Teva restructuring on track to hit $3B reduction in base spending this year

|About: Teva Pharmaceutical In... (TEVA)|By:, SA News Editor

During the morning's Q4 earnings call, Teva Pharmaceutical Industries (TEVA -6.8%) CEO Kåre Schultz said that the company should hit its target of a $3B reduction in its spend base this year considering that it achieved ~$2.2B in cuts in 2018.

The company has eliminated about 10,300 full-time equivalents (one FTE = one full-time employee or two part-time employees working half-time).

The number of manufacturing facilities were reduced by seven last year to 73 with 11 more to be shuttered this year.

$1.7B in debt reduction expected this year. No plans to raise equity.

Copaxone sales have dropped almost 60% since the peak of $842M in Q2 2017.

2019 line item guidance: Copaxone: ~$1.5B; ProAir HFA: significant erosion due to Gx Albuterol; Ajovy: ~$150M; Austedo: ~$350M; North American Generics: slight decline from 2018's $4.1B; European Generics: appears to be relatively flat compared to 2018's $3.6B citing portfolio optimization and the effects from the dissolution of the OTC JV with P&G; International Generics: expected to be lower than 2018's $2B due to lower reimbursement in Japan.

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