shares plummet 10% after downbeat 2018 guidance
By Emma Court
Feb 8, 2018 https://www.marketwatch.com/story/teva-shares-plummet-95-after-downbeat-2018-guidance-2018-02-08?siteid=bigcharts&dist=bigcharts
Teva Pharmaceutical Industries Ltd. TEVA, -7.46% shares plummeted 10.2% in premarket trade Thursday after the company reported fourth-quarter profit and revenue beats but provided 2018 guidance that fell well short of expectations. The company reported a loss of $11.60 billion, or a loss of $11.41 per share, after a loss of $1.04 billion, or a loss of $1.10 per share. Adjusted earnings-per-share were 93 cents, compared with the FactSet consensus of 77 cents. Revenue declined to $5.46 billion from $6.49 billion, compared with the FactSet consensus of $5.29 billion.
The company also recorded goodwill impairments totaling $17.1 billion in 2017, mainly relating to its U.S. generics reporting unit due to various competitive pressures. Teva expects 2018 revenue of $18.3 billion to $18.8 billion, compared with the FactSet consensus of $19.24 billion, and 2018 adjusted EPS of $2.25 to $2.50, compared with the FactSet consensus of $3.83. Teva also said that its migraine therapy fremanezumab -- which got fast track designation from the Food and Drug Administration in December -- has an active pharmaceutical ingredient manufactured solely by Celltrion 068270, +6.02% which recently received a FDA warning letter for its South Korea facility. The warning letter will likely result in a delayed approval, Teva said, adding that it is in "active dialogue" with the FDA. "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," said Chief Executive Kåre Schultz. Teva shares have surged 76.3% over the last three months, compared with a 3.4% rise in the S&P 500 SPX, -0.54%