The share price Teva Pharmaceuticals tumbled after it published guidance for 2018. The troubled drug giant said it expects the coming year’s revenue to be $18.3 billion to $18.8 billion and earnings per share of $2.25-$2.50 per share. The share price was down 13 percent in premarket trading on Nasdaq after the results were published, Globes reported.
Teva’s fourth quarter outperformed analysts’ forecasts. Teva reported $5.5 billion revenue in the fourth quarter of 2017, down 5.5 percent from the corresponding quarter of 2016. The analysts had predicted revenue of $5.3 billion.
Teva president and CEO Kåre Schultz said, “2017 was a challenging year for Teva. Starting 2018, we are focused on meeting our financial obligations and ensuring a much more solid and sustainable business model going forward. We are making strong progress on the restructuring plan, and I am optimistic about the progress made and remain confident in our ability to deliver on our targets in the coming year.”
Teva in December announced plans to cut 14,000 jobs, roughly one-quarter of its work force, in a broad restructuring as it confronts lower prices for generics, the expiration of patents on its core Copaxone drug and a more than $30 billion debt load.
Speaking to analysts, Schultz said roughly half the layoffs should be complete by July, with the remainder taking place by the end of 2019. “Everything is on plan. Everything is on target,” he was quoted as saying by The Associated Press on Thursday.