Israel’s Teva gives upbeat outlook amid restructuring

JERUSALEM — Israeli drugmaker Teva Pharmaceutical Industries on Thursday reported a third-quarter loss as it proceeds with an aggressive cost-cutting program and adjusts to declines in key product categories.

But the company gave an upbeat outlook, citing stabilization in its core generics business, the launch of new products and progress with its restructuring program. Teva shares surged 15 percent on the news.

Teva posted a loss of $273 million, or 27 cents a share, compared with earnings of $530 million, or 52 cents a share, the previous year. Revenue fell 19 percent from $5.617 billion to $4.529 billion.

Nonetheless, Chief Executive Kare Schultz said in a statement he is “very satisfied with our progress and we are meeting all our key targets.”

Teva, the world’s No. 1 generic drugmaker, has been hit hard by price pressure and competition in its core generic business, the loss of patent protection on its blockbuster multiple sclerosis drug Copaxone and a more than $30 billion debt load stemming from its acquisition of the generics business of Allergan.

The struggling company announced plans last December to cut 14,000 jobs, over one-quarter of its global workforce.

Schultz said the company has pared its debt down from $35 billion to $27.6 million since he joined the company a year ago. He also said the company is well on its way to meeting its goals for cutting its workforce and reducing costs.

As part of its restructuring, the company has already eliminated some 9,000 of the 14,000 jobs it promised to cut by the end of 2019. It also has cut costs this year by $1.8 billion, more than half of the savings it has targeted by the end of next year.

“In the big picture we are on track, if anything ahead of schedule,” he said.