Teva results strong, deleveraging and focus on future growth

All,

Very confident and nearly bullish call from TEVA management on the release of their Q1 results.  Leverage below 5.0x, and although they acknowledged some stock building in Q1, they reconfirmed their guidance for revenue and EBITDA for FY2020.  

Management fully committed to statement that the increase in sales of Austedo and Ajovy more than compensating the decline in Copaxone.  This is even with Ajovy been a little behind schedule due to the delay in the auto injector, which was only launched (due to delay in approval) in April 2020.  

Amazingly, only one question related to the litigation risk facing the Company, with limited feedback from the Company.  The Company did acknowledge the process has definitely delayed due to the postponement of the New York trial, although still working actively with the various Attorney Generals in the US.  No timeframe given on the delay.  

Will aim to update the model over the weekend, and likely to increase slightly our assumptions for cost savings and revenue growth, but the overall thesis remains the same.  Teva is on the path to deleveraging and has sufficient liquidity to meet upcoming maturity profile.  

Stock up 10% plus in the premarket. 

Happy to discuss.

Tomas