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Segments
 3 Months Ended
Mar. 31, 2025
Segments
 
NOTE 15 – Segments:
Teva operates its business and reports its financial results in three segments:
 
  (a)
United States segment.
 
  (b)
Europe segment, which includes the European Union, the United Kingdom and certain other European countries.
 
  (c)
International Markets segment, which includes all countries other than the United States and countries included in the Europe segment.
In addition to these three segments, Teva has other sources of revenues included in other activities, primarily the sale of APIs to third parties, certain contract manufacturing services and an
out-licensing
platform offering a portfolio of products to other pharmaceutical companies through its affiliate Medis.
Teva’s Chief Executive Officer (“CEO”), who is the chief operating decision maker (“CODM”), reviews financial information prepared on a consolidated basis, accompanied by disaggregated information about revenues and contributed profit by the three identified reportable segments, namely United States, Europe and International Markets, to make decisions about resources to be allocated to the segments and assess their performance.
The key areas of focus by CODM for allocation of resources are revenues from each reportable segment, as well as operating expenses (cost of sales, R&D expenses, S&M expenses, G&A expenses, and other). While the CODM analyzes each of these categories, the CODM focuses particularly on period over period fluctuations and
budget-to-actual
variances to determine the right allocation of resources to be attributed to each segment to ensure profitability is maximized.
Segment profit is comprised of revenues for the segment less cost of sales, R&D expenses, S&M expenses, G&A expenses and other expenses (income) related to the segment. Segment profit does not include amortization and certain other items.
Teva manages its assets on a company basis, not by segments, as many of its assets are shared or commingled. Teva’s CODM does not regularly review asset information by reportable segment and, therefore, Teva does not report asset information by reportable segment.
Teva’s CEO may review its strategy and organizational structure from time to time. Based on such review, in May 2023 Teva launched its new Pivot to Growth strategy. Any additional changes in strategy may lead to a reevaluation of the Company’s segments and goodwill allocation to reporting units, as well as fair value attributable to its reporting units. See note 6.
On January 31, 2024, Teva announced that it intends to divest its API business (including its R&D, manufacturing and commercial activities) through a sale. The intention to divest is in alignment with Teva’s Pivot to Growth strategy. However, there can be no assurance regarding the ultimate timing or structure of a potential divestiture or that a divestiture will be agreed or completed at all. See note 2.
a. Segment information:
 
    
Three months ended March 31,
  
    
2025
  
    
United States
     
Europe
     
International Markets
  
    
(U.S. $ in millions)
  
Revenues
    $ 1,910      $ 1,194      $ 582  
Cost of sales
      851        536        304  
R&D expenses
      154        60        25  
S&M expenses
      273        199        118  
G&A expenses
      96        69        39  
Other
      3        §        (1 ) 
  
 
 
     
 
 
     
 
 
  
Segment profit
    $ 532      $ 329      $ 97  
  
 
 
     
 
 
     
 
 
  
 
§
Represents an amount less than $0.5 million.
 
 
    
Three months ended March 31,
  
    
2024
  
    
United States
     
Europe
     
International Markets
  
    
(U.S. $ in millions)
  
Revenues
    $ 1,725      $ 1,272      $ 597  
Cost of sales
      867        534        300  
R&D expenses
      154        56        28  
S&M expenses
      261        194        118  
G&A expenses
      93        65        35  
Other
      1        1        §  
  
 
 
     
 
 
     
 
 
  
Segment profit
    $ 350      $ 423      $ 117  
  
 
 
     
 
 
     
 
 
  
 
§
Represents an amount less than $0.5 million.
The following table presents a reconciliation of Teva’s segment profits to its consolidated operating income (loss) and to consolidated income (loss) before income taxes for the three months ended March 31, 2025 and 2024:
 
    
Three months ended
  
    
March 31,
  
    
2025
     
2024
  
    
(U.S. $ in millions)
  
United States profit
    $ 532      $ 350  
Europe profit
      329        423  
International Markets profit
      97        117  
  
 
 
     
 
 
  
Total reportable segments profit
      958        890  
Profit (loss) of other activities
      (13 )       2  
  
 
 
     
 
 
  
Amounts not allocated to segments:
      
Amortization
      145        152  
Other assets impairments, restructuring and other items
      (22 )       673  
Intangible assets impairments
      121        80  
Legal settlements and loss contingencies
      83        106  
Other unallocated amounts
      99        99  
  
 
 
     
 
 
  
Consolidated operating income (loss)
      519        (218 ) 
  
 
 
     
 
 
  
Financial expenses, net
      225        250  
  
 
 
     
 
 
  
Consolidated income (loss) before income taxes
    $ 294      $ (467 ) 
  
 
 
     
 
 
  
 
b. Segment revenues by major products and activities:
The following tables present revenues by major products and activities for the three months ended March 31, 2025 and 2024:
 
United States   
Three months ended

March 31,
  
    
2025
     
2024
  
    
(U.S. $ in millions)
  
Generic products (including biosimilars)
    $ 849      $ 808  
AJOVY
®
      53        45  
AUSTEDO
      396        282  
BENDEKA
®
and TREANDA
®
      36        46  
COPAXONE
      54        30  
UZEDY
      39        15  
Anda
      373        381  
Other
      109        117  
  
 
 
     
 
 
  
Total
    $ 1,910      $ 1,725  
  
 
 
     
 
 
  
 
Europe   
Three months ended

March 31,
  
    
2025
     
2024
  
    
(U.S. $ in millions)
  
Generic products (including OTC and biosimilars)
    $ 989      $ 1,004  
AJOVY
      58        51  
COPAXONE
      42        57  
Respiratory products
      55        66  
Other
      50        94  
  
 
 
     
 
 
  
Total
    $ 1,194      $ 1,272  
  
 
 
     
 
 
  
 
International markets   
Three months ended

March 31,
  
    
2025
     
2024
  
    
(U.S. $ in millions)
  
Generic products (including OTC and biosimilars)
    $ 468      $ 477  
AJOVY
      28        17  
AUSTEDO
      15        14  
COPAXONE
      10        12  
Other*
      61        77  
  
 
 
     
 
 
  
Total
    $ 582      $ 597  
  
 
 
     
 
 
  
 
*
Other revenues in the first quarter of 2025 include the sale of certain product rights.