Teva's Successful Hunt for Profits: Huntington's Treatment Spurs Growth and Opens Doors for New Drug Ventures

Teva Pharmaceutical Industries (TEVA) has announced second-quarter earnings on account of the exceptional achievement of its groundbreaking Austedo treatment for Huntington's disease. The positive news has caused a surge in the company's shares, which rose by as much as 14%.

Under the leadership of Chief Executive Richard Francis, Teva is placing its hopes on three branded drugs: Austedo, Ajovy (a migraine product), and Uzedy (a recently launched schizophrenia drug). Francis believes that these drugs will help the company recover from a challenging period.

"I've been pleased. I think there's still work to be done, but it's on a journey and it just shows that with focus Austedo could achieve good results," stated Francis.

Teva has faced difficulties in the past few years due to the loss of exclusivity for its blockbuster multiple sclerosis drug, Copaxone, as well as the burden of $35 billion in debt. The company has also been embroiled in lawsuits related to its alleged contribution to the U.S. opioid epidemic.

Teva expects that the sales of Austedo will reach approximately $1.2 billion in 2023, an increase from $971 million last year. It anticipates sales reaching $2.5 billion by 2027, as the drug could also benefit the nearly 800,000 individuals suffering from tardive dyskinesia, a condition that Francis believes is under-diagnosed.

The company revealed that the U.S. market for drugs such as Uzedy, which was launched in May, is valued at approximately $4 billion. While significant sales are not expected until 2024, Francis expressed optimism about Uzedy's potential market share, estimating it could capture 10% to 20% of the market, making it a $400 million to $800 million product.

Despite a crowded marketplace, Teva remains committed to launching a biosimilar of AbbVie's blockbuster arthritis drug, Humira, next year.

In terms of financials, Teva earned 56 cents per share (excluding one-time items) in the second quarter, down from 68 cents per share during the same period last year. Revenue increased by 2% to $3.9 billion, with Austedo sales in North America rising by 51% to $308 million, and Ajovy sales growing by 16% to $57 million.

Teva has revised its 2023 revenue forecast to a range of $15.0 billion to $15.4 billion, compared to the previous range of $14.8 billion to $15.4 billion. The company maintained its adjusted earnings per share forecast of $2.25 to $2.55 for 2023, compared to $2.52 in 2022. Net debt decreased from $20 billion to $18 billion.