`
`
`
`TEVA REPORTS FIRST QUARTER 2015 RESULTS
`
`• Revenues of $5.0 billion, in line with the first quarter of 2014.
`• Organic revenue growth of 8% excluding the impact of foreign exchange fluctuations
`and the divestment of the U.S. OTC plants.
`• Non-GAAP operating income of $1.5 billion, an increase of 11% compared to the
`first quarter of 2014. GAAP operating income of $749 million, down 23%.
`• Non-GAAP net income of $1.2 billion, up 11%. GAAP net income of $446 million, a
`decrease of 40%.
`• Non-GAAP diluted EPS of $1.36, an increase of 11%. GAAP diluted EPS of $0.52, a
`decrease of 40%.
`• Strong cash flow from operations of $1.4 billion, an increase of over 50% compared
`to the first quarter of 2014. Free cash flow of $1.2 billion, up 80% compared to the
`first quarter of 2014.
`• Significant impact of exchange rates fluctuation resulted in a reduction of $368
`million in revenues and $42 million in operating profit.
`• Generic medicines profitability improved to 30.5%, compared to 21.0% in the first
`quarter of 2014. Segment profit amounted to $0.8 billion, an increase of 59%
`compared to the first quarter of 2014.
`• On March 29, 2015, we entered into a merger agreement to acquire Auspex
`Pharmaceuticals, Inc., for $3.5 billion. Auspex is an innovative biopharmaceutical
`company specializing in applying deuterium chemistry to known molecules. Its lead
`investigational product, SD-809 (deutetrabenazine), is being developed for the
`potential
`treatment of chorea associated with Huntington’s disease,
`tardive
`dyskinesia, and Tourette syndrome.
`• On April 21, 2015, we announced a proposal to acquire all of the outstanding shares
`of Mylan N.V. in a transaction valued at $82.00 per Mylan share, with the
`consideration to be comprised of approximately 50% cash and 50% stock,
`representing approximately $50 billion
`in enterprise value. The proposed
`combination of Teva and Mylan would create a leading company in the
`pharmaceutical industry, well positioned to transform the global generics space. The
`combined company would have a unique and differentiated business model
`addressing significant trends and discontinuities prevailing today among patients and
`healthcare systems around the world.
`• Raising EPS guidance for full-year 2015 to $5.05-5.35 from $5.00-$5.30.
`
`
`1
`
`Page 1 of 14
`
`YEDA EXHIBIT NO. 2024
`MYLAN PHARM. v YEDA
`IPR2014-00643
`
`
`
`
`
`
`
`
`Jerusalem, April 30, 2015 - Teva Pharmaceutical Industries Ltd. (NYSE: TEVA)
`today reported results for the quarter ended March 31, 2015.
`“We are extremely pleased with our performance this quarter, which is truly the
`manifestation of our commitment to solidifying our foundation, driving organic
`growth and creating the most efficient operational network in the industry. Our
`commitment to revitalizing our core generics business has resulted in increased
`revenues and profitability supported by the successful launch of generic Nexium® in
`the U.S.,” stated Erez Vigodman, Teva’s President and CEO. “We reinforced our
`leadership position in CNS with the acquisition of Auspex, where we see great
`promise in the application of the deuterium platform across a wide spectrum of
`neurological diseases and associated movement disorders; and with the continued
`strong performance of Copaxone 40mg® which now has a conversion rate of 67%,
`and maintains market leadership globally in the MS space. We are also excited about
`the strong performance of TEV-48125 (CGRP MAb) in our Phase IIB chronic
`migraine study and believe the promise shown in these trials represent significant
`hope for patients suffering from debilitating migraines.”
`
`Mr. Vigodman continued, “We will continue to accelerate this momentum. Our
`business outlook for the remainder of the year is strong, and as such, we are raising
`our guidance for full year 2015 to $5.05-$5.35. We are committed to continuing to
`deliver significant value for shareholders in both the short and long term.”
`
`First Quarter 2015 Results
`Revenues in the first quarter of 2015 amounted to $5.0 billion, in line with revenues
`in the first quarter of 2014. Excluding the impact of foreign exchange fluctuations and
`the divestment of the U.S. OTC plants, revenues grew 8%.
`Exchange rate differences (net of profits from certain hedging transactions) between
`the first quarter of 2015 and the first quarter of 2014 decreased our revenues by
`$368 million and reduced our non-GAAP operating income by $42 million and our
`GAAP operating income by $23 million.
`Non-GAAP gross profit was $3.1 billion in the first quarter of 2015, up 2% from the
`first quarter of 2014. Non-GAAP gross profit margin was 61.5% in the first quarter
`of 2015, compared to 59.7% in the first quarter of 2014. GAAP gross profit was $2.8
`billion in the first quarter of 2015, compared to $2.7 billion in the first quarter of
`
`2
`
`Page 2 of 14
`
`YEDA EXHIBIT NO. 2024
`MYLAN PHARM. v YEDA
`IPR2014-00643
`
`
`
`
`
`
`
`2014. GAAP gross profit margin was 56.9% in the quarter, compared to 53.9% in the
`first quarter of 2014.
`Research and Development (R&D) expenditures (excluding equity compensation
`expenses) in the first quarter of 2015 amounted to $328 million, compared to $351
`million, in the first quarter of 2014. R&D expenses were 6.6% of revenues in the
`quarter, compared to 7.0% in the first quarter of 2014. R&D expenses related to our
`generic medicines segment amounted to $111 million in the first quarter of 2015,
`down 10% compared to $123 million in the first quarter of 2014. In local currency
`terms, expenses decreased 4%. R&D expenses related to our specialty medicines
`segment amounted to $215 million, a decrease of 5% compared to $226 million in the
`first quarter of 2014, mainly as a result of our strategic focus on core therapeutic
`areas, including the return of rights for custirsen to Oncogenex and the divestment of
`certain other oncology assets.
`Selling and Marketing (S&M) expenditures (excluding amortization of purchased
`intangible assets and equity compensation expenses) amounted to $908 million, or
`18.2% of revenues, in the first quarter of 2015, compared to $963 million, or 19.3% of
`revenues, in the first quarter of 2014. S&M expenses related to our generic medicines
`segment amounted to $374 million, a decrease of 10% compared to $417 million in
`the first quarter of 2014. In local currency terms, S&M expenses increased 1%, as
`higher expenses in our ROW markets and the United States were largely offset by
`lower expenses in Europe. S&M expenses related to our specialty medicines segment
`amounted to $486 million, a decrease of 2% compared to $497 million in the first
`quarter of 2014. In local currency terms, S&M expenses increased 5% due to higher
`expenditures related to European launches, partially offset by lower expenses related
`to Copaxone®.
`General and Administrative (G&A) expenditures (excluding equity compensation
`expenses) amounted to $293 million in the first quarter of 2015, or 5.9% of revenues,
`both the same as the first quarter of 2014.
`Quarterly non-GAAP operating income was $1.5 billion in the first quarter of 2015,
`an increase of 11% compared to the first quarter of 2014. Quarterly GAAP operating
`income was $0.7 billion in the first quarter of 2015, a decrease of 23% compared to
`$1.0 billion in the first quarter of 2014.
`Non-GAAP financial expenses amounted to $49 million in the first quarter of 2015,
`compared to $84 million in the first quarter of 2014. GAAP financial expenses for the
`first quarter of 2015 amounted to $192 million, compared to $81 million in the first
`quarter of 2014. The increase was mainly due to expenses of $143 million in
`connection with the debt tender offer and the termination of the related swap
`agreements.
`The provision for non-GAAP tax for the first quarter of 2015 amounted to $312
`million on pre-tax non-GAAP income of $1.5 billion, for a quarterly tax rate of 21%.
`The provision for non-GAAP tax in the first quarter of 2014 was $242 million on pre-
`3
`
`Page 3 of 14
`
`YEDA EXHIBIT NO. 2024
`MYLAN PHARM. v YEDA
`IPR2014-00643
`
`
`
`
`
`
`
`tax non-GAAP income of $1.3 billion, or 19%. GAAP tax expenses for the first
`quarter of 2015 amounted to $104 million or 19% on pre-tax income of $557 million.
`In the first quarter of 2014, the provision for taxes amounted to $143 million or 16%
`on pre-tax income of $891 million.
`Non-GAAP net income and non-GAAP diluted EPS were $1.2 billion and $1.36,
`respectively, in the first quarter of 2015, both up 11%, compared to the first quarter of
`2014. GAAP net income and GAAP diluted EPS were $446 million and $0.52,
`respectively, in the first quarter of 2015, compared to $744 million and $0.87,
`respectively, in the first quarter of 2014.
`Non-GAAP information: Net non-GAAP adjustments in the first quarter of 2015
`amounted to $719 million. Non-GAAP net income and non-GAAP EPS for the
`quarter were adjusted to exclude the following items:
`• Contingent consideration of $244 million, following the positive phase 2b
`results of TEV-48125 in both chronic and episodic migraine prevention;
`• Legal settlements and loss contingencies of $227 million mainly related to the
`booking of an additional reserve for the settlement of the modafinil antitrust
`litigation;
`• Amortization of purchased intangible assets totaling $220 million, of which
`$212 million is included in cost of goods sold and the remaining $8 million in
`selling and marketing expenses;
`• Financial expense of $143 million;
`Impairment of long-lived assets of $65 million;
`•
`• Equity compensation of $27 million;
`• Regulatory actions taken in facilities, restructuring and other expenses of $1
`million; and
`• Related tax benefit of $208 million.
`Teva believes that excluding such items facilitates investors' understanding of its
`business. See the attached tables for a reconciliation of the U.S. GAAP results to the
`adjusted non-GAAP figures.
`
`Cash flow from operations generated during the first quarter of 2015 amounted to
`$1.4 billion, compared to $0.9 billion in the first quarter of 2014. The increase was
`mainly due to an increase in accounts payable and lower payments related to legal
`settlements in the first quarter of 2015. Free cash flow, excluding net capital
`expenditures, amounted to $1.2 billion, compared to $0.7 billion in the first quarter of
`2014.
`
`4
`
`Page 4 of 14
`
`YEDA EXHIBIT NO. 2024
`MYLAN PHARM. v YEDA
`IPR2014-00643
`
`
`
`
`
`
`
`Cash and investments at March 31, 2015 increased to $3.8 billion, compared to $2.6
`billion at December 31, 2014, mainly due to proceeds from the issuance of €2 billion
`in senior notes in March 2015, free cash flow generated during the quarter and
`proceeds from exercise of options, partially offset by funding of the $1.3 billion debt
`tender offer, share repurchases, dividend payments and the repayment of a European
`Investment Bank (“EIB”) loan.
`For the first quarter of 2015, the weighted average outstanding shares for the fully
`diluted earnings per share calculation was 859 million on both a GAAP and non-
`GAAP basis. At March 31, 2015, the outstanding shares for calculating Teva's market
`capitalization were approximately 848 million.
`Shareholders’ equity was $22.7 billion at March 31, 2015, compared to $23.4 billion
`at December 31, 2014. The decrease primarily reflects the negative impact of $0.8
`billion of currency fluctuations, share repurchases of $0.4 billion and dividend
`payments of $0.3 billion, partially offset by GAAP net income of $0.4 billion, $0.2
`billion of net unrealized gain from derivative financial instruments and proceeds from
`employee stock option exercises of $0.2 billion.
`
`
`
`
`
`Beginning in 2015, expenses related to equity compensation are excluded from our segment results.
`The data presented have been conformed to reflect the exclusion of equity compensation expenses
`for all periods.
`
`
`
`Generic Medicines Revenues
`
`5
`
`Segment Results for the First Quarter 2015
`Generic Medicines Segment
`
`Generics
`Three Months Ended March 31,
`
`2015
`
`2014
`
`U.S.$ in millions / % of Segment Revenues
`
`
`
`
`
`
`
`
`
`
`100.0%
` $
` 2,398
`
`$
`Revenues ...............................
`
`49.0%
`
`
` 1,043
`
`
`Gross profit ............................
`
`4.2%
`
`
` 123
`
`
`R&D expenses .......................
`
`14.3%
`
`
` 417
`
`
`S&M expenses .......................
`
`30.5%
` $
` 503
`
`$
`Segment profit* .....................
`
`
`
`
`
`
`
`
`
`
`* Segment profit consists of gross profit, less S&M and R&D expenses related to the segment.
`Segment profit does not include G&A expenses, amortization and certain other items.
`
`
` 2,621
` 1,284
` 111
` 374
` 799
`
`
`
`100.0%
`43.5%
`5.1%
`17.4%
`21.0%
`
`Page 5 of 14
`
`YEDA EXHIBIT NO. 2024
`MYLAN PHARM. v YEDA
`IPR2014-00643
`
`
`
`
`
`
`
`Generic medicines revenues in the first quarter of 2015 amounted to $2.6 billion, an
`increase of 9%, or 18% in local currency terms, compared to the first quarter of 2014.
`Generic revenues consisted of:
`• U.S. revenues of $1.4 billion, an increase of 37% compared to the first quarter
`of 2014. The increase resulted mainly from the launch of esomeprazole (the
`generic equivalent of Nexium®) during the quarter and sales of certain other
`products sold in the first quarter of 2015 that were not sold in the first quarter
`of 2014, the most significant of which was omega-3-acid ethyl esters (the
`generic equivalent of Lovaza®).
`• European revenues of $680 million, a decrease of 17%, or 2% in local
`currency terms, compared to the first quarter of 2014. The decrease in local
`currency terms resulted mainly from our strategy of pursuing profitable and
`sustainable business in the region, with significant decreases in Spain and
`France largely offset by increases in Italy and Germany. This strategy has
`continued to lead to notable improvements in the profitability of our European
`generics business.
`• ROW revenues of $502 million, a decrease of 6%, but an increase of 11% in
`local currency terms, compared to the first quarter of 2014. The increase in
`local currency terms was mainly due to higher revenues in Latin America and
`Russia, which were partially offset by lower revenues in Japan and Canada.
`• API sales to third parties of $157 million (which is included in the market
`revenues above), a decrease of 12%, or 11% in local currency terms,
`compared to the first quarter of 2014.
`Generic medicines revenues comprised 52% of our total revenues in the quarter, up
`from 48% in the first quarter of 2014.
`
`Generic Medicines Gross Profit
`Gross profit from our generic medicines segment in the first quarter of 2015 amounted
`to $1.3 billion, an increase of 23% compared to the first quarter of 2014. Gross profit
`margin for our generic medicines segment in the first quarter of 2015 increased to
`49.0%, from 43.5% in the first quarter of 2014. The higher gross profit was mainly a
`result of the launch of esomeprazole (the generic equivalent of Nexium®) in the
`United States and improved profitability of our European business.
`
`Generic Medicines Profit
`Our generic medicines segment generated profit of $799 million in the first quarter of
`2015, an increase of 59% compared to the first quarter of 2014. Generic medicines
`profitability as a percentage of generic medicines revenues was 30.5% in the first
`6
`
`Page 6 of 14
`
`YEDA EXHIBIT NO. 2024
`MYLAN PHARM. v YEDA
`IPR2014-00643
`
`
`
`
`
`
`
`quarter of 2015, up from 21.0% in the first quarter of 2014. The increase was
`primarily due to higher gross profit coupled with a reduction in S&M and R&D
`expenses.
`
`
`
`
`7
`
`Page 7 of 14
`
`YEDA EXHIBIT NO. 2024
`MYLAN PHARM. v YEDA
`IPR2014-00643
`
`
`
`
`
`
`
`Specialty Medicines Segment
`
`Specialty
`Three Months Ended March 31,
`
`2015
`
`2014
`
`U.S.$ in millions / % of Segment Revenues
`
`
`
`
`
`
`
`
`
`
`$
`100.0%
`
`100.0%
` $
` 2,114
`
` 1,956
`Revenues ...............................
`
`
`87.2%
`
`85.8%
`
` 1,843
`
` 1,678
`Gross profit ............................
`
`
`10.7%
`
`11.0%
`
` 226
`
` 215
`R&D expenses .......................
`
`
`23.5%
`
`24.9%
`
` 497
`
` 486
`S&M expenses .......................
` $
`$
`53.0%
`
`49.9%
` 1,120
`
` 977
`Segment profit* .....................
`
`
`
`
`
`
`
`
`
`
`* Segment profit consists of gross profit, less S&M and R&D expenses related to the segment.
`Segment profit does not include G&A expenses, amortization and certain other items.
`
`Beginning in 2015, expenses related to equity compensation are excluded from our segment results.
`The data presented have been conformed to reflect the exclusion of equity compensation expenses
`for all periods.
`
`
`
`
`Specialty Medicines Revenues
`Specialty medicines revenues in the first quarter of 2015 amounted to $2.0 billion, a
`decrease of 7% compared to the first quarter of 2014. U.S. specialty medicines
`revenues amounted to $1.5 billion, down 3% compared to the first quarter of 2014.
`European specialty medicines revenues amounted to $405 million, a decrease of 16%,
`but an increase of 1% in local currency terms, compared to the first quarter of 2014.
`ROW specialty medicines revenues amounted to $72 million, down 29%, or 19% in
`local currency terms, compared to the first quarter of 2014.
`Specialty medicines revenues comprised 40% of our total revenues in the quarter,
`compared to 42% in the first quarter of 2014.
`The decrease in specialty medicines revenues from the first quarter of 2014 was
`primarily due to lower sales of Copaxone®, which were partially offset by higher
`revenues of our respiratory products.
`
`
`
`8
`
`Page 8 of 14
`
`YEDA EXHIBIT NO. 2024
`MYLAN PHARM. v YEDA
`IPR2014-00643
`
`
`
`
`
`
`
`The following table presents revenues by therapeutic area and key products for our
`specialty medicines segment for the three months ended March 31, 2015 and 2014:
`
`
`
`
`
`CNS ....................................................
` Copaxone® .....................................
` Azilect® .........................................
` Nuvigil® .........................................
`Respiratory .......................................
` ProAir® ...........................................
` Qvar® .............................................
`Oncology ..........................................
` Treanda® ........................................
`Women's Health ...............................
`Other Specialty ..................................
`Total Specialty Medicines ................
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`$
`
`
`
`
`
`
`
`
`
`
`$
`
`
`
`
`Three Months Ended
`March 31,
`2014
`
`2015
`U.S. $ in millions
` 1,220
` $
` 924
`
`
` 107
`
`
` 85
`
`
` 265
`
`
` 124
`
`
` 98
`
`
` 264
`
`
` 157
`
`
` 129
`
`
` 78
`
`
` 1,956
` $
`
`
`
`
`
`
`Percentage
`Change
`2015 - 2014
`
`(14%)
`(14%)
`(6%)
`(16%)
`15%
`9%
`38%
`1%
`(13%)
`4%
`(8%)
`(7%)
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
` 1,413
` 1,070
` 114
` 101
` 230
` 114
` 71
` 262
` 180
` 124
` 85
` 2,114
`
`
`Global sales of Copaxone® (20 mg/mL and 40 mg/mL), the leading multiple sclerosis
`therapy in the U.S. and globally, amounted to $924 million, a decrease of 14%
`compared to the first quarter of 2014.
`In the United States, sales of Copaxone® amounted to $732 million, a decrease of 10%
`compared to the first quarter of 2014. At the end of the first quarter of 2015,
`according to March 2015 IMS data, our U.S. market shares for the Copaxone®
`products in terms of new and total prescriptions were 31.9% and 30.6%, respectively.
`Copaxone® 40 mg/mL accounted for 66% of total Copaxone® prescriptions in the
`U.S. The decline in revenues mainly reflects unusually strong sales in the first quarter
`of 2014 due to inventory stocking in connection with the launch of Copaxone® 40
`mg/mL in January 2014.
`In April 2015, Sandoz announced that it had obtained final approval of its ANDA for
`a generic version of once daily Copaxone® 20 mg/mL. Sandoz could begin selling its
`generic product at any time.
`Sales outside the United States amounted to $192 million, a decrease of 24%, or 10%
`in local currency terms, compared to the first quarter of 2014, as a result of lower
`volumes sold.
`Our global Azilect® revenues amounted to $107 million, a decrease of 6% compared
`to the first quarter of 2014. In local currency terms, revenues increased 1%. Global in-
`market revenues decreased 6%.
`
`9
`
`Page 9 of 14
`
`YEDA EXHIBIT NO. 2024
`MYLAN PHARM. v YEDA
`IPR2014-00643
`
`
`
`
`
`
`
`Sales of our respiratory products amounted to $265 million in the first quarter of
`2015, up 15% compared to the first quarter of 2014. ProAir® revenues amounted to
`$124 million in the first quarter of 2015, up 9% compared to the first quarter of 2014,
`mainly due to volume growth. In April 2015, the FDA approved ProAir® RespiClick
`(albuterol sulfate) inhalation powder, a breath-actuated, multi-dose, dry-powder,
`short-acting beta-agonist inhaler. The product is expected to become commercially
`available to patients in the U.S. during the second quarter of 2015.
`Qvar® revenues amounted to $98 million in the first quarter of 2015, an increase of
`38% compared to the first quarter of 2014, due to volume growth.
`Sales of our oncology products amounted to $264 million in the first quarter of 2015,
`in line with results in the first quarter of 2014. Sales of Treanda® amounted to $157
`million in the first quarter of 2015, a decrease of 13% compared to the first quarter of
`2014. The decrease in Treanda® sales was mainly due to lower volumes caused by
`purchases of the newly launched liquid formulation of Treanda® in the fourth quarter
`of 2014, which led to higher levels of customer inventories as of December 31, 2014.
`In April 2015, Eagle's NDA for a liquid bendamustine hydrochloride rapid infusion
`product, for which Teva has an exclusive license, was accepted for filing by the FDA.
`This product candidate has received Orphan Drug Designations for both CLL and
`indolent B-cell NHL, and therefore may be eligible for seven years of exclusivity upon
`approval.
`
`Specialty Medicines Gross Profit
`Gross profit from our specialty medicines segment amounted to $1.7 billion in the
`first quarter of 2015, a decrease of 9% compared to the first quarter of 2014. The
`decrease was mainly the result of the lower sales of our specialty medicines.
`Gross profit margin for our specialty medicines segment in the first quarter of 2015
`was 85.8%, compared to 87.2% in the first quarter of 2014.
`
`Specialty Medicines Profit
`Our specialty medicines segment profit amounted to $1.0 billion in the first quarter of
`2015, a decrease of 13% compared to the first quarter of 2014, mainly due to lower
`revenues, which were partially offset by lower S&M and R&D expenses.
`Specialty medicines profitability as a percentage of segment revenues was 49.9% in
`the first quarter of 2015, down from 53.0% in the first quarter of 2014.
`
`
`
`10
`
`Page 10 of 14
`
`YEDA EXHIBIT NO. 2024
`MYLAN PHARM. v YEDA
`IPR2014-00643
`
`
`
`
`
`
`
`
`
`Revenues
`Gross profit
`R&D expenses
`S&M expenses
`MS profit
`
`
`
`The following tables present details of our multiple sclerosis franchise and of our
`other specialty medicines for the three months ended March 31, 2015 and 2014:
`Multiple Sclerosis
`Three months ended March 31,
`2015
`2014
`
`U.S.$ in millions / % of MS Revenues
`
`
`
`
`$
`
`
`
`$
`
`
` 924 100.0%
` 819
`88.6%
` 27
`2.9%
` 135
`14.6%
` 657
`71.1%
`
`
`
`
`
` $
`
`
`
`
`
`
` $
`
`
` 1,070 100.0%
` 961
`89.8%
` 22
`2.1%
` 165
`15.4%
` 774
`72.3%
`
`Other Specialty
`Three months ended March 31,
`2015
`2014
`
`U.S.$ in millions / % of Other Specialty Revenues
`
`
`
`
`
`
` 1,044 100.0%
` 882
`84.5%
` 204
`19.5%
` 332
`31.8%
` 346
`33.1%
`
`
`
`
`
`
`
`
`
`
` $
` 1,032 100.0%
`$
`Revenues
` 859
`83.2%
`Gross profit
`
`
`
` 188
`18.2%
`R&D expenses
`
`
`
` 351
`34.0%
`S&M expenses
`
`
`
` $
` 320
`31.0%
`$
`Other Specialty profit
`
`
`
`
`
`
`
`Beginning in 2015, expenses related to equity compensation are excluded from our franchise results.
`The data presented have been conformed to reflect the exclusion of equity compensation expenses for
`all periods.
`
`Other Activities
`Our OTC revenues related to PGT amounted to $212 million, a decrease of 4%
`compared to $220 million in the first quarter of 2014. In local currency terms,
`revenues increased 20%. The increase in local currency terms was mainly due to
`higher sales following a relatively harsh cough and cold season. PGT’s in-market
`sales amounted to $374 million in the first quarter of 2015, an increase of $18 million
`compared to the first quarter of 2014. This increase was due to higher volumes,
`partially offset by foreign currency exchange fluctuations.
`Our revenues from OTC products in the first quarter of 2015 amounted to $213
`million, compared to $269 million in the first quarter of 2014. The decline was mainly
`due to the sale of our U.S. OTC plants, previously purchased from P&G, back to P&G
`in July 2014.
`
`11
`
`Page 11 of 14
`
`YEDA EXHIBIT NO. 2024
`MYLAN PHARM. v YEDA
`IPR2014-00643
`
`
`
`
`
`
`
`Other revenues amounted to $192 million in the first quarter of 2015, mostly from the
`distribution of third-party products in Israel and Hungary, compared to sales of $220
`million in the first quarter of 2014.
`
`Dividend and Share Repurchase Program
`The Board of Directors, at its meeting on April 28, 2015, declared a cash dividend for
`the first quarter of 2015 of $0.34.
`The record date will be May 19, 2015, and the payment date will be June 4, 2015.
`Tax will be withheld at a rate of 15%.
`In the first quarter of 2015, we repurchased approximately 8 million shares at a
`weighted average price of $57.09 per share, for an aggregate purchase price of $0.4
`billion.
`
`Conference Call
`Teva will host a conference call and live webcast to discuss its results for the first
`quarter of 2015 and overall business environment on Thursday, April 30, 2015, at
`8:00 a.m. EST. A Question & Answer session will follow this discussion.
`In order to participate, please dial the following numbers (at least 10 minutes before
`the scheduled start time): United States 1-866-926-5708; Canada 1-866-925-0823;
`Israel 1-809-431443; or International +44(0) 1452 560304; passcode: 28107594. For a
`list of other international toll-free numbers, click here.
`A live webcast of the call will also be available on Teva's website at:
`www.tevapharm.com. Please log in at least 10 minutes prior to the conference call in
`order to download the applicable audio software.
`Following the conclusion of the call, a replay of the webcast will be available within
`24 hours on the Company's website. The replay can also be accessed until June 1,
`2015, 10:00 a.m. ET by calling United States 1-866-247-4222; Canada 1-866-878-
`9237; or International +44(0) 1452 550000; passcode: 28107594.
`
`About Teva
`Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is a leading global
`pharmaceutical company
`that delivers high-quality, patient-centric healthcare
`solutions to millions of patients every day. Headquartered in Israel, Teva is the
`world’s largest generic medicines producer, leveraging its portfolio of more than
`1,000 molecules to produce a wide range of generic products in nearly every
`therapeutic area. In specialty medicines, Teva has a world-leading position in
`innovative treatments for disorders of the central nervous system, including pain, as
`
`12
`
`Page 12 of 14
`
`YEDA EXHIBIT NO. 2024
`MYLAN PHARM. v YEDA
`IPR2014-00643
`
`
`
`
`
`
`
`well as a strong portfolio of respiratory products. Teva integrates its generics and
`specialty capabilities in its global research and development division to create new
`ways of addressing unmet patient needs by combining drug development capabilities
`with devices, services and technologies. Teva's net revenues in 2014 amounted to
`$20.3 billion. For more information, visit www.tevapharm.com.
`
`
`
`Teva's Safe Harbor Statement under the U. S. Private Securities Litigation Reform Act of 1995:
`
`The following discussion and analysis contains forward-looking statements, which are based on management’s
`current beliefs and expectations and involve a number of known and unknown risks and uncertainties that could
`cause our future results, performance or achievements to differ significantly from the results, performance or
`achievements expressed or implied by such forward-looking statements. Important factors that could cause or
`contribute to such differences include risks relating to: our ability to develop and commercialize additional
`pharmaceutical products; competition for our specialty products, especially Copaxone® (including competition
`from orally-administered alternatives, as well as from generic equivalents such as the Sandoz product recently
`approved by the FDA) and our ability to migrate users to our 40 mg/mL version and maintain patients on that
`version; our ability to identify and successfully bid for suitable acquisition targets or licensing opportunities, or to
`consummate and integrate acquisitions; the possibility of material fines, penalties and other sanctions and other
`adverse consequences arising out of our ongoing FCPA investigations and related matters; our ability to achieve
`expected results from the research and development efforts invested in our pipeline of specialty and other
`products; our ability to reduce operating expenses to the extent and during the timeframe intended by our cost
`reduction program; the extent to which any manufacturing or quality control problems damage our reputation for
`quality production and require costly remediation; increased government scrutiny in both the U.S. and Europe of
`our patent settlement agreements; our exposure to currency fluctuations and restrictions as well as credit risks;
`the effectiveness of our patents, confidentiality agreements and other measures to protect the intellectual property
`rights of our specialty medicines; the effects of reforms in healthcare regulation and pharmaceutical pricing,
`reimbursement and coverage; governmental investigations into sales and marketing practices, particularly for our
`specialty pharmaceutical products; adverse effects of political or economic instability, major hostilities or acts of
`terrorism on our significant worldwide operations; interruptions in our supply chain or problems with internal or
`third-party information technology systems that adversely affect our complex manufacturing processes; significant
`disruptions of our information technology systems or breaches of our data security; competition for our generic
`products, both from other pharmaceutical companies and as a result of increased governmental pricing pressures;
`competition for our specialty pharmaceutical businesses from companies with greater resources and capabilities;
`the impact of continuing consolidation of our distributors and customers; decreased opportunities to obtain U.S.
`market exclusivity for significant new generic products; potential liability in the U.S., Europe and other markets
`for sales of generic products prior to a final resolution of outstanding patent litigation; our potential exposure to
`product liability claims that are not covered by insurance; any failure to recruit or retain key personnel, or to
`attract additional executive and managerial talent; any failures to comply with complex Medicare and Medicaid
`reporting and payment obligations; significant impairment charges relating to intangible assets, goodwill and
`property, plant and equipment; the effects of increased leverage and our resulting reliance on access to the capital
`markets; potentially 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 business; variations in
`patent laws that may adversely affect our ability to manufacture our products in the most efficient manner;
`environmental risks; and other factors that are discussed in our Annual Report on Form 20-F for the year ended
`December 31, 2014 and in our other filings with the U.S. Securities and Exchange Commission (the "SEC").
`
`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 in this report, whether as a result
`13
`
`Page 13 of 14
`
`YE