Teva’s new CEO Richard Francis has his work cut out as the company seeks to recover from a revenue slide.
Thanks to declines for several of its offerings, Teva global sales slipped 5% year over year in the fourth quarter, landing at $3.88 billion. Specifically, in North America, sales of multiple sclerosis drug Copaxone fell 22% to $101 million, while revenues for Teva’s cancer duo of Bendenka and Treanda slipped 20% to $75 million.
In Europe, Copaxone sales fell 35% and Teva’s respiratory revenues fell 19%, the company reported Wednesday.
The picture wasn’t any better for the full year: Teva generated $14.93 billion in 2022, a 6% decline from $15.88 billion in 2021.
Exchange rate fluctuations certainly didn’t help the struggling company. Teva said exchange fluctuations hurt its full-year revenues by a whopping $780 million. Full-year operating income suffered a $247 million hit from exchange rate fluctuations.
At least Teva has Austedo and Ajovy in its back pocket. North American revenues for Austedo, approved for Tardive dyskinesia and chorea from Huntington’s disease, grew by 22% in 2022, hitting $963 million.
As for migraine prevention drug Ajovy, North American sales increased 24% last year, hitting $218 million.
Teva expects both of those drugs to help drive growth amid struggles in some of its other businesses—and as it works through a strategic review. Francis has “already initiated a strategic review process” with his leadership team, he said on a conference call.
After analyzing some “core strategic questions,” the CEO said the company’s operations will “evolve over time” with a “clear purpose and strategy with real intent.”
As for 2023, Teva expects revenues to come in between $14.8 billion and $15.4 billion. If Teva can deliver and hit the midpoint of $15.1 billion, that would be marginal growth versus 2022.
Meanwhile, Teva is one of the many companies looking to get a slice of the Humira biosimilar market. Its Alvotech-partnered biosimilar is currently under FDA review. Pending approval, the partners are looking at an expected launch date of July 1.