Teva Pharmaceutical Industries
2017 revenue: $22.38 billion
2016 revenue: $21.90 billion
Headquarters: Petah Tikva, Israel
If there’s a year Teva would probably like to erase from the record books, it’s 2017.
Pricing pressure continued to ravage the generics sector. The company struggled under a mountain of debt from an ill-advised buy of Allergan’s generics unit. Competitive pressure ramped up on key multiple sclerosis med Copaxone. A slew of executives paraded out the door, leaving big holes in the C-suite for months. And once Teva did finally fill the chief executive role with Novo Nordisk veteran Kåre Schultz, he queued up 14,000 layoffs that sparked labor protests throughout Teva’s home country of Israel.
Overall, not a great look—and yet revenues did manage to climb 2%, or 6% in local currency terms, over their 2016 total. One reason? Extra generics revenue from Allergan’s unit, Actavis, which kicked in its share for the full year rather than just the five months it contributed in 2016 after the deal closed.
The generics distribution business Teva bought from Allergan, Anda, gave it a boost, too, the company said.
On the generics side, revenue tallied $12.3 billion, a 2% increase. Profit, though, dove by 15% compared with the prior year thanks to price erosion in the U.S. market.
And in the specialty department, revenue came out to $7.0 billion, slipping by 9%. For that performance, Teva had knockoffs to thank. In October, Mylan surprised the market with news that it had not only finally snagged FDA approval for its version of 20mg Copaxone—the second behind Glatopa from Novartis’ Sandoz—but that it had also become the first to grab an approval for a copy of Teva’s long-lasting 40mg version.
And the pain didn’t stop there. Just two days later, Mylan partner Synthon announced it had netted its own regulatory clearance on the other side of the pond for a 40mg copy it shares with Alvogen.
In the months following, Mylan preceded to serve up Copaxone discounts of between 25% and 30%, which hit Teva hard. Copies of fellow branded Teva meds Azilect and Nuvigil also took their toll last year, Teva said.
2017 did bear a big bright spot for Teva’s specialty segment, though, and that was Austedo. The company picked up its first FDA OK for the product in April—a go-ahead in Huntington’s, where Teva undercut generics already on the market—and followed up with an August nod in tardive dyskinesia. Some analysts predict the product could crack the blockbuster barrier by 2022.