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January 13, 2025 43rd Annual J.P . Morgan Healthcare Conference Teva Pharmaceutical Industries Ltd.
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2 | This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management’s current beliefs and expectations and are subject to substantial risks and uncertainties, bo th known and unknown, that could cause our future results, performance or achievements to differ significantly from that expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include risks rela ting to: • our ability to successfully compete in the marketplace, including: that we are substantially dependent on our generic product s; concentration of our customer base and commercial alliances among our customers; delays in launches of new generic products; our ability to develop and commercialize biopharmaceutical products; competition for our innovative medicines; our ability to achieve expected results from investments in our product pipeline; our ability to develop and commercialize additional pharmaceutical products; our ability to continue to successfully execute our Pivot to Growth strategy, including to expand ou r innovative and biosimilar medicines pipeline and profitably commercialize the innovative medicines and biosimilar portfolio, whether organically or through business development, and to sustain and focus our portfolio of generics medicines; and the ef fectiveness of our patents and other measures to protect our intellectual property rights, including any potential challenges to our Orange Book patent listings in the U.S.; • our substantial indebtedness, which may limit our ability to incur additional indebtedness, engage in additional transactions or make new investments, may result in a future downgrade of our credit ratings; and our inability to raise debt or borrow funds in amounts or on terms that are favorable to us; • our business and operations in general, including: the impact of global economic conditions and other macroeconomic developme nts and the governmental and societal responses thereto; the widespread outbreak of an illness or any other communicable disease, or any other public health crisis; effectiveness of our optimization efforts; our ability to attract, hire, integrat e and retain highly skilled personnel; interruptions in our supply chain or problems with internal or third party manufacturing; disruptions of information technology systems; breaches of our data security; challenges associated with conducting business globally, in cluding political or economic instability, major hostilities or terrorism, such as the ongoing conflict between Russia and Ukrai ne and the state of war declared in Israel; costs and delays resulting from the extensive pharmaceutical regulation to which we are subject; our ability to successfully bid for suitable acquisition targets or licensing opportunities, or to consummate and integ rate acquisitions; and our prospects and opportunities for growth if we sell assets or business units and close or divest plants a nd facilities, as well as our ability to successfully and cost-effectively consummate such sales and divestitures, including our pl anned divestiture of our API business; • compliance, regulatory and litigation matters, including: failure to comply with complex legal and regulatory environments; t he effects of governmental and civil proceedings and litigation which we are, or in the future become, party to; the effects of reforms in healthcare regulation and reductions in pharmaceutical pricing, reimbursement and coverage; increased legal and re gulatory action in connection with public concern over the abuse of opioid medications; our ability to timely make payments required under our nationwide opioids settlement agreement and provide our generic version of Narcan® (naloxone hydrochloride nasal spray) in the amounts and at the times required under the terms of such agreement; scrutiny from competition and pricing authorities around the world, including our ability to comply with and operate under our deferred prosecution agreement (“DPA”) with the U.S. Department of Justice (“DOJ”); potential liability for intellectual property right infringement; product liability claims; failure to comply with complex Medicare, Medicaid and other governmental programs reporting and payment obl igations; compliance with anti-corruption, sanctions and trade control laws; environmental risks; and the impact of sustainability issues; • the impact of the state of war declared in Israel and the military activity in the region, including the risk of disruptions to our operations and facilities, such as our manufacturing and R&D facilities, located in Israel, the impact of our employees w ho are military reservists being called to active military duty, and the impact of the war on the economic, social and political sta bility of Israel; • other financial and economic risks, including: our exposure to currency fluctuations and restrictions as well as credit risks ; potential impairments of our long-lived assets; the impact of geopolitical conflicts including the state of war declared in Israe l and the conflict between Russia and Ukraine; potential significant increases in tax liabilities; the effect on our overall effective tax rate of the termination or expiration of governmental programs or tax benefits, or of a change in our busines s; and our ability to remediate an existing material weakness in our internal control over financial reporting; • and other factors discussed in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 and in our Annual Report on Form 10-K for the year ended December 31, 2023 (“Annual Report”), including in the section captioned "Risk Factors." Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statements or other information contained herein, whether as a result of new information, future events or otherwise. You are cautioned not to put undue reliance on these forward-looking statements. Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures as defined by SEC rules. Please see our press release reporting o ur financial results for the third quarter of 2024, as well as our Annual Report on Form 10-K for the year ended December 31, 2023, for a reconciliation of the non-GAAP financial measures to their nearest GAAP equivalents. Management believes that such non -GAAP financial measures provide useful information to investors to facilitate their understanding of our business because the non -GAAP financial measures are used by Teva's management and board of directors, in conjunction with other performance metrics, to ev aluate the operational performance of the company, to compare against the company's work plans and budgets, and ultimately to evaluate the performance of management; the company’s annual budgets are prepared on a non -GAAP basis; and senior management’s annual compensation is derived, in part, using these non -GAAP measures. Investors should consider the non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordanc e with GAAP. We are not providing forward looking guidance for GAAP reported financial measures or a quantitative reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP measure because we are unable to predict with r easonable certainty the ultimate outcome of certain significant items including, but not limited to, the amortization of purc hased intangible assets, legal settlements and loss contingencies, impairment of long -lived assets and goodwill impairment, without unreasonable effort. These items are uncertain, depend on various factors, and could be material to our results computed in acc ordance with GAAP. Revenues and CAPEX are presented on a GAAP basis. Some amounts in this presentation may not add up due to rounding. All percentages have been calculated using unrounded amount s.