Teva Pharmaceutical Industries Limited (NYSE:TEVA) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 08:00 am ET


Teva Pharmaceutical Industries Limited (NYSE:TEVA) Q3 2019 Earnings Conference Call - Final Transcript


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

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

Kevin Mannix

Thank you, Laura. And thank you, everyone, for joining us today to discuss Teva's Third Quarter 2019 Financial Results. We hope you've had an opportunity to review our earnings press release. A copy of the release as well as a copy of the slides being presented on this call can be found on our website at as well, as through our Teva Investor Relations app.

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

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

To begin today's call, Kare Schultz, Teva's Chief Executive Officer and Mike McClellan, Teva's, Chief Financial Officer, will review the third quarter results. Question and answer session will follow the presentation. Joining Kare and Mike on the call today is Brendan O'Grady, Teva's Head of North America Commercial.

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

Kare Schultz

Thank you, Kevin, and welcome everybody. It's a pleasure to review the third quarter highlights. Our revenues came in at bit more than $4 billion, very much in line with the last three quarters as we've been discussing before. We're seeing now a nice stable development of our revenues. Our GAAP diluted loss per share was $0.29 in the third quarter. This was primarily affected by the accrual for the opioid litigation.

On a non-GAAP basis, our diluted earnings per share were $0.58. The primary change there was a change to the tax -- estimated tax for the full year and that reduced the EPS by around $0.04. The non-GAAP EBITDA is around a bit more than $1 billion. It's very stable, again, in the last three quarters.

So really the take home message here is, we are seeing the operational stabilization we've been talking about. We can see that the run rate on the operating profit is stable and we also saw a nice cash flow of some $550 million in the third quarter. So all in all we are very happy about the financial results.

Commercially, I'll touch upon a few topics. I'll touch upon North American generics. The nice growth we're seeing on Austedo; Truxima, which is a new launch we're having in biosimilars; and then of course also on the restructuring program; and then positive development of