Teva plunges 18% after drugmaker lowers 2017 outlook again

Teva Pharmaceutical Industries, the entire world’s biggest generic medicine maker, warned on 2017 earnings on Thursday after reporting a fall in third-quarter profit hurt by competition inside the U.S. market.

Shares plunged nearly 18 percent on Thursday morning.

A day earlier U.S. shareholder Allergan announced the idea could begin selling down its 10 percent stake inside the Israeli company, whose brand new chief executive, Kare Schultz, took the reins This kind of week.

His predecessor stepped down in February after sharp criticism for a string of expensive acquisitions in addition to delayed drug launches.

Schultz needs to convince investors of which Teva can boost growth in addition to reduce a debt load acquired mostly coming from financing its $40.5 billion purchase of generics business Actavis, part of Allergan, last year.

In September, the idea announced the idea could sell the remaining businesses in its specialty women’s health business for $1.38 billion.

EPS tumbles

Teva reported third-quarter earnings per share (EPS) excluding one-time items of $1.00, down coming from $1.31 a year earlier, on revenue up 1 percent at $5.6 billion.

Generic drug profits fell to $619 million coming from $982 million a year earlier on sales of $3.01 billion, down coming from $3.26 billion.

the idea said the idea was being hurt by a lower-than-expected contribution coming from brand new generic launches inside the United States as well as by increased cost erosion.

Sales of its branded multiple sclerosis drug Copaxone fell 7 percent to $987 million.

The earlier-than-expected launch of a generic competitor to Copaxone in October will have an expected impact on EPS of 30 cents This kind of year, Teva said.

The quarterly results were broadly in line with analyst forecasts of $1.02 EPS ex-items on revenue of $5.6 billion, Thomson Reuters I/B/E/S data showed.

However, Teva lowered its full-year forecasts.

the idea cut its EPS ex-items forecast to $3.77-$3.87 coming from $4.30-$4.50. the idea cut its revenue forecast to $22.2-$22.3 billion coming from $22.8-$23.2 billion.

Analysts had been expecting a full-year EPS of $4.19 on revenue of $22.6 billion, Thomson Reuters I/B/E/S data showed.

“We today project approximately $400 million of revenues coming from brand new product launches inside the year, compared to the previous projection of $500 million,” the idea said.

Teva shares were down 11 percent at 44 shekels as of 1235 GMT.

Teva will pay a quarterly dividend of 8.5 cents a share, unchanged coming from the second quarter when the idea cut its payout by 75 percent.

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