Teva down as it reports lower sales and profit for 2018

Israel-based generics giant Teva Pharmaceutical Industries (NYSE: TEVA) today posted 2018 financial results, showing that full year revenue came in at $18.85 billion, a decrease of 16% in both US dollar and local currency terms, compared to 2017, sending the company’s shares down 11.47% to 6,161 shekels by late afternoon trading.

This was due mainly due to generic competition to its blockbuster multiple sclerosis drug Copaxone (glatiramer acetate), a decline in revenues in its US generics business and loss of revenues following the divestment of certain products and discontinuation of certain activities.

Under generally accepted accounting principle (GAAP), gross profit was $8,296 million in 2018, a decrease of 22% compared to 2017. The decrease in both GAAP and non-GAAP gross profit was mainly due to lower profitability in North America resulting from a decline in Copaxone revenues due to generic competition and a decline in revenues in our US generics business, partially offset by higher profitability in Europe.