<SEC-DOCUMENT>0001193125-24-089481.txt : 20240515
<SEC-HEADER>0001193125-24-089481.hdr.sgml : 20240515
<ACCEPTANCE-DATETIME>20240408135856
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-24-089481
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20240408

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TEVA PHARMACEUTICAL INDUSTRIES LTD
		CENTRAL INDEX KEY:			0000818686
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		ORGANIZATION NAME:           	03 Life Sciences
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			L3
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		TEVA PHARMACEUTICAL INDUSTRIES LIMITED
		STREET 2:		124 DVORA HANEVI'A ST.
		CITY:			TEL AVIV
		STATE:			L3
		ZIP:			6944020
		BUSINESS PHONE:		972 (3) 914-8213

	MAIL ADDRESS:	
		STREET 1:		TEVA PHARMACEUTICAL INDUSTRIES LIMITED
		STREET 2:		124 DVORA HANEVI'A ST.
		CITY:			TEL AVIV
		STATE:			L3
		ZIP:			6944020
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
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<TITLE>CORRESP</TITLE>
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<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">April&nbsp;8, 2024 </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Corporation
Finance, Office of Life Sciences </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">100 F Street, N.E. </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Washington, D.C. 20549 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Attn: Mary Mast and Daniel Gordon </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>Re:</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B>Teva Pharmaceutical Industries Limited </B></P></TD></TR></TABLE>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman"><B>Form <FONT STYLE="white-space:nowrap">10-K</FONT> for the Fiscal Year Ended December&nbsp;31, 2023 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman"><B>filed February&nbsp;12, 2024 <U> </U></B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman"><B><U>File No.</U><U></U><U><FONT STYLE="white-space:nowrap">&nbsp;001-16174</FONT></U> </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Ladies and Gentlemen: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">On behalf of Teva
Pharmaceutical Industries Limited (&#147;Teva&#148; or the &#147;Company&#148;), set forth below is Teva&#146;s response to the comment of the staff (the &#147;Staff&#148;) of the Securities and Exchange Commission contained in your letter dated
March&nbsp;11, 2024 to Eli Kalif, Teva&#146;s Executive Vice President and Chief Financial Officer. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">For your ease of reference, we have
set forth below the Staff&#146;s comments in italics, followed by Teva&#146;s response thereto. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><I>Form <FONT STYLE="white-space:nowrap">10-K</FONT>
for the Fiscal Year Ended December&nbsp;31, 2023 </I></B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I><U>Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations <FONT
STYLE="white-space:nowrap">Non-GAAP</FONT> Net Income and <FONT STYLE="white-space:nowrap">Non-GAAP</FONT> EPS Data, page 78 </U></I></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="5%" VALIGN="top" ALIGN="left"><I>1.</I></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><I>Please address the following regarding your disclosures in the <FONT STYLE="white-space:nowrap">10-K</FONT>
and <FONT STYLE="white-space:nowrap">8-K</FONT> furnished on January&nbsp;31, 2024: </I></P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="2%" VALIGN="top" ALIGN="left"><I>&#149;</I></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>Quantify for us the significant components of the adjustments for &#147;Contingent Consideration&#148;,
&#147;Other <FONT STYLE="white-space:nowrap">non-GAAP</FONT> items&#148; and &#147;Corresponding tax effects and unusual tax items&#148;. Tell us why you believe the adjustments are consistent with Regulation G, Item&nbsp;10(e) of <FONT
STYLE="white-space:nowrap">Regulation&nbsp;S-K,</FONT> and C&amp;DI 100.01. </I></P></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Response: </B>The Company acknowledges the
Staff&#146;s comment and set forth below is a discussion of the significant components of each of &#147;Contingent Consideration,&#148; &#147;Other <FONT STYLE="white-space:nowrap">non-GAAP</FONT> items&#148; and &#147;Corresponding tax effects and
unusual tax items,&#148; as well as the Company&#146;s rationale for including such adjustments in the Company&#146;s calculation of its <FONT STYLE="white-space:nowrap">Non-GAAP</FONT> Net Income. On a prospective basis, the Company will quantify
the significant components of significant adjustments that have multiple components that are included in the calculation of its <FONT STYLE="white-space:nowrap">non-GAAP</FONT> measures. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>Contingent Consideration </I></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Teva&#146;s contingent
consideration expenses relate to past business combination agreements that provide for additional payments contingent upon specific future events that the Company would not have otherwise incurred as part of its continuing operations. These expenses
represent adjustments to the fair value of the estimated contingent payments. For the years ended December&nbsp;31, 2023 and 2022, Teva adjusted for contingent consideration expenses of $548&nbsp;million and $261&nbsp;million, respectively. In 2023,
contingent consideration expenses primarily consisted of (i) $422&nbsp;million in changes in the </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">estimated future royalty payments to be paid by the Company to Allergan PLC (&#147;Allergan&#148;) in
connection with lenalidomide (generic equivalent of Revlimid<SUP STYLE="font-size:75%; vertical-align:top">&reg;</SUP>) as part of the Company&#146;s arrangement with Allergan in connection with the acquisition of Allergan&#146;s worldwide generic
pharmaceuticals business in August 2016 (the &#147;Allergan Royalty Arrangement&#148;); and (ii) $132&nbsp;million in changes in the estimated future royalty payments to be paid by the Company to Eagle Pharmaceuticals, Inc. (&#147;Eagle&#148;) in
connection with expected future bendamustine sales as part of the exclusive license agreement the Company entered into with Eagle in February 2015 (the &#147;Eagle Licensing Arrangement&#148;), which was accounted as a business combination. In 2022,
contingent consideration expenses primarily consisted of (i) $240&nbsp;million in changes in the estimated future royalty payments to be paid by the Company to Allergan in connection with the Allergan Royalty Arrangement; and (ii) $21&nbsp;million
in changes in the estimated future royalty payments to be paid by the Company to Eagle in connection with the Eagle Licensing Arrangement. Teva&#146;s contingent consideration expenses are quantified and disclosed in Note&nbsp;20 (Fair value
measurement) to the Company&#146;s consolidated financial statements included in Teva&#146;s Annual Report on Form 10-K for the year ended December&nbsp;31, 2023. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Company respectfully advises the Staff that it has reviewed the requirements set forth in Regulation G and Item 10(e) of Regulation <FONT
STYLE="white-space:nowrap">S-K</FONT> of the Securities Act of 1933, as amended (the &#147;Securities Act&#148;), and the Staff&#146;s guidance as set forth in C&amp;DI 100.01 (collectively, the <FONT STYLE="white-space:nowrap">&#147;Non-GAAP</FONT>
Requirements&#148;) and believes that adjusting for contingent consideration expenses in the Company&#146;s calculation of its <FONT STYLE="white-space:nowrap">Non-GAAP</FONT> Net Income is consistent with the
<FONT STYLE="white-space:nowrap">Non-GAAP</FONT> Requirements and does not cause its <FONT STYLE="white-space:nowrap">Non-GAAP</FONT> Net Income to be misleading. Contingent consideration expenses relate to contingent consideration arrangements that
are unique and do not follow a repetitive pattern characteristic of recurring expenses. Instead, such contingent expenses vary and are dependent on the circumstances of the particular acquisition from which they arise. The specific amount of
contingent consideration expenses recorded by the Company in each reporting period is highly variable and unpredictable, can range in value from several million to several hundreds of millions of dollars and can either be an income or an expense
from period to period. Additionally, given that the Company&#146;s contingent consideration expenses represent specific acquisition-related obligations arising from past business combinations, they are not indicative of the Company&#146;s <FONT
STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">day-to-day</FONT></FONT> operational performance. The Company believes that removing the impact of contingent consideration expenses from its calculation of
<FONT STYLE="white-space:nowrap">Non-GAAP</FONT> Net Income is consistent with the presentation of <FONT STYLE="white-space:nowrap">non-GAAP</FONT> measures by other companies within the Company&#146;s industry, as such expenses can vary
substantially from company to company depending upon the nature of the business combination arrangements they arise from but are not indicative of the Company&#146;s continuing core business activities. The Company believes that excluding contingent
consideration expenses provides investors a clearer view of the Company&#146;s ongoing operational performance and therefore facilitates more meaningful comparisons of the Company&#146;s operational performance across financial periods and enhances
investors&#146; insight into trends in the Company&#146;s core business operations. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>Other <FONT STYLE="white-space:nowrap">non-GAAP</FONT> items
</I></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Other <FONT STYLE="white-space:nowrap">non-GAAP</FONT> items consist of other exceptional items that the Company believes are sufficiently large that
their exclusion is important to facilitate investors&#146; understanding of trends in the Company&#146;s financial results. Other <FONT STYLE="white-space:nowrap">non-GAAP</FONT> items excluded from the Company&#146;s calculation of its <FONT
STYLE="white-space:nowrap">non-GAAP</FONT> Net Income typically consist of items such as significant costs for the rationalization of the Company&#146;s plants that are not in the ordinary course of business, certain inventory write-offs that are
not in the ordinary course of business, certain expenses related to legal proceedings or litigation that are not in the ordinary course of business or other unusual events. For the years ended December&nbsp;31, 2023 and 2022, Teva adjusted for other
<FONT STYLE="white-space:nowrap">non-GAAP</FONT> items of $330&nbsp;million and $465&nbsp;million, respectively. In 2023, other <FONT STYLE="white-space:nowrap">non-GAAP</FONT> items primarily consisted of (i) $107&nbsp;million of litigation fees
mainly attributed to: (a)&nbsp;the settlement of the Company&#146;s opioids litigation (the &#147;Opioids Litigation&#148;), for which the Company entered into a settlement with all 50 U.S. states and the Native American tribes party thereto in
2023, and (b)&nbsp;the settlement of the U.S. Department of </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Justice&#146;s (the &#147;DOJ&#148;) antitrust charges against the Company on the marketing and pricing of
certain Teva USA generic products (the &#147;Antitrust Proceeding&#148;); and (ii) $154&nbsp;million of costs relating to the Company&#146;s plant rationalization efforts, a portion of which consisted of costs related to plants used in the
Company&#146;s API business that the Company intends to divest, as previously announced by the Company concurrently with its earnings release for the year ended December&nbsp;31, 2023, with the remaining other
<FONT STYLE="white-space:nowrap">non-GAAP</FONT> items in 2023 comprised across several discrete items, none of which are individually material. In 2022, other <FONT STYLE="white-space:nowrap">non-GAAP</FONT> items primarily consisted of (i)
$114&nbsp;million of litigation fees related to the Opioids Litigation and the Antitrust Proceeding; (ii) $179&nbsp;million of costs relating to the Company&#146;s plant rationalization efforts; and (iii) $122&nbsp;million of expenses related to a
specific product that Teva decided to divest, consisting primarily of a <FONT STYLE="white-space:nowrap">write-off</FONT> of raw materials purchased to produce the product and penalties related to the Company&#146;s exit from a contract related to
the product, with the remaining other <FONT STYLE="white-space:nowrap">non-GAAP</FONT> items in 2022 comprised across several discrete items, none of which are individually material. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Company has reviewed the other <FONT STYLE="white-space:nowrap">non-GAAP</FONT> items discussed above against the
<FONT STYLE="white-space:nowrap">Non-GAAP</FONT> Requirements and believes that adjusting for such other <FONT STYLE="white-space:nowrap">non-GAAP</FONT> items in the Company&#146;s calculation of its <FONT STYLE="white-space:nowrap">Non-GAAP</FONT>
Net Income is consistent with the <FONT STYLE="white-space:nowrap">Non-GAAP</FONT> Requirements and does not cause its <FONT STYLE="white-space:nowrap">Non-GAAP</FONT> Net Income to be misleading. Each of the other
<FONT STYLE="white-space:nowrap">non-GAAP</FONT> items relates to matters that are distinctive and substantial and are not indicative of the ordinary course of the Company&#146;s operations. The litigation fees included in other <FONT
STYLE="white-space:nowrap">non-GAAP</FONT> items represent fees relating to significant legal settlements for distinctive legal proceedings, primarily brought by governmental agencies, that are predicated on discrete and unique factual
circumstances. Litigation fees are only included in other <FONT STYLE="white-space:nowrap">non-GAAP</FONT> items to the extent they involve significant amounts and relate to litigation for which the Company has recorded a significant legal
provision. The Company does not expect such distinctive legal proceedings to reoccur on a regular basis in the ordinary course of its business. The plant rationalization costs included in other <FONT STYLE="white-space:nowrap">non-GAAP</FONT> items
relate to the Company&#146;s efforts to reduce its manufacturing network. Beginning in 2017, following the Company&#146;s acquisition of Allergan&#146;s worldwide generic pharmaceuticals business in August 2016 for which it paid approximately
$40&nbsp;billion, the Company initiated a robust restructuring program, through which it has divested approximately 50% of its manufacturing network. Given the scale of these rationalization efforts, the costs related thereto would have had an
outsized impact on the Company&#146;s financial statements if not otherwise excluded as a <FONT STYLE="white-space:nowrap">non-GAAP</FONT> item in the Company&#146;s calculation of <FONT STYLE="white-space:nowrap">Non-GAAP</FONT> Net Income.
Although the rationalization efforts have been ongoing for several years, they were the result of an extraordinarily large acquisition for which integration related to the rationalization of manufacturing plants takes years to implement and
continues to be implemented as Teva effects the previously announced divestiture of its API business. Additionally, this plant rationalization process is not indefinite and is expected to be completed in the near future. The Company has already
significantly reduced its manufacturing network, which is nearing the scale the Company expects to maintain to support its current business plans for the foreseeable future. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Teva believes that failing to exclude such costs would potentially cause investors to extrapolate its future financial performance from financial results that
are not reflective of the Company&#146;s underlying business performance. Adjusting for the Company&#146;s plant rationalization costs helps investors ascertain differences between the Company&#146;s spending on its core business activities and the
Company&#146;s spending on strategic efforts to reduce its manufacturing network. Lastly, other <FONT STYLE="white-space:nowrap">non-GAAP</FONT> items in 2022 included <FONT STYLE="white-space:nowrap">one-time</FONT> inventory <FONT
STYLE="white-space:nowrap">write-off</FONT> and related penalties related to a specific product that Teva decided to divest in 2022 as part of its portfolio optimization efforts. The inventory <FONT STYLE="white-space:nowrap">write-off</FONT> was
excluded due to its significant, but <FONT STYLE="white-space:nowrap">non-recurring,</FONT> impact on the Company&#146;s financial performance, and is further described in Note 6 (Identifiable Intangible Assets) to the Company&#146;s consolidated
financial statements included in Teva&#146;s Annual Report on Form <FONT STYLE="white-space:nowrap">10-K</FONT> for the year ended December&nbsp;31, 2023. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">These expenses were excluded from the Company&#146;s <FONT STYLE="white-space:nowrap">Non-GAAP</FONT> Net
Income to eliminate the impact these expenses may have of obscuring trends in the Company&#146;s underlying business performance and to enhance the comparability of the Company&#146;s financial results across periods. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>Corresponding tax effects and unusual tax items</I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Corresponding tax effects and unusual tax items consist of the tax implications of adjustments made in our calculation of
<FONT STYLE="white-space:nowrap">Non-GAAP</FONT> Net Income and other tax items that the Company views as <FONT STYLE="white-space:nowrap">non-recurring,</FONT> infrequent or unusual. Generally, most of the expenses excluded from the Company&#146;s <FONT
STYLE="white-space:nowrap">Non-GAAP</FONT> Net Income have a corresponding tax effect. In the years ended December&nbsp;31, 2023 and 2022, the Company adjusted for corresponding tax effects and unusual tax items of $446&nbsp;million and
$1,021&nbsp;million, respectively. In 2023, corresponding tax effects and unusual tax items primarily consisted of corresponding tax effects on expenses and income which are recognized for tax purposes, inclusive of amortization and impairment
charges, legal settlements and contingent consideration expenses. In 2022, corresponding tax effects and unusual tax items primarily consisted of $436&nbsp;million of worthless stock deductions permitted under U.S. tax regulations and related items
and $585&nbsp;million of corresponding tax effects on expenses and income which are recognized for tax purposes, inclusive of amortization and impairment charges, legal settlements and contingent consideration expenses. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Company has reviewed its adjustments for corresponding tax effects and unusual tax items against the <FONT STYLE="white-space:nowrap">Non-GAAP</FONT>
Requirements and believes that making such adjustments in the calculation of its <FONT STYLE="white-space:nowrap">Non-GAAP</FONT> Net Income is consistent with the <FONT STYLE="white-space:nowrap">Non-GAAP</FONT> Requirements and does not cause its <FONT
STYLE="white-space:nowrap">Non-GAAP</FONT> Net Income to be misleading. The vast majority of corresponding tax effects and unusual tax items excluded from <FONT STYLE="white-space:nowrap">Non-GAAP</FONT> Net Income are directly attributable to
specific <FONT STYLE="white-space:nowrap">pre-tax</FONT> transactions that are excluded from <FONT STYLE="white-space:nowrap">Non-GAAP</FONT> Net Income. In 2022, corresponding tax effects and unusual tax items also included worthless stock
deductions. Such worthless stock deductions related to Cephalon, Inc. (&#147;Cephalon&#148;), a U.S. subsidiary of Teva USA acquired in 2011, and had no impact on the Company&#146;s valuation of Cephalon or its intangible assets for GAAP reporting
purposes. The tax loss recognized in 2022 was a discrete event and no tax deduction was taken on any tax returns prior to 2022 in connection with the values assigned to Cephalon&#146;s intangibles in the Company&#146;s purchase accounting or its
outside basis in Cephalon. The Company excludes these discrete tax effects and tax items because they are not reflective of income tax expenses or benefits incurred as a result of the Company&#146;s ordinary course cash-generating operations. </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>For the Corresponding tax effects and unusual tax items you state the amount includes a portion of the
realization of a loss related to an investment in one of your subsidiaries. Please tell us the amount of the loss, whether that is the only adjustment not related to corresponding tax effects, and if the related loss is included as an adjustment as
well.</I> </P></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Response: </B>The Company acknowledges the Staff&#146;s comment and respectfully advises the Staff that its adjustment for
corresponding tax effects and unusual tax items in 2022 for a portion of the realization of a loss related to an investment in one of its subsidiaries was attributable to the Company&#146;s investment in Cephalon. The total taxable loss recognized
in connection with the Company&#146;s investment in Cephalon was approximately $4.2&nbsp;billion, with a corresponding tax benefit of $909&nbsp;million. $1.96&nbsp;billion of the taxable loss, with a corresponding tax effect of $436&nbsp;million,
was included in the Company&#146;s adjustment for corresponding tax effects and unusual tax items in 2022. The remainder of the total taxable loss recognized in connection with the Company&#146;s investment in Cephalon was included under the GAAP
line item &#147;Income taxes (benefit)&#148;, and the total GAAP benefit is disclosed in Note 13 (Income Taxes) to the Company&#146;s consolidated financial statements included in Teva&#146;s Annual Report on Form
<FONT STYLE="white-space:nowrap">10-K</FONT> for the year ended December&nbsp;31, 2023. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>Tell us why presenting Adjusted EBITDA in the narrative discussion of your earnings release prior to the
presentation of net income is consistent with Item 10(e)(1)(i) of Regulation <FONT STYLE="white-space:nowrap">S-K</FONT> and C&amp;DI 102.10.</I> </P></TD></TR></TABLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Response: </B>The Company acknowledges the Staff&#146;s comment and respectfully advises the Staff that,
in prior periods it presented Adjusted EBITDA following the presentation of operating income since the Company had, at one time, reconciled Adjusted EBITDA to operating income, and in future periods, the Company will revise its presentation of
Adjusted EBITDA in the narrative discussion of its earnings release to appear after its presentation of net income. </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">* * * * * * </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Should any member of the Staff have any questions or comments concerning this letter, please do not hesitate to call me. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Very Truly Yours, </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">/s/ Eli Kalif</P></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Eli Kalif</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Executive Vice President, Chief Financial Officer</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Teva Pharmaceutical Industries Limited</P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">cc: </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">David McAvoy, Executive Vice President, Chief Legal
Officer, Teva </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Dov Bergwerk, Senior Vice President, General Counsel-Corporate Affairs, Teva </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Amir Weiss, Senior Vice President, Chief Accounting Officer, Teva </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Ross M. Leff, P.C., Kirkland&nbsp;&amp; Ellis LLP </P>
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