Business Wire | Jul 28, 2021 07:00AM EDT

Teva Reports Second Quarter 2021 Financial Results

Jul. 28, 2021

TEL AVIV, Israel--(BUSINESS WIRE)--Jul. 28, 2021--Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) today reported results for the quarter ended June 30, 2021.

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Mr. Kre Schultz, Teva's President and CEO, said, "We have performed well in the second quarter, improving our profitability and free cash flow generation. This allowed us to reduce our net debt by an additional $500 million to $22.7 billion, once again demonstrating our commitment to and confidence in our long-term goals. Among our growth drivers, AUSTEDO(r) sales increased compared to the second quarter of last year, AJOVY(r) net sales have grown to $70 million worldwide, and our biosimilar Truxima(r) continues to increase its U.S. market share, reaching 25%."

Mr. Schultz continued, "Throughout the pandemic we remain committed to serving patients, maintaining our operations and delivering quality affordable medicines. Due to the effects of the pandemic, we have lowered our 2021 revenue outlook, while reaffirming our earnings and cash flow guidance."

Second Quarter 2021 Consolidated Results

Revenues in the second quarter of 2021 were $3,910 million, an increase of 1% or a decrease of 2% in local currency terms, compared to the second quarter of 2020. This decrease was mainly due to lower revenues in our North America segment, mainly related to COPAXONE(r) and Anda, partially offset by positive foreign currency impacts as well as higher revenues from generic products, OTC, AJOVY and COPAXONE in our Europe segment. Revenues were also affected by changes in demand for certain products resulting from the impact of the COVID-19 pandemic.

Exchange rate movements during the second quarter of 2021, including hedging effects, positively impacted our revenues by $135 million and our GAAP and non-GAAP operating income by $26 million and $30 million, respectively.

GAAP gross profit was $1,873 million in the second quarter of 2021, an increase of 6% compared to the second quarter of 2020. GAAP gross profit margin was 47.9% in the second quarter of 2021, compared to 45.5% in the second quarter of 2020. The increase in gross profit margin was mainly driven by higher profitability in North America resulting from the change in mix of products and network optimization activities, partially offset by lower sales of COPAXONE. Non-GAAP gross profit was $2,084 million in the second quarter of 2021, an increase of 4% compared to the second quarter of 2020. Non-GAAP gross profit margin was 53.3% in the second quarter of 2021, compared to 52.0% in the second quarter of 2020.

GAAP Research and Development (R&D)expenses in the second quarter of 2021 were $248 million, an increase of 10% compared to the second quarter of 2020. Non-GAAP R&D expenses were $243 million, or 6.2% of quarterly revenues, in the second quarter of 2021, compared to $233 million, or 6%, in the second quarter of 2020. In the second quarter of 2021, our R&D expenses related primarily to specialty product candidates in the respiratory, migraine and headache therapeutic areas, with additional activities in selected other areas and generic products including biosimilars. Our higher R&D expenses in the second quarter of 2021, compared to the second quarter of 2020, were mainly due to an increase in respiratory and biosimilar projects as well as various generics projects.

GAAP Selling and Marketing (S&M)expenses in the second quarter of 2021 were $615 million, an increase of 3% compared to the second quarter of 2020. Non-GAAP S&M expenses were $582 million, or 14.9% of quarterly revenues, in the second quarter of 2021, compared to $559 million, or 14.4%, in the second quarter of 2020.

GAAP General and Administrative (G&A) expenses in the second quarter of 2021 were $242 million, a decrease of 8% compared to the second quarter of 2020. Non-GAAP G&A expenses were $231 million, or 5.9% of quarterly revenues, in the second quarter of 2021, compared to $245 million, or 6.3%, in the second quarter of 2020.

GAAP operating income in the second quarter of 2021 was $582 million, compared to $173 million in the second quarter of 2020. This increase was mainly due to lower other asset impairments, restructuring and other items charges and higher profit in our Europe segment, partially offset by higher intangible asset impairment charges. Non-GAAP operating income in the second quarter of 2021 was $1,034 million, an increase of 6%, compared to $979 million in the second quarter of 2020. The increase was mainly due to higher profit in our Europe segment.

EBITDA (defined as operating income, excluding amortization and depreciation expenses) was $887 million in the second quarter of 2021, an increase of 60% compared to $555 million in the second quarter of 2020. Adjusted EBITDA (defined as non-GAAP operating income excluding depreciation expenses) was $1,162 million in the second quarter of 2021, an increase of 5% compared to $1,108 million in the second quarter of 2020.

GAAP financial expenses were $274 million in the second quarter of 2021, compared to $223 million in the second quarter of 2020. Non-GAAP financial expenses were $240 million in the second quarter of 2021, compared to $229 million in the second quarter of 2020. Financial expenses in the second quarter of 2021, were mainly comprised of interest expenses of $240 million and loss on revaluation of marketable securities of $34 million. Financial expenses in the second quarter of 2020 were mainly comprised of interest expenses of $241 million.

In the second quarter of 2021, we recognized a GAAP tax expense of $98 million, on pre-tax income of $308 million. In the second quarter of 2020, we recognized a tax benefit of $104 million, on pre-tax loss of $51 million. Our tax rate for the second quarter of 2021 was mainly affected by impairments, amortization and interest expense disallowance. Non-GAAP income taxes for the second quarter of 2021 were $133 million, or 17%, on pre-tax non-GAAP income of $794 million. Non-GAAP incometaxes in the second quarter of 2020 were $128 million, or 17%, on pre-tax non-GAAP income of $751 million. Our non-GAAP tax rate for the second quarter of 2021 was mainly affected by the mix of products we sold and interest expense disallowance.

We expect our annual non-GAAP tax rate for 2021 to be 17%-18%, unchanged from our outlook provided in February 2021.

GAAP net income attributable to Teva and GAAP EPS were $207 million and $0.19, respectively, in the second quarter of 2021, compared to $140 million and $0.13 in the second quarter of 2020. This increase was mainly due to the increase in operating income, as discussed above. Non-GAAP net income attributable to Teva and non-GAAP diluted EPS in the second quarter of 2021 were $651 million and $0.59, respectively, compared to $605 million and $0.55 in the second quarter of 2020.

The weighted averagediluted shares outstanding used for the fully diluted share calculation on a GAAP and non-GAAP basis for the three months ended June 30, 2021 and 2020 was 1,109 million and 1,100 million shares, respectively.

As of June 30, 2021 and 2020, the fully diluted share count for purposes of calculating our market capitalization was approximately 1,129 million and 1,119 million, respectively.

Non-GAAP information Net non-GAAP adjustments in the second quarter of 2021 were $444 million. Non-GAAP net income and non-GAAP EPS for the second quarter of 2021 were adjusted to exclude the following items:

* Amortization of purchased intangible assets of $173 million, of which $148 million is included in cost of sales and the remaining $25 million in S&M expenses; * Impairment of long-lived assets of $226 million, comprised mainly of impairment of intangible assets of IPR&D and product rights assets in connection with the Actavis Generics acquisition; * Divested gain in amount of $37 million, mainly from sale of certain OTC assets; * Contingent consideration income of $19 million, mainly related to a decrease in future royalties; * Finance expense of $34 million, mainly related to the American Well equity holding; * Equity compensation expenses of $29 million; * Other items of $74 million; and * Income tax of $36 million.

Teva believes that excluding such items facilitates investors' understanding of its business. For further information, see the tables below for a reconciliation of the U.S. GAAP results to the adjusted non-GAAP figures and the information under "Non-GAAP Financial Measures." Investors should consider non-GAAP financial measures in addition to, and not as replacement for, or superior to, measures of financial performance prepared in accordance with GAAP.

Cash flow generated from operating activities during the second quarter of 2021 was $218 million, compared to $273 million generated in the second quarter of 2020. The decrease in the second quarter of 2021 was mainly due to favorable collection of payments from customers in the second quarter of 2020, which resulted from increased sales in the first quarter of 2020.

Free cash flow (cash flow from operating activities, cash used for capital investments, beneficial interest collected in exchange for securitized accounts receivables and proceeds from divestitures of businesses and other assets) was $625 million in the second quarter of 2021, compared to $582 million in the second quarter of 2020. The increase in the second quarter of 2021 resulted mainly from higher proceeds from divestitures of businesses and other assets, partially offset by lower cash flow from operating activities.

As of June 30, 2021, our debt was $25,132 million, compared to $24,986 million as of March 31, 2021. This increase was mainly due to exchange rate fluctuations. In July 2021, we repaid $1,475 million of our 2.2% senior notes at maturity. The portion of total debt classified as short-term as of June 30, 2021 was 14%, compared to 11% as of March 31, 2021. Our average debt maturity was approximately 5.3 years as of June 30, 2021, compared to 5.6 years as of March 31, 2021. Our financial leverage was 69% as of June 30, 2021 and as of March 31, 2021.

Segment Results for the Second Quarter of 2021

North America Segment

Our North America segment includes the United States and Canada.

The following table presents revenues, expenses and profit for our North America segment for the three months ended June 30, 2021 and 2020:



Three months ended June 30,

2021 2020

(U.S. $ in millions / % of Segment Revenues)

Revenues........................................................................................................................................................................ $ 1,943 100% $ 2,047 100%

Gross 1,040 53.5% 1,090 53.3%profit....................................................................................................................................................................

R&D 162 8.4% 154 7.5%expenses................................................................................................................................................................

S&M 255 13.1% 254 12.4%expenses................................................................................................................................................................

G&A 106 5.5% 110 5.4%expenses................................................................................................................................................................

Other (5) ? (2) ?income.................................................................................................................................................................

Segment $ 521 26.8% $ 573 28.0%profit*.............................................................................................................................................................



* Segment profit does not include amortization and certain other items.

? Represents an amount less than 0.5%.



Revenues from our North America segment in the second quarter of 2021 were $1,943 million, a decrease of $104 million, or 5%, compared to the second quarter of 2020, mainly due to a decrease in revenues from COPAXONE and Anda, partially offset by higher revenues from generic products, AUSTEDO and AJOVY. Our North America segment has experienced some reductions in volume due to less physician and hospital activity during the COVID-19 pandemic, but has also experienced increase in demand for certain products related to the treatment of COVID-19 and its symptoms. In addition, the ability to promote certain specialty products has been impacted by less physician visits by patients and less physician interactions by our sales personnel.

Revenues in the United States, our largest market, were $1,818 million in the second quarter of 2021, a decrease of $109 million, or 6%, compared to the second quarter of 2020.

Revenues by Major Products and Activities

The following table presents revenues for our North America segment by major products and activities for the three months ended June 30, 2021 and 2020:



Percentage Three months ended Change June 30,

2021 2020 2020-2021

(U.S. $ in millions)



Generic $ 951 $ 923 3%products...................................................................................................................................................................

AJOVY..................................................................................................................................................................................... 46 34 32%

AUSTEDO............................................................................................................................................................................... 174 161 8%

BENDEKA^(r)/TREANDA^ 106 103 3%(r)............................................................................................................................................................

COPAXONE............................................................................................................................................................................. 152 238 (36%)

ProAir^(r) 55 66 (16%)*..................................................................................................................................................................................

Anda....................................................................................................................................................................................... 316 374 (16%)

Other...................................................................................................................................................................................... 144 147 (2%)

Total....................................................................................................................................................................................... $ 1,943 $ 2,047 (5%)



* Does not include revenues from the ProAir authorized generic, which areincluded under generic products.



Generic products revenues in our North America segment (including biosimilars) in the second quarter of 2021 were $951 million, an increase of 3% compared to the second quarter of 2020. This increase was mainly due to higher revenues from epipephrine injectable solution (the generic equivalent of EpiPen(r) and EpiPen Jr.(r)), Truxima(r) (the biosimilar to Rituxan(r)) and ProAir authorized generic, partially offset by lower volume and pricing of other generic products.

In the second quarter of 2021, our total prescriptions were approximately 314 million (based on trailing twelve months), representing 8.8% of total U.S. generic prescriptions according to IQVIA data.

AJOVY revenues in our North America segment in the second quarter of 2021 were $46 million, an increase of $11 million, or 32% compared to the second quarter of 2020, mainly due to growth in volume.

AUSTEDO revenues in our North America segment in the second quarter of 2021 increased by 8% to $174 million, compared to $161 million in the second quarter of 2020. This increase was mainly due to growth in volume.

BENDEKA and TREANDA combined revenues in our North America segment in the second quarter of 2021 increased by 3% to $106 million, compared to the second quarter of 2020, mainly due to higher sales of oncology products during the recovery from the COVID-19 pandemic, partially offset by availability of alternative therapies and continued competition from Belrapzo(r) (a ready-to-dilute bendamustine hydrochloride product from Eagle Pharmaceuticals, Inc.).

COPAXONE revenues in our North America segment in the second quarter of 2021 decreased by 36% to $152 million, compared to the second quarter of 2020, mainly due to generic competition in the United States.

ProAir (HFA and RespiClick) revenues in our North America segment in the second quarter of 2021 decreased by 16% to $55 million, compared to the second quarter of 2020. Revenues from our ProAir authorized generic are included in "generic products" above.

Anda revenues in our North America segment in the second quarter of 2021 decreased by 16% to $316 million, compared to $374 million in the second quarter of 2020, mainly due to lower demand by Anda's customers for generic products.

North America Gross Profit

Gross profit from our North America segment in the second quarter of 2021 was $1,040 million, a decrease of 5%, compared to $1,090 million in the second quarter of 2020. This decrease was mainly due to lower gross profit from Anda and COPAXONE.

Gross profit margin for our North America segment in the second quarter of 2021 increased to 53.5%, compared to 53.3% in the second quarter of 2020. This increase was mainly due to a change in the mix of products.

North America Profit

Profit from our North America segment consists of gross profit less R&D expenses, S&M expenses, G&A expenses and any other income related to this segment. Segment profit does not include amortization and certain other items.

Profit from our North America segment in the second quarter of 2021 was $521 million, a decrease of 9% compared to $573 million in the second quarter of 2020, mainly due to lower gross profit, as discussed above, as well as higher R&D expenses.

Europe Segment

Our Europe segment includes the European Union and certain other European countries.

The following table presents revenues, expenses and profit for our Europe segment for the three months ended June 30, 2021 and 2020:

Three months ended June 30,

2021 2020

(U.S. $ in millions / % of Segment Revenues)

Revenues........................................................................................................................................................................ $ 1,184 100% $ 1,001 100%

Gross 661 55.8% 548 54.7%profit....................................................................................................................................................................

R&D 63 5.3% 65 6.5%expenses................................................................................................................................................................

S&M 209 17.7% 188 18.8%expenses................................................................................................................................................................

G&A 47 4.0% 52 5.2%expenses................................................................................................................................................................

Other ? ? (1) ?income.................................................................................................................................................................

Segment $ 343 28.9% $ 244 24.3%profit*.............................................................................................................................................................

___________

* Segment profit does not include amortization and certain other items.

? Represents an amount less than $1 million or 0.5%, as applicable.

Revenues from our Europe segment in the second quarter of 2021 were $1,184 million, an increase of 18%, or $183 million, compared to the second quarter of 2020. In local currency terms, revenues increased by 8%, mainly due to changed buying patterns in the second quarter of 2020 as a result of significant customer stocking due to the COVID-19 pandemic in March 2020, and a decline in doctor and hospital visits by patients resulting in fewer prescriptions during the second quarter of 2020.

Revenues by Major Products and Activities

The following table presents revenues for our Europe segment by major products and activities for the three months ended June 30, 2021 and 2020:

Three months ended Percentage June 30, Change

2021 2020 2020-2021

(U.S. $ in millions)

Generic $ 878 $ 737 19%products...................................................................................................................................................................

AJOVY..................................................................................................................................................................................... 19 5 302%

COPAXONE............................................................................................................................................................................. 100 84 19%

Respiratory 85 80 7%products.............................................................................................................................................................

Other...................................................................................................................................................................................... 102 95 7%

Total....................................................................................................................................................................................... $ 1,184 $ 1,001 18%



Generic products revenues in our Europe segment in the second quarter of 2021, including OTC products, increased by 19% to $878 million, compared to the second quarter of 2020. In local currency terms, revenues increased by 9% compared to the second quarter of 2020, mainly due to lower revenues in the second quarter of 2020 as a result of significant changes in buying patterns and customer stocking due to the COVID-19 pandemic. In addition, revenues in the second quarter of 2020 were impacted by lower demand of generic products resulting from a decline in doctor and hospital visits by patients resulting in fewer prescriptions as well as lower sales of OTC products resulting from lower demand for cough and cold products, both due to the COVID-19 pandemic.

AJOVY revenues in our Europe segment in the second quarter of 2021 were $19 million, compared to $5 million in the second quarter of 2020, mainly due to launches and reimbursements in additional European countries.

COPAXONE revenues in our Europe segment in the second quarter of 2021 increased by 19% to $100 million, compared to the second quarter of 2020. In local currency terms, revenues increased by 9%, mainly due to customer stocking due to the COVID-19 pandemic in March 2020, resulting in significant changes in buying patterns in the second quarter of 2020.

Respiratory products revenues in our Europe segment in the second quarter of 2021 increased by 7% to $85 million, compared to the second quarter of 2020. In local currency terms, revenues decreased by 4%, mainly due to lower sales in the United Kingdom, partially offset by changes in buying patterns in the second quarter of 2020 as a result of significant customer stocking due to the COVID-19 pandemic in March 2020.

Europe Gross Profit

Gross profit from our Europe segment in the second quarter of 2021 was $661 million, an increase of 21% compared to $548 million in the second quarter of 2020.

Gross profit margin for our Europe segment in the second quarter of 2021 increased to 55.8%, compared to 54.7% in the second quarter of 2020. This increase was mainly due to a change in product mix.

Europe Profit

Profit from our Europe segment consists of gross profit less R&D expenses, S&M expenses, G&A expenses and any other income related to this segment. Segment profit does not include amortization and certain other items.

Profit from our Europe segment in the second quarter of 2021 was $343 million, an increase of 41%, compared to $244 million in the second quarter of 2020. This increase was mainly due to higher revenues, as discussed above.

International Markets Segment

Our International Markets segment includes all countries in which we operate other than those in our North America and Europe segments. The key markets in this segment are Japan, Russia and Israel.

On February 1, 2021, we completed the sale of the majority of the generic and operational assets of our business venture in Japan.

The following table presents revenues, expenses and profit for our International Markets segment for the three months ended June 30, 2021 and 2020:

Three months ended June 30,

2021 2020

(U.S. $ in millions / % of Segment Revenues)

Revenues........................................................................................................................................................................ $ 485 100% $ 488 100%

Gross 270 55.7% 247 50.8%profit....................................................................................................................................................................

R&D 18 3.6% 19 3.9%expenses................................................................................................................................................................

S&M 105 21.7% 105 21.4%expenses................................................................................................................................................................

G&A 25 5.1% 29 6.0%expenses................................................................................................................................................................

Other (1) ? (2) ?income.................................................................................................................................................................

Segment $ 123 25.5% $ 97 19.9%profit*.............................................................................................................................................................



* Segment profit does not include amortization and certain other items.

? Represents an amount less than 0.5%.

Revenues from our International Markets segment in the second quarter of 2021 were $485 million, a decrease of $3 million, or 1%, compared to the second quarter of 2020. In local currency terms, revenues decreased by 3% compared to the second quarter of 2020, mainly due to lower revenues in Japan resulting from the divestment mentioned above, as well as regulatory price reductions and generic competition to off-patented products in Japan and negative impact from hedging activity, partially offset by higher revenues in most other markets as well as lower revenues in certain markets in the second quarter of 2020, resulting from reduced demand due to the impact the COVID-19 pandemic had on purchasing patterns.

Revenues by Major Products and Activities

The following table presents revenues for our International Markets segment by major products and activities for the three months ended June 30, 2021 and 2020:



Three months Percentage ended Change June 30,

2021 2020 2020-2021

(U.S. $ in millions)

Generic $ 407 $ 426 (5%)products...................................................................................................................................................................

COPAXONE............................................................................................................................................................................. 7 12 (35%)

Other...................................................................................................................................................................................... 71 50 42%

Total....................................................................................................................................................................................... $ 485 $ 488 (1%)



Generic products revenues in our International Markets segment in the second quarter of 2021, which include OTC products, decreased by 5% to $407 million, in both U.S. dollar and local currency terms, compared to the second quarter of 2020. This decrease was mainly due to lower sales in Japan resulting from the divestment mentioned above, as well as regulatory price reductions and generic competition to off-patented products in Japan, partially offset by higher revenues in most other markets as well as lower revenues in certain markets in the second quarter of 2020, resulting from reduced demand due to the impact the COVID-19 pandemic had on purchasing patterns.

COPAXONE revenues in our International Markets segment in the second quarter of 2021 were $7 million, a decrease of 35% compared to $12 million in the second quarter of 2020. In local currency terms, revenues decreased by 33%.

AJOVY was launched in certain markets in our International Markets segment and we are moving forward with plans to launch in other markets. On June 23, 2021, AJOVY was approved for the preventative treatment of migraine in adults in Japan.

AUSTEDO was launched in China for treatment of chorea associated with Huntington disease and for the treatment of tardive dyskinesia in early 2021. We continue with additional submissions in various other countries.

International Markets Gross Profit

Gross profit from our International Markets segment in the second quarter of 2021 was $270 million, an increase of 9% compared to $247 million in the second quarter of 2020.

Gross profit margin for our International Markets segment in the second quarter of 2021 increased to 55.7%, compared to 50.8% in the second quarter of 2020. This increase was mainly due to the divestment in Japan mentioned above and a change in product portfolio mix.

International Markets Profit

Profit from our International Markets segment consists of gross profit less R&D expenses, S&M expenses, G&A expenses and any other income related to this segment. Segment profit does not include amortization and certain other items.

Profit from our International Markets segment in the second quarter of 2021 was $123 million, an increase of 27%, compared to $97 million in the second quarter of 2020. This increase was mainly due to higher gross profit as discussed above.

Other Activities

We have other sources of revenues, primarily the sale of active pharmaceutical ingredients ("APIs") to third parties, certain contract manufacturing services and an out-licensing platform offering a portfolio of products to other pharmaceutical companies through our affiliate Medis. Our other activities are not included in our North America, Europe or International Markets segments described above.

Our revenues from other activities in the second quarter of 2021 were $298 million, a decrease of 11% compared to the second quarter of 2020. In local currency terms, revenues decreased by 13%, mainly due to a decrease in volumes from API and Medis resulting from the COVID-19 pandemic.

API sales to third parties in the second quarter of 2021 were $199 million, a decrease of 6% in both U.S. dollar and local currency terms, compared to the second quarter of 2020.

Conference Call

Teva will host a conference call and live webcast including a slide presentation on Wednesday, July 28, 2021 at 8:00 a.m. ET to discuss its second quarter of 2021 results and overall business environment. A question & answer session will follow.

In order to participate, please dial the following numbers:

United States: 1 (877) 870-9135

International: +44 (0) 2071 928338

Israel: 1 (809) 213-985

Passcode: 9693275

A live webcast of the call will be available on Teva's website at: ir.tevapharm.com.

Following the conclusion of the call, a replay of the webcast will be available within 24 hours on the Company's website or by calling United States 1-866-331-1332; International +44 (0) 3333 009785; passcode: 9693275.

About Teva

Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) has been developing and producing medicines to improve people's lives for more than a century. We are a global leader in generic and specialty medicines with a portfolio consisting of over 3,500 products in nearly every therapeutic area. Around 200 million people around the world take a Teva medicine every day, and are served by one of the largest and most complex supply chains in the pharmaceutical industry. Along with our established presence in generics, we have significant innovative research and operations supporting our growing portfolio of specialty and biopharmaceutical products. Learn more at http://www.tevapharm.com.

Some amounts in this press release may not add up due to rounding. All percentages have been calculated using unrounded amounts.

Non-GAAP Financial Measures

This press release contains certain financial information that differs from what is reported under accounting principles generally accepted in the United States ("GAAP"). These non-GAAP financial measures, including, but not limited to, non-GAAP EPS, non-GAAP operating income, non-GAAP gross profit, non-GAAP gross profit margin, EBITDA, Adjusted EBITDA, non-GAAP R&D expenses, non-GAAP S&M expenses, non-GAAP G&A expenses, non-GAAP financial expenses, non-GAAP income taxes, non-GAAP income (loss) before income taxes, non-GAAP tax rate, non-GAAP net income (loss), non-GAAP net income (loss) attributable to Teva and non-GAAP diluted EPS are presented in order to facilitates investors' understanding of our business. We utilize certain non-GAAP financial measures to evaluate performance, in conjunction with other performance metrics. The following are examples of how we utilize the non-GAAP measures: our management and board of directors use the non-GAAP measures to evaluate our operational performance, to compare against work plans and budgets, and ultimately to evaluate the performance of management; our annual budgets are prepared on a non-GAAP basis; and senior management's annual compensation is derived, in part, using these non-GAAP measures. See the attached tables for a reconciliation of the GAAP results to the adjusted non-GAAP figures. Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP. We are not providing forward looking guidance for GAAP reported financial measures or a quantitative reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP measure because we are unable to predict with reasonable certainty the ultimate outcome of certain significant items without unreasonable effort.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management's current beliefs and expectations and are subject to substantial risks and uncertainties, both known and unknown, that could cause our future results, performance or achievements to differ significantly from that expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to:

* our ability to successfully compete in the marketplace, including: that we are substantially dependent on our generic products; consolidation of our customer base and commercial alliances among our customers; delays in launches of new generic products; the increase in the number of competitors targeting generic opportunities and seeking U.S. market exclusivity for generic versions of significant products; our ability to develop and commercialize biopharmaceutical products; competition for our specialty products, including AUSTEDO, AJOVY and COPAXONE; our ability to achieve expected results from investments in our product pipeline; our ability to develop and commercialize additional pharmaceutical products; and the effectiveness of our patents and other measures to protect our intellectual property rights; * our substantial indebtedness, which may limit our ability to incur additional indebtedness, engage in additional transactions or make new investments, may result in a further downgrade of our credit ratings; and our inability to raise debt or borrow funds in amounts or on terms that are favorable to us; * our business and operations in general, including: uncertainty regarding the COVID-19 pandemic and its impact on our business, financial condition, operations, cash flows, and liquidity and on the economy in general; our ability to successfully execute and maintain the activities and efforts related to the measures we have taken or may take in response to the COVID-19 pandemic and associated costs therewith; effectiveness of our optimization efforts; our ability to attract, hire and retain highly skilled personnel; manufacturing or quality control problems; interruptions in our supply chain; disruptions of information technology systems; breaches of our data security; variations in intellectual property laws; challenges associated with conducting business globally, including political or economic instability, major hostilities or terrorism; costs and delays resulting from the extensive pharmaceutical regulation to which we are subject or delays in governmental processing time due to travel and work restrictions caused by the COVID-19 pandemic; * the effects of reforms in healthcare regulation and reductions in pharmaceutical pricing, reimbursement and coverage; significant sales to a limited number of customers; our ability to successfully bid for suitable acquisition targets or licensing opportunities, or to consummate and integrate acquisitions; and our prospects and opportunities for growth if we sell assets; * compliance, regulatory and litigation matters, including: failure to comply with complex legal and regulatory environments; increased legal and regulatory action in connection with public concern over the abuse of opioid medications and our ability to reach a final resolution of the remaining opioid-related litigation; scrutiny from competition and pricing authorities around the world, including our ability to successfully defend against the U.S. Department of Justice criminal charges of Sherman Act violations; potential liability for patent infringement; product liability claims; failure to comply with complex Medicare and Medicaid reporting and payment obligations; compliance with anti-corruption sanctions and trade control laws; and environmental risks; * other financial and economic risks, including: our exposure to currency fluctuations and restrictions as well as credit risks; potential impairments of our intangible assets; potential significant increases in tax liabilities (including as a result of potential tax reform in the United States); and the effect on our overall effective tax rate of the termination or expiration of governmental programs or tax benefits, or of a change in our business;

and other factors discussed in this press release, in our Quarterly Report on Form 10-Q for the second quarter of 2021 and in our Annual Report on Form 10-K for the year ended December 31, 2020, including in the sections captioned "Risk Factors" and "Forward Looking Statements." Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statements or other information contained herein, whether as a result of new information, future events or otherwise. You are cautioned not to put undue reliance on these forward-looking statements.

Consolidated Statements of Income(U.S. dollars in millions, except share and per share data) Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020

(Unaudited) (Unaudited) (Unaudited) (Unaudited)Net revenues 3,910 3,870 7,892 8,227

Cost of sales 2,037 2,107 4,141 4,402

Gross profit 1,873 1,763 3,750 3,826

Research and 248 225 501 446development expensesSelling and 615 597 1,200 1,210marketing expensesGeneral and 242 264 532 567administrativeexpensesIntangible assets 195 120 274 768impairmentsOther assetimpairments, 28 381 165 502restructuring andother itemsLegal settlements 6 13 110 (12)and losscontingenciesOther income (43) (9) (48) (22)

Operating (loss) 582 173 1,015 364incomeFinancial expenses, 274 223 564 448netIncome (loss) before 308 (51) 451 (84)income taxesIncome taxes 98 (104) 159 (163)(benefit)Share in (profits) (11) - (14) -losses of associatedcompanies, netNet income (loss) 221 53 306 78

Net income (loss)attributable to 14 (87) 21 (131)non-controllinginterestsNet income (loss) 207 140 284 209attributable to Teva Earnings (loss) per Basic 0.19 0.13 0.26 0.19share attributable ($)to Teva: Diluted 0.19 0.13 0.26 0.19 ($)Weighted average 1,103 1,096 1,101 1,095number of shares (in Basicmillions): Diluted 1,109 1,100 1,108 1,098

Non-GAAP net income 651 605 1,350 1,440attributable toTeva:*Non-GAAP net incomeattributable to Teva 651 605 1,350 1,440for diluted earningsper share: Non-GAAP earningsper share Basic 0.59 0.55 1.23 1.32attributable to ($)Teva:* Diluted 0.59 0.55 1.22 1.31 ($) Non-GAAP average 1,103 1,096 1,101 1,095number of shares (in Basicmillions): Diluted 1,109 1,100 1,108 1,098

* See reconciliationattached.Condensed Consolidated Balance Sheets(U.S. dollars in millions) June 30, December 31, 2021 2020

ASSETS (Unaudited) (Audited)

Current assets:Cash and cash equivalents 2,436 2,177

Accounts receivables, net of allowance for credit 4,488 4,581losses of $120 million and $126 million as of June 30,2021 and December 31, 2020.Inventories 4,362 4,403

Prepaid expenses 1,022 945

Other current assets 484 710

Assets held for sale 29 189

Total current assets 12,822 13,005

Deferred income taxes 645 695

Other non-current assets 530 538

Property, plant and equipment, net 6,127 6,296

Operating lease right-of-use assets 531 559

Identifiable intangible assets, net 8,120 8,923

Goodwill 20,421 20,624

Total assets 49,195 50,640

LIABILITIES & EQUITYCurrent liabilities:Short-term debt 3,530 3,188

Sales reserves and allowances 4,453 4,824

Accounts payables 1,551 1,756

Employee-related obligations 511 685

Accrued expenses 1,807 1,780

Other current liabilities 838 933

Total current liabilities 12,691 13,164

Long-term liabilities:Deferred income taxes 932 964

Other taxes and long-term liabilities 2,215 2,240

Senior notes and loans 21,602 22,731

Operating lease liabilities 444 479

Total long-term liabilities 25,193 26,414

Equity:Teva shareholders' equity 10,324 10,026

Non-controlling interests 987 1,035

Total equity 11,311 11,061

Total liabilities and equity 49,195 50,640

TEVA PHARMACEUTICAL INDUSTRIES LIMITEDCONSOLIDATED STATEMENTS OF CASH FLOWS(U.S. dollars in millions)(Unaudited) Six months ended Three months ended June 30, June 30,

2021 2020 2021 2020

Operating activities:Net income (loss) $ 306 $ 78 $ 222 $ 53

Adjustments to reconcile net income(loss) to net cash provided byoperations:Depreciation and amortization 681 781 305 382

Impairment of long-lived assets and 354 1,120 226 395assets held for saleNet change in operating assets and (1,679) (1,002) (603) (336)liabilitiesDeferred income taxes - net and 5 (502) 16 (269)uncertain tax positionsStock-based compensation 60 62 29 32

Net loss (gain) from investments and 93 24 19 -from sale of long lived assetsOther items (7) 17 4 15

Net cash provided by (used in) (187) 578 218 273operating activities Investing activities:Beneficial interest collected in 881 769 405 401exchange for securitized accountsreceivablesPurchases of property, plant and (263) (259) (113) (131)equipmentProceeds from sale of business and 254 45 116 39long-lived assetsProceeds from sale of investments 153 9 107 6

Other investing activities (36) 1 (34) (2)

Net cash provided by investing 989 564 481 313activities Financing activities:Repayment of senior notes and loans and - (700) - -other long-term liabilitiesRedemption of convertible senior notes (491) - - -

Other financing activities (3) (3) (1) (3)

Net cash used in financing activities (494) (703) (1) (3)

Translation adjustment on cash and cash (49) (13) (5) 15equivalentsNet change in cash and cash equivalents 259 427 693 598

Balance of cash and cash equivalents at 2,177 1,975 1,743 1,804beginning of period Balance of cash and cash equivalents at $ 2,436 $ 2,402 $ 2,436 $ 2,402end of period Non-cash financing and investingactivities:Beneficial interest obtained in 878 728 390 353exchange for securitized accounts $ $ $receivables Three Months Ended June 30, 2021

U.S. $ and shares in millions (except per share amounts) GAAP Excluded for non-GAAP measurement Non-GAAP Costs Amortization Legal Impairment related to Other of purchased settlements of long Restructuring regulatory Equity Contingent non- Other intangible and loss lived costs actions compensation consideration GAAP items assets contingencies assets taken in items* facilities

Net revenues 3,910 3,910

Cost of sales 2,037 148 8 6 50 1,826

Gross profit 1,873 148 8 6 50 2,084

Gross profit 47.9% 53.3%marginR&D expenses 248 5 243

S&M expenses 615 25 8 582

G&A expenses 242 11 231

Other income (43) (37) (6)

Legalsettlements and 6 6 -losscontingenciesOther assetsimpairments, 28 32 (13) (19) 28 -restructuringand other itemsIntangible 195 195 -assetsimpairmentsOperating 582 173 6 226 (13) 8 29 (19) 42 1,033income (loss)Financial 274 34 240expenses, netIncome (loss) 308 173 6 226 (13) 8 29 (19) 42 34 794before incometaxesIncome taxes 98 (36) 133

Share in(profits) (11) (3) (8)losses ofassociatedcompanies - netNet income 221 173 6 226 (13) 8 29 (19) 42 (5) 669(loss)Net income(loss) 14 (3) 18attributable tonon-controllinginterestsNet income(loss) 207 173 6 226 (13) 8 29 (19) 42 (8) 651attributable toTeva EPS - Basic 0.19 0.40 0.59

EPS - Diluted 0.19 0.40 0.59

The non-GAAP diluted weighted average number of shares was 1,109 million for the three months ended June 30, 2021. Non-GAAP income taxes for the three months ended June 30, 2021 were 17% on pre-tax non-GAAP income. * Other non-GAAP items include other exceptional items that we believe are sufficiently large that their exclusion is important to facilitate an understanding of trends in our financial results, such as certain accelerated depreciation expenses and inventory write offs, primarily related to the rationalization of our plants and other unusual events. Adjusted EBITDAreconciliationOperating 582income (loss)Add:Depreciation 134

Amortization 173

EBITDA 887

Legalsettlements and 6losscontingenciesImpairment of 226long livedassetsRestructuring (13)costsCosts relatedto regulatory 8actions takenin facilitiesEquity 29compensationContingent (19)considerationOther non-GAAPitems(excluding 37accelerateddepreciation of$4 million)*Adjusted EBITDA 1,162

* Other non-GAAP items include other exceptional items that we believe aresufficiently large that their exclusion is important to facilitate anunderstanding of trends in our financial results, such as certain accelerateddepreciation expenses and inventory write offs, primarily related to therationalization of our plants and other unusual events. Six Months Ended June 30, 2021 U.S. $ and shares in millions (except per share amounts) GAAP Excluded for non-GAAP measurement Non-GAAP Amortization Costs of Legal Impairment related to Other purchased settlements of Restructuring regulatory Equity Contingent non- Other intangible and loss long-lived costs actions compensation consideration GAAP items assets contingencies assets taken in items* facilitiesNet revenue 7,892 7,892

Cost of sales 4,141 363 13 12 91 3,663

Gross profit 3,750 363 13 12 91 4,228

Gross profit 47.5% 53.6%marginR&D expenses 501 10 5 487

S&M expenses 1,200 52 18 - 1,131

G&A expenses 532 21 0 510

Other (income) (48) (37) (11)expenseLegalsettlements and 110 110 -losscontingenciesOther assetsimpairments, 165 80 69 (16) 33 -restructuringand other itemsIntangible 274 274 -assetsimpairmentOperating 1,015 414 110 354 69 13 60 (16) 92 2,111income (loss)Financial 564 98 467expenses, netIncome (loss) 451 414 110 354 69 13 60 (16) 92 98 1,644before incometaxesIncome taxes 159 (120) 280

Share in(profits) (14) (1) (13)losses ofassociatedcompanies - netNet income 306 414 110 354 69 13 60 (16) 92 (24) 1,377(loss)Net income(loss) 21 (6) 28attributable tonon-controllinginterestsNet income(loss) 284 414 110 354 69 13 60 (16) 92 (30) 1,350attributable toTeva EPS - Basic 0.26 0.97 1.23

EPS - Diluted 0.26 0.96 1.22

The non-GAAP diluted weighted average number of shares was 1,108 million for the six months ended June 30, 2021. Non-GAAP income taxes for the six months ended June 30, 2021 were 17% on pre-tax non-GAAP income. * Other non-GAAP items include other exceptional items that we believe are sufficiently large that their exclusion is important to facilitate an understanding of trends in our financial results, such as certain accelerated depreciation expenses and inventory write offs, primarily related to the rationalization of our plants and other unusual events. Adjusted EBITDAreconciliationOperating 1,015income (loss)Add:Depreciation 266

Amortization 414

EBITDA 1,696

Legalsettlements and 110losscontingenciesImpairment of 354long livedassetsRestructuring 69costsCosts relatedto regulatory 13actions takenin facilitiesEquity 60compensationContingent (16)considerationOther non-GAAPitems(excluding 83accelerateddepreciation of$9 million)*Adjusted EBITDA 2,368

Three Months Ended June 30, 2020 U.S. $ and shares in millions (except per share amounts) GAAP Excluded for non-GAAP measurement Non-GAAP Legal Costs Amortization settlements Impairment Other R& related to Other of purchased and of D Restructuring regulatory Equity Contingent non- Other intangible loss long lived expenses costs actions compensation consideration GAAP items assets contingencies assets taken in items* facilitiesNet revenues 3,870 3,870

Cost of sales 2,107 219 6 6 16 1,859

Gross profit 1,763 219 6 6 16 2,011

Gross profit 45.5% 52.0%marginR&D expenses 225 (13) 5 233

S&M expenses 597 30 8 559

G&A expenses 264 11 8 245

Other income (9) (4) (6)

Legalsettlements and 13 13 -losscontingenciesOther assetsimpairments, 381 277 33 76 (6) -restructuringand other itemsIntangible 120 120 -assetsimpairmentsOperating 173 249 13 396 (13) 33 6 30 76 14 979income (loss)Financial 223 (5) 229expenses, netIncome (loss) (51) 249 13 396 (13) 33 6 30 76 14 (5) 751before incometaxesIncome taxes (104) (231) 128

Net income 53 249 13 396 (13) 33 6 30 76 14 (237) 623(loss)Net income(loss) (87) (105) 19attributable tonon-controllinginterestsNet income(loss) 140 249 13 396 (13) 33 6 30 76 14 (342) 605attributable toTeva EPS - Basic 0.13 0.42 0.55

EPS - Diluted 0.13 0.42 0.55

The non-GAAP diluted weighted average number of shares was 1,100 million for the three months ended June 30, 2020. Non-GAAP income taxes for the three months ended June 30, 2020 were 17% on pre-tax non-GAAP income. * Other non-GAAP items include other exceptional items that we believe are sufficiently large that their exclusion is important to facilitate an understanding of trends in our financial results, such as certain accelerated depreciation expenses and inventory write offs, primarily related to the rationalization of our plants and other unusual events. Adjusted EBITDAreconciliationOperating 173income (loss)Add:Depreciation 134

Amortization 249

EBITDA 555

Legalsettlements and 13losscontingenciesImpairment of 396long livedassetsOther R&D (13)expensesRestructuring 33costsCosts relatedto regulatory 6actions takenin facilitiesEquity 30compensationContingent 76considerationOther non-GAAPitems(excluding 8accelerateddepreciation of$6 million)*Adjusted EBITDA 1,108

* Other non-GAAP items include other exceptional items that we believe aresufficiently large that their exclusion is important to facilitate anunderstanding of trends in our financial results, such as certain accelerateddepreciation expenses and inventory write offs, primarily related to therationalization of our plants and other unusual events. Six months ended June 30, 2020 U.S. $ and shares in millions (except per share amounts) GAAP Excluded for non-GAAP measurement Non-GAAP Costs Amortization Legal Impairment related to Other of settlements of Restructuring regulatory Equity Contingent non Other purchased and long-lived costs actions compensation consideration GAAP items intangible loss assets taken items* assets contingencies in facilitiesNet revenue 8,227 8,227

Cost of sales 4,402 443 11 12 32 3,905

Gross profit 3,826 443 11 12 32 4,322

Gross profit 46.5% 52.5%marginR&D expenses 446 9 (17) 454

S&M expenses 1,210 64 17 1,129

G&A expenses 567 21 12 535

Other (income) (22) (3) (19)expenseLegalsettlements and (12) (12) -losscontingenciesOther assetsimpairments, 502 352 73 83 (5) -restructuringand other itemsIntangible 768 768 -assetsimpairmentOperating 364 507 (12) 1,121 73 11 60 83 18 - 2,223income (loss)Financial 448 6 442expenses, netIncome (loss) (84) 507 (12) 1,121 73 11 60 83 18 6 1,781before incometaxesIncome taxes (163) (465) 303

Net income(loss) 78 507 (12) 1,121 73 11 60 83 18 (460) 1,478attributtibleto TevaNet income(loss) (131) (169) 38attributable tonon-controllinginterestsNet income 209 507 (12) 1,121 73 11 60 83 18 (629) 1,440(loss)EPS - Basic 0.19 1.32

EPS - Diluted 0.19 1.31

The non-GAAP diluted weighted average number of shares was 1,098 million for the six months ended June 30, 2020. Non-GAAP income taxes for the six months ended June 30, 2021 were 17% on pre-tax non-GAAP income. * Other non-GAAP items include other exceptional items that we believe are sufficiently large that their exclusion is important to facilitate an understanding of trends in our financial results, such as certain accelerated depreciation expenses and inventory write offs, primarily related to the rationalization of our plants and other unusual events. Adjusted EBITDAreconciliationOperating 364income (loss)Add:Depreciation 275

Amortization 507

EBITDA 1,146

Legalsettlements and (12)losscontingenciesImpairment of 1,121long livedassetsRestructuring 73costsCosts relatedto regulatory 11actions takenin facilitiesEquity 60compensationContingent 83considerationOther non-GAAPitems(excluding 2accelerateddepreciation of$16 million)*Adjusted EBITDA 2,483

* Other non-GAAP items include other exceptional items that we believe aresufficiently large that their exclusion is important to facilitate anunderstanding of trends in our financial results, such as certain accelerateddepreciation expenses and inventory write offs, primarily related to therationalization of our plants and other unusual events. Segment Information North America Europe International Markets Three months ended Three months ended Three months ended June 30, June 30, June 30, 2021 2020 2021 2020 2021 2020

(U.S. $ in millions) (U.S. $ in millions) (U.S. $ in millions) Revenues $ 1,943 $ 2,047 $ 1,184 $ 1,001 $ 485 $ 488

Gross profit 1,040 1,090 661 548 270 247

R&D expenses 162 154 63 65 18 19

S&M expenses 255 254 209 188 105 105

G&A expenses 106 110 47 52 25 29

Other income (5) (2) ? (1) (1) (2)

Segment profit $ 521 $ 573 $ 343 $ 244 $ 123 $ 97

? Represents an amount less than $1million. Segment Information North America Europe International Markets Six months ended Six months ended Six months ended June June 30, June 30, 30, 2021 2020 2021 2020 2021 2020

(U.S. $ in millions) (U.S. $ in millions) (U.S. $ in millions) Revenues $ 3,932 $ 4,129 $ 2,398 $ 2,404 $ 975 $ 1,053

Gross 2,114 2,152 1,349 1,371 530 552profitR&D 322 300 129 120 35 34expensesS&M 483 505 424 390 201 211expensesG&A 218 228 117 118 51 63expensesOther (7) (4) (1) (2) (3) (8)incomeSegment $ 1,098 $ 1,123 $ 680 $ 746 $ 245 $ 253profitReconciliation of our segment profitto consolidated income before income taxes Three months ended June 30, 2021 2020

(U.S.$ in millions) North America profit $ 521 $ 573

Europe profit 343 244

International Markets profit 123 97

Total reportable segment profit 987 914

Profit of other activities 47 66

1,034 979

Amounts not allocated to segments:Amortization 173 249

Other asset impairments, restructuring and other items 28 381

Intangible asset impairments 195 120

Legal settlements and loss contingencies 6 13

Other unallocated amounts 50 44

Consolidated operating income (loss) 582 173

Financial expenses - net 274 223

Consolidated income (loss) before income taxes $ 308 $ (51)

Reconciliation of our segment profitto consolidated income before income taxes Six months ended June 30, 2021 2020

(U.S.$ in millions) North America profit $ 1,098 $ 1,123

Europe profit 680 746

International Markets profit 245 253

Total reportable segment profit 2,023 2,121

Profit of other activities 87 102

Total segment profit 2,111 2,223

Amounts not allocated to segments:Amortization 414 507

Other asset impairments, restructuring and other items 165 502

Intangible asset impairments 274 768

Legal settlements and loss contingencies 110 (12)

Other unallocated amounts 132 93

Consolidated operating income (loss) 1,015 364

Financial expenses - net 564 448

Consolidated income (loss) before income taxes $ 451 $ (84)

Segment revenues by major products and activities(Unaudited) Three months ended June 30, Percentage Change 2021 2020 2020-2021

(U.S.$ in millions)North America segmentGeneric products $ 951 $ 923 3%

AJOVY 46 34 32%

AUSTEDO 174 161 8%

BENDEKA/TREANDA 106 103 3%

COPAXONE 152 238 (36%)

ProAir* 55 66 (16%)

Anda 316 374 (16%)

Other 144 147 (2%)

Total 1,943 2,047 (5%)

* Does not include revenues from the ProAir authorized generic, which areincluded under generic products. Three months ended June 30, Percentage Change 2021 2020 2020-2021

(U.S.$ in millions)Europe segmentGeneric products $ 878 $ 737 19%

AJOVY 19 5 302%

COPAXONE 100 84 19%

Respiratory products 85 80 7%

Other 102 95 7%

Total 1,184 1,001 18%

Three months ended June 30, Percentage Change 2021 2020 2020-2021

(U.S.$ in millions)International Markets segmentGeneric products $ 407 $ 426 (5%)

COPAXONE 7 12 (35%)

Other 71 50 42%

Total 485 488 (1%)

Revenues by Activity and Geographical Area(Unaudited)Six months endedJune 30,PercentageChange2021

2020

2020-2021(U.S.$ in millions)North America segmentGeneric products$2,004

$1,875

7%

AJOVY77

63

21%

AUSTEDO320

283

13%

BENDEKA / TREANDA197

208

(6%)

COPAXONE315

435

(28%)

ProAir*109

125

(13%)

Anda605

800

(24%)

Other305

338

(10%)

Total3,932

4,129

(5%)

* Does not include revenues from the ProAir authorized generic, which are included under generic products.Six months endedJune 30,PercentageChange2021

2020

2020-2021(U.S.$ in millions)Europe segmentGeneric products$1,742

$1,769

(2%)

AJOVY35

9

277%

COPAXONE201

193

4%

Respiratory products179

186

(4%)

Other242

246

(2%)

Total2,398

2,404

0%

Six months endedJune 30,PercentageChange2021

2020

2020-2021(U.S.$ in millions)International Markets segmentGeneric products$799

$875

(9%)

COPAXONE19

23

(18%)

Other157

154

2%

Total975

1,053

(7%)

Revenues by Activity and Geographical Area(Unaudited) Six months ended June 30, Percentage Change 2021 2020 2020-2021

(U.S.$ in millions)North America segmentGeneric products $ 2,004 $ 1,875 7%

AJOVY 77 63 21%

AUSTEDO 320 283 13%

BENDEKA / TREANDA 197 208 (6%)

COPAXONE 315 435 (28%)

ProAir* 109 125 (13%)

Anda 605 800 (24%)

Other 305 338 (10%)

Total 3,932 4,129 (5%)

* Does not include revenues from the ProAir authorized generic, which areincluded under generic products. Six months ended June 30, Percentage Change 2021 2020 2020-2021

(U.S.$ in millions)Europe segmentGeneric products $ 1,742 $ 1,769 (2%)

AJOVY 35 9 277%

COPAXONE 201 193 4%

Respiratory products 179 186 (4%)

Other 242 246 (2%)

Total 2,398 2,404 0%

Six months ended June 30, Percentage Change 2021 2020 2020-2021

(U.S.$ in millions)International Markets segmentGeneric products $ 799 $ 875 (9%)

COPAXONE 19 23 (18%)

Other 157 154 2%

Total 975 1,053 (7%)

Free cash flow reconciliation(Unaudited) Three months ended June 30, 2021 2020

(U.S. $ in millions) Net cash provided by operating activities 218 273

Beneficial interest collected in exchange for securitized 405 401accounts receivablesPurchases of property, plant and equipment (113) (131)

Proceeds from sale of business and long lived assets 116 39

Free cash flow $ 625 $ 582

Free cash flow reconciliation(Unaudited) Six months ended June 30, 2021 2020

(U.S. $ in millions) Net cash provided by (used in) operating activities (187) 578

Beneficial interest collected in exchange for securitized 881 769accounts receivablesPurchases of property, plant and equipment (263) (259)

Proceeds from sale of business and long lived assets 254 45

Free cash flow $ 684 $ 1,133

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