EM CEEMEA CREDIT: Teva: Q3 25 Results : Credit supportive

(TEVA; Ba1/BBpos/BB+)

Stock +8% in the pre-market

• A supportive set of results, topline marginally ahead. Total revenues +3% y/y at $4.5bn, slightly ahead of company complied expectations of $4.38bn. AUSTEDO performed well +38% y/y (LCL CCY) at $618mn vs expec of $543mn. AJOVY revenues inline at $167mn during the quarter, but UZEDY was weaker at $43mn vs expectations of $55mn. Generics performed well +2% y/y, particularly in US +7% y/y.
• Profitability was ahead with adj.EBITDA at $1,394mn vs expectation of $1,277mn.  FCF of $515mn slightly below estimates of $515mn.  Total debt was reported at $16.79bn  vs $17.3bn at the end of Q2, due to exchanges and repayment of notes.
• In terms of outlook, AUSTEDO revenues slightly higher by $100mn and total revenue guidance narrowed to $16.8-17bn (mgt prev stated they expect to be slightly below $17bn). EPS guidance narrowed to $2.55-2.65 from $2.50-2.60.