Teva Results out - Revenue and EBITDA beat, net debt higher

TEVA results:

Overall the results are stronger than we were expecting.

Results:

Decline in Copaxone and stronger growth in Ajovy helped with both top line and EBITDA to beat our expectations. The good traction in Ajovy has the potential to increase EBITDA into next year as well. Significant number of generic launches.

Company has tightened guidance for the full year, moving up the bottom end of the range for Revenue and EBITDA guidance for FY 2019. No concrete guidance for 2020, but discussions was definitely in relation to 2019 been a trough year,

Gross profit a little lower than expectation but expect Q4 rebound to compensate for the shortfall.

Opioid Litigation (and further update on Price fixing Litigation)

Firstly, no update as such on the price fixing litigation. In relation to the Opioid litigation, acknowledged it was only agreement in principal and there was still some risk to the other 46 Attorney Generals holding out.

Take away: Results are in line to positive. No meaningful update on the litigation.

Any questions, please call.

Tomas