Teva Shares Fall Sharply on 2018 Misses, Light 2019 Targets

   By Donato Paolo Mancini

--Teva reports disappointing 2018 results and gives light guidance for 2019

--Shares plunge in New York and Tel Aviv

--Ajovy struggles, Copaxone continues to lose ground

Shares in the world's largest generic drugmaker, Teva Pharmaceutical Industries Ltd. (TEVA.TV), fell sharply Wednesday after the company reported yearly results that missed estimates.

At 1548 GMT, New York-listed ADRs traded 7.2% lower after losing as much as 11%, while Tel Aviv-listed shares lost 7.7% after dropping as much as 14%.

Analysts at Well Fargo said the company reported adjusted earnings per share below its estimates and consensus, with fourth-quarter revenues missing Wells Fargo's estimates but beating overall consensus slightly. Sales of Copaxone, once a blockbuster, also missed consensus, while sales of Ajovy, an innovative migraine drug, came in at $3 million in the fourth quarter, missing both consensus and Wells Fargo's estimates.

The Israeli drugmaker, plagued by years of turbulence, also gave out 2019 guidance that analysts described as light, targeting 2019 revenues between $17 billion and $17.4 billion. Wells Fargo called the light guidance a "worst case scenario."

Analysts at Credit Suisse said 2019 remained a trough year, though they said the trough was much lower than expected, while analysts at Mizuho noted the "disappointing" 2019 guidance was primarily related to woes in international markets. They noted North American generic sales beat consensus, signaling stability.

Teva has been struggling to get healthy, embarking in ambitious cost cutting and leveraging plans with a new chief executive appointed late in 2017. The cuts have also involved substantial job losses and the closure of research centers.

Part of the company's plans to return to growth, however, includes betting on high-price biotech medicines, the company's chief executive said Wednesday.

Denise Roland contributed to this article.

Write to Donato Paolo Mancini at donatopaolo.mancini@dowjones.com; @donatopmancini

(END) Dow Jones Newswires

February 13, 2019 11:36 ET (16:36 GMT)

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