Teva Pharmaceutical Industries (NASDAQ:TEVA), one of Israel's largest companies and a global leader in generic medicine production, said Wednesday that it has raised its revenue guidance for the second consecutive quarter, attributing the boost to its relatively unaffected medicine production amid the recent month-long conflict in Israel.
Teva's CEO, Richard Francis, expressed gratitude that the company's production facilities had remained "largely unaffected" despite the war that began on October 7.
Over 92% of Teva's production occurs outside of Israel, with sales in the country contributing only 2% to Teva's global revenue.
Teva's positive outlook comes as it reported higher third-quarter profits, with earnings of $0.60 per diluted share, up from $0.59 per share in the same period the previous year but just behind analyst estimates of $0.61.
The pharmaceutical giant, which has faced challenges following the loss of exclusivity to its multiple sclerosis drug Copaxone and a substantial debt load amidst lawsuits related to the US opioid epidemic, is showing signs of recovery. Teva is banking on a trio of its branded drugs - Austedo for Huntington's Disease, Ajovy for migraines, and the recently launched schizophrenia drug Uzedy - to help drive its resurgence. Additionally, Teva has a promising pipeline of biosimilars.
Teva's financial results for the third quarter also reflected a 7% increase in revenue, reaching $3.9 billion. Notably, sales of Austedo surged by 30% in North America to $339 million, while Ajovy's sales rose by 8%. Furthermore, generic medicine sales in North America saw a robust increase of 15%.
As a result, Teva is increasing its revenue outlook for 2023 for the second consecutive quarter.
For full-year 2023, Teva said it expects revenue to fall in the range of $15.1 billion to $15.5 billion, up from its previous estimate of $15 billion to $15.4 billion.
The company maintains its forecast for adjusted earnings per share (EPS) in the range of $2.25 to $2.55, compared to $2.52 in 2022.