The Israel-based company posted a loss of -$974 million on sales of $6.49 billion for the 3 months ended Dec. 31, for bottom-line loss of -296% on sales growth of 33% compared with the same period last year.
Adjusted to exclude 1-time items, earnings per share were $1.38, ahead of consensus on The Street, where analysts were looking for sales of $6.24 billion.
“2016 was a transitional year for Teva – one that included significant achievements, as well as challenges,” interim president & CEO Yitzhak Peterburg said in prepared remarks. “While we continue to manage through a turbulent and constantly evolving industry, we are committed to execute against our strategy with more diversified revenue sources and profit streams, all backed by strong product development engines in both generics and specialty. In 2017, our main focus will be extracting synergies related to the Actavis generics transaction, driving additional efficiencies throughout the organization, supporting cash generation and paying down our debt to maintain a strong balance sheet and delivering on the promise of the specialty pipeline and key generic launches. We are laser focused on execution at this critical juncture and are determined to deliver on our key priorities. With the entire Teva team, I am conducting a thorough review of the business to find additional opportunities to enhance value. Our management team is committed to delivering for our shareholders and unlocking the full potential of our pipeline and global business. We remain excited about the future as we strive to create a platform that supports continued growth and value creation for patients, shareholders and healthcare systems around the world.”
Teva said it expects to post adjusted EPS of $4.90 to $5.30 on sales of $23.8 billion to $24.5 billion for the full year.
TEVA shares were trading at $33.99 apiece today in afternoon trading, up 5.6%
In December, the company said it agreed to pay $519 million to settle allegations that the company bribed overseas officials in Mexico, Russia and Ukraine to promote its products, according to the U.S. Justice Dept. The department reported that the millions of dollars in bribes occurred for more than a decade.
The pharmaceutical giant agreed to $238 million to settle Foreign Corrupt Practices Act allegations, as well as $236 million in profits plus interest to resolve the Securities and Exchange Commission’s civil investigation.
Teva admitted that it bribed Russian officials and raked in $65 million in inflated, “corrupt” profits, according to Reuters. The company also said that it bribed a Ukrainian government official to gain entrance into the country’s markets.