Fourth-quarter sales of Teva Pharmaceutical's generic drugs toppled, but Teva stock popped Wednesday on stronger-than-expected profit.
During the quarter, revenue from Teva's generic drugs business — its biggest segment — tumbled 13% to nearly $2.28 billion. The dive was particularly acute in North America where sales fell 25%. Teva blamed increased competition, lower volume and less successful launches.
But Chief Executive Kare Schultz is looking for Austedo and Ajovy to drive Teva's future. Austedo treats tardive dyskinesia and Huntington's disease chorea, two neurological disorders that cause unintended movements. Ajovy is a migraine prevention drug.
So far, Austedo is only available in North America. But Teva sells Ajovy in all three of its geographies. In the December quarter, Ajovy sales collectively launched 72% to $86 million.
On the stock market today, Teva stock surged 8.4% to 8.99.
Teva Stock: Mixed Fourth Quarter
Overall, Teva's fourth quarter was mixed.
Sales declined 8% to $4.1 billion and lagged Teva stock analysts' call for $4.27 billion. Teva blamed the decline on lower sales of generic drugs in North America and Copaxone's sales dive in every geography. Copaxone sales broadly fell 31% to $232 million.
But the company noted higher sales of Austedo and Ajovy. Austedo sales rocketed 52% to $282 million in North America. Ajovy recorded triple-digit increases in Europe and internationally, though from lower bases. In North America, Ajovy generated $53 million, rising 49% year over year.
"Looking forward to 2022, we expect to see continued growth of our key products Austedo and Ajovy, as well as to continue to advance our core business through the launch of high-quality generic medicines around the world," CEO Schultz said in a written statement.
Meanwhile, earnings beat expectations by 4 pennies at 77 cents a share, minus some items. Profit also climbed more than 13% year over year.
Guidance Also Comes In Mixed
For the year, Teva guided to $15.6 billion to $16.2 billion in sales. The midpoint of Teva's outlook lagged Teva stock analysts' call for $16.13 billion, according to FactSet.
The company also expects to earn $2.40-$2.60 per share. The high end of Teva's guide missed forecasts by a nickel per share.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
