Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) shares fell today as the company posted its earnings results.
The drugmaker reported a profit of $1.02 per share, which was below analysts’ expectations of $1.06 per share. Revenue was also below the mark at $5.69 billion versus analysts’ projections of $5.72 billion.
The Food and Drug Administration has approved more generic drugs lately, and the prices for these medications has been lower. This has boosted sales for some companies, but Teva has been hurt by the fact that it’s making less money per product.
The company was also hurt by the unstable Venezuelan bolivar, which lowered revenue by $183 million year-over-year. The global health-care industry has been facing headwinds lately.
Apart from lower prices, Teva said that the company’s quarter was hurt by lower volume and the market over-saturation of generic drugs. The Israel-based company is currently helping to treat multiple sclerosis with its medications, as well as developing medications that are in its late stages for conditions of the central nervous system.
Fiscal 2017 projections are expected to be lower than previously expected as Teva reduced its adjusted earnings guidance to $4.30 to $4.50 per share, down from its previous outlook of $4.90 to $5.30 per share.
The company also announced that the earnings miss will force its hand, prompting it to cut 7,000 jobs, and it will sell 15 plants over the coming year and a half.
TEVA shares fell 22.1% Thursday.