Teva Pharmaceutical Industries Limited (TEVA) 8 Feb 232022 Q4 Earnings call transcript

Welcome to the Teva's Fourth Quarter and Full Year 2022 Earnings Call. [Operator Instructions] Please be advised that this conference is being recorded.

I would now like to hand the conference over to our first speaker today, Ran Meir, Senior Vice President, Head of Investor Relations. Please go ahead.

Thank you, Nadia. joining for everyone, you, us today. Thank you press release, hope have this had our review to opportunity which an morning. We was earlier issued copy found on the well website at presented A release our this of the on be of being the can copy call tevapharm.com. slides press as as review Please forward-looking on statements our X. Slide

earnings XX-Q. these our SEC in statements regarding financial information and our non-GAAP measures XX-K release and is Additional and available on our Form

XXXX provide begin and today's forward. Francis, Richard recent overview and business results To Teva’s events Teva's CEO, performance, an of will call, priorities going

the Kalif, results XXXX Our follow CFO, Eli will outlook. more up our for including reviewing financial detail, in financial

that call North note Please follow today's Richard Eli will the call during who that Joining one approximately will Sven session Dethlefs, available today America on hour. will business, Head of the presentation. be and run question-and-answer is the

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

back welcome, start you, it everyone. I to and month. so look like I'm dialogue and be foundation. because And open And meeting forward done and now Francisco I'd to there's excited many opportunity JPMorgan in of by getting solid that an shareholders, growth. know I'm have opportunity last be work Thank forward. investors Teva San to Ran, to analysts, you to here get here tremendous a can saying, you to Teva. The to back great was company there's a today, to excited of lot has a going at team get to the an

guidance would team. with to strategic for of already review leadership review Teva's process I update my initiated results like I've XXXX discuss start I our a and Before you my that XXXX,

Every and And back I'll to it. that the have. the we market. on work operate to should that going intent are ground what working and how clear, the time. midyear, of with are present team options follow Once we we very teams the It's strategy purposeful function, be hard strategy come Our evolve every segments going going core strategic with real the understand questions, behind around a we the hitting are down already some over analyzing to we'll forward. running, dollar is

some and move let's diluted We per billion, non-GAAP of XXXX. earnings to adjusted $X.XX. on $X.X GAAP per with highlights EBITDA ended diluted for share Now $XX.X XXXX of $X.XX, was loss share and billion. was revenues

the rate significant fourth had we You during that by year million XXXX. movements strengthening should the exchange impact full dollar still And note revenues of compared headwinds to our the quarter. from on revenues. our for seeing $XXX still therefore, the were U.S. net We affected of are, a

now reduce XXXX to strategic Free to is billion, cash with $X.X flow was down our Net and in debt continue debt in our targets. billion. $XX.X accordance we

business our discuss and few also growing overview. U.S., Moving across all further is two grew a up I'll AUSTEDO, Europe leading brand AJOVY minutes. geographies, International to Markets. very nicely, and in the XX% products these year-over-year, three

and there our to a growth reflecting of in position We've combination inflation. volume seen as growth We've product also generics also OTC good in and and revenues our some growth our also nice as Europe, in OTC strong price through Markets in successful adjustments well International seen launches. Generics address

international So local in terms. growth Europe X% good see X% in to and in currency

few in X UZEDY, on I'll our with together an subcutaneous pipeline. We're olanzapine talk the schizophrenia. for also recently of from developing for excited risperidone long-acting We're about the a trial Phase We exciting suffering long-acting progress about initiated product, we're franchise minutes. making our which schizophrenia, patients

begun. has of with we the further. very given states, State we support from moving the will XX Attorney states similar the We XX subdivisions settled settlement, litigation for we a receiving on last after As already the Generals. broad with remain And that announced the are settlements the nationwide state settlements month opioids that positive and garner optimistic the sign-on the from process the response for support

our terms look with the the revenue I'd well that how and the fairly like strongest to slide a quarter years. similar stable at products are business QX you'll revenue, geographical to it's on see Moving Overall, to XXXX, balanced. previous point portfolio developing. and that next to of was in spread out in of

the revenues exclude of XXXX. QX actually you FX, XXXX of impact to up X% in the were fourth If compared quarter

currency had local a Europe nice in and growth terms, International both we in single-digit So Markets.

It's business comment to Europe, Europe. is Moving a to markets I Teva. market the if predictable and the good on growth. it business all we go-to-market pipeline, very expand of made I'm you elements about. just like In European slide that on is Europe positive stable next in have believe and continued drive good, we business. our model, the those can have a And good

the of supports We this as can portfolio, a also from pipeline have profile, strong margin good markets. leadership see the and slide. good a in you And many good

is all well. out this And playing

can local you terms, X% fourth we're the grew currency As which in very see, Europe quarter, pleased in in revenues about.

Revenues see on was full growth nice and a development increases AUSTEDO XX% XX% Now see record in quarter. for prescriptions. I of to numbers and slide. we strong as moving for fourth Quarter both to with on the new happy and quarter in continued both the strong total four in am to grew revenue continue year prescriptions. the next AUSTEDO

about trajectory Eli it positive. outlook. when be will he elaborate the talking on all-in-all, will looks And our XXXX So

better of understand potential a to the I'd next slide. like AUSTEDO, the to take Now look at

XXX,XXX tardive unfortunately, XX% diagnosed and patients of X% are these approximately But see, from only disappointing then can even are getting more U.S. treatment. suffering patients you dyskinesia the As are in there

a a of can hard benefit patients presents also unmet lot need will that of who And long-term increased prescriptions This this of clearly, they AUSTEDO. there is growth more significant base, working the we're product potential So broaden course, for making reaches benefit the drive -- and therapy. sure need. to

globally. revenues XX% the exchange than Full Now and we despite foreign to International grew This in more year, headwinds Markets. faced was Europe our moving on AJOVY.

and of AJOVY Now capabilities. think a I execution commercial is great strong Teva's example

first-to-market in As AJOVY we're the really and strong Europe. in know, capturing was market you Europe, share and still but actually U.S. second not

very proof are innovative of and point me commercial been strong. the go-to-market another that's capabilities So impressive and to Teva that

we're in and we the and now oral benefit driven seeing the International therapies, the in space the What from anti-CGRP is the U.S. about in really is continued AJOVY Markets. is around of patient growth migraine Outside Europe to additional countries launches by while therapies. U.S., expect in injectable most growth slow and growth

was weeks when please. R&D teams. and throughout with I'm on I I've six with pleasantly pipeline. by updated In our strategy the mid-year. we met have. discuss capabilities it innovative details plan the moving have to at Now Teva, next we pipeline, people the We our say surprised And that to slide, on on impressed also I sharing the my very more

exciting Now under highlight couple a regulatory are let me assets of that review.

of Firstly, be review our that July in minutes. bit biosimilar for year. approval, biosimilar about in that review more accepted talk our will expected completed FDA to also BLA we I'm pending detail I'll anticipate launch XXXX, a half happy is and this to has which the in Stelara, for the the second Humira the in FDA a few

innovative our pipeline. to medicines Moving

an we I slide; in from franchise. of will another schizophrenia product recently important I in said prospect X next schizophrenia, patients the strong treatment foundation and the which before, As long-acting, for a into a for on elaborate building Phase are suffering the exciting UZEDY, we olanzapine schizophrenia moved trial.

a in unmet and to AUSTEDO, patient franchise a needs represent the long-acting effect addressing side treatment. management by strong schizophrenia complementary tardive schizophrenia therapies. Both together dyskinesia, with We're for the treats schizophrenia for approaches UZEDY market. And olanzapine building which

talk So on moving about the slide to next UZEDY. to

the for a resubmitted decision review and we file the the know, you in half have expect of FDA this to As have first year. to

patients there to million frame injectable this approximately of the and just are XX% long-acting steadily. approximately schizophrenia landscape, them growing the receive And in U.S. long-acting So category products. X is market treated

long-acting be In overall to $X schizophrenia estimated sales, was in terms XXXX market billion. of the

which syringe. will needle subcutaneous, patient-friendly other the it UZEDY, and comes is to looking we suffering relative much prebuilt schizophrenia, Basically, these stable and patients in are from therapy therapy. and easy the get lower bringing small product, who an a benefits is on ready-to-use Now to our very more to injection volume, therapies need have a to mechanism, who And effective you market, and way to forward avoid are relapses.

profile these we're advantages, We're market about a XX% Given happy targeting time. with share UZEDY. over

and revenues of know the is competition the over about let's recently Now face largest a has lot of $XX Humira, in product history been billion. biosimilar annual talk with attention to which getting I

confirmed interchangeability. And also the that facility of for the year. has Alvotech April we're is Now target our approval, requires outcome should course, data Xst on by from preparing scheduled has application the a satisfactory Alvotech's confirmed most date the I reinspection, determination inspection of this partner, sufficient launch say, on FDA upcoming from support the updates year. of or our XX is for which for based Alvotech, provided that of this recent March. The FDA on July a is The decision to the

currently the numerous world, should Alvotech's in Humira Europe. It countries the and that of in approval around is biosimilar be noted U.S., including waiting being across still while are for we marketed markets the XX Canada

launches way have XXXX its Now the to to clear, contribution other adjust to in we U.S. significant our risk-adjusted market. the similar be guidance, risk we

Humira, like to biosimilar will important be product other portfolio continue said, an beyond believe products That biosimilar in XXXX. we to our

Teva. to Now everyone's ESG next at the is slide. business moving on

is success. Let management The executive believe be that ESG sustainability inseparable and me long-term the and that. our team to Board and clear about firmly critical

few strategy. lay and last ESG our the years, hard strong has worked ESG foundations formalize Over the team to

our We the targets disclosures reporting to enhance have are governance. that and business, set meaningful our and and tied strengthen ambitious

to and advancing minimizing of focused the and dedicating on ethics our impact through medicines, operations Our ESG the strategy the products on quality, and and company our health planet transparency. equity

let's long-term targets. now talk our So XXXX about

last the to I the say, beginning, of great do a in the to get said all, think company I'd years back as to management the job First like solid has team over done a few foundation. I

will these strategy regard new that strategy growth have will We'll the place. prioritize As targets, back months, around we define opportunities to tuned, and and over with Please am few we to these looking the position I long-term going the remain our long-term forward reallocate you with to much come our for with to forward success. look in stay midyear. very best next financial it. But to share and

over I And hand to will you Eli the through walk with to financials. that,

good an followed outlook my introduction and I'll focus review results to some and financial fourth performance. to main Richard, you, with Thank XXXX This and will it. be everyone. being of of non-GAAP assumptions behind good by the XXXX quarter our morning afternoon begin the our on my important

performance. GAAP a higher respiratory QX on in quarter X% This Beginning products our $X.X of our Revenues would increase lower to products I start as as Europe Slide and or XXXX. from segment, billion, like was America to fourth were mainly decrease and terms representing quarter compared local XXXX the X% revenue XX. in due products from certain of to revenue in the COPAXONE. AJOVY, generics Anda, increase fourth with our of of currency partially by segment well offset AUSTEDO in North generic an

recorded In to GAAP the in per we fluctuations settlement in $X.X QX share fourth charges The QX and GAAP partially in income $XXX net in projections XXXX of International quarter million to operating mainly of goodwill ago. charges loss our API Teva’s Markets $X.XX of XXXX, loss a year impairment goodwill updated GAAP were of and our by a the $XXX operating a loss of offset per to impairment exchange million in and loss, a XXXX, with legal operating to business. period and billion million compared share related compared loss $X.XX contingencies. QX lower were same in compared rate loss XXXX, net $XX mainly to due loss

quarter fourth by and of dollar strengthening XXXX. income $XXX million, effects, revenue during and other the of GAAP to The impacted quarter the respectively, million of compared U.S. XXXX, currencies negatively our versus fourth $XXX operating hedging the including

to Slide Turning XX.

total $X and is impairment I billion, non-GAAP The XXXX. of the most the billion, $X a were $X.X non-GAAP versus goodwill that quarter QX of notable mentioned. XXXX charges see which adjustment adjustment can just You fourth in billion this was in

or I've review our decrease totaled non-GAAP $X.X already approximately Now moving local our performance. currency X% $XX.X XXXX. a X% for discussed to compared revenues XX were million, Annual revenues, billion. quarter Slide to which in fourth of a of terms

XXXX. dollar compared For the to we impacted the same year, hedging regarding $XXX million full effects including saw revenues trend by appreciation, U.S. negatively which

margin. down let's at look and Now the move to the P&L

was in to North with from non-GAAP mainly favorable Anda America the of the margin higher offset AUSTEDO segment. and due products from margin profit America gross lower the our in XX.X% compared profit in The in decrease non-GAAP to partially a Our XXXX. profitability revenue QX mix by revenue XX.X% was in our segment, gross segment North Europe generic higher our

lower quarter QX margin above, tax expenses, XX.X%, fluctuations gross in similar per operating in in lower the QX levels share QX 'XX. compared will and a was with by XXXX, as mentioned Our foreign lower slide. operating earnings which non-GAAP profit, mainly impact a I partially non-GAAP was expenses the of 'XX mainly due versus to to the operating lower gross in by $X.XX by as discuss well XXXX. XX.X% We year operating non-GAAP This rate. driven partially ended I from exchange profit as margin negative offset margin, XXXX full $X.XX offset in lower the next decrease was XX.X%

Now base at let's our Slide XX. a on look take spend

As quarterly $XX base you declined can by and FX. $XX see, net increased million of spend million our by

our expenses. a a lower active net well FX, of the annual declined full ongoing decrease of was operating revenue goods to by year to total For base spend of $XXX as our cost $XXX spend base sold or due as million management million in related lower annual XXXX,

to and of ahead we of base expect spend remain Looking continue $XX management billion operating we our operational the global efforts with ongoing networks transform expenses. overall active at our to level to ongoing the XXXX, as

optimize of macroeconomic reduce our these to headwinds and of to goods improve we cost and expenses by to inflationary margins to expected are face continue we to Despite mitigate pressures, while related of end margin partially global operating XX, journey Slide at by continue XX% XXXX. continue sold our us these help reaching efforts look pressures, some you the of ongoing to and If macroeconomic headwinds. our the operating

XXXX. As operating by margin XX% Richard of end mentioned earlier, target we continue to

free Slide XX. to Turning cash flow on

in cash free our resulted XXXX November was XXXX fourth changes the to in of receivable fourth partially from flow mainly increase of fourth sale in U.S. of quarter of in quarter capital securitization under into the Our accounts flow turns. XXXX, billion. cash quarter the offset The facility compared by a $X.X working XXXX the free entered

partially Free to into affected facility our new assets business of billion, and For an the legal on under lower by increase opioids levels, in by the connection full of litigation. payments a year divestitures of U.S. of other high in from cash was securitization flow of flow XXXX, well XXXX largely accounts entered X% higher into in sale an with and proceeds XXXX, compared the free settlement $X.X as offset cash end XXXX was XXXX November guidance. inventory increase receivable as

Turning XX. to Slide

our decrease billion, the in XXXX XXXX. continued debt. end compared due $XX.X in repayment, debt year. QX our offset terms debt decrease our net end debt reducing mainly during free net to generation progress in to of billion Our in The due was the XXXX at flow debt of down cash at The partially was rate $XX.X exchange fluctuation. the by was mainly The gross the our of to

Our coming ratio in QX for continued net debt-to-EBITDA decrease to Xx XXXX.

Slide to at Debt primary be focus. Looking XX. continues our reduction

the of As our six the can the we last sheet. committed made progress as balance had see, debt level to reduce significant on you had years we have in we

towards paid our make back targets. $XX and XXXX debt approximately interest to decline further bondholders, During payments we these continue six to years, we've as long-term our we to net billion including expect progress

Slide our XX, represents which maturities. debt to Turning upcoming

XXXX. 'XX SLB address recall, 'XX, maturities back the in you 'XX we a did to and billion refinancing If November X

conditions maturities. assess to to opportunities upcoming for refinance continue market We

rate a XXXX, to few the expect environment, we interest moments. Given a result higher in I financial in expenses in discuss this which will

established Looking by a at progress made the 'XX. end XXXX, of cash conversion on this. We we In Slide XX. XX% further on target of

from in working light really in our for efforts As our in liquidity. mix happy we that working key enhancements, keep of turns our XX%, is XXXX. net came to our capital up focusing see to XX% on our at revenue it optimize We're capital

we'll generating this a manage As earnings Richard mentioned capital to level. cash and earlier, at our working with on focus business continue to

to which Now for XXXX time outlook, our first let's we today. turn our are non-GAAP the attention introducing

find XX, earnings main operating additional EBITDA, flow; Here adjusted range you income, expected of products. Slide components per our will in and five as revenues, free key cash the well outlook: share including components, for as revenue

and impact the XXXX, throughout ongoing Our the and geopolitical company headwinds. navigating of worked hard macroeconomic addressing

this expect based which volatile to and $XX.X billion financial XXXX be levels With forecast. revenue, with is $XX.X billion. we begin much global in revenue this continue line in We on markets environment very total XXXX. between in institutions' the our mind, to in leading in with This expect we XXXX

with XXXX. expect approximately annual continued AUSTEDO to grow a total or momentum billion $X.X We to revenue in of XX%

AJOVY growth patient in International to for sales approximately Markets. Europe continued AJOVY million from expected Global Furthermore, XXXX. be is expected to $XXX U.S., in and are benefit the

into we factored $XXX AUSTEDO growth ongoing COPAXONE XXXX sales. in guidance majority AJOVY erosion which approximately the greater to U.S. the of The to continued than million. the decline COPAXONE expected our and of the decline offset expected is during have revenues, We effect of by in global The the is decline expect

our non-GAAP non-GAAP to billion operating income adjusted be and expected to $X between expected is and billion billion, billion. Our EBITDA between $X.X and $X.X $X.X be is

the align we a expenses core be meaningful years interest higher were to maturity coming upcoming any There to we environment. to earlier, for our the could up with to debt refinance step the finance opportunities discussed if our explore As refinancing maturities to continue our debt in profile due performance. rate operational pursue

in approximately of reaching million increase $X an XXXX. expect billion $XXX We

in XXXX. Looking at rate our tax

XX.X%. rate was tax non-GAAP Our

rate XX%. our to the to to range in XX% As we of ahead XXXX, we be look tax expect

our expenses, XXXX tax that approximately -- was EPS us This of brings recall below impact $X.XX might shares. the share rate range of to count one initial our billion related of an per guidance in to in of investment a XXXX our $X.XX, as to using by the expected to in tax XXXX. This increase affected it our non-GAAP our realization expected our on You have finance was in subsidiaries. expected mainly outlook in significant to comparison loss rate earnings the X.X share U.S.

in plant the expected increased outlined reflects to expected free well the expenses be have This which I expenses, XXXX opioids cash higher before billion $X.X as is flow range settlement. of $X.X our guidance to to related legal billion. as nationwide

As anticipate thinking on know, not gradual but modeling. first provide quarter assist will do color we we our progress to revenue with helpful we the be guidance, XXXX, that in our the the I of will year. are earnings a about of share of both pickup Based earnings you four quarterly to the date, with you this to the progression it similar throughout you be and hope thought I quarter. second and expectations with in revenue would the quarters last how your

and results quarter for summary. review Teva’s back year a the XXXX. I it my concludes for fiscal will of Richard This fourth hand to now, And

Eli. Thanks,

Before I'd like to key summarize moving some just to points. the Q&A,

I has far, entire want XXXX. with been all progress QX colleagues made full and I'm So on year congratulate happy solid to a and my globe team, the the the across that so

growth the is Europe to in And and before, for good mentioned AUSTEDO AJOVY a that traction, will as Markets. future International continues drive growth. in still I see the in AUSTEDO U.S. drive and to unmet large particularly continue there need and AJOVY

International in business Markets with growing performance steadily strong leadership and in have and Europe our is We positions markets. most European

for interesting set pipeline and across exciting generics. up an assets growth. innovative biosimilars have medicines, future these us and differentiated will We And

long-term committed margins driving around remain financial goals down and debt. to growth, We our improving

And with to how finally, sharing strategy I can mid-year look for you success. to long-term in sometime position we updated forward our ensure Teva

thank hand back the Q&A. that, With listening. operator I'll now you to you for for

Q&A, for ready the are please. we Nadia,

Q&A we'll session. start the Now

from Evercore question now ISI. first Raffat Umer comes line The the of from

things, of couple if may. A I here. Umer

in people First, the on little is Humira? are it first. on if growth bit guess, really of I focused much no of off said there's 'XX, is, number. think And Humira That differently, a I on was still what is there guidance, year how a was confusion

asthma to wanted I up you TLXA I tell little the if the on Second, zero? bit. know touch Could trial was us terminated. complete a it a program was

how be get? inform could perhaps analysis could the year, IBD X for August last to in more competitive in you take the interim which later Phase Phase just tracking? recruiting given how accelerated XXXX, initiated And start, also an X you And data in is a a could this position XX-week on

thanks the question. for Umer,

is other is part adjusted also Humira color. talked the to that I drive into think would So be have I'll It number of call. but risk and I Eli I'll on we have maybe that if Humira, able have we think account what we your do part, of some But is we XXXX. the And I in important will drive have was risk we've that. UZEDY, revenue mentioned, haven't uncertainty. have guidance, I don't we And opportunities But about highlighted take we is as let Humira it to we've say give question this also adjusted. Eli a in obviously, but to more we growth. an pipeline contribute, got AUSTEDO, still products

in you see revenue, the Yes, you to so midpoint what modest have and guidance on you can the And kind others, will is and the say I adjusted. might he hedge range can it Richard, few that element have is if come Umer, that Humira that of risk look through. elements the versus that see and we mentioned, increase, we not a potentially will echo 'XX a there,

some review as in when in excited do our discuss of let I'm we the the we question interesting the your things have some pipeline put our fully people assets think said, do that highlights this see to up sort TLXA. am then of a on Thanks, about. you Eli. I And because which we’ll, I glad pipeline, midyear I of and going on of

in your of initiated a to we X that Phase August disease. ulcerative colitis and and try clinical started trial have in answer basket Crohn's XXXX But question,

is that much we'll I give of said, I go others. plans more lot more information to midyear, But can't So for that be the and asset as detail clinical the probably into able a underway. on some than development that.

the next Nachman BMO. from Gary of And question line the from comes

Great. Okay.

clear you out have decided building a of capabilities a Richard, biosimilar to your its strategy So while competitor off biosimilar… sell

your line open. Gary, is

hear you can Yes, me?

Gary. Hey, us. don’t stick on. know I going what’s with Please

That's okay.

So I'll over. start

So of while out you strategy have a decided your biosimilar capabilities competitor sell to building a clear off its business. biosimilar

much you in So particularly more impact market do do color your us term? on need interchangeable an you If give you how mass could long some market that. that critical maximize of payer the to then with and How And available? formation, biosimilars does value that discussions? see benefit how having Humira

get just North company generics able Richard, was will previously had. per the you or on target billion the back to a quarter then to America, And business, $X be so in that

able maybe to dynamics be to continue talk there, stabilize think over a return time? level the you could at the high to maybe you'll some of a that and about Will pipeline growth that and decline how talk Just bit business? about it that business little

for with the on us Thanks, technical questions sticking and Gary. issues. Thanks your

one, my and biosimilar it at maybe the Sven, colleague. I'll on also take these tag stab a So team questions with

significant. do history I think to it deep market, in and an available. here, the your short, growth on you've comment the opportunity to But be of do think long launch I opportunity think have what believe does they I medium of one don't one would I biosimilar of answer to U.S., in things require on Europe do it our the term. got I And to to biosimilar, it's it's a other continuously and potential I parts your say I got And own. and world. become focused I We're I the products strategies. able significant to pipeline. the in of rest is in the as is, and and question, the the believe over has drive think companies' want think significant it's you on a biosimilar I've So

in to to the pipeline. But team think sure yes, continue an We do want a that. building of I medium have short as spread a opportunity see to We drive we good we here growth a the out as continue make pipeline job we I to geographical term. in that and to so done And sure have make go want forward. biosimilars

Now when the say formation I let's would what This is the of introduction in biosimilar the market of U.S. over about market. $XX price European of of talk size forget was is the Humira, here. the into Humira not we part I the billion

a I big can So this where significant is and asset payers savings. think healthcare authorities some garner

I think out bear over that's to time. going

and more they characteristics. in But Sven let that of talk personally I'll bit products interchangeability actually would have other think that. about the of differentiates some a happen. switching profile than have quickly the how I and us Sven answer bit about let allow can a believe product patients characteristics on I'll transferring easily we that payers a biosimilar don't those really Humira to bit

-- don't have a $X And history I at this obviously then on the In GX, well. comment. as with that billion the stab look, I'll take

behind business perspective. I on we we'll the launch say in is would U.S., leave that. so generics. my is launch, what on ability that continue should And And of from what complex do focus we when can by I and our to and stability pipeline, What our be what to product the generics we driven focused

very you sustainable. and they do the are into market, But Now when unpredictability. obviously, they get profitable have

it's So for think a me, revenue back about so I to much getting not number.

profitability. allows get give So over growth in two to view in And profitable, his on to that the questions. making sure predictable that comes you back you and have business a to right is I'll that to hand GX areas. Sven those But

Gary. Thanks,

interested of the I and formation interchangeability. in think Humira you were market benefit

see think will formulary X. right I because our now clear a point, non-interchangeable is So it's through be the will market the the we next already concerns which market Amgen in go X inflection Then phases. in we entered come Phase changes entry And we with market a what formation, XXXX. towards that biosimilars July biosimilar. then three transition have with Humira

for basically be believe phases I Humira will there market well positioned. the So formation. are three we

all We with have date. customers July discussions X on our the

very importance customers interchangeability of since known generics you and actually [API], guided on well biosimilar originator HCPs. the writing uptake formulary. space. pull-through well staying research biosimilar when if did and of in course, formulary, I have has of important biosimilar Humira. than other FDA community also interchangeable on of in has interchangeability to year And this drive interchangeability, we question professional you need and this the designation really recently especially the look this pharmacists recognize market And a Our become with is to believe even saw an it here, also that And HCPs for more on we

believe, I strong. profile is quite product our overall, So

have citrate-free interchangeable concentration, We product. high

reason, believe X Phase We July. towards that approval. are FDA And market working this formation starting can in for in I we participate

of $X.XX U.S. And adding to generics and billion $X.XX business complex XXXX. the generics run comments in about in our Richard's so the was rate run billion and the rate, XXXX

portfolio when the years. they themselves show important structure, especially you generics, complex have generics what hurdles creating last and how margin now to our at is drive this we success resilient market Humira focus be course, is generics year the bring complex seen complex longer-term more and that in you became to on we've for the our see value very look FDA of a with Our despite because approval and, to can over gross

Sandostatin. year, as generics second So an opportunity, previous as Forteo for as and the talk opportunity Xulane RESTASIS then that the especially this about or complex a in other we such years, talked also about, we

be XXXX complex if to And launched in FDA approval. then a get pipeline other of in the have potentially we couple we generics

We’ll from line Glen of Santangelo question. now the Jefferies. next our This from take is

to wanted I and guidance just guidance rolling could. contributions risk-adjusted 'XX. I obviously, some kind UZEDY And Eli, billion. revenue of and the $XX.X on now little $XX.X more, guided some from 'XX revenues Hey, contributions growth you're bit of billion Humira. unpack you're you if in the AUSTEDO to fiscal quarter, essentially, building And that from just same in a I last mean

type offsets Should the could the if numbers, was to same to in that to expect that deceleration FX thinking about, -- in similar Or I is and should example, else 'XX? it business So bigger you there be about playing runoff of of generics U.S. a role? 'XX growth. wondering it a for Will of we in a as similar the sort like we COPAXONE? talk was in be those type just something

Thank Glen, question. for Okay. you, the

in range. So that dynamics a few

several if 'XX like related growth, all, midpoint call a modest of with America. will a terms the of launches but you this adjusted mostly you on kind risk it First based versus see is look North X% of XX.X%, in on

actually is Now opportunities COPAXONE, we're as if there around of in in and the AUSTEDO that and think modest than actually we And we 'XX. higher that's combination about AUSTEDO, still came the trend TRx. the million running believe you now AJOVY AJOVY $XX how both on

so element. one And that's

we any a which FX, business kind live terms And Europe versus of we enough then in a appreciation is an make capturing order terms few rebounding mostly euro environment stabilized kind other to ours. in of elements modest and there our terms and in of We sure related growth, see in really of potential very of in spread that kind of we're also to in generics OTC. on and the volatile keep

the could question one sheet. Maybe Okay. I just quick ask Richard. if follow-up on balance

you're the few coming be reduction broadly ultimately, or and made. above some have years maturities next significant be to cash of do in there's Because sort you of now level how up suggest his to that You remains going to sort the flow but payments right, opioid about more of primary in are that the are debt there's a think Eli going as about free focus, at prepared right? situation, seem generating sort talked leverage of to remarks, that

in that particular? So targets, you of about just of sort how that do cash couple how to debt think think 'XX those should getting current next of years XXXX that level given generating, the of about you're in the sort down flow we over

our question, over the debt And what long is of the plan debt for before thoroughly we and and I'd term. repayment follow-on Glen. think say Eli I and to hand about Thanks

So time. in for and think on we've the have pay 'XX, about the been way 'XX, of we some some working payments to 'XX we

about you And Eli, to that? maybe, into just specifics firstly, background. give you more could So if go that

Glen. Yes, Okay.

on cash looking So and mostly flow liquidity free and the debt.

you to address to that current this market we -- that gave debt X.X, it midpoint we'll reduction, the to our will step we the fund rate I free are to considering that to start flow, call if end in will XX% we is by for guidance take. to we if where And X.X up look around the cash X.X, of on 'XX according So compare interest it, environment, maturity -- that our means coming to the related you in fact mostly a 'XX, need expenses. the back kind

prepared I a So that already element I this, mentioned is my would a of decrease. in say, out this third remarks, this

we paid time QX actually to the Other and flow in first versus cash with elements ourselves on 'XX. free And modeled the according incremental opioid ongoing 'XX. this see $XXX additional we payment, what generation in our development that's into settlement, lines the paying around the million is

So this of that is kind midpoint. on dynamic the

you on the drive mentioned. the end, that get the refinancing sure of actually of for those to make to have 'XX we if bit 'XX actually to lower of cushions because in that mostly it's order we're and take developments a Now 'XX, 'XX, I debt X.X to planning X.X, part X.X, business lower enough actually level planning in that the look

prepared And the ongoing our remarks, elements. mentioned three in capital. last cash in on conversion those have my I And actions years coming that mainly improvement as going working from we

terms strongly mostly start of liquidity, -- in see we ability well in So our to the as meet to high in really commitments the positioned settlement. obligations, ourselves coming the of with level, order of to debt terms

question. of We Jason will line Bank is This our take the from now next Gerberry of America. from

follow costs, for think wanted used term think added on in opioids had payments of the Just that incremental some XXXX. cash million flow comment, up you for but I I you to opioid the $XXX free that

that we about 'XX the as opioid-related the a little ask element, was should Humira total payments of million XXXX? guidance wanted think And of run differently. So rate what question I just just kind of like the the bit then on in the payments? $XXX about to of plus Or $XXX million

of early is kind upside before saying So be risk-adjusted of were too mindful of there get a able you to if big is you that. of modest interchangeability, scenario? to to the comment is year biosimilar need 'XX can on Humira that going get everybody is you contracting basis, a uptake. Or to kind you're on more But and a giving to say July but it guidance

Jason. for Okay. Thank you, Thanks the question.

with hand I about the can then talk that. obviously, of you, cash variables in some the and and the the think I'll Humira Sven opioids and opportunity to Eli

Eli, first. So

Yes.

I will Jason, So thanks the questions. clarify. for

had settled. already amount XXXX, the flow. we million recall, you nationwide, $XXX development of And year. during next As free our already in we mature of to we on that around that getting kind have that will million paid already before And stated cash we for around $XXX carryover

current QX in according the trajectory need to XXXX. Now $XXX process this million of the to not including pay -- will that the we in is nationwide

to year. that's going be So this around clear? $XXX paid to opioid you it for Is million can actually model $XXX million

that. clarifying Thank clear. that's you Yes, for

Yes, okay.

think topic. the that Okay. Humira, we was I took, plan the our risk adjustment and that

having so we we that get product all, for it. approval plan as of first July, So an in interchangeable

the from March issue now has and Alvotech, that been the outstanding for inspection reminder, concluded X. was partner, by scheduled weekly the a FDA for for as process our Just Humira approval site the is interchangeable the

the expect BLAs we are inspection get with So be for approval if will that successful, the we FDA. both site

[Technical Difficulty]

The guidance have. that we

course, sign contracts, have there an we there's a number upside? if and within we contracts. limited is of Of the an all So upside competition these

we profile. for confident product it would say and can I and step, wait We're generate we to pull-through quite take we We in confident see next by approval. that have are the step. because of step quite But the

quite also We ability to in the are with market the confident volumes. supply our required

on that's track. all So

that I were okay, you need? for Jason, we know that is what it's down --

Yes. Thanks.

question. move So Balaji from to we’ll Prasad next our now This from Barclays. is

of the Richard, provided pipeline the for to understand assets the And of the at parts? over role you especially long-term specialty digits, next this, few at that within years. the look look late-stage as and guidance biosimilars have as segments of I want mid-single specialty as you I Teva the in importance articulated we

there And secondly, excluding which influenced variables EBITDA million to guidance, revenue spread? or major FX $XXX other this Humira, coming the biosimilar any and year's million are $XXX

second with part. take I'll first maybe question. the tag for the and part Thanks then team on the Eli

going around to think drive forward. was portfolio sort your of question specialty So I growth our

touch me a of let upon that. sort So bit

you still I treated, AUSTEDO being highlighted the AJOVY, that look lot think still numbers when we opportunity think see call within are patients. patient more I the already and opportunity the particularly is bring to therapy significant not that around that about the to a that I

driver see more the as of major the introduction market Europe U.S. international therapies a driver expand that the I the because a worthwhile oral can U.S. and So be and outside AJOVY the of into probably as we that as into

But will the touch well. pipeline then I as upon

olanzapine, have the said product, that's trials. risperidone clinical that we you So product Phase gone into X

pipeline see But excited we talk which it. and medium about term. have as about think then midyear, -- which more I So innovative our I we'll the

through clinical going think growth obviously, could that I development phase. if bring that some forward, the significant gets

already. FDA generics of I think earlier, complex assets that's mentioned the about Sven So some spoke that And approval. a we're have we which still for of number not waiting

well a pipeline we're be positioned challenge get to think and biosimilars I what our working with going across the making specialty, fashion, we and generics. is in timely always Obviously, So on. we're markets those that's hard sure complex to

else to the but comments you about let driving is take your understand regard that. with I'll understand are Eli think that biosimilars, revenue, on the Now FX, I what the and the spread you

could you if clarity you Eli, there? help So

Yes.

for you that Yes, kind programs require on the mostly So when range on look the question. -- Balaji, you when of adjustments. the year, thanks start drive risk you

U.S. a in have Humira them adjusted. in few addition the of generics, we to risk So that

than and we So what come be might better expect. they

generics this and we and rate potential. part solid the of that that range current considering, average also of have also this with great we even run So in I is business with a would 'XX say, that see one, the OTC Europe

say, also of range. would elements, I part two So -- those those this is

question. take line of the is James. We from from This Raymond our will Wilbur now Elliot next

on and XXXX the you teriparatide new in segment last Maybe in certainty certain additional thinking the launches highlight to range XXXX? to North ask with some specifically like Sven possibilities slow question administrations XXXX settlements, we've the or of obviously, generics, the the Generics the with feel date talking terms to cyclosporine been sort product in of can I new up complex could just you anything specifically would about but respect with FDA maybe we've then to equation If in that and follow about there's complex could enter the -- and product respect of there add items of within opportunities. for just clarity launch American any helpful. And I could been has dynamic generics presidential I know on three here. be pursuant

Xx of any specifically strategic Xx. then Richard, Certainly higher were with if in discretionary outside thinking for parameters the the pursuing reiteration the of and seems of much capital more targets, ratio, they initiatives comfortable a additional company's use investments. wondering comfortable will XXXX updated prior of about holders plan, review And financial if pipeline fact, leverage terms the the with of strategic company's markets, and or X.Xx debt-to-EBITDA in the like could in enhancement long-term equity strategic modify be of target to financial those

there's flow if would growth some wondering respect up to maybe assets quite that free parameter bit cash pipeline and a with flexibility, for I'm So into of particularly reinvestment longer-term

questions, So look, in two the the for Thanks deliver go Elliot, them. I'll you order

you've been three Sven complex generics one campaigns. I'll around answer the So that last the presidential through approvals to ask experiencing almost

Yes.

for -- suspects the thanks usual the Elliot. question, So

So expiring weak patent year, this U.S. we'll a overall, year. see generics

dates. year expiry that a naturally lot have FDA It of, are say, approvals driven launches by settlement by patent be doesn't let's this will and more driven So entries.

out, pointed also talked you we As Humira, already about.

answered we the that FDA. year to this received we TO, For

to issue. closely this them out with sort working are We

Just been approval. course. ago believe high is as give to will FDA us approval to it, this we And many the of EMA the we a with has and get already how I reminder, years product in Europe that manufacture know product launched quality and around

is the our settlement reentry cycle. Then that we to due of have Revlimid, of an working on annual date course,

let's with market Xulane, this with volume is then launch for a within BMS. this that. then we the when that a higher to complex say, the communicate say, how made want experiences give other get approval. the we assuming about And a FDA So drug have new we more get for prepare I we But on don't which once products some launch, it course, you difficult year. of couple certain allocation I have, FDA will is we now a have approved. with we that we since around to list settlement I get generics And of approval, think enter

major complex overall, a the are for But certainly portfolio, generics are margin in the within analysis, North say, contribution generics America. stabilizer our I the can still classical say, business complex generics let's quite our and gross analyze in because attractive in XX-XX cash you us if

our You base in decline stable price also business. that the is quite see

improved has the we in changes last expect and over the year, space. don't that organic that So

approvals all I regular up we overall, in get would on generics calls. these a the be we say, So basis discuss U.S. if will that

a framing gave you XXXX we and debt correctly the to Elliot. ask then I Sven. heard you if that, of EBITDA around target And question the you, about Thank in flexibility and

deliver that's strategy strategy midst review growth. of of in And our doing So that look, together. going point going plan the we're a our the whole forward. That's putting strategic and that's understanding to

the on payment important hard what worked I the is few has over years. and of our to get the debt is last think is around what on it credibility and team think we

too we so to quickly. that want don't And squander

think So allocate as have we that. products to review both the and to the we'll to I your that, your view growth. that. to more through debt understand that able like pipeline a appreciate about company we strategic but back be BD&L, the as to some and be on need to that I'd point capital ability reallocate we the to still have we're within question and of well midyear. of capital of But think But market to we've in I some on we work in also resources that the say pay bit give company down able think to outlined some And midst the fashion for and need I drive to our to the the our to that do opportunities think as challenge drive clarity

next now Schott from question. JPMorgan. Chris is We'll from take the of This our line

a thinking targeting first, we flat maybe year. 'XX? about we be maybe, Eli, about OpEx little components I Just but know OpEx, the bit margins two think should gross color of I just more you're for guess, me. as on this how

just on kind the bigger And was a question second picture of business. the one biosimilar

of or important sense capabilities these as driver this for opportunity. talked I it's ramp be the company the you you an of of there's to a would about would As make kind be this approach about think the more growth most guess partner-centric continued in-house to continues guess, develop, over and you to maximize Teva. I as really want time for kind this value trying to --

Thanks the for Chris. question. Thanks,

the a you few chime Eli, So I take with one first on can the in second. and then

for Chris, the Thanks, question.

would million. our us, helped remember us optimization look targets And that say, the macroeconomic would prepared are need I as XX% you headwinds expand end part additional hit and numbers, higher, around long-term we're on my margin see we the has financial actually, there I up 'XX activities say, $XXX looking were partially elements. remarks, to the one our if With of already bit when the to overall, gross on we 'XX, around we've a all And going X% revenues, X.X%. around things in we of we all margin. our that done those, it call I to actually, on So that the mentioned that offset

mix, a few actually you see AUSTEDO margin. level we -- which going Now OpEx kind will see a growth keep the and element can will a to revenue on are of on of AJOVY ability the working other there and and on, stay current well actually to that very as that flow through is on OP means not [XX.X%], also the amount with we're modest the would I of the that the the to our but the and same in elements say, increase residual 'XX, more level

Eli. Thanks,

biosimilars. the on So

driver. this or I Chris, not. forward, was So growth partner as we see the question, as a around we continued Is think strategy move it

we partnership it's also we So Alvotech, firstly, let I a biosimilars is and although have, ourselves. we've have me with in-house that clarify delivering a developed that productive pipeline, six nice think, good which

address come made to And I question. comment a when earlier most that doing things a back a we it's do view, effectively I a is is do on think and biologics It's allocation large that deep an to capital partnering important patent. it's What combination combination going a to off of point that, have they of biosimilars combination. of from of I pipeline think that we some And a can these broad with in-house. and

the launching the products and at going your make sure forward. to what Chris. the combination, we just time. we're that's Thanks And have so I see right pipeline right question, That for

And Rishi last now our we question JPMorgan. from from Parekh is the will take question. final And

to different want billion it $X.X a payments? a With free then the I and few want $XXX regards number? that million opioid balance cash ask just includes $X.X confirm sheet. things flow, -- or few your a about billion, to questions your that is to on Or confirm of I to talk that,

it's including. Yes,

change? I correctly, 'XX And different conference. is if your to something 'XX, you're at regards your just and address think Great. I just which just but you related to what 'XX you to could to said going walk that or rate interest then that you I to heard maturities, something you love have that JPMorgan flow walk what maturities, cash have with it said that. would Okay. hoping I Is us led to your through than environment, was free you the related through the

Yes.

an actually tender you the will we interest take, what will and one. our rate free our cash our flow. impact is means on the that flow when -- through higher to environment on appreciate debt we than that have that will This impact that So on we market, is expected set

as actually there. and enough move with manage of more we positive to The now forward cushion back have make that's liability. momentum your second first see coming that thing embedded is we sure inside we opioid, And to that and that the already we want question, actually to ourselves

manage going make take. it the upcoming So a it, X.X refinancing, to 'XX lower have X.X. bit We're to we debt have we the take X.X, enough be X, majority used is take the be range on Currently, is debt X.X, kind in of the to that a on of cushion order of there which to will and sure 'XX. part focused will it 'XX

then year looking declining AR next your is the $XXX maturities to us around address you through can why And how drop-down financing $XXX to also this million, thoughts by And million it's in with debt your year? year? that one, next walk you're your affecting

Yes.

that capital, inventory first you're actually for in tables our year. of were of terms our increase But understand And as we optimize in mostly offset on the of year, DSO. So drop for to year. I plan This for well order outstanding half that next actually the considering the the AR I part to don't the able can support dynamics. production working one? Where mention

Yes.

that was into. referring new you to I just AR facility Sorry, the entered

And I was just drop? behind hoping think to for then November $XXX through it's to an onwards year, million explanation it from of this that 'XX November November I 'XX. $X drops billion and

Yes.

actually, So facility is the around billion. $X

full and actually be are capital not more going other initiating flexible that enhancement us forward. the working million for to use as that XXX opportunity it. program be an elements of that on We reduce on using us the of program will further you to flexible We by allow

follow my questions I Great. direct Okay. with later.

call Thank also of today. us. And appreciate I'd with always issues some bearing in and to to our the out you I'd apologize like the at your of but you questions questions. control, thank for like I interest That's start. technical everybody for the for the

future you close thank like and calls. And forward you interest talking Once on for to look again, call. on that, the to I'd to your

does Thank may the you. you for and conclude participating, This disconnect. conference you today. now Thank for