sachs. And of is ahead. today go final Goldman Please

talk revenue Kåre, margin thinking year, you a what course back the the the of the you and it Good the visits on course guidance. guidance, sounds continue I on morning. that impact up volumes you about around the Thanks follow-up around on and the like the around about assumes that for question over in for July? the I'm your that, quarter. year? in around couple to go Have the I operating of just Delta squeezing wondering just seen my can the outlook And me the volumes guidance wanted year. the in. over doctor potential firstly, questions. could commentary variability And you're have guess, is pick the how rest and to volume of range second second late earlier then variant comments saw of

of think the year? to the the for a midpoint how if where margin huge use year think you're kind I both know guess one target operating XX.X%. XX%. but a is we operating being not what not expenses should could to of the I showed difference, about be target on in that's about between factors revenue I think swing the the margin and you of maybe closer the that on XXXX for I likely come clarify it and know that's slides as just we I range, guidance the would

Eli for on the I'll margin. those then two Yes. one, last one take first Thanks I'll the let take the questions. and

So good on the guidance. a question

in some U.S. So in first to second in said, can the are we the can U.S. our less. did first higher And Europe, going lifted, that like in there we meet to volumes. And improvement start the are quarter, been at U.S., order two have both And the to in from the that do that do or restrictions we to Europe, the in volumes. means exactly is And and math will. expect guidance, as been elements conclude math, billion over we that you $X.X lifted have And see half. did are that we also the of it. of the half in we end you more which course, more guidance resulted in roughly the all expecting in simple second higher One to And and also scripts somewhat volumes now has that see the Europe. the we from they've indications in higher some of we of

is, lockdowns. in here be will new the said there that beginning, I not assumption like our Now

variant massive assumption of that again. society lockdowns not full Delta Our is cause here the will

look in in think the as said, right, personally a new the all of deaths, because I at then when in our could look you because So business, and infection guidance was, to there due the a lockdown rates are sudden, of saw likely other Europe. U.S., lockdowns. when that that we for Europe, the of absolutely of you number countries you sudden types that's cases like most the increase new there that's full would any of revise was at in I that and Europe thing in have if travel are create as the being a in mortality don't doesn't hospitalized. various U.S. basically, a all the to right likely. of number have very sudden, we then course, and severe same of there's in the you and we And And of level situation to a the then say, a and if beginning ban all the of in ban high variants vaccinations a seem U.S., travel the if

higher we here volumes So in the saw them as that's and at second we the see fourth that end right really the third assumption quarter. quarter is of

that it. a a as we on carries course, the lifting lockdown will, this assumptions new maybe, I can So see situation we comment that's if you of restrictions. U.S. a sudden on and to the like was the And think nationwide that, is or margin? we of which if behind change, all really about likely, consequence not And then now but something which lockdowns Eli, communicate of have a of

that to XX.X%. we 'XX, see Hello, the if go close Nathan, run gross QX, the which Slide and very we back show in predict thanks to half margin rate to for when we you the XX.X% we generate generate very to close means our And that and year the of that end of first question. what XX, you can profit

Now, which the XX.X%. actual, driving XX% if last lower is than around between two means on you on actually OpEx, we're quarters look the the back OpEx

what is inside a which land have few assume elements the a to on between we variable the course, we of we on the and the margin on versus variable element keep XX%, Now to That's I had know first we and OpEx bit lower when revenue going like the that's we OP need And that of we target to is in XX.X, that that because than the still our something this the that in OpEx. XX.X% support, gross XX% half which it's OpEx. midpoint, X.X%. that XX.X%, it in XX% around other elements

OpEx elements So variable that's into elements on some line. only the the

I'll Eli, the Thank answer, for back and you, it that you, all turn operator. thank to of you,

after p.m. of today will Thank for XXXX. through This conclude August X:XX gentlemen, replay a that today. conference does be XX for and till Easter the available time you. conference Ladies

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