Teva Pharmaceuticals Files 2023 Annual Report on Form 10-K
Ticker: TEVJF · Form: 10-K · Filed: Feb 12, 2024 · CIK: 818686
| Field | Detail |
|---|---|
| Company | Teva Pharmaceutical Industries Ltd (TEVJF) |
| Form Type | 10-K |
| Filed Date | Feb 12, 2024 |
| Risk Level | medium |
| Pages | 15 |
| Reading Time | 17 min |
| Sentiment | neutral |
Complexity: moderate
Sentiment: neutral
Topics: 10-K, Teva Pharmaceuticals, Sustainability Bonds, Anti-TL1A, Debt Management
TL;DR
<b>Teva Pharmaceuticals filed its 2023 10-K, highlighting a $500 million upfront payment for an anti-TL1A asset collaboration and significant sustainability-linked bond issuances and debt extinguishments.</b>
AI Summary
TEVA PHARMACEUTICAL INDUSTRIES LTD (TEVJF) filed a Annual Report (10-K) with the SEC on February 12, 2024. Teva reported "Other revenues" in 2023 primarily from the sale of certain product rights. A $500 million upfront payment was received in Q4 2023 for a collaboration on Teva's anti-TL1A asset. Teva issued $600 million in sustainability-linked senior notes in March 2023, due September 2029. Teva issued $500 million in sustainability-linked senior notes in March 2023, due September 2031. Teva extinguished $631 million of 6% senior notes due 2025 and $432 million of 4.5% senior notes due 2025 in a March 2023 tender offer.
Why It Matters
For investors and stakeholders tracking TEVA PHARMACEUTICAL INDUSTRIES LTD, this filing contains several important signals. The company's "Other revenues" are significantly impacted by strategic asset collaborations and product rights sales, indicating a reliance on non-core revenue streams. Teva's issuance of sustainability-linked bonds and debt extinguishments suggest active management of its capital structure and a focus on ESG-related financing.
Risk Assessment
Risk Level: medium — TEVA PHARMACEUTICAL INDUSTRIES LTD shows moderate risk based on this filing. The company's financial disclosures, including revisions to prior period financial statements and the treatment of embedded derivatives for sustainability-linked bonds, indicate a degree of complexity and potential for future adjustments.
Analyst Insight
Investors should monitor Teva's progress on its anti-TL1A asset collaboration and its ability to meet sustainability performance targets for its bonds.
Revenue Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| North America | $500 million | |
| Europe | Certain product rights |
Key Numbers
- 20231231 — Fiscal Year End (Period of report)
- 20240212 — Filing Date (Date of filing)
- $500 million — Upfront Payment (Received in Q4 2023 for anti-TL1A asset collaboration)
- $600 million — Sustainability-Linked Notes (Issued March 2023, due September 2029)
- $500 million — Sustainability-Linked Notes (Issued March 2023, due September 2031)
- $631 million — Extinguished Debt (6% senior notes due 2025)
- $432 million — Extinguished Debt (4.5% senior notes due 2025)
- 0.15%-0.45% — Potential Premium Payment (Related to sustainability performance targets on bonds)
Key Players & Entities
- TEVA PHARMACEUTICAL INDUSTRIES LTD (company) — Filer
- 0000818686 (company) — Central Index Key
- 2834 (company) — Standard Industrial Classification
- 9729267267 (company) — Business Phone
- $500 million (dollar_amount) — Upfront payment received in Q4 2023
- $600 million (dollar_amount) — Principal amount of sustainability-linked senior notes issued in March 2023
- $500 million (dollar_amount) — Principal amount of sustainability-linked senior notes issued in March 2023
- $631 million (dollar_amount) — Aggregate principal amount of 6% senior notes due in 2025 extinguished
Forward-Looking Statements
- Teva's interest expenses will increase due to sustainability-linked bonds. (Teva Pharmaceutical Industries Ltd.) — medium confidence, target: September 15, 2026
- Teva will continue to pursue collaborations for its drug pipeline assets. (Teva Pharmaceutical Industries Ltd.) — high confidence, target: 2024
FAQ
When did TEVA PHARMACEUTICAL INDUSTRIES LTD file this 10-K?
TEVA PHARMACEUTICAL INDUSTRIES LTD filed this Annual Report (10-K) with the SEC on February 12, 2024.
What is a 10-K filing?
A 10-K is a comprehensive annual financial report required by the SEC, covering audited financials, business operations, risk factors, and management discussion. This particular 10-K was filed by TEVA PHARMACEUTICAL INDUSTRIES LTD (TEVJF).
Where can I read the original 10-K filing from TEVA PHARMACEUTICAL INDUSTRIES LTD?
You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by TEVA PHARMACEUTICAL INDUSTRIES LTD.
What are the key takeaways from TEVA PHARMACEUTICAL INDUSTRIES LTD's 10-K?
TEVA PHARMACEUTICAL INDUSTRIES LTD filed this 10-K on February 12, 2024. Key takeaways: Teva reported "Other revenues" in 2023 primarily from the sale of certain product rights.. A $500 million upfront payment was received in Q4 2023 for a collaboration on Teva's anti-TL1A asset.. Teva issued $600 million in sustainability-linked senior notes in March 2023, due September 2029..
Is TEVA PHARMACEUTICAL INDUSTRIES LTD a risky investment based on this filing?
Based on this 10-K, TEVA PHARMACEUTICAL INDUSTRIES LTD presents a moderate-risk profile. The company's financial disclosures, including revisions to prior period financial statements and the treatment of embedded derivatives for sustainability-linked bonds, indicate a degree of complexity and potential for future adjustments.
What should investors do after reading TEVA PHARMACEUTICAL INDUSTRIES LTD's 10-K?
Investors should monitor Teva's progress on its anti-TL1A asset collaboration and its ability to meet sustainability performance targets for its bonds. The overall sentiment from this filing is neutral.
Risk Factors
- Sustainability Performance Targets [medium — financial]: Failure to achieve certain sustainability performance targets on issued bonds could result in one-time premium payments or increased interest rates.
Filing Stats: 4,350 words · 17 min read · ~15 pages · Grade level 17.3 · Accepted 2024-02-12 07:01:22
Filing Documents
- d600678d10k.htm (10-K) — 3981KB
- d600678dex1023.htm (EX-10.23) — 81KB
- d600678dex1024.htm (EX-10.24) — 5KB
- d600678dex21.htm (EX-21) — 7KB
- d600678dex23.htm (EX-23) — 3KB
- d600678dex311.htm (EX-31.1) — 10KB
- d600678dex312.htm (EX-31.2) — 10KB
- d600678dex32.htm (EX-32) — 4KB
- d600678dex97.htm (EX-97) — 25KB
- g600678g0129214653895.jpg (GRAPHIC) — 3KB
- g600678g0129214903245.jpg (GRAPHIC) — 2KB
- g600678g29l02.jpg (GRAPHIC) — 71KB
- 0001193125-24-031005.txt ( ) — 20936KB
- teva-20231231.xsd (EX-101.SCH) — 151KB
- teva-20231231_cal.xml (EX-101.CAL) — 86KB
- teva-20231231_def.xml (EX-101.DEF) — 908KB
- teva-20231231_lab.xml (EX-101.LAB) — 968KB
- teva-20231231_pre.xml (EX-101.PRE) — 975KB
- d600678d10k_htm.xml (XML) — 4546KB
Forward-Looking Statements
Forward-Looking Statements 1 PART I Item 1.
Business
Business 2 Item 1A.
Risk Factors
Risk Factors 27 Item 1B. Unresolved Staff Comments 50 Item 1C. Cybersecurity 50 Item 2.
Properties
Properties 52 Item 3.
Legal Proceedings
Legal Proceedings 53 Item 4. Mine Safety Disclosures 53 PART II Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 54 Item 6. [Reserved] 55 Item 7.
Management's Discussion and Analysis of Financial Condition and Results of Operations
Management's Discussion and Analysis of Financial Condition and Results of Operations 56 Item 7A.
Quantitative and Qualitative Disclosures about Market Risk
Quantitative and Qualitative Disclosures about Market Risk 84 Item 8.
Financial Statements and Supplementary Data
Financial Statements and Supplementary Data 87 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 177 Item 9A.
Controls and Procedures
Controls and Procedures 177 Item 9B. Other Information 178 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections (Not Applicable) 179 PART III Item 10. Directors, Executive Officers and Corporate Governance 179 Item 11.
Executive Compensation
Executive Compensation 179 Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 179 Item 13. Certain Relationships and Related Transactions, and Director Independence 179 Item 14. Principal Accounting Fees and Services 179 PART IV Item 15. Exhibits, Financial Statement Schedules 180 Item 16. Form 10-K Summary 184 Table of Contents INTRODUCTION AND USE OF CERTAIN TERMS Unless otherwise indicated, all references to the "Company," "we," "our" and "Teva" refer to Teva Pharmaceutical Industries Limited and its subsidiaries, and references to "revenues" refer to net revenues. References to "U.S. dollars," "dollars," "U.S.
quot; and "quot; are to the lawful currency of the United States of America, and references to "NIS" are to new Israeli shekels. References to "ADS(s)" are to Teva's American Depositary Share(s). References to "MS" are to multiple sclerosis. Market data, including both sales and share data, is based on information provided by IQVIA, a provider of market research to the pharmaceutical industry ("IQVIA"), unless otherwise stated. References to "R&D" are to Research and Development, references to "IPR&D" are to in-process R&D, references to "S&M" are to Selling and Marketing and references to "G&A" are to General and Administrative. Some amounts in this report may not add up due to rounding. All percentages have been calculated using unrounded amounts. This report on Form 10-K contains many of the trademarks and trade names used by Teva in the United States and internationally to distinguish its products and services. Any third-party trademarks mentioned in this report are the property of their respective owners. CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS AND RISK FACTOR SUMMARY In addition to historical information, this Annual Report on Form 10-K, and the reports and documents incorporated by reference in this Annual Report on Form 10-K, may contain forward-looking statements within the meaning of the P