Teva Pharmaceutical Industries Тева

Teva Pharmaceutical Industries Ltd. is one of the participants in the pharmaceutical industry. Headquartered in Israel, the company offers solutions daily to 200 million people in need of treatment in 100 countries.

The international company Teva Pharmaceutical Enterprises Ltd distributes its products in 80 countries of the world. The research and production base includes: 44 plants for the production of finished dosage forms, 17 enterprises for the production of active substances and 15 research centers. The main areas of activity of Tev in Russia are such as: oncology, multiple sclerosis, pulmonology, branded generics and over-the-counter drugs.

Products and Services

Teva is one of the world's manufacturers of generic medicines. The company's product portfolio includes more than 1,800 molecules and allows the production of a wide range of replicated drugs for virtually all areas of medicine.

Teva specializes in the innovative treatment of multiple sclerosis and is leading the development of other specialty drugs used to treat diseases of the central nervous system, including movement disorders, migraines, pain and neurodegenerative disorders, as well as a wide range of drugs for the treatment of respiratory diseases.

Combining the company's capabilities in the field of generic and specialty medicines allows Teva to offer new ways to meet the needs of patients by combining drug development with a variety of devices, services and technologies.

Performance indicators

2022: Losses - $2.35 billion; revenue - $14.93 billion

In 2022, the multinational pharmaceutical company Teva received net losses of $2.35 billion. For comparison: a year earlier, a net profit of about $417 million was recorded, as stated in the financial report released on February 8, 2023.

Total revenue decreased: if in 2021 it amounted to $15.88 billion, then in 2022 - $14.93 billion. Thus, the drop was approximately 6%. This is explained by the decrease in sales of some products, in particular, the specific immunomodulatory drug Copaxone, intended for the treatment of multiple sclerosis. A drop in demand was recorded in North America and Europe.

Teva lost more than $2 billion in a year

Research and development costs in 2022 amounted to $838 million, which is 13% less than in 2021. The decrease in these costs was mainly due to a reduction in several projects in the fields of neurology (in the field of headache treatment, etc.) and immunology (in the segment of respiratory therapy), as well as a decrease in the number of projects for the production of generics and adjustment of payments in accordance with the contract with one of the partners. At the same time, the costs of research and development related to the release of biosimilars rose slightly.

Sales and marketing expenses in 2022 amounted to $2.27 billion, which is 7% less than in 2021. General and administrative expenses were recorded at $1.18 billion, which is 7% more than in 2021. This increase is due to the agreement reached in the second quarter of 2021 regarding the acquisition of Actavis Generics, as well as higher legal costs in the second quarter of 2022. Other revenues in 2022 amounted to $107 million compared to $98 million a year earlier. Exchange rate changes in 2022, including hedging effects, contributed to a $780 million revenue decline.^[1]

2020

Total contribution to GDP - $52 billion in 15 countries of presence

On August 9, 2021, Teva shared the results of a report on the impact of its activities on the economy of 15 of the 60 countries of its presence. In 2020, Teva generics and the company's activities in the regions of its presence helped reduce the financial costs of healthcare systems around the world.

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, being the leader among manufacturers of generic drugs, - > in 2020 helped to maintain $43.1 billion for the economies of a number of countries of its presence, which accounted for 75% of the company's total sales.

During the COVID-19 pandemic, Teva production, distribution and research facilities did not stop working to avoid interruptions in the supply of drugs for about 200 million patients who take Teva drugs every day. In addition, the company's economic activities provided almost 250,000 jobs, and the total contribution of the company to GDP amounted to $52 billion in 15 countries.

Despite the challenges of the pandemic, throughout 2020, Teva continued to open up opportunities for access to high-quality and low-cost drugs, commented Kore Schultz, President and CEO of Teva. - The published report shows the extent to which our position in generics production contributes to socioeconomic development and lower overall financial costs of health care, especially in the United States, where throughout 2020 alone we helped the health care system save $28.8 billion, of which $4.2 billion is funds saved directly by patients.

Combining many years of professional experience in the field of creating generic drugs and expertise in the field of specialized solutions, Teva develops its own development portfolio in order to increase the availability of high-quality drug therapy, including through the development of its own biosimilars - less expensive versions of original biological drugs that use living cells or organisms. As the biosimilar market develops in the United States, it is expected that during 2020-2024 the total savings from the use of Teva drugs will increase to exceed $100 billion.

Taking into account the fact that the company has a total of 10 biosimilars in the portfolio of promising developments, as well as more than 800 drugs received regulatory approvals in various countries of the world in 2020, Teva will continue to help save money to patients, healthcare systems and economies around the world.

Revenue decline by 1% to $16.7 billion

Teva shared its Zdrav.Expert financial 2020 results on February 17, 2021. The company's revenue was dollars 16.7 billion, down 1% from 2019. The main reason for this indicator was a decrease in revenue from the sale of some drugs for therapy oncological and respiratory diseases, as well as the drug "Copaxone" (for therapy) against the multiple sclerosis background of the development of a pandemic, the COVID-19 company explained. However, the negative impact was partially offset by increased revenue from the sale of Austedo (for the treatment of chorea in Huntington's disease) and Ajovi (for the treatment of migraine). Among the drugs that had the greatest impact on revenue growth, Truxima biosimilar (for therapy rheumatoid arthritis and chronic lymphocytic leukemia), as well as Truvada and Atripla tablets used in patients infected with -1, are also noted. HIV

Teva cut revenue but boosted earnings per share in 2020
Photo source: investors.com

Adjusted EBITDA in 2020 was $4.9 billion, up from $4.7 billion a year earlier. Free cash flow for the reporting period increased by $57 million to $2.1 billion. At the end of the financial year, Teva's debt burden declined to $25.9 billion, compared to $26.9 billion in 2019. R&D costs accounted for 5.6% of total revenue, or $941 million, compared to $1 billion in the prior period. The company associates the decrease in this indicator with the stages of its projects and with optimization at production sites.

Revenues in the International Markets segment of Teva (key markets Russia, Japan and Israel) in the IV quarter of 2020 amounted to $572 million, which is 6 million or 1% less compared to the same period in 2019. Revenue growth in local currencies of 5% due to increased sales in most of the markets, partially offset by lower sales in Japan due to established pricing rules.

In 2020, full-year net income per dollar share rose 0.17 to hit $2.58. The company expects annual revenue to rise to $16.8 billion in 2021, with net earnings per share expected to range from $2.5 to $2.7.

In 2020, Teva continued to open up opportunities for affordable health and provided millions of patients with the therapy they needed daily. The pandemic had minimal impact on our research programs and product launch plans, and thanks to the measures taken to protect the health of employees, we were able to organize the uninterrupted supply of drugs and pharmaceutical substances from our portfolio around the world. In 2021, we will continue to optimize our production capacity and product portfolio, increase profitability, and continue to reduce the debt burden to achieve long-term financial goals, commented Kore Schultz, president and CEO of Teva.

History

2024: $450 million fine for bribes to sell multiple sclerosis drug

On October 10, 2024, the US Department of Justice announced that the multinational pharmaceutical company Teva, which also operates in Russia, agreed to pay $450 million to settle charges of using dishonest competitive techniques. We are talking about the promotion of Copaxone, a specific immunomodulatory agent designed to treat multiple sclerosis.

Teva is alleged to have breached the Anti-Kickbacks Act (AKS). The investigation found that the company from 2006 to 2017 paid two charitable foundations, the Chronic Disease Fund and The Assistance Fund, more than $350 million to cover the costs of patients on Copaxone. At the same time, the company systematically increased the price of the drug: during the specified period, it rose five times - from about $17 thousand to $85 thousand per year. At the time, Copaxone was a bestseller, bringing Teva an estimated $3.8 billion in 2017 alone. As a result, Teva, according to the US Department of Justice, has turned charities into "tools to pay kickbacks for using the drug."

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Bloomberg

In addition, Teva agreed to settle charges of conspiracy with other generic manufacturers to set prices for pravastatin (used to reduce harmful cholesterol), as well as two other generics - clotrimazole (an antifungal medicine that is intended for external use) and tobramycin (a broad-spectrum antibiotic from the aminoglycoside group).

At the same time, Teva itself declares that it does not recognize offenses in any of the cases. The company claims its donations to charities "supported multiple sclerosis patients' access to critical medicines."^[2]

2022

Payment of $4.3 billion for drug business

On July 27, 2022, Teva Pharmaceuticals, one of the leading manufacturers of generic opioids in the United States, announced that it had reached an agreement with about 2,500 local authorities, states and tribes on the company's involvement in the development of the opioid crisis.

An agreement worth up to $4.25 billion was reached after a series of high-profile lawsuits and previous settlements of individual cases across the country for 2022.

Teva will pay $4.3 billion for drug business

Despite little prominence, Israel's Teva and its affiliates produced significantly more prescription opiates during the peak years of the opioid crisis than well-known opiate makers like Johnson & Johnson. Its production of both generic and branded painkillers exceeded that of Purdue Pharma, manufacturer of the drug OxyContin.

Under the terms of the agreement, Teva will make payments for 13 years, directing them to state, local and tribal programs to combat the opioid crisis, which has only worsened during the COVID-19 pandemic. The total amount of $4.25 billion included about $550 million, which had already been paid by the company during litigation in San Francisco, as well as in Florida, West Virginia, Texas, Louisiana and Rhode Island. Also, the amount includes $119 million for 570 tribes, which will also receive drugs to relieve the consequences of overdose.

States, cities and counties have the right of their choice to accept some of the compensation in the form of medicines, not cash.

This statement shows once again that those responsible for this tragedy will be held accountable and those affected by the opioid epidemic will be able to get help, "Tom Miller, the Iowa attorney general whose office was involved in the negotiations, said in a statement.

Teva noted in a statement: While the agreement does not contain an admission of wrongdoing, we are interested in leaving these cases in the past and focusing on the patients we serve every day.[3]

Teva and AbbVie fined $162 million for uncontrolled sale of narcotic drugs

On May 25, 2022, Teva Pharmaceutical Industries and Allergan (part of the AbbVie group) reached an agreement worth $161.5 million to settle claims about the companies fomenting the opioid epidemic in West Virginia, said state Attorney General Patrick Morrisay.

The agreement is the largest state-level settlement in West Virginia history and USA consists of $134 million in cash plus the provision of drugs used to treat opioid overdoses, Morrisay said at a news conference.

Pharmaceutical companies Teva and AbbVie fined $162 million for uncontrolled sale of narcotic drugs

West Virginia has accused Teva and Allergan of misleading prescribing doctors about the risks posed by opioids when selling their drugs to treat chronic pain. Misleading marketing has led to an increase in drug abuse and overdose deaths, West Virginia said in a statement of claim.

The settlement ended a two-month lawsuit in Kanawha County Circuit Court. The companies pleaded not guilty as part of the settlement.

Шаблон:Quote'According to Morrisey, the state's decision to proceed with the proceedings helped him get more money. We took a big risk to do the right thing, and it greatly benefited West Virginia, "he added. Teva said it would pay $83 million in cash and provide a 10-year supply of Narcan, a drug used to stop opioid overdoses, which the state estimated at $27 million. Allergan said it will pay $51.2 million.

West Virginia is particularly hard hit by opioid abuse and overdoses as overdose deaths in the state are more than three times the national figure in 2020, according to the U.S. Centers for Disease Control and Prevention.

The settlement reached in West Virginia guarantees the state an additional payout if Teva and Allergan strike larger-than-expected opioid liability agreements nationwide, Morrisey said. That agreement would be in place if Teva and Allergan struck a nationwide deal worth more than $7.2 billion, he said.

A total of more than 3.3 thousand lawsuits were filed against drug manufacturers, distributors and pharmacies in connection with the US health crisis (by May 2022).^[4]

Payment of $420 million for participation in the drug price fixing scheme

On January 18, 2022, it became known that Teva Pharmaceuticals agreed to pay $420 million as part of a lawsuit settlement with shareholders. The lawsuit alleged that the pharmaceutical company hid a scheme to lower prices for generic or generic drugs.

In 2020, the US Department of Justice filed a lawsuit against Teva Pharmaceuticals, alleging that the company conspired with other competitors to fix prices for generic drugs. These allegations were denied by the manufacturer itself, the company pleaded not guilty to any wrongdoing. After a government review into allegations of price collusion by large pharmaceutical companies, shareholders sued the company.

Teva will pay $420 million for participation in the drug price fixing scheme

The overwhelming amount of the settlement will be funded by the company's insurers. This decision is in the common interest of Teva Pharmaceuticals and the patients who continue to rely on us every day for the world's largest generic drug portfolio. Our company specializes in the production of generic drugs, active ingredients, and, to a lesser extent, its own drugs, "said Teva Pharmaceuticals spokeswoman Kelly Dougherty.

As Reuters recalls, shareholders sued Teva in 2016 amid scrutiny by government agencies over the alleged pricing of large pharmaceutical companies. Attorney representing investors Joseph Fonti noted that investors are pleased with the outstanding results after preparing for the trial and litigation. This agreement must be approved by the judge who is conducting the case.^[5]

2021

Ovarian cancer drug recall due to trash in vial

In early Jul 2021, Teva Pharmaceuticals initiated a voluntary recall of a batch of its ovarian cancer injection drug, topotecan 4 mg/4 mL (1 mg/mL). The recall is related to a complaint about the presence of foreign particles in the bottle received from the pharmacy. The study showed that glass shard, a drop of silicone and colorless cotton fiber got into the bottle. Teva withdrew the defective party and launched an internal investigation. Read more here.

Completion of the sale of a pharmaceutical plant in the Novosyolki technopark

On February 19, 2021, the R-Pharm group of companies and Teva announced the successful completion of the transaction for the acquisition of R-Pharm of the Teva pharmaceutical plant located in the Yaroslavl Industrial Park (Novosyolki). The purchase of a complex certified according to the GMP standard and producing drugs for the treatment of socially significant diseases will allow R-Pharm to adapt production facilities to the needs of the healthcare system. Read more here.

2020

Sale of pharmaceutical plant in Novosyolki technopark

On December 2, 2020, it became known that Teva was selling a pharmaceutical enterprise located on the territory of the Yaroslavl Industrial Park (Novosyolki) to the R-Pharm group of companies. The amount of the transaction was not disclosed. Read more here.

Conviction in kickbacks of $300 million for the supply of drugs for multiple sclerosis

In mid-August 2020, the Federal Prosecutor's Office of Massachusetts reported that Teva Pharmaceuticals paid kickbacks in the amount of $300 million for the supply of drugs for multiple sclerosis with the help of charitable foundations. As a result, Teva Pharmaceuticals and Teva Neuroscience, the manufacturer of copaxon, were able to raise the price of the drug by 329%.

The government alleges Teva colluded with specialist pharmacy Advanced Care Scripts (ACS) and two supposedly independent foundations, the Chronic Disease Foundation (CDF) and the Relief Fund (TAF). When a Medicare-insured patient receives a prescription drug, they may be required to pay a surcharge, in the case of expensive drugs highly significant. Pharmaceutical companies are prohibited from directly or indirectly offering or paying out any reward, both in the form of money and other valuable items, that encourages Medicare patients to buy those companies' drugs.

US authorities caught Teva in kickbacks of $300 million for the supply of drugs for multiple sclerosis

The government claims that from 2006 to 2015, Teva paid more than $300 million to two charitable foundations with the express intention and understanding that the funds would use Teva money to cover Medicare co-pays for patients taking copaxone. In the same period, Teva raised the price of copaxone and received more than $73,000 a year on its sale, while previously sales of the drug brought in about $17,000 a year. Meanwhile, because of Teva rollbacks, many Medicare patients and their doctors had no reason to consider the drug's ever-increasing cost.

Teva used allegedly independent charitable foundations as funds to pay kickbacks worth hundreds of millions of dollars, while raising the price of its drug Copaxon at more than 19 times the rate of inflation, said the US Attorney for the District of Massachusetts. - As a result, Teva's rollbacks undermined the Medicare copay structure that Congress created as a defense against overpricing drugs.[6]

2016: Revenue - $21.9 billion

Teva's net revenue in 2016 amounted to $21.9 billion.

Teva in Russia

In October 2017, Teva introduced its new corporate brand and its "No Barrier" concept to Russian consumers. The company believes that there should be no barriers between a person and his health in the form of inconvenience, misunderstandings, difficulties or lack of information.

In 2014, as part of the implementation of the international investment strategy, Teva LLC opened a pharmaceutical enterprise in Yaroslavl. The plant, whose capacity allows the production of up to two billion tablets per year, will supply its products to the markets of Russia and neighboring countries.

Starting in Russia in 1995, Teva is one of the pharmaceutical companies on the Russian market with a portfolio of more than 300 products. The company's turnover in Russia over the past five years has grown more than tenfold. At the beginning of 2018, the Russian division of Teva employs about 1,300 employees.