Short answer
Teva Pharmaceutical Industries Ltd (TEVA) filed its fiscal 2018 10-K annual report with the SEC on Feb 19, 2019. It reported revenue of $18.9B (−15.8% year over year) and net income of −$2.1B.
- Top risk flagged: FDA warning letter for Davie, Florida plant: unresolved findings could delay approvals, trigger recalls, impairments and enforcement action
FY2018 key financial metrics · XBRL
- Revenue
- $18.9B
- −15.8% YoY
- Net income
- −$2.1B
- +86.8% YoY
- Operating margin
- -8.7%
- +69.4 pp YoY
- Gross margin
- 44.0%
- −3.4 pp YoY
- EPS (diluted)
- −$2.35
- +85.5% YoY
- ROE
- -14.6%
- +79.1 pp YoY
- Operating cash flow
- $2.4B
- +9.9% YoY
Source: XBRL data from the Teva Pharmaceutical Industries Ltd (TEVA) FY2018 10-K on SEC EDGAR. USD.
Teva Pharmaceutical Industries Ltd FY2018 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Global pharmaceutical model spanning generics, specialty medicines, biopharmaceuticals and OTC products across three regional segments
- New U.S. launches: AJOVY migraine therapy, first rituximab biosimilar Truxima, Herzuma biosimilar and ProAir Digihaler digital inhaler
- Major restructuring shift: $3 billion targeted cost reduction, portfolio optimization and manufacturing closures to improve profitability
- Workforce reduced to 42,535 from 51,792, including approximately 10,300 reductions since the December 2017 restructuring announcement
- Notable 2018 disruption: valsartan recall linked to NDMA impurity, generating $51 million of financial statement impact
Management Discussion & Analysis
- Revenue $18,854M, down 16% YoY, driven by COPAXONE competition and weaker U.S. generics
- Gross margin 44.0% vs 47.4%; operating margin (8.7%) vs (78.1%)
- Best segment Europe: revenue $5,186M, profit $1,273M, up 24%; worst North America: revenue $9,297M, profit $2,837M, down 39%
- Operating cash flow $2,446M, capex $651M; debt fell to $28,916M, dividends suspended
- Outlook: $3B cost-base reduction by end-2019; risks include COPAXONE competition, FDA remediation, valsartan recalls and high debt levels
Risk Factors
- FDA warning letter for Davie, Florida plant: unresolved findings could delay approvals, trigger recalls, impairments and enforcement action
- Middle East hostilities: Israeli headquarters and manufacturing depend on imported materials, exposing operations to terrorism and trade disruption
- AJOVY single-source manufacturing: Celltrion exclusively produces the product, creating concentrated supply vulnerability
- COPAXONE competition: two U.S. generics for 20 mg/mL and two for 40 mg/mL reduced revenues to $2,365 million in 2018
- Debt $28,916 million and non-investment-grade ratings: covenant breaches could restrict refinancing and force asset sales
Generated from the filing text; verify against the original. How to read a 10-K
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