Shares in Teva Pharmaceuticals (NYSE:TEVA) fell today after the pharmaceutical company missed sales expectations on Wall Street with its fourth quarter results.
The Israel-based company posted a net loss of -$11.6 billion, or -$11.43 per share, on sales of $5.46 billion for the 3 months ended Dec. 31, for a sales loss of -16% compared with the same period last year.
Adjusted to exclude 1-time items, earnings per share were 93¢, ahead of consensus on The Street. The company did not meet sales estimates, though – analysts were looking for sales of $5.31 billion.
For the full year, Teva swung to a net loss of -$16.53 billion, on sales of $22.39 billion. The company reported that it took a $1 billion hit from the recently-enacted U.S. tax reform law.
“2017 was a challenging year for Teva. Starting 2018 we are focused on meeting our financial obligations and ensuring a much more solid and sustainable business model going forward,” president & CEO Kare Schultz said in prepared remarks. “We are making strong progress on the restructuring plan, and I am optimistic about the progress made and remain confident in our ability to deliver on our targets in the coming year.
TEVA shares were trading at $18.82 apiece in afternoon activity today, down -10%.
In an attempt to pay down its debt, Teva began restructuring its business last year. Over the last few months, the company has sold off its Plan B contraceptive business in a $675 million cash sale, as well as its Paragard intrauterine copper contraceptive device asset in a $1.1 billion sale.
Teva also announced in December last year that it planned to slash 14,000 jobs – more than 25% of its global workforce. The news of the layoffs sparked protests across Israel, where Teva has its headquarters.
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