Teva Pharmaceutical Industries Limited (TEVA) 2 Aug 232023 Q2 Earnings call transcript

Hello, and welcome to the Q2 2023 Teva Pharmaceutical Industries Limited earnings conference call. My name is Alex. I'll be coordinating the call today. [Operator instructions].

I'll now hand over to your host, Ran Meir, head of Investor Relations. ahead. go Please

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

forward-looking our No. on statement review Please X. Slide

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

To of provide going as priorities begin results and will Officer, R&D recent Teva's on today's and call, overview XXXX head our and forward. Richard Chief innovative Francis, Medical Then Teva's CEO, QX pipeline. progress well events, discuss an Dr. will business Eric our as performance, our of Hughes,

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

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

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

to UZEDY, of you, the thank the our strategy. Thank with you, and Pivot our our our very call. It's of I'm to quarter, for Ran, and been XR, for exciting launch update performance the Growth long-acting everybody, on schizophrenia. once-a-day progress our making launch executing joining and pleased an QX on you AUSTEDO formulation, treatment we are

revenues this billion, XX.X%, pillars well. $XX execution X.X% Based update for EBITDA in got at in billion. up give our you with Growth the with margin versus QX. our results. we four growth, momentum was an to local billion presentation we've outlook billion. at to good was up moving strategy, Now start gross to I'm on let's $X.X across this, currencies Pivot good increasing $X.X to as that to our non-GAAP and $XX.X X, driving are X% Adjusted I'll pleased on was and highlight also Slide on those to XXXX the Revenue

a down the into AUSTEDO, as Jovi driven and XX% here, for and growth continues there's was And slide. our by you America XX% on grew in this next increase and This in X% perform engines, can digging there. Europe Now, performance strong bit see this XX%. to in North a and performance revenue

X%. Europe good to at in at international growth plus We for came our continue markets business, XX% generics in and see our

the set on dig Now, bit deeper XXXX. we're $X.X billion next the maybe to performance for believe target AUSTEDO’s on a we to on slide. track I hit

out was revenues in that growth. As in formulation very to did some point the was put required bring pleased you this continued quarter to QX this can for we a like $XXX see, once-a-day to patients and channel. but XX% obviously stock increase. this us TRx I'd and May, physicians, our launch in Strong million, we're to which

XX%. growth allow the about to probably for you can revenue around So, XX% this, was

we and the continue growth to strong in of AUSTEDO. still So, believe potential

that's is I in achieve to this out we that reaffirming based this, population. XXXX. billion undertreated One And in May are strategy the the unmet and talked the the two slide, medical $X.X our there, If on you move at next will points. particular about we launch, back is need

a there slide of diagnosed, are small tardive see and right, can you from only those XXX,XXX only on patients the are on are As treated. amount suffering and this dyskinesia, actually XXX,XXX

So, there's medical significant a need. unmet

some is managerial in allowing force, get continue support patients. And to the treatment onto we around of these not Now obviously, into launched the are increase in we our this focus. get resources increase office and once-a-day and physician's AUSTEDO. Sven focus we to the awareness who to of around lot both We've have us a patients sales putting we're put can here in raise to AUSTEDO, on so

also a into market. able European take confident stab We we that to the will are be still

reaffirm billion by $X.X belief our XXXX. that we can we So, hit

Moving and on of family to slide, another the AJOVY. member next our innovative is

AJOVY think perform. XX% here versus to into QX Teva that to Now, launch we markets at continues highlights XXXX. grow capability and products the I And this have competitive

grow we market hit to will $XXX guidance either hold and We we many for XXXX, our that markets. of continue share of million our across see or

for Now, the moving of and our family, our to newest member on schizophrenia. treatment Slide innovative risperidone, long-acting X UZEDY

billion with the a and everybody, launched from UZEDY are with to just healthcare and getting have we we're UZEDY, Now, $X unique the is they're product but is remind that profile advantageous. we confirming feedback market, only we've and that pleased this very professionals,

Now, we're is the in NBRX our that seeing this fact XX%.

good also So, already, getting to the and having long-acting look of hospitals seeing we're risperidone discussions payers. market. our requests, with free XX% samples we're and We're free trial our use

UZEDY, excitement I initial is very So, once around days, think early again, positive. but feedback

within have therapeutic oral what the satisfied And obviously don't need XX. we we physician, hours. found if out to very have nine will forward, reports same, we particularly give a that there had this that have product to the XX of we dose, we of subcutaneous needle, a needed. need the patients nine injection move One the XX to for loaded Slide has allowed us And and to And XX, the already probably it is we're the advantageous reason with. syringe, show are no a I that getting are feedback, supplements refrigeration, that put prefilled to why lack out patient fact on profile already of when and you comes dose product a that's get

comes efficacy Now, to advantageous patient when needing and get to a it clearly having quickly. a that's relapse that

and So, grow. for excitement physicians' good patient profile, continues UZEDY profile, product good to

to in international, XX. growth XX%. on business up generics on moving Now Slide our Good

and That couple seasonality in of Continued factors. based One there a and this than forward year, to pipeline on bit that's HX X% remain And expertise. softer still scale, commercial growth said, a portfolio in have our will some and Europe, business impacted. show did down going prior this I is, confident is quarter. a versus and our we business our And growth strong HX a XXXX. prior the is our in its

our like Slide Moving and you to strategy. XX biosimilar, on update we're Pivot on Growth I'd our to to the on progress making

if focus Now, about was a biosimilar having here. some you progress and we've remember, the made here portfolio, broad

new our them portfolio, seek and expanded biosimilar leverage on can engage we Alvotech, this they have expertise more our we have the our We've quality to Alvotech, and We relationship have as scale do Teva. relationships, and at candidates. really helping we as they continue with and We'll with where update four operational strengthened when also you partnership in we'll and happen. to expand and manufacturing

to about. moving very Now, XX, Eric on detail our will go obviously excited into Slide some which we're pipeline, on

to the but I are to markets significant assets highlight wanted but also, these have markets. profiles that have, in we continue good progress, three entering the really the We fact late-stage into, are they make favorable product

Teva. to stable which but So, significant Olanzapine, And to growth well a obviously to highlighted this product $X.X this help a billion it's we will for have real then with be which here. Anti-TLXA, opportunity we with market, significant could is already a market think I've market. and the bring the profile, if drive on is I safety a have ICS/SABA that long-term our market $X discussed, a manage hands do fact billion a

goals. Now to a moving strategy, across very remain next slide our progress ESG on on good to We of number and the made our ESG. committed we've

as to a few. highlight in our I'm our energy seen in XXX% recently medicine Just Israel of to from quarter we've on to with million agreement that pleased electricity well. includes XX an nearly also renewable all in donated sources, signed up supplier access. greenhouse our emissions. that goals, our XX% make environmental And an manufacturing improve to We've doses gas actually, our a and of is two, that we sure reduction sites

AUSTEDO a he's team innovative on final together world-class that and back put and to on business It we're in on focusing growth, progressing to complex to Growth our can the On This the as portfolio pillars. based make And highlights will R&D our our manufacturing Eric May. first powerhouse, it to strategy, hitting but the progress over to we're Moving which and the is the on I to Slide we decision to hand finally, $X.X just slide sure TAPI, on Eric. made launched a making move progress generics we've well about we to in before our Pivot bit drive about our on growth we're is drive sustainable making I've well, there. four to you that comes setup deliver late-stage making leadership a engine, help well. XX, very highlighted, move assets, as can sure our clinic generics creating pipeline. standalone on When we as to make billion. good our we're our a our performing confident talk progress pillar unit, and the portfolio efficiencies in is business, our

over I'm you, walk touched those Eric. to upon. to some Eric that, Over With hand going to through of assets to I've us that

Richard. Thank you,

XR, see to of American recently time approval, at AUSTEDO but of the Phase the next to efficacy very data Neurology. our excited see of We long-term were happy very to slide. the AUSTEDO on we're at First X presented the Academy

durability this improvement of in the site see and underlying this three-year slide over condition. those a response, can psychiatric in fact, years there over a is period, three You irrespective of there's that

responses, all now to is our Now, goal make for convenient patients. durability, this these

this year, much continue provide our XR convenience the pill and dosing AUSTEDO So, of AUSTEDO lower with and flexibility excited burden as and us patients, AUSTEDO provide approval to to of HCPs to in a bring as our treatment our to XR once-a-day possible. we're we'll to

Next slide.

things no therapy, But we HCPs. data is longer our a of of in is the in the the attractive risk stabilization needle, no injections, of to reduction important long-acting oral of also As that patients significantly about we We've note noted, oral XX% But to an study, time efficacy. our UZEDY a after provided our relapse. UZEDY we study. slight product on risperidone actually on talk injectable note to saw the and loading in to of the it's relapse, one prefilled subcutaneous syringe. experts, in profile improvement supplemental The our when the a the that very the shown dose, is small Richard and

these to Go long-acting early So, to is slide. improvement with this next see days, are the encouraging and such very activity the injection. but

the we've have and So, we already throughout study, a have of year advancing lifecycle mechanism our study to X portfolio our starting Phase next next initiated our bringing our early Anti-ILXX and program well. be into disease Anti-PDX-ILX this in now excited We're we'll clinic very Olanzapine of Phase program the a year. products we oncology. next We're development. study LAI started celiac enrolling proof through We're our to drug of in IBD, studies, be program actually X month. And in Phase TLXA excited is slide. Go of ICS/SABA Xb which be the our in to

Olanzapine, LAI. of penetration Relprevv using product. before bit PDSS. our deep for long-acting in exposure agent, of our have Zyprexa little product of treated Olanzapine box Unlike We're a in because excited Relprevv. patients as more profile. - patients but Now, PDSS. subcutaneous of intramuscular PK the we're spikes of the Relprevv, has why that drug. the that's this is lack than will injectable noted an we've confident a not are and the a by the of black general warning being oral The which very injection X% today, And for form that only will that on product, prevent And avoids Zyprexa a Olanzapine Zyprexa primarily XX% on safety less long-acting accounts injection, very

In measurement and rapid to graph, addition, a in olanzapine scenario. in we a of into the our to the and this in human see formulation we rapidly And could slow-release did vitro injected Relprevv here formulation. worst-case study is Zyprexa aggregates the show confidence, We our took you dissolution into this directly add serum. We serum. and the serum,

even have and slow aggregates forms we clear only directly scenario, in when slow-release differentiation the formulation, from complete - case a a formulation, and injected we a a our rapidly this However, release Zyprexa worst which Relprevv.

and slide. we're our vitro So, study X encouraging next right in results now. Go the have Phase ongoing to to excited very

preclinical frequently receive a well. diagnosed. patient These And profile. biologics about We're of Anti-TLXA. the they oral patients million have, best-in-class in excited our We believe we So, biologics through Anti-TLXA are those moving cycle population. frequently are large to remains over X.X There as underserved patients to that response. X Of a million treated. those, by IBD due program. therapies patients they have lack on

we anti-drug to results. of resources this X to have in slide. and also we're interim We profile. program our in Phase program well the and a we're see Anti-TLXA accelerating next characterized and and noted our our and on start drive allocating product, in We're IBD, the more antibody low This have decision will capital safety XXXX Go our to XXXX. excited

to just the vitro believe we here are clinical why to compound, that screen antibody on a assays directly candidates So, review these see have development. in you in we represent comparing we created that best-in-class other that comparator reagents our

selectivity You which differentiated decoy can is providing a receptor, have see antibody. receptor, of receptor, of the while clear the greater maintaining DRX that we our biology inflammatory the

last potency to have we We two also demonstrate slide. compared the candidates. other the greater clinical to Go that

quickly. assets key our summarize, progressing to just and are on track So, pipeline

XXXX. first Anti-PDX-ILX will its enroll beginning in the Our of patient

Our XXXX. rapidly as I of Anti-ILXX program celiac its proof the our Anti-TLXA out interim read we've half this Phase initiated X, And study will a moving is analysis in program year noted, of patients. in mechanism and second through

I see Eli we're data that initiating Our hand enrolling with readout month, X our in second very the XXXX. Olanzapine focused And noted, study, half Phase readout Kalif. actually And XXXX. half first X hope ICS/SABA quickly, is of of I'll next to Phase we a finally, and with program that, it over to the on as

XXXX This our was X% Revenue in distribution higher with primarily as AUSTEDO was second the had TREANDA. by good in local QX To AJOVY, billion, and XXXX. currency region, second my Anda, XX, driven markets. by from the America, of terms, our from compared QX secondary review wholesaler In mainly quarter our with everyone. in business, strong revenue good Eric, on growth our QX well products financial COPAXON, I'll some higher XXXX GAAP you, our products, starting performance. and certain you in X%. generic compared to result an representing X% Thank overall quarter of of performance increase to begin to demand by and partially and increased $X.X afternoon provide year. revenue was as with benefited from morning offset color growth by revenue in BENDEKA North revenue which we performance, It XXXX last innovative low Slide

parts due portfolio. QX in in North by our environment increasing America The currency stable. generics to X% overall local in terms. generic our in Revenues business North decreased America pricing in Europe in XXXX, remains mainly to competition of Revenues segment reflect

coming rising off-patent pressures. increase higher competition largely terms. offset This reduction generic our revenue products in from We including generic from inflationary legacy was as by result revenue XX% in market in was continue currency to solid This COPAXON. quarter. And by products offset by second our local AJOVY from was by see to revenues regulatory of our price increased price a largely from driven generics business and due the to growth partially international Japan. low segments mainly This from and increases in brands, however costs

a the operating loss net the tax due to quarter of investment the XXXX, of the XXXX, per $XXX compared operating had legal higher mainly lower as compared GAAP in effect charges GAAP loss share a to to last loss QX quarter to second second second $X.XX a The of of XXXX by of in in of compared related to operating GAAP in ago. QX of loss in million is lower loss year, was was compared in same quarter The the a of higher due subsidiaries million benefit loss an million loss of to period lower a US the $XXX one $X.XX, due and in of impairment prioritization million portion We XXXX, losses our and quarter QX of to operating of an in above. year of the net discussed of loss in offset partially to of net XXXX, XXXX. share $XXX quarter second goodwill XXXX. second XXXX per mainly settlement $XXX loss

the of in sales dollars non-US currencies to impact and denominated $XX US certain an a markets impacted This stronger rates exchange income which international Foreign including effects, of operating million was GAAP the million, XXXX, of of respectively, the primarily quarter from by second in result dollar operate, by during movements currency. negatively Euro revenue against appreciation. came revenue compared XXXX. of partially our quarter QX hedging offset we XXXX Approximately $XX benefit of XX% in second the our of

connection contingencies based to second approximately on-GAAP Turning on mainly $XXX quarter purchase total is expenses settlement estimated to US were of goodwill include included compared of adjustment the criminal QX to discount with XX, in case, of adjustment settlements with million in provisions of million, as the to the Other million related the million adjustments markets of XXXX. price the to higher associated cases intangible see can fixing cost amortization charges an units, non-GAAP risk to due recorded advanced notable in including with in related mainly in impairment Notable that discussions Slide billion legal our which sales. litigation DOJ. US, $XXX, countries, $XXX of provision million included loss $XXX you the due assets $X.X DOJ in a certain related to of $XXX majority XXXX the rate and increase international as reporting several well

of Slide moving our for review XX to our Now, non-GAAP performance.

approximately were represented compared growth billion, XXXX. second quarter the As currency terms quarter a of total local in to X% our $X.X I mentioned, of revenue second

with starting gross P&L, to profit Now, let's the down move margin.

FX, margin pressures, XXXX, increasing costs due inflationary from in QX This XXXX. higher XX.X% mainly our second driven profit elements, in with other by gross revenues profit and AUSTEDO. profitability margin COPAXON, was lower quarter compared non-GAAP offset XX.X% of non-GAAP from gross decrease the was in high partially to by lower Anda segment America in to and revenues and revenues North macroeconomic from Our

of As anticipated an gross our non-GAAP expected, of normalized more driven first quarter XXXX. by towards XXXX, point an was to well by approximately sold measures. driven mainly AJOVY, cost This our profit AUSTEDO, improvement mix, the growth quarter, other expected to expecting to are portfolio in I balanced productivity the in was as last easing we and improvement our growth drive in this due in pressures of inflationary sequential and in XXX-basis strong as improvement and sequential our Thus, mentioned QX supply in goods as margin shift the compared chain.

Our QX per I share due lower to as $X.XX was of by as XX.X% XXXX, quarter versus mainly margin, XXXX, offset was decrease effect earlier. mentioned as $X.XX gross compared expenses. tax operating This We last non-GAAP in earning as decrease XXXX. benefits operating driven QX lower mainly higher the well QX financial a in non-GAAP with ended XXXX due to margin just in to QX mentioned, higher expenses the taxes by in in the year, XX.X% XXXX partially in QX profit I of

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

can sales by As quarterly lower described cost to to earlier, $XXX by expenses. good just was higher you million revenue related increased on or I currency partially million operating offset Most of this a base basis. factors of increase local see, the higher spend and our $XXX due

transform quarter, and last I we manufacturing global our highlighted to As footprint. continue operating

five two closure to get of sites sites by XX planned have down our last end today, We XX years significant to consolidate XXXX. and the or over more sites progress to going divestiture have for additional from efficient, sites made manufacturing the

to improve our and Moving help count a site in the continue sites to this efficiencies near between forward, medium-term reach and drive expect and operations XX margins. we over XX normalized to effort optimization

many the receivables vendors. continue our Turning of to or relationship favorable of terms an commercial cash activities, XX. to vendors, on drive improve supply as are our we obtained in future from decisions our management of acceleration continually part may to and of Vertically, activities, of efficiencies which to payments payment payments we management, make our customers free acceleration capital flow commercial Slide cash flow of periods. our in to the which In expected efforts working seek more chain

million flow offset of in SR&As, receivables accounts guidance, $XXX from The inventory XXXX impact flow which capital Our working the assets. free in from February. net of XXXX quarter long-lived free million higher cash of in free from as of in to second negative partially in are business $XXX items, second in positive by increase was accounts payable, levels, compared we impact and as quarter Today, including resulted provided QX changes XXXX. XXXX cash flow we well reaffirming sales and our of from cash proceeds mainly

is flow cash $X.X in range to $X.X expected of free be the billion. to XXXX Our billion

flow the We half we to drive continue gradual second in profitability have expect and capital our this ramp-up year cash our of in free as to improvement. to working a continue progress

XX. Slide to Turning

end at net of Our XXXX of debt QX to $XX.X billion the XXXX. compared end the at billion was $XX

Subsequent gross billion The senior was repaid the gross in compared million of due were on the million was used decrease our XX, debt proceeds to partially fluctuations debt rate $X.X to XX. note on billion to maturity withdrew revolving facility, the maturity senior credit March amount was end billion of at July that of at by our notes total $XXX Our exchange of of million. due offset $XXX $XX.X billion which to repay under $XX.X quarter at close, a our mainly second XXXX. we $X $XXX

to of target to XXXX. of reduction to Debt two cashflow to work end EBITDA exchange due in compared our movement to times to improved quarter, in generation EBITDA our and XXXX, XXXX, to foreign second mainly QX in we Our the offset by long-term rates. towards focus, net debt for X.XX being by times coming at continue be free QX expect partially financial net a continue

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

first of ongoing debt well quarter this service With our for we our cashflow maturities If $X.X meet refinanced million generation, notes we our free of our objective you to cashflow near-term positioned are these successfully believe with XXXX, guidance align our and an to continue during recall, year. approximately debt through debt we maturities. the to sustainability-linked with senior upcoming

we As billion XXXX. in repaid I of maturity, additional there so maturity $X is in due at XXXX, earlier, senior X.X% our no July payment notes mentioned

on to turning Slide XX. XXXX our Now, non-GAAP outlook

half Richard margin. this a AJOVY, have This gradual continued in As while in momentum in includes progress the engines, first we our and we and UZEDY, the our year, earlier, made in in solid terms solid growth international AUSTEDO, we of highlighted as of growth key navigate in reflected improvements solid to performance our in the especially of revenues, especially Europe launch and our markets. generic business, continue

distribution of we market, this since in the in Europe guidance and addition, international as business environment. In higher the which in wholesaler provided and foreign higher certain in secondary we're well market rate half as demand from year in initial generic relatively segment, year, favorable our relatively our exchange this first our benefited the in seeing Anda, businesses, range including demand February business

be our provided range performance in flow our XXXX. now first billion second Therefore, the lower in We're income, operating of of XXXX per to expected billion $XXX end full-year for between as increasing of share, XXXX, reaffirming half, February. outlook development our in the million. year guidance the revenue half with non-GAAP for revenue the continued also cash We reflect expect by and along free our earning and EBITDA, revenue to $XX full $XX.X we're

actually improvement that year. quarter the the continue in half second improvement our earning of line we by by second margin in as in as second subsequent in the our of and quarter first with inflationary improvements We further including in pressures half the sold operating drive in mix, in year, the AUSTEDO. our changes growth saw further in of in we XXXX, we of believe from well portfolio drivers, our navigated call revenue the the and key cost ramp-up mentioned that a goods to with will impact during expect our I saw the we as driven this be of the expenses, a improvement gradual As

hand now concludes Teva’s for XXXX, With summary. review quarter I second that, it my to a this and for of will of Richard back results

Thank Eric. you, Eli, you, and thank

drivers talked said about, to upping earlier, portfolio. by Eli as the on AUSTEDO, in guidance, from made to growth UZEDY, strategy stable us Good, about business summary, So, and our tangible generics which back we've I our get growth. of performance-wise, driven long-term and to our has Pivot QX AJOVY. we're solid Growth progress pleased

So, take I'll with some operator to hand your back that, Thank you to the for it questions. time.

Instructions]. [Operator

Our Jason question of Please Jason, today of for ahead. first America. Gerberry Bank from is go comes open. now line your

if these think maybe the sitting haven't to and this just psychiatrists’ Hey my population you undertreatment I'm laid growth there's in dispersed more singular then ambitions dynamic. just the these of to going just patients require that sort curious a and Do force you a questions. just maybe, office biggest the guess, to to aware, AUSTEDO with been just think therapies? reports and potential guys candidates. that if do is you taking driver thanks And Thanks. and made topic could or being you've are to or of for word Wondering part of I and the out, Richard, that could media TLXA wondering you to identify choosing curious, out get not of about like get treatment, that willingness assets the more color ways any divestiture it's explored lot either as those. around add API field larger with just

question. for opportunity give to comment. an your answer both, Sven Jason. Thanks, but maybe Thanks also I'll

dyskinesia, for you don't the actually. are office There of of bit it's On get patients tardive what all patients the the that the said patients, a sitting psychiatrist. in untreated diagnosed from

of has and physician the that simple can visible tardive be that aren't physician the dyskinesia, the of some explore And symptoms they to them. quite to

one. that's So,

see into we they that we physician's office physician's part don't treatment. And significant Another is programs, office. do to patients their into direct to consumer because the we a seek actual of way when influx actually see make

then we're the symptoms So, I I is, going these some And a enter think second sure right the to process identifying good ask have. asking to patients our is think questions traction we forward about make to office the physician's and actually patients sure And on seeing about physicians the them questions. of what that. make constantly educate they

So, journey. that's yes, a

making progress. we're think I good

growth, with Now, TLXA. Look, and we a because will on strategy. this and to have and drive started us moving going Growth ability topline on we Pivot as TAPI standalone as business, focus on We’ve API to remain if we which our that's progress regard help business said see we've committed to set we we very our to it that. well the to that business, up

the talked attraction I the calls, been to development. a are right it as outside, highlights with how this committed and TLXA, I think think through it said about business clinical think we and that's comes to of can We I've this When fully funded perform. on merely discussion asset. its the how the number there it I focus is attractive

very it. We’re believe as about differentiated obviously we a it's have excited best-in-class. hot We But do, a highlighted, topic. Eric

TLXA, XXXX to develop use to and particular, be that But get aim So, those that think growth. everybody's another and lever to beyond. in I as brought once is talking and things It'll gets ourselves again of our in drive asset growth about back ours that to belong. one

to add for So, question. Would thank to that? Sven, like anything you you else,

keep mind you patients. treat the are is have have by tardive expansion then diseases. multiple base identify inhibitors, you already think needs it dyskinesia I is, want patients of And a for that significant VMATX that dyskinesia. treat, be mental last dyskinesia, the the Please They started we've It I very years, well. more physicians. to to may to that to to that these seen in physicians condition that tardive and treatable. is recognized tardive prescriber also well able difficult add course, with already What No, a health have covered saw of

market of can focused market a now formulation are that we patient that participate segment couldn't happy address on once quite which much the as segment because tap For more that the even potential reason, availability course growth we future. our particular patient enormous then of that factors and believe And daily are we in also very contributing we can this to well. is other in into convenience. we is And now help patients the

will in growth So, contribute to it particular. our

guys. thanks Okay,

Thank you.

Our Evercore next from ISI. comes question Raffat Umer of

go now ahead. Your open. is Please line

Hi, for question. taking guys. Thanks my

slides was is, additional trial, mentioned XXXX considering what on a was be note. has the you're approval EM feedback is regarding I early feedback sharing US investigating. date EU a or a and curious basis, that to I'm question that entry XXX(b)(X) possible specific any My you an think on on there

it's Secondly, lower, end how it because looks to full-year low first the enabled year, to guidance get sort last full even much you first above it's was get the quite to X.X modeling year I'm X.X of in it's year year? the of full kind of of slightly But charge this some getting which there one-time just other non-GAAP And X.X. non-GAAP above EBITDA last annualizing tracking to half as called like gross for partially curious, Thank quarter. are not a to million, to EBITDA, is. you. $XXX so versus charge at of the EBITDA margin above other what And to enable year, consensus the far, as

Umer. for the you, Thank Thanks questions.

we’ve Eric. that made in can making I'll Huntington tardive yes, a particular patients the that lot to Europe. sure disease from in over dyskinesia on benefit of progress hand and timings past, And AUSTEDO and the So, on

Umer. you, Thank

working the data are, have are working believe, the health following AUSTEDO. ongoing for sufficient we So, date. that year. an with authorities. That's with the The the on requirements discussion I'll with we EU we on through be the package to

you on Thanks, touch want Eric. on the the And then, Eli, do questions to EBITDA?

question. for the thank Yes, for you Umer, sure.

And actually And non-GAAP other not be any that least that, we will They’re at accretive billion, modeling we actually in more now than order this due are $X.X EBITDA half we us the topline that kind the of adjustment will I and too second we EBITDA think first, guidance of be the XX.X. for terms at make billion is the rebounding. that margin But second that mention also for are mix flow (indiscernible). on expecting. in banking are of half the mostly and narrow much to gross the just we're that the I get on a not X.X the will the that on to considering line. landing fact to midpoint sure the to

of first the same the are half. We average (indiscernible) for using

your Eli. Umer. questions, Thanks, for Thanks

you. Thank

next Our Balaji Barclays. comes question Prasad from from

ahead. Your line Please now go open. is

Mikaela is on This from everyone. taking for Hi, Thanks Balaji. our questions.

control so biosimilar quarter-over-quarter aim stable Thank Just then you color if till on to the in with that And is more And you or was you've me. achieve provide now. could two on seen What facility? pricing generic just does the much. stabilization more some you year-over-year? for just one US mentioned, Teva other what my the on pricing

you. Thank

on So, over look, I'll I'll and to hand Sven. those, start

look, partnership. I on Alvotech the think,

experience with by I we the think to wealth comes Teva area. and quality have involvement obviously when means a aspects, what it plus of mean the is, with we and in this that manufacturing it operational XX sites,

with FDA. on so, working identified Alvotech we're in obviously been help the the ground the that them have to areas And having people by actually

We with So, have JSC. is it's set so that a up, up. we something even formalized committee which set

they're us. that's to about So, Sven hand that yearly. structured generic very to pricing, When are excited talk to well I Alvotech help from getting quarter and about to that think the the comes from it I'll

you for thank the question. Yes,

US generics indeed last quarters. decline the over slowed down So, has the price

also If the price you that we moment, that seen the also stable Teva, of if not down slowdown we've more chain decline in in of And demand. and into also it companies reason, look for by And are see notice a we of supports we've generic seen the also buying seen portfolio built what helps supply And in very next course is the is driven That generics discontinuities now, large that quarter. price but and is quarters. on that over price on behalf at this at did the What competitors, wholesalers change on we quarters are or since price situation it factor, then which the if on our too we've side slowdown. And influencing stable pure typically last or groups. disruptions not slow supply pricing And typically a core decline. see that, consolidation. other supply the by looking overall change has third which actually six of continues business only supported erosion. generics bidding had do the not the launches, the many decline. not US, the we was to you Teva price It's the side have

So, far we have no indication for change. a

Thank you.

UBS. next of question Our Verma Ash from comes

Your line is Please open. now ahead. go

taking my thanks have two. questions. Hey, for I

further? XR and titration can minimize Is on (indiscernible) generic as So, you retrace I in AstraZeneca and key competitor. minimize then that on had and entry kind of market on symbicort, launch that as a And settlement second AUSTEDO, simplify one near-term was step can can the gap Thanks. something trigger actualization well per the your there nice you the your to of think that with terms. just settlement that so other is that

question. Thanks Ash. your for Thanks,

to So, I'll start with and hand AUSTEDO, I'll for then symbicort. over Sven

our August So, on by titration as is titration it's you're to physician. pack sure continue that actually titration with done, to have is, end and right be What we improve important the the dose. the patients that month we prescribed to for in highlight AUSTEDO make a up can efficacious occurred offering

left rely to It in sample So, office. the it having the on it doesn't be physician's simple. just makes

end that's to So, efficacy move to them titration going the of for point dose I patients an from up the help on through that view. optimal think

just you, across that's laying is what AUSTEDO that the many the AUSTEDO if $X.X go I which into hand billion in we about going with investment in hitting and to have XXXX. to is we're But another areas, can the confidence see we I of that multichannel, that as on one So, on we're the offerings why Sven. different said that putting to back others, symbicort,

six also step. adding that, titration Yes. milligram to the Maybe that we eliminated

already are prescribed a do this Also, schedule. on titration patients. August, to what can simplified a more initiate we a that we been titration physicians So, be simplified, we package, in has and working launch package blister so month, that by

these complex that approved. an inhaler. inhaler. on So, titration. we effective The FDA, It's higher are generic symbicort, course with will this has also On working get hurdles It's product of help to a development. combination

other For than launch itself product more any the will our driven this of approvability expectation that reason, is that considerations. be by

Thank you.

from next Thibault Boutherin comes Our Morgan of Stanley. question

Your go line is now ahead. open. Please

questions. taking asked. apologize some have the so will is most Hello. my on seems question that It my difficulties, now Thank I after launched. has XXXX had biosimilar it you market of your most But Humira. enter first you already for in already been technical competitors if likely

if changing a should still or contributor next and represents? this year, biosimilar compete revenues it bit And in your you that market factors it'll assume to we conservative the could So, highlight meaningful entry? to you late be would a to the what still it's opportunity with believe that the Could be late do a you be you think despite little that meaningful to a enable market. compete if being do opportunity,

Second in give us field. competitors you key question coverage injectable the the formularies in could UZEDY, compared of the US if position on on your Thank to schizophrenia just you. and an update

Okay. to I'll questions Sven. those hand both

about think do, I I to this think think Humira, an evolving is we when before market. just outline, sort of I

how of our highly interchangeability the on out, it's is with that. based a that Alvotech the also to going to it's plays add and XXXX quality if think, Sven, we you I understand I to differentiated interesting to bit profile and product see think maybe, So, But can be more important (indiscernible). have depth

Yes, of course.

that very taking we PBMs changes now the formulary biosimilars on same US, more we of market far, seen formation of market in hard XXXX have side up a changes Xst, the versus July originator uptake had is the companies the There's the only on biosimilars the several it's early. with originator, in We slow to AbbVie. expect but coming so about been the the What entering for out eventually formulary, decisions or we that programs. have also of

prerequisite us the FDA two-phase our XXXX Alvotech for with the overall, FDA approval and And … an with work focus formation But there's we comprehensive in the work more site about you to is we see formulary UZEDY But Alvotech coverage natural market. I the of coming how the question to because product currently is second and profile one drug. will be for there think out. will opportunity the in in on to enter always now also on in now, July one approval then a And have the captured said market asked changes still we Iceland. So, our we That's our XXXX. very January believe

coverage. Market

on market segment, but patients are the course, longer in comes progress are we than making of The position our Medicaid. of in commercial access very parity target the So, good decision with timelines They plans. in Medicare have discussions. and all payer here the majority working, we from

launch, access us progressing. are slightly We the actually or for We've very we so are UZEDY, And seen targets. right you get ahead strategy market very about side. XX% far for high the well, filled are prescription have free initiated if it's on with on we an a interest on our also. how are plan segment happy program. of important that many for And side as sampling because the hospital That's patients

say So, is overall, our right launch I and progressing would target well. on

much. very Thank you

you. Thank

line's ahead. your comes now Please Amsellem Sandler. go David of from question next Our Piper David, open.

Hey, thanks.

smaller had scale high to you assets pipeline in or commercial assets talk infrastructure a where wherewithal have So, leverage neuropsychiatry questions bring Can the couple AUSTEDO. in can level commercial place stage you for that you I or willingness about about your the the business. even

do. And make So, possibility neuroscience assets? to is and just just and a unlocking then CNS with psychiatry as into explore think of you. think is just where a value, of does or it strategic business question, the about do a what broader broader markets potentially you talk the focus of of sense and that separation can't business given a standalone novel in AUSTEDO how secondly, Thank businesses means a your terms BD can M&A and there you

David. Thank questions, you for those

to question, So, yes. answer your first in

actually, community. now in And see are this obviously spoke build to started that see And Eric are actually that conference, we've psychiatric said, real the of a you area. Psychiatry, the They think recent company about. and with obviously, a with UZEDY, we the when AUSTEDO. Conference American that at I Olanzapine, franchise they people with

there and BDN at we actively yes, looking out So, are opportunities.

infrastructure sheet where But are some about licensing, that some we balance end advantage the our constrained a we plug these and an of products and bring by know, have we is, now. play bit of and You into. have those can right we are

have So, and we and think have. can community be potential for the with beneficial partners, the cost for leverage I see and it that effective relationships that they it's us, we

So, obviously I we or right active at are think even. that's which in, price right to find the need company the but we asset the something right

be to very on clear that's moving Now, to a not the around your second neuroscience of No, the that. business. question consideration, separation just about

I think Teva really benefits complete as from Teva a putting Teva.

a from of support the in our are businesses. fueling our of growth our We business innovative our and lot other generics business

synergies a here our lot helpful. part so, at been the that's R&D, And innovative play that is of of from there's get in And even are the very done they the here. generics, business work support on complex the

is we'll Teva now, stay right where So, actually and one. as it to it grow will continue as is, think as Teva I

So, for your question. thank you

you. Thank

question for Morgan. today of J.P. final Schott Chris from comes Our

now is Please go open. ahead. line Your

Thanks. Great.

Just two for me. questions

number And think on the this follow-up how we to of normalization nice second my then a of but XQ, First, improvement second think think year? just half? kind about relative obviously just should good elaborate little margin we about get to as half more of second as sense on what's progression the was much in of UZEDY. can bit a you we gross about trying just think I'm the about a just a question

and coverage in Given think you. a that XXXX expect place? this XXXX, we about bit into you ramping come more longer, before taking or product? this some can could that revenue Thank when payer is something dynamics Is to see little the we for the of process

for thanks So, those questions.

gross lay as our to I just Eli, our I gross Before about sort the want evolves. think to hand to over should people start margin how margin out of company

as grow people innovative from that our profitability of And about is things with things the our for highlighted but think important the also portfolio and cost gross portfolio and start of one gross that has changes will we to our one So, already, business. Eli obviously that COGS, driven mix. our by about is as our business, think of change, our margin I innovative goods margin, to and our

week, growing And happening, in AUSTEDO, which will to move AJOVY, launching right so, growing that last margin obviously gross growing the continue UZEDY, still is direction.

which higher a second The HX Eli to have understand will what HX. than is just said based thing in has on is XXXX revenue important

those us specific - take Eli you maybe improving it give some together, if I'll to numbers. hand gross you margin. leads So, more give to factors over But I'll to

Yes.

you will Chris. continue what mentioned. thanks, So, I And Richard,

of the a first there there So, year. half on dynamics second if you are few look the

terms we’re from with increase the in second of that of of, mix of the the into half, set a the up majority and of distribution business in came heading in in we're half, same in the half, the revenue, Anda, the the all, revenue stepping actually First which business be the second half in the second that to already significantly first back mix distribution change the happened or XXXX in XXXX. means will going and as

freight, say of would actually the of increase as decrease the material got and gradual like that terms our second year pressures, we're cost gross already related year, logistics, for half our related elements half and to also in keep on there pressures direct So, well, in mostly the the not that activities margin. energy other in we With procurement to inventories. last costs elements, happened other are inflationary in and some said, the I first will that we doing diluting see

which close yielding range actually the gradually the in XX% it, to to the in that the QX we're to and QX to increasing, QX. Now, very see most year, about close the likely and XX.X numbers XX QX, think means for we'll

it making last question. getting also to answer DAT access Thanks going the and that for aware payers, setting the committees Chris, of sure XXXX your Eli. up at are product. to committees to or formulary of more XXXX? Thanks, but UZEDY, the UZEDY question, hospitals, And of onto people uptake, is is XXXX

sampling of But don't and through using us start. are view. point the revenue hospitals is get It's get as think, and we then the that driver more as the things that's I obviously XXXX of highlighted see committees that those important. when amount now. But the physician revenue with So, Sven hospitals, and as enter because physician, those the really helps really think interest from formulary support there, the of the real a we the will the uptake actually growth growth XXXX in that's of pleased when place physician

very are in XXXX. signs early think those encouraging, So, about modeling but

I thanks So, that we the concludes questions question, have for And the think today. Chris. all

to this thank you’ve in you. So, again taking and the to we found Hopefully everybody I'd a question. for who the in, look informative, updating call like on the to time people for three. quarter asked forward year Thank later

for call. you today's Thank joining

lines. now may You your disconnect