Celebrating 10 Years of Trusted News Discovery
One News Page
> >

Teva Pharmaceuticals CEO Talks "Trough Year", 2020 Turnaround

Video Credit: The Street - Duration: 04:29s - Published < > Embed
Teva Pharmaceuticals CEO Talks 'Trough Year', 2020 Turnaround

Teva Pharmaceuticals CEO Talks "Trough Year", 2020 Turnaround

Teva Pharmaceuticals is anticipating a trough for 2019, but apropos of the company's name, this is a natural development in the company's restructuring according to CEO Kare Schultz.

The Israel-based generic giant's stock is slumping on Wednesday after a disappointing earnings and soft guidance that missed analyst estimates by a considerable amount.

Schultz did not inspire market confidence with his comments on a conference call with analysts either.

"This is a trough year, as we have been saying since the beginning of the plan," he said.

"This is the year where we bottom out on revenue and operating profit, and in 2020 we expect to return to growth and continue to do so in the coming years based on the launches of the new products." He explained his outlook in an interview with TheStreet's Kevin Curran, noting that the performance hit the company's conservative guidance for the fourth quarter and added that Wall Street was overly bullish in its 2019 targets.

"We'll have the same tough situation this year as we had last year with the loss of revenue from Copaxone that has gone generic," Schultz acknowledged.

"But we do see the growth of new launches which is positive." Schultz added that his comments are not indicative of his feeling on generics overall, which he noted is a market that is stabilizing.

For Teva, Schultz said that finding a balance between the loss of this key multiple sclerosis drug in Copaxone and the launch of Ajovy, a high performing migraine drug, and the development of a non-opioid pain therapy with Regeneron will take time.

As such, he feels the harsh comments on the 2019 outlook are justified.

Copaxone alone saw its revenue decline by 24% year over year after falling to generic status.

The restructuring plan that will progress over 2019 is also focused on driving down the company's debt that will tamp down earnings results in the near term but better position the company for future growth in the long term.

"We are delevering aggressively," he said.

"We have gone from a debt a year and a half ago of $35 billion to $27 billion," he explained.

"Of course, the speed per year depends on the maturities." He extolled the company's plan to continue to draw down debt, taking issue with comments from Moody's that cautioned about the difficulty of this endeavor amidst the loss of Copaxone.

Schultz highlighted that the debt is really an issue of timeline, not on Teva's ability to reduce the overhang.

It is still worth noting that the stock is up over 30%, even with today's tumble, from its December 24 dip alongside numerous stocks, putting the stock slump in perspective.

Schultz put this further into view, hearkening back to his accession to the role at a stock price around $11 in 2017.

"The thing about the trough, I said that already a year ago and that's nothing new," Schultz pointed out.

"The short version is that we're following the plan and the plan will continue to create shareholder value." As the company continues to take its medicine and restructure it will remain a difficult stock for many investors to trust, but if the 2020 turnaround does come about it will be a key story to follow in pharma as the year pushes on.

To hear more as the plan progresses and an opening of hope possibly appears for the Peta Tikvah-based company appears, stick with TheStreet.


Recent related news from verified sources

Ophthalmic Disease Therapeutics Market to reach US$ 47831.3 Mn by 2026, at a CAGR of 6.1% | Fortune Business Insights

Key companies covered in the Ophthalmic Disease Therapeutics Market Research report include Merck &...
GlobeNewswire - Published

Why the Telix Pharmaceuticals share price slumped on Wednesday

The Telix Pharmaceuticals Ltd (ASX: TLX) share price closed 4.2% lower on the ASX yesterday as the...
Motley Fool - Published

Momenta Pharmaceuticals Announces Date of Second Quarter 2019 Financial Results Conference Call and Webcast

CAMBRIDGE, Mass., July 19, 2019 (GLOBE NEWSWIRE) -- Momenta Pharmaceuticals, Inc. (NASDAQ: MNTA), a...
GlobeNewswire - Published

Aridis Pharmaceuticals' cystic fibrosis drug earns orphan designation in Europe

Aridis Pharmaceuticals Inc (NASDAQ:ARDS) announced Friday that its inhaled treatment for lung...
Proactive Investors - Published

You Might Like

Recent related videos from verified sources

Friday 7/19 Insider Buying Report: SNES, ORMP [Video]Friday 7/19 Insider Buying Report: SNES, ORMP

As the saying goes, there are many possible reasons for an insider to sell a stock, but only one reason to buy — they expect to make money. So let's look at two noteworthy recent insider buys.

Credit: Market News Video     Duration: 00:57Published

Eye drops sold at CVS Pharmacy recalled [Video]Eye drops sold at CVS Pharmacy recalled

A pharmaceutical company has announced a voluntary recall of its over-the-counter eye drops sold at CVS Pharmacies due to concerns with sterility.

Credit: ABC Action News     Duration: 00:27Published

Eye Drops Sold At CVS Recalled Due To Possibility They May Not Be Sterile [Video]Eye Drops Sold At CVS Recalled Due To Possibility They May Not Be Sterile

A number of eye drops manufactured by Altaire Pharmaceuticals and sold under the CVS Health brand are being recalled less than a week after similar products at Walgreens and Walmart were taken off..

Credit: CBS Dallas Digital     Duration: 00:27Published

AstraZeneca Talks Drug Pricing, Pipeline, and Path Ahead [Video]AstraZeneca Talks Drug Pricing, Pipeline, and Path Ahead

The pharmaceutical industry is firmly focused on a few key factors as of late: drug prices, M&A action, and the promise of drug pipelines. AstraZeneca , a UK-based manufacturer of numerous popular..

Credit: The Street     Duration: 05:08Published

Environmentally friendly: One News Page is hosted on servers powered solely by renewable energy
© 2019 One News Page Ltd. All Rights Reserved.
About us  |  Contact us  |  Disclaimer  |  Press Room  |  Terms & Conditions  |  Content Accreditation
 RSS  |  News for my Website  |  Free news search widget  |  In the News  |  DMCA / Content Removal  |  Privacy & Data Protection Policy
How are we doing? FeedbackSend us your feedback  |   LIKE us on Facebook   FOLLOW us on Twitter  •  FOLLOW us on Pinterest
One News® is a registered trademark of One News Page Ltd.