Teva Pharmaceutical shares tumble as 2025 outlook disappoints

Published 29/01/2025, 13:36
© Reuters

NEW YORK - Teva Pharmaceutical (TADAWUL:2070) Industries Ltd. (NYSE:TEVA) reported fourth-quarter earnings that beat analyst estimates, but its shares fell sharply as the company’s 2025 outlook came in below expectations.

The Israeli drugmaker posted adjusted earnings per share of $0.71 for Q4, topping the consensus estimate of $0.69. Revenue of $4.23 billion also exceeded analyst projections of $4.1 billion.

However, Teva’s guidance for 2025 fell short of Wall Street forecasts. The company expects earnings per share of $2.35-$2.65 next year, below the $2.78 consensus. It projects 2025 revenue of $16.8-17.4 billion, compared to analyst estimates of $17.09 billion.

The disappointing outlook sent Teva’s shares tumbling 6.18% in early trading.

For the fourth quarter, Teva saw strong performance from its key growth drivers. Sales of AUSTEDO, used to treat tardive dyskinesia and Huntington’s disease, jumped 27% YoY to $518 million. AJOVY migraine treatment revenues rose 11% to $63 million in the U.S.

Generic product sales in North America edged up 1% to $674 million, helped by new launches like liraglutide injection.

"2024 marked a transformative year for Teva, resulting in a second consecutive year of growth, driven by our generic products and key innovative products," said CEO Richard Francis.

He added that the company made progress on its "Pivot to Growth" strategy, including surpassing expectations for innovative products and accelerating its early-stage pipeline.

Looking ahead, Teva expects further growth from key products in 2025, supported by new launches. However, the softer-than-expected guidance suggests challenges remain as the company aims to return to sustainable growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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