Teva's stock falls on earnings; Copaxone sales tumble 26%
Shares of Teva Pharmaceutical Industries Ltd. were down 1% in premarket trading on Wednesday after the Israeli drugmaker reported earnings of $110 million, or 10 cents per share, in the fourth quarter of 2019, after a loss of $2.9 billion, or $2.85 per share, in the same quarter in 2018. Adjusted earnings per share were $683 million, or 62 cents per share, matching the FactSet consensus of 62 cents. Revenue rose 1% to $4.46 billion in the fourth quarter of 2019, up from $4.42 billion in the same period a year ago. The FactSet consensus was $4.42 billion for the quarter. Teva attributed the growth to Huntington's disease treatment Austedo and migraine drug Ajovy, saying sales of those products offset lower revenue from multiple sclerosis therapy Copaxone in North America. Sales in North America jumped 6% to $2.37 billion in the fourth quarter, beating the FactSet consensus of $2.14 billion. However, North America sales of Copaxone, Teva's longtime flagship brand, tumbled 26% to $254 million for the quarter, down from $356 million in the same quarter a year ago, as a result of generic competition. Teva issued guidance for 2020, saying it expects revenues of $16.6 billion to $17.0 billion and adjusted EPS of $2.30 to $2.55. Teva's stock is down 32% over the past year, compared to the Health Care Select Sector SPDR Fund , which has gained 16%.
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