Deutetrabenazine

For an accessible version of this Press Release, please visit www.tevapharm.com On track for 30% operating profit margin by 2027 in line with our Pivot to Growth Strategy; Q1 2025 shows ninth consecutive quarter of revenue growth, excluding revenues recorded for Sanofi collaboration.Q1 2025 revenues of $3.9 billion, an increase of 5%; net of $100 million foreign exchange impact, reported revenues growth of 2%.AUSTEDO® – shows continued strong growth, with worldwide revenues of $411 million in Q1 2025, an increase of 39% in local currency terms compared to Q1 2024; increasing 2025 full-year revenue outlook from ~$1.9-2.05 billion to $1.95-2.05 billion.AJOVY® – global revenues of $139 million in Q1 2025, an increase of 26% in local currency terms compared to Q1 2024. Reaffirming $600M 2025 revenue outlook.UZEDY® continues strong momentum – global revenues of $39 million in Q1 2025.The generics business grew across all regions – increased by 5% in the U.S., 1% in Europe and 2% in International Markets, all in local currency terms, as compared to Q1 2024. Duvakitug (Anti-TL1A) Phase 3 ready; program initiation expected in H2 2025; preparing for olanzapine LAI FDA NDA submission in H2 2025.Transforming Teva: Targeted programs to deliver~$700 million of net savings, after incremental reinvestment behind growth, to transform Teva into a modern biopharmaceutical company and achieving 30% operating margin target in 2027.Current, confirmed U.S. tariffs expected to have immaterial impact; absorbed in updated 2025 non-GAAP outlook.Teva to host Innovation & Strategy Day on Thursday, May 29 in New York, NY. Q1 2025 Highlights: Revenues of $3.9 billionGAAP diluted EPSof $0.18Non-GAAP diluted EPS of $0.52, an increase of $0.04 or 8% year-over-yearCash flow used in operating activities of $105 millionFree cash flow of $107 millionUnderlying full-year outlook increased, excluding the impact of the Japan BV divestiture which closed on March 31, 2025 full year 2025 business outlook(1)(2)revised: Revenues of $16.8 ‐ $17.2 billion (-$200 million impact from at the high-end)Non‐GAAP operating income of $4.3‐$4.6 billion (+$200 million at the low-end; mid-point increased by $100 million)Adjusted EBITDA of $4.7 ‐ $5.0 billion(+$200 million at the low-end; same as above) Non‐GAAP diluted EPS of $2.45 ‐ $2.65 (+$0.10 at the low-end, mid-point increased by $0.10)Free cash flow of $1.6 ‐ $1.9 billion (unchanged) (1) Revised 2025 outlook now includes no contribution from the Japan BV after Q1 and continues to include a full year contribution from Teva API, as well as exclude the expected income from development milestone payments from Sanofi in connection with the Phase 3 ulcerative colitis and Crohn’s Disease initiations for duvakitug. (2) This outlook is based on the existing tariff and trade environment as of May 7, 2025, and does not reflect any policy shifts, including pharmaceutical sector tariffs, that could impact business. TEL AVIV, May 07, 2025 (GLOBE NEWSWIRE) -- Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) today reported results for the quarter ended March 31, 2025. Mr. Richard Francis, Teva's President and CEO, said, “Teva had a solid start to the year, with its ninth consecutive quarter of revenue growth, delivering global revenues of $3.9 billion, an increase of 5% in local currency terms compared to the first quarter of 2024. Our key innovative growth drivers continue to show strong momentum, collectively generating revenues of $589 million while each growing more than 25% year over year. We also achieved solid generics performance across all regions with biosimilars rounding out the portfolio.” Mr. Francis continued, “Now entering the Acceleration Phase of our Pivot to Growth Strategy, we have a clear roadmap to continue Teva's transformation into a leading biopharmaceutical company with an expected 30% operating margin and today have announced ~$700 million net savings by 2027. We’re accelerating innovative growth and strengthening our generics business, while streamlining our operations, sharpening our business and optimizing processes. With these results, we are revising our 2025 outlook and reaffirming our 2027 targets.” Pivot to Growth Strategy In Q1 2025, we continued to execute on the four key pillars of our Pivot to Growth strategy, which we announced in May 2023. Delivering on our Growth Engines - on the first pillar, we continued to demonstrate strong performance of our key innovative products – AUSTEDO, AJOVY, and UZEDY. Collectively, these products grew ~39% year-over-year in the first quarter. This growth is driven by the strength of their product profiles, continued investments to promote awareness and access, and focused execution by our sales and marketing teams globally.Stepping Up Innovation - on the second pillar, we accelerated the development of certain key pipeline assets, including the recent positive Phase 2b results for duvakitug (anti-TL1A) in Crohn’s Disease and ulcerative colitis. We anticipate upcoming milestones for olanzapine LAI (NDA filing in 2025) and for DARI (Dual-action Asthma Rescue Inhaler; Phase 3 full enrollment in 2025 and potential Phase 3 event-driven read-out in 2026), as well the announcement of the start of the Phase 3 IBD programs for duvakitug in H2 2025.Sustaining Our Generics Powerhouse - under the third pillar, we remained focused on strengthening our position as a global leader in generic medicines with a streamlined portfolio, robust pipeline, integrated manufacturing and global commercial footprint. In the past few quarters, we achieved several successful launches of biosimilars and other high-value complex generics including liraglutide, octreotide, SIMLANDI® (adalimumab-ryvk), SELARSDITM (ustekinumab-aekn) and Epysqli® (eculizumab-aagh).Focusing our Business - Lastly, on our fourth pillar, to accelerate our growth we are actively transforming our business through portfolio and global manufacturing footprint optimization. Our ongoing efforts to allocate capital appropriately include debt repayment of $1.4 billion at maturity, our recently completed divestment of our business venture in Japan, our intention to divest our API business through a sale, and ongoing programs to improve working capital efficiency.Teva is moving into the second phase of our Pivot to Growth strategy – Acceleration. We will focus on growing our innovative portfolio, modernizing and simplifying our organization and operations, reinforcing our commitment to patents, and aligning capital allocation to invest in the highest value activities. Teva continues in its effort to sell its active-pharmaceutical ingredient (API) business and is engaged with prospective purchasers. The timing and structure of the planned transaction are subject to ongoing consideration and the consummation of the sale remains contingent on reaching a definitive agreement, subject to approval by Teva's Board of Directors. On December 31, 2024, Teva classified its API business (including its R&D, manufacturing and commercial activities) as held for sale. First Quarter 2025 Consolidated Results Revenues in the first quarter of 2025 were $3,891 million, an increase of 2% in U.S. dollars or 5% in local currency terms, compared to the first quarter of 2024. This increase was mainly due to higher revenues from AUSTEDO in our United States segment, from generic products in all our segments, from AJOVY in all our segments, as well as from UZEDY in our U.S. segment, partially offset by lower revenues from the sale of mature innovative product rights in 2024. Exchange rate movements during the first quarter of 2025, including hedging effects, negatively impacted revenues by $101 million, compared to the first quarter of 2024. Exchange rate movements during the first quarter of 2025, including hedging effects, negatively impacted our operating income by $50 million and non-GAAP operating income by $51 million compared to the first quarter of 2024. Gross profit in the first quarter of 2025 was $1,877 million, an increase of 6% compared to $1,771 million in the first quarter of 2024. Gross profit margin was 48.2% in the first quarter of 2025, compared to 46.4% in the first quarter of 2024. Non-GAAP gross profit was $2,054 million in the first quarter of 2025, an increase of 5% compared to $1,963 million in the first quarter of 2024. Non-GAAP gross profit margin was 52.8% in the first quarter of 2025, compared to 51.4% in the first quarter of 2024. The increase in both gross profit margin and non-GAAP gross profit margin was mainly due to a favorable mix of products, primarily driven by higher revenues from AUSTEDO, partially offset by a negative impact from foreign exchange rate movements including hedging effects. Research and Development (R&D) expenses, net in the first quarter of 2025 were $247 million, an increase of 2% compared to $242 million in the first quarter of 2024. Our higher R&D expenses, net in the first quarter of 2025 compared to the first quarter of 2024, were mainly due to an increase in immunology and in immuno-oncology projects, as well as in our late-stage innovative pipeline in neuroscience (mainly neuropsychiatry), partially offset by the non-recurrence of milestone payments related to certain biosimilar projects in the first quarter of 2025. Selling and Marketing (S&M) expenses in the first quarter of 2025 were $622 million, an increase of 2% compared to the first quarter of 2024. This increase was mainly to support revenue growth. General and Administrative (G&A) expenses in the first quarter of 2025 were $297 million, an increase of 7% compared to the first quarter of 2024. Other loss in the first quarter of 2025 was $5 million, compared to $1 million in the first quarter of 2024. Operating Income in the first quarter of 2025 was $519 million, compared to an operating loss of $218 million in the first quarter of 2024. Operating income as a percentage of revenues was 13.3% in the first quarter of 2025, compared to an operating loss as a percentage of revenues of 5.7% in the first quarter of 2024. This increase was mainly due to other asset impairments, restructuring and other items in the first quarter of 2024 as well as higher gross profit in the first quarter of 2025. Non-GAAP operating income in the first quarter of 2025 was $946 million representing a non-GAAP operating margin of 24.3% compared to non-GAAP operating income of $892 million representing a non-GAAP operating margin of 23.4% in the first quarter of 2024. The increase in non-GAAP operating margin in the first quarter of 2025 was due to higher gross profit margin, partially offset by an increase of operating expenses as a percentage of revenues. Financial expenses, net in the first quarter of 2025, were $225 million, mainly comprised of net-interest expenses of $212 million. In the first quarter of 2024, financial expenses, net were $250 million, mainly comprised of net-interest expenses of $233 million. In the first quarter of 2025, we recognized a tax expense of $74 million, on a pre-tax income of $294 million. In the first quarter of 2024, we recognized a tax benefit of $52 million, on a pre-tax loss of $467 million. Non-GAAP tax rate in the first quarter of 2025 was 17.5%, compared to 15.0% in the first quarter of 2024. Our non-GAAP tax rate in the first quarter of 2025 was mainly affected by the generation of profits in various jurisdictions in which tax rates are different than the Israeli tax rate as well as infrequent or non-recurring items. Our non-GAAP tax rate in the first quarter of 2024 was mainly affected by deferred tax benefits resulting from IP-related integration plans, the generation of profits in various jurisdictions with different tax rates, tax benefits in Israel and other countries, as well as infrequent or non-recurring items. We expect our annual non-GAAP tax rate for 2025 to be between 15%-18%, slightly higher than our non-GAAP tax rate for 2024, which was 15.3%, mainly due to net tax benefit related to deferred tax assets resulting from intellectual property-related integration plans in 2024. Net income attributable to Teva and diluted earnings per share in the first quarter of 2025 were $214 million and $0.18, respectively, compared to net loss attributable to Teva and loss per share of $139 million and $0.12, respectively, in the first quarter of 2024. This change was mainly due to higher operating income in the first quarter of 2025, partially offset by higher net loss attributable to redeemable and non-redeemable non-controlling interests in the first quarter of 2024 as well as higher income taxes in the first quarter of 2025, as discussed above. Non-GAAP net income attributable to Teva and non-GAAP diluted earnings per share in the first quarter of 2025 were $602 million and $0.52, respectively, compared to $548 million and $0.48, respectively, in the first quarter of 2024. Adjusted EBITDA was $1,041 million in the first quarter of 2025, an increase of 4%, compared to $1,005 million in the first quarter of 2024. As of March 31, 2025 and 2024, the fully diluted share count for purposes of calculating our market capitalization was approximately 1,178 million shares and 1,167 million shares, respectively. Non-GAAP information: net non-GAAP adjustments in the first quarter of 2025 were $388 million. Non-GAAP net income attributable to Teva and non-GAAP diluted EPS for the first quarter of 2025 were adjusted to exclude the following items: Amortization of purchased intangible assets of $145 million, of which $135 million is included in cost of sales and the remaining $10 million in S&M expenses;Impairment of long-lived assets in the amount of $77 million;Legal settlements and loss contingencies of $83 million;Contingent consideration expenses of $11 million;Equity compensation expenses of $34 million;Restructuring expenses of $14 million;Financial expenses of $14 million;Other non-GAAP items of $63 million;Items attributable to redeemable non-controlling interests of $2 million; andCorresponding tax effects and unusual tax items of $55 million; We believe that excluding such items facilitates investors’ understanding of our business including underlying performance trends, thereby improving the comparability of our business performance results between reporting periods. For a reconciliation of the U.S. GAAP results to the adjusted non-GAAP figures and for additional information, see the tables below and the information included under “Non-GAAP Financial Measures.” Investors should consider non-GAAP financial measures in addition to, and not as replacement for, or superior to, measures of financial performance prepared in accordance with GAAP. Cash flow used in operating activities during the first quarter of 2025 was $105 million, compared to $124 million of cash flow used in operating activities in the first quarter of 2024. The lower cash flow used in operating activities in the first quarter of 2025 resulted mainly from higher profit in our U.S. segment, partially offset by higher tax payments. Net changes in working capital items were neutral. During the first quarter of 2025, we generated free cash flow of $107 million, which we define as comprising $105 million in cash flow used in operating activities, $322 million in beneficial interest collected in exchange for securitized accounts receivables (under our EU securitization program) and $17 million proceeds from divestitures of businesses and other assets, partially offset by $127 million in cash used for capital investment. During the first quarter of 2024, we generated free cash flow of $32 million, which we define as comprising $124 million in cash flow used in operating activities, $295 million in beneficial interest collected in exchange for securitized accounts receivables (under our EU securitization program), partially offset by $124 million in cash used for capital investment and $15 million in cash used for acquisition of businesses, net of cash acquired. The increase in 2025 resulted mainly from higher proceeds from divestitures of businesses and other assets and lower cash used for acquisition of businesses, net of cash acquired, as well as from lower cash flow used in operating activities. As of March 31, 2025, our debt was $16,651 million, compared to $17,783 million as of December 31, 2024. This decrease was mainly due to repayment at maturity of $1,368 million of our senior notes, partially offset by $233 million of exchange rate fluctuations. The portion of total debt classified as short-term as of March 31, 2025 was 3% compared to 10% as of December 31, 2024. Our average debt maturity was approximately 5.7 years as of March 31, 2025, compared to 5.5 years as of December 31, 2024. Segment Results for the First Quarter of 2025 United States Segment The following table presents revenues, expenses and profit for our United States segment for the three months ended March 31, 2025 and 2024: Three months ended March 31, 2025 2024 (U.S. $ in millions / % of Segment Revenues) Revenues $ 1,910 100% $ 1,725 100% Cost of sales 851 44.6% 867 50.2% Gross profit 1,058 55.4% 858 49.8% R&D expenses 154 8.1% 154 8.9% S&M expenses 273 14.3% 261 15.1% G&A expenses 96 5.0% 93 5.4% Other 3 § 1 § Segment profit* $ 532 27.9% $ 350 20.3% * Segment profit does not include amortization and certain other items.§ Represents an amount less than 0.5%. Revenues from our United States segment in the first quarter of 2025 were $1,910 million, an increase of $184 million, or 11%, compared to the first quarter of 2024. This increase was mainly due to higher revenues from our innovative products, mainly AUSTEDO and UZEDY, as well as higher revenues from generic products. Revenues by Major Products and Activities The following table presents revenues for our United States segment by major products and activities for the three months ended March 31, 2025 and 2024: Three months endedMarch 31, PercentageChange 2025 2024 2025-2024 (U.S. $ in millions) Generic products (including biosimilars) $ 849 $ 808 5% AJOVY 53 45 18% AUSTEDO 396 282 40% BENDEKA and TREANDA 36 46 (20%) COPAXONE 54 30 79% UZEDY 39 15 156% Anda 373 381 (2%) Other 109 117 (7%) Total $ 1,910 $ 1,725 11% Generic products (including biosimilars) revenues in our United States segment in the first quarter of 2025 were $849 million, an increase of 5% compared to the first quarter of 2024. This increase was mainly driven by higher revenues from lenalidomide capsules (the generic version of Revlimid®) and the launch of SIMLANDI (adalimumab-ryvk) injection (the biosimilar to Humira®). Among the most significant generic products we sold in the United States in the first quarter of 2025 were lenalidomide capsules (the generic version of Revlimid®), Truxima® (the biosimilar to Rituxan®) and epinephrine injectable solution (the generic equivalent of EpiPen® and EpiPen Jr®). In the first quarter of 2025, our total prescriptions were approximately 273 million (based on trailing twelve months), representing 7.1% of total U.S. generic prescriptions, compared to approximately 314 million (based on trailing twelve months), representing 8.2% of total U.S. generic prescriptions in the first quarter of 2024, all according to IQVIA data. On February 21, 2025, Teva launched SELARSDI (ustekinumab-aekn) injection for subcutaneous use, as a biosimilar to Stelara®, for the treatment of moderate to severe plaque psoriasis and for active psoriatic arthritis in adults and pediatric patients six years and older. On May 5, 2025, Teva and Alvotech announced that the FDA has approved SELARSDI (ustekinumab-aekn) injection as interchangeable with the reference biologic Stelara® (ustekinumab) in all presentations matching the reference product, effective as of April 30, 2025. AJOVY revenues in our United States segment in the first quarter of 2025 were $53 million, an increase of 18% compared to the first quarter of 2024, mainly due to growth in volume. In the first quarter of 2025, AJOVY’s exit market share in the United States in terms of total number of prescriptions was 30.2% compared to 27.4% in the first quarter of 2024. AUSTEDO revenues in our United States segment in the first quarter of 2025 increased by 40%, to $396 million, compared to $282 million in the first quarter of 2024. This increase was mainly due to growth in volume, including the approval of AUSTEDO XR one pill, once-daily treatment in May 2024. AUSTEDO XR (deutetrabenazine) extended-release tablets was approved by the FDA on February 17, 2023 in three doses of 6, 12 and 24 mg, and became commercially available in the U.S. in May 2023. The FDA approved AUSTEDO XR as a one pill, once-daily treatment option in doses of 30, 36, 42, and 48 mg in May 2024 and in 18 mg in July 2024. AUSTEDO XR is a once-daily formulation indicated in adults for tardive dyskinesia and chorea associated with Huntington’s disease, which is additional to the currently marketed twice-daily AUSTEDO. AUSTEDO XR is protected by 11 Orange Book patents expiring between 2031 and 2041. On January 17, 2025, the Centers for Medicare and Medicaid Services (“CMS”) released a list of prescription medicines selected for price-setting discussions, which included AUSTEDO and AUSTEDO XR. The price-setting process has commenced, and the revised prices set by the government, which will apply to eligible Medicare patients, are expected to become effective on January 1, 2027. As the price-setting process is still in its early stages, the extent to which prices for AUSTEDO and AUSTEDO XR will change as a result of such discussions remains uncertain. UZEDY (risperidone) extended-release injectable suspension revenues in our United States segment in the first quarter of 2025 were $39 million, an increase of 156% compared to the first quarter of 2024, mainly due to growth in volume. UZEDY (risperidone) extended-release injectable suspension was approved by the FDA on April 28, 2023 for the treatment of schizophrenia in adults, and was launched in the U.S. in May 2023. UZEDY is a subcutaneous, long-acting formulation of risperidone that controls the steady release of risperidone. UZEDY is protected by four Orange Book patents expiring between 2027 and 2040. UZEDY is protected by regulatory exclusivity until April 28, 2026. We are moving forward with plans to launch UZEDY in other countries around the world. UZEDY faces competition from multiple other products. BENDEKA and TREANDA combined revenues in our United States segment in the first quarter of 2025 were $36 million, a decrease of 20% compared to the first quarter of 2024, mainly due to competition from alternative therapies, as well as the entry of generic bendamustine products into the market. The orphan drug exclusivity that had attached to bendamustine products expired in December 2022. COPAXONE revenues in our United States segment in the first quarter of 2025 were $54 million, an increase of 79% compared to the first quarter of 2024, mainly due to reduction in sales allowance, partially offset by market share erosion and competition. Anda revenues from third-party products in our United States segment in the first quarter of 2025 were $373 million, a decrease of 2%, compared to $381 million in the first quarter of 2024. This decrease was mainly due to lower volumes. Anda, our distribution business in the United States, distributes generic and innovative medicines and OTC pharmaceutical products from Teva and various third-party manufacturers to independent retail pharmacies, pharmacy retail chains, hospitals and physician offices in the United States. Anda is able to compete in the distribution market by maintaining a broad portfolio of products, competitive pricing and delivery throughout the United States. United States Gross Profit Gross profit from our United States segment in the first quarter of 2025 was $1,058 million, an increase of 23%, compared to $858 million in the first quarter of 2024. Gross profit margin for our United States segment in the first quarter of 2025 increased to 55.4%, compared to 49.8% in the first quarter of 2024. This increase was mainly due to a favorable mix of products primarily driven by higher revenues from AUSTEDO. United States Profit Profit from our United States segment consists of revenues less cost of sales, R&D expenses, S&M expenses, G&A expenses and other expenses (income) related to this segment. Segment profit does not include amortization and certain other items. Profit from our United States segment in the first quarter of 2025 was $532 million, an increase of 52% compared to $350 million in the first quarter of 2024. This increase was mainly due to higher gross profit, as discussed above. Europe Segment Our Europe segment includes the European Union, the United Kingdom and certain other European countries. The following table presents revenues, expenses and profit for our Europe segment for the three months ended March 31, 2025 and 2024: Three months ended March 31, 2025 2024 (U.S. $ in millions / % of Segment Revenues) Revenues $ 1,194 100% $ 1,272 100% Cost of sales 536 44.9% 534 42.0% Gross profit 658 55.1% 738 58.0% R&D expenses 60 5.1% 56 4.4% S&M expenses 199 16.7% 194 15.2% G&A expenses 69 5.8% 65 5.1% Other § § 1 § Segment profit* $ 329 27.6% $ 423 33.2% * Segment profit does not include amortization and certain other items.§ Represents an amount less than $0.5 million or 0.5%, as applicable. Revenues from our Europe segment in the first quarter of 2025 were $1,194 million, a decrease of 6%, or $78 million, compared to the first quarter of 2024. In local currency terms, revenues decreased by 2% compared to the first quarter of 2024, mainly due to lower revenues from COPAXONE and from the sale of mature innovative product rights in 2024, partially offset by higher revenues from AJOVY. In the first quarter of 2025, revenues were negatively impacted by exchange rate fluctuations of $55 million, including hedging effects, compared to the first quarter of 2024. Revenues in the first quarter of 2025, included $12 million from a negative hedging impact, which is included in “Other” in the table below. Revenues in the first quarter of 2024 included $8 million from a positive hedging impact, which is included in “Other” in the table below. Revenues by Major Products and Activities The following table presents revenues for our Europe segment by major products and activities for the three months ended March 31, 2025 and 2024: Three months endedMarch 31, PercentageChange 2025 2024 2025-2024 (U.S. $ in millions) Generic products (including OTC and biosimilars) $ 989 $ 1,004 (1%) AJOVY 58 51 14% COPAXONE 42 57 (27%) Respiratory products 55 66 (18%) Other 50 94 (46%) Total $ 1,194 $ 1,272 (6%) Generic products revenues (including OTC and biosimilar products) in our Europe segment in the first quarter of 2025, were $989 million, a decrease of 1% compared to the first quarter of 2024. In local currency terms, revenues increased by 1%, mainly due to higher volumes and price increases as a result of market conditions such as inflationary pressures in certain markets, as well as revenues from recently launched products. AJOVY revenues in our Europe segment in the first quarter of 2025 increased by 14% to $58 million, compared to $51 million in the first quarter of 2024. In local currency terms revenues increased by 18% due to growth in volume. COPAXONE revenues in our Europe segment in the first quarter of 2025 were $42 million, a decrease of 27% compared to the first quarter of 2024. In local currency terms revenues decreased by 24%, due to price reductions and a decline in volume resulting from the availability of alternative therapies and competing glatiramer acetate products. In certain countries, Teva remains in litigation against generic companies regarding COPAXONE. Respiratory products revenues in our Europe segment in the first quarter of 2025 were $55 million, a decrease of 18% compared to the first quarter of 2024. In local currency terms, revenues decreased by 16%, mainly due to net price reductions and lower volumes. Europe Gross Profit Gross profit from our Europe segment in the first quarter of 2025 was $658 million, a decrease of 11% compared to $738 million in the first quarter of 2024. Gross profit margin for our Europe segment in the first quarter of 2025 decreased to 55.1%, compared to 58.0% in the first quarter of 2024. This decrease was mainly due to a negative impact from hedging activities and unfavorable mix of products. Europe Profit Profit of our Europe segment consists of revenues less cost of sales, R&D expenses, S&M expenses, G&A expenses and other expenses (income) related to this segment. Segment profit does not include amortization and certain other items. Profit from our Europe segment in the first quarter of 2025 was $329 million, a decrease of 22%, compared to $423 million in the first quarter of 2024. This decrease was mainly due to lower gross profit, as discussed above. International Markets Segment Our International Markets segment includes all countries in which we operate other than the United States and the countries included in our Europe segment. The International Markets segment covers a substantial portion of the global pharmaceutical industry, including more than 35 countries. The countries in our International Markets segment include highly regulated, mainly generic markets, such as Canada and Israel, branded generics-oriented markets, such as Russia and certain Latin America markets and hybrid markets, such as Japan. On March 31, 2025, we closed the sale of our Teva-Takeda business venture in Japan. The business venture included generic products and legacy products. The following table presents revenues, expenses and profit for our International Markets segment for the three months ended March 31, 2025 and 2024: Three months ended March 31, 2025 2024 (U.S. $ in millions / % of Segment Revenues) Revenues $ 582 100% $ 597 100% Cost of sales 304 52.3% 300 50.3% Gross profit 278 47.7% 297 49.7% R&D expenses 25 4.3% 28 4.6% S&M expenses 118 20.2% 118 19.8% G&A expenses 39 6.7% 35 5.8% Other (1) § § § Segment profit* $ 97 16.7% $ 117 19.6% * Segment profit does not include amortization and certain other items.§ Represents an amount less than $0.5 million or 0.5%, as applicable. Revenues from our International Markets segment in the first quarter of 2025 were $582 million, a decrease of 2% compared to the first quarter of 2024. In local currency terms, revenues increased by 5% compared to the first quarter of 2024. This decrease was mainly due to higher revenues from AJOVY as well as generic products in most markets, partially offset by regulatory price reductions and generic competition to off-patented products in Japan. In the first quarter of 2025, revenues were negatively impacted by exchange rate fluctuations of $44 million, including hedging effects, compared to the first quarter of 2024. Revenues in the first quarter of 2025 included $15 million from a negative hedging impact, compared to a positive hedging impact of $4 million in the first quarter of 2024, which are included in “Other” in the table below. Revenues by Major Products and Activities The following table presents revenues for our International Markets segment by major products and activities for the three months ended March 31, 2025 and 2024: Three months endedMarch 31, PercentageChange 2025 2024 2025-2024 (U.S. $ in millions) Generic products (including OTC and biosimilars) $ 468 $ 477 (2%) AJOVY 28 17 65% AUSTEDO 15 14 4% COPAXONE 10 12 (11%) Other* 61 77 (21%) Total $ 582 $ 597 (2%) * Other revenues in the first quarter of 2025 include the sale of certain product rights. Generic products revenues (including OTC and biosimilar products) in our International Markets segment were $468 million in the first quarter of 2025, a decrease of 2% compared to the first quarter of 2024. In local currency terms, revenues increased by 2% compared to the first quarter of 2024, mainly due to higher revenues in most markets, largely driven by price increases as a result of higher costs due to inflationary pressure in certain markets and higher volumes, partially offset by regulatory price reductions and generic competition to off-patented products in Japan. AJOVY was launched in certain markets in our International Markets segment, including in Canada, Japan, Australia, Israel, South Korea, Brazil and others. AJOVY revenues in our International Markets segment in the first quarter of 2025 were $28 million, compared to $17 million in the first quarter of 2024, due to growth in existing markets in which AJOVY was launched. AUSTEDO was launched in China and Israel in 2021 and in Brazil in 2022, for the treatment of chorea associated with Huntington’s disease and for the treatment of tardive dyskinesia. In February 2024, we announced a strategic partnership for the marketing and distribution of AUSTEDO in China. We continue to pursue additional submissions in various other markets. AUSTEDO revenues in our International Markets segment in the first quarter of 2025 were $15 million compared to $14 million in the first quarter of 2024. In local currency terms, revenues increased by 6%, substantially due to the launch of a strategic partnership in China. COPAXONE revenues in our International Markets segment in the first quarter of 2025 were $10 million compared to $12 million in the first quarter of 2024. International Markets Gross Profit Gross profit from our International Markets segment in the first quarter of 2025 was $278 million, a decrease of 6% compared to $297 million in the first quarter of 2024. Gross profit margin for our International Markets segment in the first quarter of 2025 decreased to 47.7%, compared to 49.7% in the first quarter of 2024. This decrease was mainly due to a negative hedging impact, as well as regulatory price reductions and generic competition to off-patented products in Japan. International Markets Profit Profit of our International Markets segment consists of revenues less cost of sales, R&D expenses, S&M expenses, G&A expenses and other expenses (income) related to this segment. Segment profit does not include amortization and certain other items. Profit from our International Markets segment in the first quarter of 2025 was $97 million, a decrease of 17%, compared to $117 million in the first quarter of 2024. This decrease was mainly due to lower gross profit, as discussed above. Other Activities We have other sources of revenues, primarily the sale of APIs to third parties, certain contract manufacturing services and an out-licensing platform offering a portfolio of products to other pharmaceutical companies through our affiliate Medis. Our other activities are not included in our United States, Europe or International Markets segments described above. On January 31, 2024, we announced that we intend to divest our API business (including its R&D, manufacturing and commercial activities) through a sale. The intention to divest is in alignment with our Pivot to Growth strategy. However, there can be no assurance regarding the ultimate timing or structure of a potential divestiture or that a divestiture will be agreed or completed at all. Revenues from other activities in the first quarter of 2025 were $206 million, a decrease of 9% in U.S. dollars or 8% in local currency terms, compared to the first quarter of 2024, mainly due to a decrease in revenues from contract manufacturing services in the first quarter of 2025. API sales to third parties in the first quarter of 2025 were $130 million, reflecting an increase of 2% in both U.S. dollars and local currency terms, compared to the first quarter of 2024. Outlook for 2025 Non-GAAP Results $ billions, except EPS or as noted January 2025 Outlook May 2025 Outlook Revenues* $16.8 - $17.4 $16.8 - $17.2 AUSTEDO ($m)* 1,900-2,050 1,950-2,050 AJOVY ($m)* ~600 ~600 UZEDY ($m)* ~160 ~160 COPAXONE ($m)* ~370 ~370 Operating Income 4.1 - 4.6 4.3 - 4.6 Adjusted EBITDA 4.5 - 5.0 4.7 - 5.0 Tax Rate 15%-18% 15%-18% Finance Expenses ~0.9 ~0.9 Diluted EPS ($) 2.35 - 2.65 2.45 - 2.65 Free Cash Flow** 1.6 – 1.9 1.6 – 1.9 CAPEX* ~0.5 ~0.5 Foreign Exchange Volatile swings in FX can negatively impact revenue and income * Revenues and CAPEX presented on a GAAP basis. ** Free Cash Flow includes cash flow generated from operating activities net of capital expenditures and deferred purchase price cash component collected for securitized trade receivables. Conference Call Teva will host a conference call and live webcast along with a slide presentation on Wednesday, May 7, 2025 at 8:00 a.m. ET to discuss its first quarter 2025 financial results and overall business environment. A question & answer session will follow. In order to participate, please register in advance here to obtain a local or toll‐free phone number and your personal pin. A live webcast of the call will be available on Teva's website at: www.tevapharm.com Following the conclusion of the call, a replay of the webcast will be available within 24 hours on Teva's website. About Teva Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is a different kind of global biopharmaceutical leader, one that operates across the full spectrum of innovation to reliably deliver medicines to patients worldwide. For over 120 years, Teva’s commitment to bettering health has never wavered. Today, the company’s global network of capabilities enables its 37,000 employees across 57 markets to advance health by developing medicines for the future while championing the production of generics and biologics. We are dedicated to addressing patients’ needs, now and in the future. Moving forward together with science that treats, inspired by the people we serve. To learn more about how Teva is all in for better health, visit www.tevapharm.com. Some amounts in this press release may not add up due to rounding. All percentages have been calculated using unrounded amounts. Non-GAAP Financial Measures This press release contains certain financial information that differs from what is reported under accounting principles generally accepted in the United States ("GAAP"). These non-GAAP financial measures, including, but not limited to, non-GAAP operating income, non-GAAP operating margin, non-GAAP gross profit, non-GAAP gross profit margin, Adjusted EBITDA, free cash flow, non-GAAP tax rate, non-GAAP net income (loss) attributable to Teva and non-GAAP diluted EPS, are presented in order to facilitate investors' understanding of our business. We utilize certain non-GAAP financial measures to evaluate performance, in conjunction with other performance metrics. The following are examples of how we utilize the non-GAAP measures: our management and board of directors use the non-GAAP measures to evaluate our operational performance, to compare against work plans and budgets, and ultimately to evaluate the performance of management; our annual budgets are prepared on a non-GAAP basis; and senior management’s annual compensation is derived, in part, using these non-GAAP measures. See the attached tables for a reconciliation of the GAAP results to the adjusted non-GAAP measures. Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance 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 reasonable certainty the ultimate outcome of certain significant items including, but not limited to, the amortization of purchased 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 accordance with GAAP. Cautionary Note Regarding Forward-Looking Statements This press release 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, both 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. You can identify these forward-looking statements by the use of words such as “should,” “expect,” “anticipate,” “estimate,” “target,” “may,” “project,” “guidance,” “intend,” “plan,” “believe” and other words and terms of similar meaning and expression in connection with any discussion of future operating or financial performance. These forward-looking statements include statements concerning our plans, strategies, objectives, future performance and financial and operating targets, and any other information that is not historical information. Important factors that could cause or contribute to such differences include risks relating to: our ability to successfully compete in the marketplace, including: that we are substantially dependent on our generic products; concentration of our customer base and commercial alliances among our customers; competition faced by our generic medicines from other pharmaceutical companies and changes in regulatory policy that may result in additional costs and delays; delays in launches of new generic products; our ability to develop and commercialize additional pharmaceutical products; competition for our innovative medicines; our ability to achieve expected results from investments in our product pipeline; our ability to successfully execute our Pivot to Growth strategy, including to expand our innovative and biosimilar medicines pipeline and profitably commercialize the innovative medicines and biosimilar portfolio, whether organically or through business development, to sustain and focus our portfolio of generic medicines, and to execute on our organizational transformation and to achieve expected cost savings; and the effectiveness 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 significant indebtedness, which may limit our ability to incur additional indebtedness, engage in additional transactions or make new investments; and our potential need to raise additional funds in the future, which may not be available on acceptable terms or at all;our business and operations in general, including: the impact of global economic conditions and other macroeconomic developments 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; significant disruptions of information technology systems, including cybersecurity attacks and breaches of our data security; interruptions in our supply chain or problems with internal or third party manufacturing; challenges associated with conducting business globally, including political or economic instability, major hostilities or terrorism, such as the ongoing conflict between Russia and Ukraine and the state of war declared in Israel; our ability to attract, hire, integrate and retain highly skilled personnel; our ability to successfully bid for suitable acquisition targets or licensing opportunities, or to consummate and integrate acquisitions; and our prospects and opportunities for growth if we sell assets or business units and close or divest plants and facilities, as well as our ability to successfully and cost-effectively consummate such sales and divestitures, including our planned divestiture of our API business;compliance, regulatory and litigation matters, including: failure to comply with complex legal and regulatory environments; the 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 regulatory 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 obligations; compliance with sanctions and trade control laws; environmental risks; and the impact of ESG 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 who are military reservists being called to active military duty, and the impact of the war on the economic, social and political stability 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 Israel 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 business; our exposure to changes in international trade policies, including the imposition of tariffs in the jurisdictions in which we operate, and the effects of such developments on sales of our products and the pricing and availability of our raw materials; and the impact of any future failure to establish and maintain effective internal control over our financial reporting; and other factors discussed in this press release, in our Quarterly Report on Form 10-Q for the first quarter of 2025 and in our Annual Report on Form 10-K for the year ended December 31, 2024, including in the sections captioned "Risk Factors” and “Forward Looking Statements.” 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. Consolidated Statements of Income (U.S. dollars in millions, except share and per share data)(Unaudited) Three months ended March 31, 2025 2024 Net revenues$3,891 $3,819 Cost of sales 2,014 2,048 Gross profit 1,877 1,771 Research and development expenses 247 242 Selling and marketing expenses 622 608 General and administrative expenses 297 278 Intangible assets impairments 121 80 Other asset impairments, restructuring and other items (22) 673 Legal settlements and loss contingencies 86 106 Other loss (income) 5 1 Operating income (loss) 519 (218) Financial expenses, net 225 250 Income (loss) before income taxes 294 (467) Income taxes (benefit) 74 (52) Share in (profits) losses of associated companies, net * 4 Net income (loss) 220 (419) Net income (loss) attributable to redeemable and non-redeemable non-controlling interests 6 (280) Net income (loss) attributable to Teva 214 (139) Earnings (loss) per share attributable to Teva:Basic ($)0.19 (0.12) Diluted ($)0.18 (0.12) Weighted average number of shares (in millions):Basic1,138 1,123 Diluted1,159 1,123 Non-GAAP net income attributable to Teva for diluted earnings per share:* 602 548 Non-GAAP earnings per share attributable to Teva:*Diluted ($)0.52 0.48 Non-GAAP average number of shares (in millions):Diluted1,159 1,143 Amounts may not add up due to rounding * Represents an amount less than $0.5 million. ** See reconciliation attached. CONSOLIDATED BALANCE SHEETS (U.S. dollars in millions, except for share data) (Unaudited) March 31, December 31, 2025 2024 ASSETS Current assets: Cash and cash equivalents $1,697 $3,300 Accounts receivables, net of allowance for credit losses of $80 million and $78 million as of March 31, 2025 and December 31, 2024, respectively 3,384 3,059 Inventories 3,247 3,007 Prepaid expenses 1,018 1,006 Other current assets 368 409 Assets held for sale 1,814 1,771 Total current assets 11,528 12,552 Deferred income taxes 1,762 1,799 Other non-current assets 464 462 Property, plant and equipment, net 4,631 4,581 Operating lease right-of-use assets, net 363 367 Identifiable intangible assets, net 4,189 4,418 Goodwill 15,477 15,147 Total assets $38,415 $39,326 LIABILITIES AND EQUITY Current liabilities: Short-term debt $421 $1,781 Sales reserves and allowances 3,696 3,678 Accounts payables 2,290 2,203 Employee-related obligations 474 624 Accrued expenses 2,952 2,792 Other current liabilities 964 1,020 Liabilities held for sale 358 698 Total current liabilities 11,157 12,796 Long-term liabilities: Deferred income taxes 461 483 Other taxes and long-term liabilities 4,011 4,028 Senior notes and loans 16,230 16,002 Operating lease liabilities 288 296 Total long-term liabilities 20,990 20,809 Redeemable non-controlling interests - 340 Equity: Teva shareholders’ equity: 6,262 5,373 Non-controlling interests 7 7 Total equity 6,269 5,380 Total liabilities and equity $38,415 $39,326 Amounts may not add up due to rounding TEVA PHARMACEUTICAL INDUSTRIES LIMITEDCONSOLIDATED STATEMENTS OF CASH FLOWS(U.S. dollars in millions) (Unaudited) Three months ended March 31, 2025 2024Operating activities: Net income (loss)$220$(419) Adjustments to reconcile net income (loss) to net cash provided by operations: Depreciation and amortization 244 272 Impairment of long-lived assets and assets held for sale 77 679 Net change in operating assets and liabilities (700) (497) Deferred income taxes – net and uncertain tax positions 28 (189) Stock-based compensation 34 28 Other items (8) 2 Net cash provided by (used in) operating activities (105) (124) Investing activities: Beneficial interest collected in exchange for securitized trade receivables 322 295 Purchases of property, plant and equipment and intangible assets (127) (124) Proceeds from sale of business and long-lived assets, net 17 - Acquisition of businesses, net of cash acquired - (15) Purchases of investments and other assets . (11) (12) Net cash provided by (used in) investing activities 201 144 Financing activities: Repayment of senior notes and loans and other long-term liabilities (1,368) - Purchase of shares from redeemable and non-redeemable non-controlling interests (38) (64) Dividends paid to redeemable and non-redeemable non-controlling interests (340) (78) Other financing activities 3 (9) Net cash provided by (used in) financing activities (1,744) (151) Translation adjustment on cash and cash equivalents 45 (104) Net change in cash, cash equivalents and restricted cash (1,603) (236) Balance of cash, cash equivalents at beginning of period 3,300 3,227 Balance of cash, cash equivalents at end of period$1,697$2,991 Non-cash financing and investing activities: Beneficial interest obtained in exchange for securitized accounts receivables$311$312 Amounts may not add up due to rounding Reconciliation of net income (loss) attributable to Teva to Non-GAAP net income (loss) attributable to Teva Three months ended March 31, ($ in millions except per share amounts) 2025 2024 Net income (Loss) attributable to Teva$214$(139) Increase (decrease) for excluded items: Amortization of purchased intangible assets 145 152 Legal settlements and loss contingencies(1) 83 106 Impairment of long-lived assets(2) 77 679 Restructuring costs 14 13 Equity compensation 34 28 Contingent consideration(3) 11 79 Financial expenses 14 12 Redeemable and non-redeemable non-controlling interests(4) 2 (284) Other non-GAAP items(5) 63 53 Corresponding tax effects and unusual tax items(6) (55) (150) Non-GAAP net income attributable to Teva$602$548 Non-GAAP tax rate(7) 17.5% 15.0% GAAP diluted earnings (loss) per share attributable to Teva$0.18$(0.12) EPS difference(8) 0.33 0.60 Non-GAAP diluted EPS attributable to Teva(8)$0.52$0.48 Non-GAAP average number of shares (in millions)(8) 1,159 1,143 (1)For the three months ended March 31, 2025 and March 31, 2024, adjustments for legal settlements and loss contingencies primarily consisted of $50 million and $64 million, respectively, attributable to an update to the estimated settlement provision for the Company’s opioid litigation (mainly the effect of the passage of time on the net present value of the discounted payments).(2)For the three months ended March 31, 2025, adjustments for impairment of long-lived assets consist of (a) $121 million impairment of long-lived intangible assets mainly related to products in the U.S. and Europe, (b) a favorable adjustment of $46 million related to the classification of the API business (including its R&D, manufacturing and commercial activities) as held for sale. For the three months ended March 31, 2024, adjustments for impairment of long-lived assets primarily consisted of $577 million related to the classification of our business venture in Japan as held for sale.(3)For the three months ended March 31, 2024, adjustments for contingent consideration primarily related to a change in the estimated future royalty payments to Allergan in connection with lenalidomide capsules (generic version of Revlimid®) of $64 million.(4)For the three months ended March 31, 2024, related to non-controlling interests portion of long-lived assets impairment of $577 million related to the classification of our business venture in Japan as held for sale.(5)Other non-GAAP items include other exceptional items that we believe are sufficiently large that their exclusion is important to facilitate an understanding of trends in our financial results, primarily related to the rationalization of our plants, accelerated depreciation, certain inventory write-offs, material litigation fees and other unusual events.(6)For the three months ended March 31, 2025 and March 31, 2024, adjustments for corresponding tax effects and unusual tax items exclusively consisted of the tax impact directly attributable to the pre-tax items that are excluded from non-GAAP net income included in the other adjustments to this table.(7)Non-GAAP tax rate is tax expenses (benefit) excluding the impact of non-GAAP tax adjustments presented above as a percentage of income (loss) before income taxes excluding the impact of non-GAAP adjustments presented above.(8)EPS difference and diluted non-GAAP EPS are calculated by dividing our non-GAAP net income attributable to Teva by our non-GAAP diluted weighted average number of shares. Reconciliation of gross profit to Non-GAAP gross profit(Unaudited) Three months ended March 31,($ in millions) 20252024Gross profit$1,8771,771Gross profit margin 48.2%46.4%Increase (decrease) for excluded items: (1) Amortization of purchased intangible assets 135137 Equity compensation 65 Other non-GAAP items 3750Non-GAAP gross profit$2,0541,963Non-GAAP gross profit margin (2) 52.8%51.4% (1) For further explanations, refer to the footnotes under the "Reconciliation of net income (loss) attributable to Teva to Non-GAAP net income (loss) attributable to Teva" table.(2) Non-GAAP gross profit margin is non-GAAP gross profit as a percentage of revenue. Reconciliation of operating income (loss) to Non-GAAP operating income (loss)(Unaudited) Three months ended March 31,($ in millions) 20252024Operating income (loss)$519(218)Operating margin 13.3%(5.7%)Increase (decrease) for excluded items: (1) Amortization of purchased intangible assets 145152 Legal settlements and loss contingencies 83106 Impairment of long-lived assets 77679 Restructuring costs 1413 Equity compensation 3428 Contingent consideration 1179 Other non-GAAP items 6353Non-GAAP operating income (loss)$946892Non-GAAP operating margin(2) $24.3%23.4% (1) For further explanations, refer to the footnotes under the "Reconciliation of net income (loss) attributable to Teva to Non-GAAP net income (loss) attributable to Teva" table.(2) Non-GAAP operating margin is Non-GAAP operating income as a percentage of revenues. Reconciliation of net income (loss) to adjusted EBITDA(Unaudited) Three months ended December 31,($ in millions) 20252024Net income (loss)$220(419)Increase (decrease) for excluded items:(1) Financial expenses 225250 Income taxes 74(52) Share in profits (losses) of associated companies –net§4 Depreciation 99119 Amortization 145152EBITDA $76354 Legal settlements and loss contingencies83106 Impairment of long lived assets 77679 Restructuring costs 1413 Equity compensation 3428 Contingent consideration 1179 Other non-GAAP items 5946Adjusted EBITDA $1,0411,005 (1) For further explanations, refer to the footnotes under the "Reconciliation of net income (loss) attributable to Teva to Non-GAAP net income (loss) attributable to Teva" table. § Represents an amount of less than $0.5 million. Segment Information (Unaudited) United States Europe International Markets Three months ended March 31, Three months ended March 31, Three months ended March 31, 2025 2024 2025 2024 2025 2024 (U.S. $ in millions) (U.S. $ in millions) (U.S. $ in millions) Revenues$1,910 $1,725 $1,194 $1,272 $582 $597Cost of sales 851 867 536 534 304 300Gross profit 1,058- 858- 658- 738- 278- 297R&D expenses 154 154 60 56 25 28S&M expenses 273 261 199 194 118 118G&A expenses 96 93 69 65 39 35Other 3 1 § 1 (1) §Segment profit$532 $350 $329 $423 $97 $117 § Represents an amount less than $0.5 million. Reconciliation of our segment profitto consolidated income (loss) before income taxes Three months ended March 31, 2025 2024 (U.S.$ in millions) United States profit $532 $350Europe profit 329 423International Markets profit 97 117Total reportable segment profit 958 890Profit (loss) of other activities (13) 2 946 892Amounts not allocated to segments: Amortization 145 152Other asset impairments, restructuring and other items (22) 673Intangible asset impairments 121 80Legal settlements and loss contingencies 83 106Other unallocated amounts 99 99Consolidated operating income (loss) 519 (218)Financial expenses - net 225 250Consolidated income (loss) before income taxes $294 $(467) Segment revenues by major products and activities(Unaudited) Three months ended March 31, Percentage Change 2025 2024 2024-2025 (U.S.$ in millions) United States segment Generic products (including biosimilars) $849 $808 5%AJOVY 53 45 18%AUSTEDO 396 282 40%BENDEKA and TREANDA 36 46 (20%)COPAXONE 54 30 79%UZEDY 39 15 156%Anda 373 381 (2%)Other 109 117 (7%)Total 1,910 1,725 11% Three months ended March 31, Percentage Change 2025 2024 2024-2025 (U.S.$ in millions) Europe segment Generic products (including OTC and biosimilars) $989 $1,004 (1%)AJOVY 58 51 14%COPAXONE 42 57 (27%)Respiratory products 55 66 (18%)Other 50 94 (46%)Total 1,194 1,272 (6%) Three months ended March 31, Percentage Change 2025 2024 2024-2025 (U.S.$ in millions) International Markets segment Generic products (including OT and biosimilars) $468 $477 (2%)AJOVY 28 17 65%AUSTEDO 15 14 4%COPAXONE 10 12 (11%)Other* 61 77 (21%)Total 582 597 (2%) * Other revenues in the first quarter of 2025 include the sale of certain product rights. Free cash flow reconciliation(Unaudited) Three months ended March 31, 2025 2024 (U.S. $ in millions) Net cash provided by (used in) operating activities (105) (124)Beneficial interest collected in exchange for securitized accounts receivables 322 295Capital investment (127) (124)Acquisition of businesses, net of cash acquired - (15)Proceeds from divestitures of businesses and other assets, net 17 -Free cash flow$107 $32 Teva Media Inquiries TevaCommunicationsNorthAmerica@tevapharm.com Teva Investor Relations Inquires TevaIR@Tevapharm.com A PDF accompanying this announcement is available at http://ml-eu.globenewswire.com/Resource/Download/d4898052-9a00-4a3e-a329-e519a3693b1e

2024 Revenues of $16.5 billion reflect an increase of 6%, in local currency terms, compared to 2023;AUSTEDO® - exceeding $1.6 billion in revenues, surpassing 2024 outlook;AJOVY® - global annual revenues of $507 million, an increase of 18% in local currency terms compared to 2023;UZEDY® revenues of $117 million in 2024 surpassing $100M outlook;Generics business continues to grow across all segments, with increases of 15% in the U.S., 6% in Europe and 15% in International Markets, all in local currency terms compared to 2023;First-to-market launches including first generic version of Sandostatin® LAR Depot and liraglutide injection 1.8mg (an authorized generic of Victoza®); On January 2025, Teva entered into a license and supply agreement, for a proposed generic GLP1 in the U.S., Europe and additional countries;Biosimilar pipeline is expanding, and now includes 18 assets, including SELARSDITM, which is expected to launch in the U.S. in the first quarter of 2025; and our first internally developed biosimilar to Prolia® (denosumab), which is under regulatory review in the U.S. and in Europe;Duvakitug (Anti-TL1A) positive Phase 2B results announced and initiation of Phase 3 program is expected in 2025; olanzapine LAI achieved Phase 3 targeted injections without PDSS (post-injection delirium/sedation syndrome), and full safety presentation is expected in the second quarter of 2025. Q4 2024 and FY 2024 highlights: Q4 2024FY 2024Revenues $4.2 billion$16.5 billionGAAP loss per share $0.19 $1.45Non-GAAP diluted EPS $0.71$2.49Cash flow generated from operating activities $575 million$1,247 millionFree cash flow $790 million$2,068 million 2025 Outlook * Revenues of $16.8 - $17.4 billionNon-GAAP operating income of $4.1-$4.6 billionAdjusted EBITDA of $4.5 - $5.0 billionNon-GAAP diluted EPS of $2.35 - $2.65Free cash flow of $1.6 - $1.9 billion * 2025 outlook assumes a full year contribution from Teva api and our business venture in Japan and excludes the expected income from potential milestone payments from Sanofi in connection with the Phase 3 initiation of duvakitug. TEL AVIV, Israel, Jan. 29, 2025 (GLOBE NEWSWIRE) -- Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) today reported results for the year and the quarter ended December 31, 2024. Mr. Richard Francis, Teva's President and CEO, said: "2024 marked a transformative year for Teva, resulting in a second consecutive year of growth, driven by our generic products and key innovative products. Focusing on rigorous execution of our Pivot to Growth strategy throughout the year, we continued to achieve important milestones in each of its four pillars, including surpassing the outlook for our key innovative products, growing our generics business across all segments, and accelerating our early-stage innovative pipeline, including the positive Phase 2b results for our duvakitug (anti-Tl1A) asset. These results pave the way for pivotal trials in Crohn’s disease and ulcerative colitis, as well as, potentially, other Immunological and fibrotic indications beyond, in collaboration with our partner, Sanofi." Mr. Francis continued, "In 2025, we anticipate further progress in our key innovative growth drivers, while also executing on our complex generics and biosimilars business, supported by new product launches. We are also excited to advance to Phase 3 trials for our duvakitug (anti-TL1A) asset." Pivot to Growth Strategy In 2024, we continued to execute on the four key pillars of our “Pivot to Growth” strategy, which we announced in May 2023. On the first pillar, delivering on our growth engines, we continued to show strong performance of our key innovative products, mainly AUSTEDO, AJOVY, and UZEDY, as well as on our late-stage pipeline of biosimilars, with the launches of SIMLANDI® (adalimumab-ryvk) injection and the expected launch of SELARSDI (ustekinumab-aekn) injection, and the progress we made on our proposed biosimilars to Prolia®(denosumab), Simponi® and Simponi Aria® (golimumab), which were submitted for regulatory review in the U.S. and the EU; On the second pillar, stepping up innovation through delivering on our late-stage innovative pipeline, we have been accelerating the development of certain key pipeline assets, including the recent positive Phase 2b results for duvakitug (anti-TL1A), and expect a number of milestones and data points for olanzapine LAI, and DARI (dual-action asthma rescue inhaler, ICS/SABA) in the near future; On the third pillar, sustaining our generics powerhouse with a global commercial footprint, focused portfolio, pipeline and manufacturing footprint, we continued to optimize our generics business and build a strong pipeline of biosimilars, with several successful launches of high-value complex generics in 2024; andLastly, on our fourth pillar, focusing our business by optimizing our portfolio and global manufacturing footprint. This will enable strategic capital deployment, to accelerate our growth engines, and reorganize certain of our business units to a more optimal structure. We continued our efforts on capital allocation and disciplined cost management by focusing on debt repayment, and optimizing our working capital management.Teva continues to progress with the sale of its active-pharmaceutical ingredient (API) business and is engaged with prospective purchasers. The timing and structure of the planned transaction are subject to ongoing consideration and the consummation of the sale remains contingent on reaching a definitive agreement, subject to approval by Teva's Board of Directors. On December 31, 2024, Teva classified its API business (including its R&D, manufacturing and commercial activities) as held for sale. 2024 Annual Consolidated Results Revenues in 2024 were $16,544 million, an increase of 4%, in U.S. dollars, or 6% in local currency terms, compared to 2023. This increase was mainly due to higher revenues from generic products in all our segments, including from lenalidomide capsules (the generic version of Revlimid®) in our U.S. segment, from our innovative products AUSTEDO, UZEDY and AJOVY, as well as the sale of certain product rights, partially offset by an upfront payment of $500 million received in 2023 related to the collaboration on our duvakitug (anti-TL1A) asset, and lower revenues from certain innovative products, primarily COPAXONE and BENDEKA and TREANDA. Exchange rate movements during 2024, net of hedging effects, negatively impacted overall revenues by $257 million, operating income by $103 million and non-GAAP operating income by $104 million, each as compared to 2023. Gross profit in 2024 was $8,064 million, an increase of 5% compared to 2023. Gross profit margin was 48.7% in 2024, compared to 48.2% in 2023. This increase in gross profit margin was mainly due to a favorable mix of products, primarily driven by higher revenues from AUSTEDO and lenalidomide capsules (the generic version of Revlimid®), and the sale of certain product rights, partially offset by an upfront payment received in 2023 related to the collaboration on our duvakitug (anti-TL1A) asset. Non-GAAP gross profit was $8,814 million in 2024, an increase of 4% compared to 2023. Non-GAAP gross profit margin was 53.3% in 2024, compared to 53.5% in 2023. This decrease was mainly due to an upfront payment received in 2023 related to the collaboration on our duvakitug (anti-TL1A) asset, and lower revenues from COPAXONE, partially offset by higher revenues from AUSTEDO, the sale of certain product rights, as well as higher revenues from lenalidomide capsules (the generic version of Revlimid®). Research and Development (R&D) expenses, net in 2024 were $998 million, an increase of 5% compared to $953 million in 2023, as we continue to execute on our Pivot to Growth strategy. Our higher R&D expenses, net in 2024, compared to 2023, were mainly due to an increase in immunology and in immuno-oncology, our late-stage innovative pipeline in neuroscience (mainly neuropsychiatry), and our biosimilars pipeline, partially offset by a decline in various generics projects. Our R&D expenses, net in 2024 were also impacted positively by reimbursements from our strategic partnerships entered in 2023 and 2024. Selling and Marketing (S&M) expenses in 2024 were $2,541 million, an increase of 9% compared to 2023. This increase was mainly to support revenue growth. General and Administrative (G&A) expenses in 2024 were $1,161 million, flat compared to 2023. Other income in 2024 was $14 million, compared to $49 million in 2023. Other income in 2023 included a capital gain from the sale of assets in our International Markets segment. Operating loss was $303 million in 2024, compared to operating income of $433 million in 2023. Operating loss as a percentage of revenues was 1.8% in 2024, compared to operating income as a percentage of revenues of 2.7% in 2023. This decrease was mainly due to higher goodwill and other assets impairment charges as well as increased S&M expenses, partially offset by higher gross profit and lower legal settlements and loss contingencies. Non-GAAP operating income was $4,329 million in 2024, representing a non-GAAP operating margin of 26.2% compared to $4,361 million, representing a non-GAAP operating margin of 27.5% of revenues in 2023. The decrease in non-GAAP operating margin was mainly due to higher operating expenses as a percentage of revenues, as well as lower non-GAAP gross profit margin, as discussed above. In 2024, financial expenses, net were $981 million, compared to $1,057 million in 2023. Financial expenses in 2024 and 2023 were mainly comprised of net-interest expenses of $915 million, and $961 million, respectively. In 2024, we recognized a tax expense of $676 million on a pre-tax loss of $1,284 million. In 2023, we recognized a tax benefit of $7 million, on a pre-tax loss of $624 million. Our effective tax rate is the result of a variety of factors, including the geographic mix and type of products sold during the year, different effective tax rates applicable to non-Israeli subsidiaries that have tax rates different than Teva’s average tax rate, a settlement agreement with the Israeli Tax Authorities, impairment charges with no corresponding tax effects, net deferred tax benefits from intellectual property related integration plans, an adjustment to the Company’s corporate tax rate in Israel on losses related to non-qualified tax incentive activities in Israel, adjustments to valuation allowances on deferred tax assets, adjustments to uncertain tax positions and interest expense disallowances. Non-GAAP tax rate for 2024 was 15.3%, compared to 13.0% in 2023. Our non-GAAP tax rate of 2024 was the result of a variety of factors, including the geographic mix and type of products sold during the year, different effective tax rates applicable to non-Israeli subsidiaries that have tax rates different than Teva’s average tax rate, net deferred tax benefits from intellectual property-related integration plans, adjustments to valuation allowances on deferred tax assets, adjustments to uncertain tax positions and interest expense disallowances. Net loss attributable to Teva and loss per share in 2024 were $1,639 million and $1.45, respectively, compared to net loss attributable to Teva of $559 million and loss per share of $0.50, respectively, in 2023. The change in net loss attributable to Teva was mainly due to higher income taxes, as well as higher operating loss in 2024, partially offset by higher net loss attributable to non-controlling interests. Non-GAAP net income attributable to Teva and non-GAAP diluted earnings per share in 2024 were $2,860 million and $2.49, respectively, compared to $2,898 million and $2.56 in 2023. Adjusted EBITDA was $4,781 million in 2024, compared to $4,818 million in 2023. As of December 31, 2024 and 2023, the fully diluted share count for purposes of calculating our market capitalization was approximately 1,174 million and 1,157 million, respectively. Non-GAAP information: net non-GAAP adjustments in 2024 were $4,499 million. Non-GAAP net income attributable to Teva and non-GAAP diluted EPS for the year were adjusted to exclude the following items: Amortization of purchased intangible assets totaling $588 million, of which $543 million is included in cost of goods sold and the remaining $45 million in S&M expenses;Legal settlements and loss contingencies of $761 million mainly related to a provision of $357 million recorded in connection with a decision by the European Commission in its antitrust investigation into COPAXONE, and $278 million related to an update to the estimated settlement provision for the opioid cases (mainly the effect of the passage of time on the net present value of the discounted payments and the settlement agreement with the city of Baltimore);Goodwill impairment charges of $1,280 million related to the Teva API reporting unit;Impairment of long-lived assets of $1,275 million mainly related to the classification of our business venture in Japan and our API business as held for sale;Restructuring expenses of $74 million;Equity compensation expenses of $123 million;Contingent consideration expenses of $303 million;Gain on sale of business of $15 million;Accelerated depreciation of $13 million;Financial expenses of $49 million;Items attributable to non-controlling interests of $339 million;Other non-GAAP items of $229 million; andCorresponding tax effects and unusual tax items expenses of $157 million. We believe that excluding such items facilitates investors’ understanding of our business including underlying performance trends, thereby improving the comparability of our business performance results between reporting periods. For a reconciliation of the U.S. GAAP results to the adjusted non-GAAP figures and for additional information, see the tables below and the information included under “Non-GAAP Financial Measures.” Investors should consider non-GAAP financial measures in addition to, and not as replacement for, or superior to, measures of financial performance prepared in accordance with GAAP. Cash flow generated from operating activities in 2024 was $1,247 million, compared to $1,368 million in 2023. The decrease in 2024 resulted mainly from an upfront payment received in 2023 related to the collaboration on our duvakitug (anti-TL1A) asset, a negative impact from accounts payables, the classification of payments to Allergan in connection with lenalidomide (generic equivalent of Revlimid®) as cash flow used in operating activities, and higher tax payments, partially offset by higher profits from AUSTEDO and from the sale of certain product rights, lower inventory levels, and a positive impact from accounts receivables. During 2024, we generated free cash flow of $2,068 million, which we define as comprising $1,247 million in cash flow generated from operating activities, $1,291 million in beneficial interest collected in exchange for securitized accounts receivables (under our EU securitization program) and $43 million proceeds from divestitures of businesses and other assets, partially offset by $498 million in cash used for capital investments and $15 million in cash used for acquisition of businesses, net of cash acquired. During 2023, we generated free cash flow of $2,387 million, which we define as comprising $1,368 million in cash flow generated from operating activities, $1,477 million in beneficial interest collected in exchange for securitized accounts receivables (under our EU securitization program) and $68 million proceeds from divestitures of businesses and other assets, partially offset by $526 million in cash used for capital investments. The decrease in 2024 resulted mainly from lower cash flow generated from operating activities. As of December 31, 2024, our debt was $17,783 million, compared to $19,833 million as of December 31, 2023. This decrease was mainly due to the repayment at maturity of $1,641 million of our senior notes and $429 million of exchange rate fluctuations. The portion of total debt classified as short-term as of December 31, 2024 was 10%, compared to 8% as of December 31, 2023. Our average debt maturity was approximately 5.5 years as of December 31, 2024, compared to 6.0 years as of December 31, 2023. Fourth Quarter 2024 Consolidated Results Revenues in fourth quarter of 2024 were $4,229 million, a decrease of 5% in both U.S. dollars and in local currency terms, compared to the fourth quarter of 2023. This decrease was mainly due to an upfront payment of $500 million received in 2023 related to the collaboration on our duvakitug (anti-TL1A) asset, partially offset by higher revenues from our innovative products AUSTEDO, UZEDY and AJOVY, from generic products in all our segments and from the sale of certain product rights. Exchange rate movements during the fourth quarter of 2024, net of hedging effects, negatively impacted overall revenues by $8 million, compared to the fourth quarter of 2023. Gross profit in the fourth quarter of 2024 was $2,120 million, a decrease of 12% compared to $2,416 million in the fourth quarter of 2023. Gross profit margin was 50.1% in the fourth quarter of 2024, compared to 54.2% in the fourth quarter of 2023. Non-GAAP gross profit was $2,319 million in the fourth quarter of 2024, a decrease of 11%, compared to $2,592 million in the fourth quarter of 2023. Non-GAAP gross profit margin was 54.8% in the fourth quarter of 2024, compared to 58.2% in the fourth quarter of 2023. The decrease in both gross profit margin and non-GAAP gross profit margin was mainly due to the upfront payment received in 2023 related to the collaboration on our duvakitug (anti-TL1A) asset, as well as lower revenues from COPAXONE, partially offset by higher revenues from AUSTEDO, as well as the sale of certain product rights. Research and Development (R&D) expenses, net in the fourth quarter of 2024 were $248 million, an increase of 9% compared to $227 million in the fourth quarter of 2023, as we continue to execute on our Pivot to Growth strategy. Our higher R&D expenses, net in the fourth quarter of 2024 compared to the fourth quarter of 2023, were mainly due to an increase in our late-stage innovative pipeline in neuroscience (mainly neuropsychiatry), in immunology, and in immuno-oncology. Selling and Marketing (S&M) expenses in the fourth quarter of 2024 were $650 million, an increase of 7% compared to the fourth quarter of 2023. This increase was mainly to support revenue growth in our innovative portfolio, primarily AUSTEDO, generic products and AJOVY. General and Administrative (G&A) expenses in the fourth quarter of 2024 were $302 million, an increase of 4% compared to the fourth quarter of 2023. Other loss (income) in the fourth quarter of 2024 was a loss of $8 million, compared to an income of $6 million in the fourth quarter of 2023. Operating loss in the fourth quarter of 2024 was $29 million, compared to an operating income of $755 million in the fourth quarter of 2023. Operating loss as a percentage of revenues was 0.7% in the fourth quarter of 2024, compared to an operating income as a percentage of revenues of 17% in the fourth quarter of 2023. Non-GAAP operating income in the fourth quarter of 2024 was $1,168 million representing a non-GAAP operating margin of 27.6%, compared to non-GAAP operating income of $1,546 million representing a non-GAAP operating margin of 34.7% in the fourth quarter of 2023. The decrease in non-GAAP operating margin in the fourth quarter of 2024 was mainly due to an increase in operating expenses as a percentage of revenues, as well as due to lower non-GAAP gross profit margin, as discussed above. Exchange rate movements during the fourth quarter of 2024, net of hedging effects, positively impacted our operating income and non-GAAP operating income by $21 million and $20 million, respectively, compared to the fourth quarter of 2023. Financial expenses, net in the fourth quarter of 2024 were $218 million, mainly comprised of net-interest expenses of $224 million. In the fourth quarter of 2023, financial expenses, net were $249 million, mainly comprised of net-interest expenses of $238 million. In the fourth quarter of 2024, we recognized a tax expense of $29 million, on a pre-tax loss of $247 million. In the fourth quarter of 2023, we recognized a tax expense of $43 million, on a pre-tax income of $507 million. Our effective tax rate for the fourth quarter of 2024 was the result of a variety of factors, including the geographic mix and type of products sold during the year, different effective tax rates applicable to non-Israeli subsidiaries that have tax rates different than Teva’s average tax rate, impairment charges with no corresponding tax effects, net deferred tax benefits from intellectual property related integration plans, adjustments to valuation allowances on deferred tax assets, adjustments to uncertain tax positions and interest expense disallowances. Non-GAAP tax rate in the fourth quarter of 2024 was 14.8%, compared to 13.1% in the fourth quarter of 2023. Our non-GAAP tax rate in the fourth quarter of 2024 was the result of a variety of factors, including the geographic mix and type of products sold during the year, different effective tax rates applicable to non-Israeli subsidiaries that have tax rates different than Teva’s average tax rate, net deferred tax benefits from intellectual property related integration plans, adjustments to valuation allowances on deferred tax assets, adjustments to uncertain tax positions and interest expense disallowances. Net loss attributable to Teva and loss per share in the fourth quarter of 2024 were $217 million and $0.19, respectively, compared to net income attributable to Teva and earning per share $461 million and $0.41, respectively, in the fourth quarter of 2023. The higher net loss in the fourth quarter of 2024 was mainly due to lower operating income, as discussed above. Non-GAAP net income attributable to Teva and non-GAAP diluted earnings per share in the fourth quarter of 2024 were $816 million and $0.71, respectively, compared to $1,135 million and $1.00, respectively, in the fourth quarter of 2023. Adjusted EBITDA was $1,282 million in the fourth quarter of 2024, a decrease of 23%, compared to $1,660 million in the fourth quarter of 2023. Non-GAAP information: net non-GAAP adjustments in the fourth quarter of 2024 were $1,033 million. Non-GAAP net income attributable to Teva and non-GAAP diluted EPS for the fourth quarter of 2024 were adjusted to exclude the following items: Amortization of purchased intangible assets of $144 million, of which $134 million is included in cost of sales and the remaining $10 million in S&M expenses;An adjustment to impairment of long-lived assets of $517 million;Goodwill impairment charge of $280 million;Legal settlements and loss contingencies of $123 million;An adjustment to contingent consideration of $2 million;Equity compensation expenses of $34 million;Restructuring expenses of $22 million;Loss on sale of business of $6 million;Accelerated depreciation of $5 million;Financial expenses of $13 million;Other non-GAAP items of 67 million;Items attributable to non-controlling interests of $63 million; andCorresponding tax effects and unusual tax items of $114 million. We believe that excluding such items facilitates investors’ understanding of our business including underlying performance trends, thereby improving the comparability of our business performance results between reporting periods. For a reconciliation of the U.S. GAAP results to the adjusted non-GAAP figures and for additional information, see the tables below and the information included under “Non-GAAP Financial Measures.” Investors should consider non-GAAP financial measures in addition to, and not as replacement for, or superior to, measures of financial performance prepared in accordance with GAAP. Cash flow generated from operating activities during the fourth quarter of 2024 was $575 million, compared to $1,184 million of cash flow generated from operating activities in the fourth quarter of 2023. The lower cash flow generated from operating activities in the fourth quarter of 2024 resulted mainly from changes in working capital items, including a negative impact of accounts payables, the classification of payments to Allergan in connection with lenalidomide (generic equivalent of Revlimid®) as cash flow used in operating activities, an upfront payment received in 2023 related to the collaboration on our duvakitug (anti-TL1A) asset, partially offset by lower legal payments during the fourth quarter of 2024, mainly in connection with our opioids litigation. During the fourth quarter of 2024, we generated free cash flow of $790 million, which we define as comprising $575 million in cash flow generated from operating activities, $340 million in beneficial interest collected in exchange for securitized accounts receivables (under our EU securitization program) and $4 million in divestitures of businesses and other assets, partially offset by $129 million in cash used for capital investment. During the fourth quarter of 2023, we generated free cash flow of $1,486 million, which we define as comprising $1,184 million in cash flow generated from operating activities, $421 million in beneficial interest collected in exchange for securitized accounts receivables (under our EU securitization program), partially offset by $120 million in cash used for capital investment. This decrease resulted mainly from lower cash flow generated from operating activities. Segment Results for the Fourth Quarter of 2024 United States Segment As part of a recent shift in executive management responsibilities and in line with our Pivot to Growth strategy, commencing January 1, 2024, Canada is reported as part of our International Markets segment. Prior period amounts were recast to reflect this change. The following table presents revenues, expenses and profit for our United States segment for the three months ended December 31, 2024 and 2023: Three months ended December 31, 2024 2023 (U.S. $ in millions / % of Segment Revenues)Revenues$1,975100%$2,266100%Cost of sales 87744.4% 82236.3%Gross profit 1,09755.6% 1,44463.7%R&D expenses 1588.0% 1446.3%S&M expenses 26013.2% 23810.5%G&A expenses 1095.5% 904.0%Other loss (income) 1§ (1)§Segment profit*$56928.8%$97443.0%* Segment profit does not include amortization and certain other items.§ Represents an amount less than 0.5%. Revenues from our United States segment in the fourth quarter of 2024 were $1,975 million, a decrease of $291 million, or 13%, compared to the fourth quarter of 2023. This decrease was mainly due to an upfront payment received in 2023 related to the collaboration on our duvakitug (anti-TL1A) asset, partially offset by higher revenues from our innovative products AUSTEDO, and UZEDY, as well as the revenues from the sale of certain product rights. Revenues by Major Products and Activities The following table presents revenues for our United States segment by major products and activities for the three months ended December 31, 2024 and 2023: Three months endedDecember 31, PercentageChange 2024 2023 2024-2023 (U.S. $ in millions) Generic products (including biosimilars) $674 $667 1%AJOVY 63 57 11%AUSTEDO 518 408 27%BENDEKA and TREANDA 41 52 (21%)COPAXONE 63 72 (13%)UZEDY 43 9 N/AAnda 402 394 2%Other* 171 607 (72%)Total $1,975 $2,266 (13%)*Other revenues in the fourth quarter of 2024 include the sale of certain product rights. Other revenues in the fourth quarter of 2023 were mainly comprised of a $500 million upfront payment received in connection with the collaboration on our duvakitug (anti-TL1A) asset. Generic products (including biosimilars) revenues in our United States segment in the fourth quarter of 2024 were $674 million, an increase of 1% compared to the fourth quarter of 2023, the majorityof which is driven by the launch of liraglutide injection 1.8mg (an authorized generic of Victoza®) and higher revenues from Truxima® (the biosimilar to Rituxan®), partially offset by lower revenues from lenalidomide capsules (the generic version of Revlimid®) and albuterol sulfate inhalation aerosol (our ProAir® authorized generic). Among the most significant generic products we sold in the United States in the fourth quarter of 2024 were Truxima® (the biosimilar to Rituxan®), epinephrine injectable solution (the generic equivalent of EpiPen® and EpiPen Jr®), and liraglutide 1.8 mg injection (an authorized generic of Victoza®). In the fourth quarter of 2024, according to IQVIA data, our total prescriptions were approximately 68 million, representing 6.9% of total U.S. generic prescriptions. On February 24, 2024, Alvotech and Teva announced that the FDA approved SIMLANDI (adalimumab-ryvk) injection, as an interchangeable biosimilar to Humira®, for the treatment of adult rheumatoid arthritis, juvenile idiopathic arthritis, adult psoriatic arthritis, adult ankylosing spondylitis, Crohn’s disease, adult ulcerative colitis, adult plaque psoriasis, adult hidradenitis suppurativa and adult uveitis. On May 21, 2024, Alvotech and Teva announced the availability of SIMLANDI in the U.S. On April 16, 2024, Alvotech and Teva announced that the FDA has approved SELARSDI (ustekinumab-aekn) injection for subcutaneous use, as a biosimilar to Stelara®, for the treatment of moderate to severe plaque psoriasis and for active psoriatic arthritis in adults and pediatric patients six years and older. SELARSDI is expected to launch in the U.S. in the first quarter of 2025. On June 24, 2024, Teva announced the launch of liraglutide injection 1.8mg (an authorized generic of Victoza®) in the United States. Liraglutide injection is indicated to improve glycemic control in adults and pediatric patients aged 10 years and older with type 2 diabetes mellitus and reduce the risk of cardiovascular events in adults with type 2 diabetes mellitus and established cardiovascular disease. In July 2024, Teva launched paclitaxel protein-bound particles for injectable suspension (albumin-bound) (a therapeutically equivalent product to Abraxane®) in the United States for the treatment of breast cancer after failure of combination chemotherapy for metastatic disease, the treatment of locally advanced or metastatic non-small cell lung cancer, and the treatment of patients with metastatic adenocarcinoma of the pancreas. On October 1, 2024, Teva launched octreotide acetate for injectable suspension, the first generic version of Sandostatin® LAR Depot. Octreotide acetate for injectable suspension is indicated for the treatment of acromegaly and severe diarrhea associated with carcinoid syndrome, and is available to patients in the U.S. AJOVY revenues in our United States segment in the fourth quarter of 2024 were $63 million, an increase of 11% compared to the fourth quarter of 2023, mainly due to growth in volume, partially offset by unfavorable net pricing. In the fourth quarter of 2024, AJOVY’s exit market share in the United States in terms of total number of prescriptions was 29.6% compared to 25.7% in the fourth quarter of 2023. AUSTEDO revenues in our United States segment in the fourth quarter of 2024 increased by 27%, to $518 million, compared to $408 million in the fourth quarter of 2023, mainly due to growth in volume, as well as expanded access for patients. AUSTEDO XR (deutetrabenazine) extended-release tablets were approved by the FDA on February 17, 2023 in three doses of 6, 12 and 24 mg, and became commercially available in the U.S. in May 2023. In May 2024, the FDA approved AUSTEDO XR as a one pill, once-daily treatment option in doses of 30, 36, 42, and 48 mg. In July 2024, the FDA approved the 18 mg dosage for AUSTEDO XR, making it a one pill, once-daily option for all available doses. AUSTEDO XR is a once-daily formulation indicated in adults for tardive dyskinesia and chorea associated with Huntington’s disease, which is additional to the currently marketed twice-daily AUSTEDO. AUSTEDO XR is protected by 11 Orange Book patents expiring between 2031 and 2041. UZEDY (risperidone) extended-release injectable suspension revenues in our United States segment in the fourth quarter of 2024 were $43 million. UZEDY was approved by the FDA on April 28, 2023 for the treatment of schizophrenia in adults, and was launched in the U.S. in May 2023. UZEDY is a subcutaneous, long-acting formulation of risperidone that controls the steady release of risperidone. UZEDY is protected by four Orange Book patents expiring between 2027 and 2040. UZEDY is protected by regulatory exclusivity until April 28, 2026. We are moving forward with plans to launch UZEDY in other countries worldwide. UZEDY faces competition from multiple other products. BENDEKA and TREANDA (bendamustine) combined revenues in our United States segment in the fourth quarter of 2024 were $41 million, a decrease of 21% compared to the fourth quarter of 2023, mainly due to competition from alternative therapies, as well as the entry of generic bendamustine products into the market. The orphan drug exclusivity that had attached to bendamustine products expired in December 2022. COPAXONE revenues in our United States segment in the fourth quarter of 2024 were $63 million, a decrease of 13% compared to the fourth quarter of 2023, mainly due to market share erosion and competition, partially offset by a reduction in sales allowance. Anda revenues from third-party products in our United States segment in the fourth quarter of 2024 increased by 2% to $402 million, compared to $394 million in the fourth quarter of 2023, mainly due to higher volume. Anda, our distribution business in the United States, distributes generic, biosimilars and innovative medicines and OTC pharmaceutical products from Teva and various third-party manufacturers to independent retail pharmacies, pharmacy retail chains, hospitals and physician offices in the United States. Anda is able to compete in the distribution market by maintaining a broad portfolio of products, competitive pricing and delivery throughout the United States. United States Gross Profit Gross profit from our United States segment in the fourth quarter of 2024 was $1,097 million, a decrease of 24%, compared to $1,444 million in the fourth quarter of 2023. Gross profit margin for our United States segment in the fourth quarter of 2024 decreased to 55.6%, compared to 63.7% in the fourth quarter of 2023. This decrease was mainly due to an upfront payment received in the fourth quarter of 2023 related to the collaboration on our duvakitug (anti-TL1A) asset, partially offset by a favorable mix of products, primarily driven by an increase in revenues from AUSTEDO and the sale of certain product rights. United States Profit Profit from our United States segment consists of revenues less cost of sales, R&D expenses, S&M expenses, G&A expenses and any other income related to this segment. Segment profit does not include amortization and certain other items. Profit from our United States segment in the fourth quarter of 2024 was $569 million, a decrease of 42% compared to $974 million in the fourth quarter of 2023. The higher profit in the fourth quarter of 2023 was mainly due to an upfront payment received in relation to the collaboration on our duvakitug (anti-TL1A) asset. Europe Segment Our Europe segment includes the European Union, the United Kingdom and certain other European countries. The following table presents revenues, expenses and profit for our Europe segment for the three months ended December 31, 2024 and 2023: Three months ended December 31, 2024 2023 (U.S. $ in millions / % of Segment Revenues)Revenues$1,353100%$1,344100%Cost of sales 56141.4% 56141.7%Gross profit 79258.6% 78358.3%R&D expenses 564.2% 523.9%S&M expenses 22116.3% 20315.1%G&A expenses 755.6% 675.0%Other loss (income) 2§ §§Segment profit*$43832.4%$46134.3%* Segment profit does not include amortization and certain other items.§ Represents an amount less than $0.5 million or 0.5%, as applicable. Revenues from our Europe segment in the fourth quarter of 2024 were $1,353 million, an increase of 1%, or $9 million, compared to the fourth quarter of 2023. In local currency terms, revenues decreased by 2% compared to the fourth quarter of 2023. Our lower revenues in local currency terms in the fourth quarter of 2024 were mainly due to higher sales of certain product rights in the fourth quarter of 2023, partially offset by higher revenues from generic and OTC products as well as AJOVY. In the fourth quarter of 2024, revenues were positively impacted by exchange rate fluctuations of $33 million, net of hedging effects, compared to the fourth quarter of 2023. Revenues in the fourth quarter of 2024, included $20 million from a positive hedging impact, which is included in “Other” in the table below. Revenues in the fourth quarter of 2023 included $20 million from a negative hedging impact, which is included in “Other” in the table below. Revenues by Major Products and ActivitiesThe following table presents revenues for our Europe segment by major products and activities for the three months ended December 31, 2024 and 2023: Three months endedDecember 31, Percentage Change 2024 2023 2024-2023 (U.S. $ in millions) Generic products (including OTC and biosimilars) $979 $938 4%AJOVY 58 45 28%COPAXONE 50 56 (11%)Respiratory products 61 70 (13%)Other* 205 234 (12%)Total $1,353 $1,344 1% *Other revenues in the fourth quarter of 2024 and 2023 include the sale of certain product rights. Generic products revenues (including OTC and biosimilar products) in our Europe segment in the fourth quarter of 2024, were $979 million, an increase of 4% compared to the fourth quarter of 2023. In local currency terms, revenues increased by 5%, mainly due to price increases as a result of market conditions such as inflationary pressures in certain markets, as well as higher revenues from recently launched products. AJOVY revenues in our Europe segment in the fourth quarter of 2024 were $58 million, an increase of 28% in both U.S. dollars and local currency terms, compared to the fourth quarter of 2023. This increase was due to growth in volume. COPAXONE revenues in our Europe segment in the fourth quarter of 2024 were $50 million, a decrease of 11% in both U.S. dollars and local currency terms, compared to the fourth quarter of 2023. This decrease was mainly due to price reductions and a decline in volume resulting from availability of alternative therapies and competing glatiramer acetate products. Respiratory products revenues in our Europe segment in the fourth quarter of 2024 were $61 million, a decrease of 13% in both U.S. dollars and local currency terms, compared to the fourth quarter of 2023. This decrease was mainly due to net price reductions and lower volumes. Europe Gross Profit Gross profit from our Europe segment in the fourth quarter of 2024 was $792 million, an increase of 1% compared to $783 million in the fourth quarter of 2023. Gross profit margin for our Europe segment in the fourth quarter of 2024 increased to 58.6%, compared to 58.3% in the fourth quarter of 2023. This increase was mainly due to positive impact from hedging activities. Europe Profit Profit from our Europe segment consists of revenues less cost of sales, R&D expenses, S&M expenses, G&A expenses and any other income related to this segment. Segment profit does not include amortization and certain other items. Profit from our Europe segment in the fourth quarter of 2024 was $438 million, a decrease of 5%, compared to $461 million in the fourth quarter of 2023. This decrease was mainly due to higher S&M expenses to support revenue growth. International Markets Segment Our International Markets segment includes all countries in which we operate other than the United States and the countries included in our Europe segment. The International Markets segment covers a substantial portion of the global pharmaceutical industry, including more than 35 countries. As part of a recent shift in executive management responsibilities, commencing January 1, 2024, Canada is reported under our International Markets segment and is no longer included as part of our United States segment. Prior period amounts were recast to reflect this change. On December 5, 2024, we announced that we entered into an agreement with JKI Co. Ltd., established by the fund managed and operated by private equity firm J-Will Partners Co. Ltd., to sell our business venture in Japan (the “BV”), which includes generic products and legacy products, with an expected closing date of April 1, 2025, subject to standard closing conditions. Since the establishment of the BV and as of December 31, 2024, Teva holds 51% of the outstanding common stock of the BV, therefore consolidating the BV in our financial statements. The following table presents revenues, expenses and profit for our International Markets segment for the three months ended December 31, 2024 and 2023: Three months ended December 31, 2024 2023 (U.S. $ in millions / % of Segment Revenues)Revenues$661100%$601100%Cost of sales 31547.7% 30250.2%Gross profit 34652.3% 29949.8%R&D expenses 274.1% 243.9%S&M expenses 13720.7% 13422.2%G&A expenses 426.3% 376.2%Other loss (income) (1)§ (4)(0.7%)Segment profit*$14121.4%$10918.1% * Segment profit does not include amortization and certain other items.§ Represents an amount less than $0.5 million or 0.5%, as applicable. Revenues from our International Markets segment in the fourth quarter of 2024 were $661 million, an increase of 10% compared to the fourth quarter of 2023. In local currency terms, revenues increased by 17% compared to the fourth quarter of 2023, mainly due to revenues from the sale of certain product rights, higher revenues from generic products in most markets, partially offset by regulatory price reductions and generic competition to off-patented products in Japan. In the fourth quarter of 2024, revenues were negatively impacted by exchange rate fluctuations of $40 million, net of hedging effects, compared to the fourth quarter of 2023. Revenues in the fourth quarter of 2024 included $13 million from a positive hedging impact, compared to a negative hedging impact of $3 million in the fourth quarter of 2023, which are included in “Other” in the table below. Revenues by Major Products and Activities The following table presents revenues for our International Markets segment by major products and activities for the three months ended December 31, 2024 and 2023: Three months endedDecember 31, PercentageChange 2024 2023 2024-2023 (U.S. $ in millions) Generic products (including OTC and biosimilars) $497 $506 (2%)AJOVY 22 19 16%COPAXONE 9 12 (25%)AUSTEDO 7 5 50%Other* 126 60 112%Total $661 $601 10%*Other revenues in the fourth quarter of 2024 include the sale of certain product rights. Generic products revenues (including OTC and biosimilar products) in our International Markets segment were $497 million in the fourth quarter of 2024, a decrease of 2% compared to the fourth quarter of 2023. In local currency terms, revenues increased by 8% compared to the fourth quarter of 2023, mainly due to higher revenues in most markets, largely driven by price increases as a result of higher costs due to inflationary pressure in certain markets and higher volumes, partially offset by regulatory price reductions and generic competition to off-patented products in Japan. AJOVY was launched in certain markets in our International Markets segment, including in Canada, Japan, Australia, Israel, South Korea, Brazil and others. AJOVY revenues in our International Markets segment in the fourth quarter of 2024 were $22 million, compared to $19 million in the fourth quarter of 2023. In local currency terms, revenues increased by 22%, due to growth in existing markets in which AJOVY was launched. COPAXONE revenues in our International Markets segment in the fourth quarter of 2024 were $9 million compared to $12 million in the fourth quarter of 2023. In local currency terms, revenues decreased by 16% mainly due to market share erosion and competition. AUSTEDO was launched in China and Israel in 2021 and in Brazil in 2022, for the treatment of chorea associated with Huntington’s disease and for the treatment of tardive dyskinesia. In February 2024, we announced a strategic partnership for the marketing and distribution of AUSTEDO in China. We continue with additional submissions in various other markets. AUSTEDO revenues in our International Markets segment in the fourth quarter of 2024 were $7 million. In local currency terms, revenues increased by 54%, substantially due to the launch of a strategic partnership in China. International Markets Gross Profit Gross profit from our International Markets segment in the fourth quarter of 2024 was $346 million, an increase of 16% compared to $299 million in the fourth quarter of 2023. Gross profit margin for our International Markets segment in the fourth quarter of 2024 increased to 52.3%, compared to 49.8% in the fourth quarter of 2023. This increase was mainly due to revenues from the sale of certain product rights, price increases largely as a result of inflationary pressures in certain markets, a positive hedging impact and a favorable mix of products, partially offset by regulatory price reductions and generic competition to off-patented products in Japan, as well as higher costs due to inflationary and other macroeconomic pressures. International Markets Profit Profit from our International Markets segment consists of revenues less cost of sales, R&D expenses, S&M expenses, G&A expenses and any other income related to this segment. Segment profit does not include amortization and certain other items. Profit from our International Markets segment in the fourth quarter of 2024 was $141 million, an increase of 30%, compared to $109 million in the fourth quarter of 2023. This increase was mainly due to higher gross profit, as mentioned above. Other Activities We have other sources of revenues, primarily the sale of APIs to third parties, certain contract manufacturing services and an out-licensing platform offering a portfolio of products to other pharmaceutical companies through our affiliate Medis. Our other activities are not included in our United States, Europe or International Markets segments described above. On January 31, 2024, we announced that we intend to divest our API business (including its R&D, manufacturing and commercial activities) through a sale. The intention to divest is in alignment with our Pivot to Growth strategy. However, there can be no assurance regarding the ultimate timing or structure of the potential divestiture or that a divestiture will be agreed or completed at all. Revenues from other activities in the fourth quarter of 2024 were $241 million, a decrease of 2% in both U.S. dollars and local currency terms, compared to the fourth quarter of 2023. API sales to third parties in the fourth quarter of 2024 were $145 million, flat compared to the fourth quarter of 2023, following a reallocation of an immaterial business within our other activities, in line with our intention to divest our API business. 2025 Non-GAAP Outlook $ billions, except diluted EPS or as noted2025 OutlookRevenues*16.8 –17.4AUSTEDO ($m)*1,900-2,050AJOVY ($m)*~600UZEDY ($m)*~160COPAXONE ($m)*~370Operating Income4.1 – 4.6Adjusted EBITDA4.5 – 5.0Finance Expenses ($m)~900Tax Rate15% – 18%Diluted EPS ($)2.35-2.65Free Cash Flow**1.6 – 1.9CAPEX*~0.5Foreign Exchange Volatile swings in FX can negatively impact revenue and income * Revenues and CAPEX presented on a GAAP basis.** Free Cash Flow includes cash flow generated from operating activities net of capital expenditures and deferred purchase price cash component collected for securitized trade receivables Annual Report on Form 10-K Teva's Annual Report on Form 10-K for the year ended December 31, 2024, which will be filed with the SEC, will include a complete analysis of the financial results for 2023 and will be available on Teva’s website: http://ir.tevapharm.com, as well as on the SEC’s website: http://www.sec.gov. Conference Call Teva will host a conference call and live webcast along with a slide presentation on Wednesday, January 29, 2025 at 8:00 a.m. ET to discuss its fourth quarter and annual 2024 results and overall business environment. A question & answer session will follow. In order to participate, please register in advance here to obtain a local or toll-free phone number and your personal pin. A live webcast of the call will be available on Teva's website at: http://ir.tevapharm.com/. Following the conclusion of the call, a replay of the webcast will be available within 24 hours on Teva’s website. About Teva Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is a global pharmaceutical leader, harnessing its generics expertise and stepping up innovation to continue the momentum behind the discovery, delivery, and expanded development of modern medicine. For over 120 years, Teva's commitment to bettering health has never wavered. Today, the company’s global network of capabilities enables its ~37,000 employees across 57 markets to push the boundaries of scientific innovation and deliver quality medicines to help improve health outcomes of millions of patients every day. To learn more about how Teva is all in for better health, visit www.tevapharm.com. Some amounts in this press release may not add up due to rounding. All percentages have been calculated using unrounded amounts. Cautionary Note Regarding Forward-Looking Statements This press release 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, both 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. You can identify these forward-looking statements by the use of words such as “should,” “expect,” “anticipate,” “estimate,” “target,” “may,” “project,” “guidance,” “intend,” “plan,” “believe” and other words and terms of similar meaning and expression in connection with any discussion of future operating or financial performance. Important factors that could cause or contribute to such differences include risks relating to: our ability to successfully compete in the marketplace, including: that we are substantially dependent on our generic products; concentration of our customer base and commercial alliances among our customers; competition faced by our generic medicines from other pharmaceutical companies and changes in regulatory policy that may result in additional costs and delays; delays in launches of new generic products; our ability to develop and commercialize additional pharmaceutical 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 successfully execute our Pivot to Growth strategy, including to expand our 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 generic medicines; and the effectiveness 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 significant indebtedness, which may limit our ability to incur additional indebtedness, engage in additional transactions or make new investments; and our potential need to raise additional funds in the future, which may not be available on acceptable terms or at all; our business and operations in general, including: the impact of global economic conditions and other macroeconomic developments 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; significant disruptions of information technology systems, including cybersecurity attacks and breaches of our data security; interruptions in our supply chain or problems with internal or third party manufacturing; challenges associated with conducting business globally, including political or economic instability, major hostilities or terrorism, such as the ongoing conflict between Russia and Ukraine and the state of war declared in Israel; our ability to attract, hire, integrate and retain highly skilled personnel; our ability to successfully bid for suitable acquisition targets or licensing opportunities, or to consummate and integrate acquisitions; and our prospects and opportunities for growth if we sell assets or business units and close or divest plants and facilities, as well as our ability to successfully and cost-effectively consummate such sales and divestitures, including our planned divestiture of our API business; compliance, regulatory and litigation matters, including: failure to comply with complex legal and regulatory environments; the 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 regulatory 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; potential liability for intellectual property right infringement; product liability claims; failure to comply with complex Medicare, Medicaid and other governmental programs reporting and payment obligations; compliance with sanctions and trade control laws; environmental risks; and the impact of ESG 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 who are military reservists being called to active military duty, and the impact of the war on the economic, social and political stability 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 Israel 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 business; and the impact of any future failure to establish and maintain effective internal control over our financial reporting;and other factors discussed in this press release, in our Annual Report on Form 10-K for the year ended December 31, 2023, including in the sections captioned "Risk Factors” and “Forward Looking Statements,” and in other periodic reports we subsequently file with the SEC available on the SEC’s website: http://www.sec.gov. 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. Consolidated Statements of Income (U.S. dollars in millions, except share and per share data) Three months ended Year ended December 31, December 31, (Unaudited) 2024 2023 2024 2023 Net revenues 4,229 4,457 16,544 15,846 Cost of sales 2,109 2,041 8,481 8,200 Gross profit 2,120 2,416 8,064 7,645 Research and development expenses 248 227 998 953 Selling and marketing expenses 650 610 2,541 2,336 General and administrative expenses 302 291 1,161 1162 Intangible assets impairments 81 61 251 350 Goodwill impairment 280 - 1,280 700 Other asset impairments, restructuring and other items 457 443 1,388 718 Legal settlements and loss contingencies 123 34 761 1,043 Other (income) loss 8 (6) (14 ) (49 ) Operating income (loss) (29 ) 755 (303 ) 433 Financial expenses, net 218 249 981 1,057 Income (loss) before income taxes (247 ) 507 (1,284 ) (624 ) Income taxes (benefit) 29 43 676 (7 ) Share in (profits) losses of associated companies, net (1 ) (1) (1 ) (2 ) Net income (loss) (275 ) 465 (1,959 ) (615 ) Net income (loss) attributable to non-controlling interests (58 ) 4 (320 ) (56 ) Net income (loss) attributable to Teva (217 ) 461 (1,639 ) (559 ) Earnings (loss) per share attributable to Teva:Basic ($)(0.19) 0.41 (1.45) (0.50) Diluted ($)(0.19) 0.41 (1.45) (0.50) Weighted average number of shares (in millions):Basic1,133 1,121 1,131 1,119 Diluted1,133 1,137 1,131 1,119 Non-GAAP net income attributable to Teva for diluted earnings per share:* 816 1,135 2,860 2,898 Non-GAAP earnings per share attributable to Teva:*Diluted ($)0.71 1.00 2.49 2.56 Non-GAAP average number of shares (in millions):Diluted1,157 1,137 1,150 1,131 Amounts may not add up due to rounding. § Represents an amount less than $0.5 million. * See reconciliation attached. Condensed Consolidated Balance Sheets (U.S. dollars in millions) (Audited) December 31, December 31, 2024 2023 ASSETS Current assets: Cash and cash equivalents 3,300 3,226 Accounts receivables, net of allowance for credit losses of $78 million and $95 million as of December 31, 2024 and December 31, 2023 3,059 3,408 Inventories 3,007 4,021 Prepaid expenses 1,006 1,255 Other current assets 409 504 Assets held for sale 1,771 70 Total current assets 12,552 12,485 Deferred income taxes 1,799 1,812 Other non-current assets 462 470 Property, plant and equipment, net 4,581 5,750 Operating lease right-of-use assets 367 397 Identifiable intangible assets, net 4,418 5,387 Goodwill 15,147 17,177 Total assets 39,326 43,479 LIABILITIES & EQUITY Current liabilities: Short-term debt 1,781 1,672 Sales reserves and allowances 3,678 3,535 Trade payables 2,203 2,602 Employee-related obligations 624 611 Accrued expenses 2,792 2,771 Other current liabilities 1,020 1,044 Liabilities held for sale 698 13 Total current liabilities 12,796 12,247 Long-term liabilities: Deferred income taxes 483 606 Other taxes and long-term liabilities 4,028 4,019 Senior notes and loans 16,002 18,161 Operating lease liabilities 296 320 Total long-term liabilities 20,809 23,106 Redeemable non-controlling interests 340 - Equity: Teva shareholders’ equity: 5,373 7,506 Non-controlling interests 7 620 Total equity 5,380 8,126 Total liabilities and equity 39,326 43,479 TEVA PHARMACEUTICAL INDUSTRIES LIMITED CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in millions) Year ended Three months ended December 31, December 31, (Unaudited) 2024 2023 2024 2023 (Audited) (Audited) (Unaudited) (Unaudited) Operating activities: Net income (loss) (1,959) (615) $ (275) $ 465 Adjustments to reconcile net income (loss) to net cash provided by operations: Impairment of goodwil 1,280 700 280 - Impairment of long-lived assets and assets held for sale 1,275 378 517 68 Depreciation and amortization 1,059 1,153 269 266 Net change in operating assets and liabilities (435) (72) (246) 292 Deferred income taxes — net and uncertain tax positions (634) (317) 32 34 Stock-based compensation 123 121 34 28 Net loss (gain) from sale of business and long-lived assets (22) (41) - (10)Other items * 560 61 (37) 41 Net cash provided by (used in) operating activities 1,247 1,368 575 1,184 Investing activities: Beneficial interest collected in exchange for securitized trade receivables 1,291 1,477 340 421 Purchases of property, plant and equipment and intangible assets (498) (526) (129) (120)Proceeds from sale of business and long lived assets 43 68 4 - Purchases of investments and other assets (71) (46) (15) (2)Proceeds from sale of investments 40 - - - Acquisitions of businesses, net of cash acquired. (15) - - - Other investing activities 2 (5) 2 2 Net cash provided by (used in) investing activities 792 968 202 301 Financing activities: Repayment of senior notes and loans and other long term liabilities (1,641) (4,152) (685) - Proceeds from senior notes, net of issuance costs - 2,451 - - Proceeds from short term debt - 700 - - Repayment of short term debt - (700) - (500)Purchase of shares from non-controlling interests (64) - - - Dividends paid to non-controlling interests (78) - - - Other financing activities (8) (212) 10 (76)Net cash provided by (used in) financing activities (1,791) (1,913) (675) (576)Translation adjustment on cash and cash equivalents (174) (30) (121) 68 Net change in cash, cash equivalents and restricted cash$ 74 $ 393 $ (19) $ 977 Balance of cash, cash equivalents and restricted cash at beginning of year 3,227 2,834 3,319 2,250 Balance of cash, cash equivalents and restricted cash at end of year 3,300 3,227 3,300 3,227 Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheets: Cash and cash equivalents 3,300 3,226 3,300 3,226 Restricted cash included in other current assets - 1 - 1 Total cash, cash equivalents and restricted cash shown in the statements of cash flows 3,300 3,227 3,300 3,227 Reconciliation of net income (loss) attributable to Teva to Non-GAAP net income (loss) attributable to Teva Three months ended Year ended December 31, December 31, ($ in millions except per share amounts) 2024 2023 2024 2023 Net income (Loss) attributable to Teva ($) (217) 461 ($) (1,639) (559) Increase (decrease) for excluded items: Amortization of purchased intangible assets 144 144 588 616 Legal settlements and loss contingencies(1) 123 34 761 1,043 Goodwill impairment(2) 280 - 1,280 700 Impairment of long-lived assets(3) 517 68 1,275 378 Restructuring costs 22 18 74 111 Equity compensation 34 28 123 121 Contingent consideration(4) (2) 408 303 548 Loss (Gain) on sale of business 6 - (15) (3) Accelerated depreciation 5 6 13 80 Financial expenses 13 13 49 66 Items attributable to non-controlling interests(3) (63) (1) (339) (92) Other non-GAAP items(5) 67 83 229 335 Corresponding tax effects and unusual tax items(6) (114) (128) 157 (446) Non-GAAP net income attributable to Teva ($) 816 1,135 ($) 2,860 2,898 Non-GAAP tax rate(7) 14.8%13.1% 15.3% 13.0% GAAP diluted earnings (loss) per share attributable to Teva ($) (0.19) 0.41 ($) (1.45) (0.50) EPS difference(8) 0.90 0.59 3.94 3.06 Non-GAAP diluted EPS attributable to Teva(8) ($) 0.71 1.00 ($) 2.49 2.56 Non-GAAP average number of shares (in millions)(8) 1,157 1,137 1,150 1,131 (1)Adjustments for legal settlements and loss contingencies in 2024 were mainly related to a legal expenses of $357 million recorded in connection with a decision by the European Commission in its antitrust investigation into COPAXONE, and to an update to the estimated settlement provision of $278 million for the opioid cases (mainly the effect of the passage of time on the net present value of the discounted payments and the settlement agreement with the city of Baltimore). Adjustments for legal settlements and loss contingencies in 2023 were mainly related to an update to the estimated provision of $370 million related to the DOJ patient assistance program litigation, an update to the estimated settlement provision of $269 million related to the remaining opioid cases, the provision of $207 million relating to the U.S. DOJ criminal antitrust charges on the marketing and pricing of certain Teva USA generic products and the provision of $100 million related to the settlement of the reverse-payment antitrust litigation over certain HIV medicines. (2)During the fourth quarter of 2024 a goodwill impairment charge of $280 million was recorded related to our API reporting unit. During the year ended December 31, 2024 goodwill impairment charges of $1,280 million were recorded related to our API reporting unit. During the year ended December 31, 2023 goodwill impairment charges of $700 million were recorded related to our International Markets reporting unit. (3)Adjustments for impairment of long-lived assets and items attributable to non-controlling interests, in the fourth quarter of 2024 primarily consisted of $129 million and $63 million, respectively, related to the classification of the business venture in Japan as held for sale. In addition, in the fourth quarter of 2024 we recognized an impairment of $275 million related to the classification of our API business (including its R&D, manufacturing and commercial activities) as held for sale. Adjustments for impairment of long-lived assets and items attributable to non-controlling interests, for the year ended December 31, 2024 primarily consisted of $689 million and $339 million, respectively, related to the classification of the business venture in Japan as held for sale. In addition, in 2024 we recognized an impairment of $275 million related to the classification of our API business (including its R&D, manufacturing and commercial activities) as held for sale. (4)During the fourth quarter of 2024 and 2023 adjustments for contingent consideration primarily related to a change in the estimated future royalty payments to Allergan in connection with lenalidomide capsules (the generic version of Revlimid®), of $3 million and $311 million, respectively. During the year ended December 31, 2024 and 2023 adjustments for contingent consideration primarily related to a change in the estimated future royalty payments to Allergan in connection with lenalidomide capsules (the generic version of Revlimid®), of $270 million and $422 million, respectively. (5)Other non-GAAP items include other exceptional items that we believe are sufficiently large that their exclusion is important to facilitate an understanding of trends in our financial results, primarily related to the rationalization of our plants, certain inventory write-offs, material litigation fees and other unusual events. (6)Adjustments for corresponding tax effects and unusual tax items for the year ended December 31, 2024, include a tax item in an amount of $495 million related to the settlement agreement with the ITA to settle certain litigation with respect to taxes payable for the Company’s taxable years 2008 through 2020. (7)Non-GAAP tax rate is tax expenses (benefit) excluding the impact of non-GAAP tax adjustments presented above as a percentage of income (loss) before income taxes excluding the impact of non-GAAP adjustments presented above. (8)EPS difference and diluted non-GAAP EPS are calculated by dividing our non-GAAP net income attributable to Teva by our non-GAAP diluted weighted average number of shares. Reconciliation of gross profit to Non-GAAP gross profit Three months ended Year ended December 31, December 31, ($ in millions) 2024 2023 2024 2023 GAAP gross profit($)2,120 2,416 ($)8,064 7,645 GAAP gross profit margin 50.1%54.2% 48.7%48.2% Increase (decrease) for excluded items:(1) Amortization of purchased intangible assets 135 129 543 549 Costs related to regulatory actions taken in facilities 3 2 8 4 Equity compensation 5 4 23 19 Accelerated Depreciation 5 6 13 80 Other non-GAAP items 51 35 164 173 Non-GAAP gross profit($)2,319 2,592 ($)8,814 8,470 Non-GAAP gross profit margin(2) 54.8%58.2% 53.3%53.5% (1)For further explanations, refer to the footnotes under the "Reconciliation of net income (loss) attributable to Teva to Non-GAAP net income (loss) attributable to Teva" table. (2)Non-GAAP gross profit margin is non-GAAP gross profit as a percentage of revenue. Reconciliation of operating income (loss) to Non-GAAP operating income (loss) Three months ended Year ended, December 31, December 31, ($ in millions) 2024 2023 2024 2023 Operating income (loss) ($) (29) 755 ($) (303) 433 Operating margin (0.7%)17.0% (1.8%)2.7%Increase (decrease) for excluded items: (1) Amortization of purchased intangible assets 144 144 588 616 Legal settlements and loss contingencies 123 34 761 1,043 Goodwill impairment 280 - 1,280 700 Impairment of long-lived assets 517 68 1,275 378 Restructuring costs 22 18 74 111 Equity compensation 34 28 123 121 Contingent consideration (2) 408 303 548 Loss (gain) on sale of business 6 - (15) (3) Accelerated depreciation 5 6 13 80 Other non-GAAP items 67 84 229 336 Non-GAAP operating income (loss) ($) 1,168 1,546 ($) 4,329 4,361 Non-GAAP operating margin(2) ($)27.6%34.7% ($)26.2%27.5% (1) For further explanations, refer to the footnotes under the "Reconciliation of net income (loss) attributable to Teva to Non-GAAP net income (loss) attributable to Teva" table. (2) Non-GAAP operating margin is Non-GAAP operating income as a percentage of revenues. Reconciliation of net income (loss) to adjusted EBITDA Three months ended Year ended December 31, December 31, ($ in millions) 2024 2023 2024 2023 Net income (loss) $(275)465 $(1,959)(615) Increase (decrease) for excluded items:(1) Financial expenses 218 249 981 1,057 Income taxes 29 43 676 (7) Share in profits (losses) of associated companies –net(1)(1) (1)(2) Depreciation 119 120 465 537 Amortization 144 144 588 616 EBITDA 235 1,020 750 1,585 Legal settlements and loss contingencies123 34 761 1,043 Goodwill impairment 280 - 1,280 700 Impairment of long lived assets 517 68 1,275 378 Restructuring costs 22 18 74 111 Equity compensation 34 28 123 121 Contingent consideration (2)408 303 548 Loss (Gain) on sale of Business 6 - (15)(3) Other non-GAAP items 67 84 229 335 Adjusted EBITDA$1,282 1,660 $4,781 4,818 (1)For further explanations, refer to the footnotes under the "Reconciliation of net income (loss) attributable to Teva to Non-GAAP net income (loss) attributable to Teva" table. Segment Information United States Europe International Markets Three months ended December 31, Three months ended December 31, Three months ended December 31, 2024 2023 2024 2023 2024 2023 (U.S. $ in millions) (U.S. $ in millions) (U.S. $ in millions) Revenues$1,975 $2,266 $1,353 $1,344 $661 $601Cost of sales 877 822 561 561 315 302Gross profit 1,097 1,444 792 783 346 299R&D expenses 158 144 56 52 27 24S&M expenses 260 238 221 203 137 134G&A expenses 109 90 75 67 42 37Other income 1 (1) 2 § (1) (4)Segment profit$569 $974 $438 $461 $141 $109 § Represents an amount less than $0.5 million. Segment Information United States Europe International Markets Year ended December 31, Year ended December 31, Year ended December 31, 2024 2023 2024 2023 2024 2023 (U.S. $ in millions) (U.S. $ in millions) (U.S. $ in millions) Revenues$8,034 $7,731 $5,103 $4,837 $2,463 $2,351Cost of sales 3,646 3,421 2,197 2,111 1,229 1,191Gross profit 4,388 4,310 2,905 2,726 1,235 1,160R&D expenses 633 604 229 220 112 104S&M expenses 1,049 938 826 767 534 487G&A expenses 410 378 272 263 150 142Other income § (5) 3 (2) (2) (39)Segment profit$2,296 $2,394 $1,575 $1,478 $440 $465 Reconciliation of our segment profit to consolidated income (loss) before income taxes Three months ended December 31, 2024 2023 (U.S.$ in millions) United States profit$569 $974 Europe profit 438 461 International Markets profit 141 109 Total reportable segment profit 1,148 1,544 Profit (loss) of other activities 19 2 1,168 1,546 Amounts not allocated to segments: Amortization 144 144 Other asset impairments, restructuring and other items 458 443 Goodwill impairment 280 - Intangible asset impairments 81 61 Legal settlements and loss contingencies 123 34 Other unallocated amounts 110 108 Consolidated operating income (loss) (29) 755 Financial expenses - net 218 249 Consolidated income (loss) before income taxes$(247) $507 Reconciliation of our segment profit to consolidated income (loss) before income taxes Year ended December 31, 2024 2023 (U.S.$ in millions) United States profit $2,296 $2,394 Europe profit 1,575 1,478 International Markets profit 440 465 Total reportable segment profit 4,311 4,338 Profit (loss) of other activities 18 24 Total segment profit 4,329 4,361 Amounts not allocated to segments: Amortization 588 616 Other asset impairments, restructuring and other items 1,388 718 Goodwill impairment 1,280 700 Intangible asset impairments 251 350 Legal settlements and loss contingencies 761 1,043 Other unallocated amounts 364 502 Consolidated operating income (loss) (303) 433 Financial expenses - net 981 1,057 Consolidated income (loss) before income taxes $(1,284) $(624) Segment revenues by major products and activities Three months ended December 31, PercentageChange 2024 2023 2023-2024 (U.S.$ in millions) United States segment Generic products $674 $667 1%AJOVY 63 57 11%AUSTEDO 518 408 27%BENDEKA/TREANDA 41 52 (21%)COPAXONE 63 72 (13%)UZEDY 43 9 N/AAnda 402 394 2%Other* 171 607 (72%)Total 1,975 2,266 (13%) *Other revenues in the fourth quarter of 2024 include the sale of certain product rights. Other revenues in 2023 were mainly comprised of a $500 million upfront payment received in the fourth quarter of 2023, in connection with the collaboration on our duvakitug (anti-TL1A) asset. Three months ended December 31, PercentageChange 2024 2023 2023-2024 (U.S.$ in millions) Europe segment Generic products $979 $938 4%AJOVY 58 45 28%COPAXONE 50 56 (11%)Respiratory products 61 70 (13%)Other* 205 234 (12%)Total 1,353 1,344 1% *Other revenues in the fourth quarter of 2024 and 2023 include the sale of certain product rights. Three months ended December 31, PercentageChange 2024 2023 2023-2024 (U.S.$ in millions) International Markets segment Generic products $497 $506 (2%)AJOVY 22 19 16%COPAXONE 9 12 (25%)AUSTEDO 7 5 50%Other* 126 60 112%Total 661 601 10% *Other revenues in the fourth quarter of 2024 include the sale of certain product rights. Segment revenues by major products and activities Year ended December 31, PercentageChange 2024 2023 2024-2023 (U.S.$ in millions) United States segment Generic products $3,599 $3,138 15%AJOVY 207 211 (2%)AUSTEDO 1,642 1,225 34%BENDEKA / TREANDA 168 237 (29%)COPAXONE 242 297 (18%)UZEDY 117 23 N/AAnda 1,536 1,577 (3%)Other* 523 1,025 (49%)Total 8,034 7,731 4% *Other revenues in 2024 include the sale of certain product rights. Other revenues in 2023 were mainly comprised of a $500 million upfront payment received in the fourth quarter of 2023, in connection with the collaboration on our duvakitug (anti-TL1A) asset. Year ended December 31, PercentageChange 2024 2023 2024-2023 (U.S.$ in millions) Europe segment Generic products $3,926 $3,664 7%AJOVY 216 160 34%COPAXONE 213 231 (8%)Respiratory products 244 265 (8%)Other* 504 516 (2%)Total 5,103 4,837 5% *Other revenues in 2024 and 2023 include the sale of certain product rights. Year ended December 31, PercentageChange 2024 2023 2024-2023 (U.S.$ in millions) International Markets segment Generic products $1,937 $1,932 0%AJOVY 84 63 33%COPAXONE 48 63 (24%)Austedo 46 15 199%Other* 349 278 25%Tota 2,463 2,351 5% *Other revenues in 2024 include the sale of certain product rights. Free cash flow reconciliation Three months ended December 31, 2024 2023 (U.S. $ in millions) Net cash provided by (used in) operating activities 575 1,184 Beneficial interest collected in exchange for securitized account receivables 340 421 Purchases of property, plant and equipment and intangible assets (129) (120)Proceeds from divestitures of businesses and other assets 4 - Free cash flow$790 $1,486 Free cash flow reconciliation Year ended December 31 2024 2023 (U.S. $ in millions) Net cash provided by (used in) operating activities 1,247 1,368 Beneficial interest collected in exchange for securitized account receivables 1,291 1,477 Purchases of property, plant and equipment and intangible assets (498) (526)Acquisition of businesses, net of cash acquired (15) - Proceeds from divestitures of businesses and other assets 43 68 Free cash flow$2,068 $2,387 Teva Media Inquiries TevaCommunicationsNorthAmerica@tevapharm.com Teva Investor Relations Inquires TevaIR@Tevapharm.com A PDF accompanying this announcement is available at http://ml-eu.globenewswire.com/Resource/Download/b66d129f-8d07-41e1-bf88-270e8ff2d21d