Generic drugmaker Teva Pharmaceutical Industries Ltd (NYSE: TEVA) reported a first-quarter earnings beat as the company managed to maintain business continuity, CEO Kare Schultz said on CNBC's "Squawk on the Street."
Teva's 'Very Good' Quarter
Teva is dedicated to supplying therapies to the 200 million people who use its generic drugs and this resulted in a "very good" quarter, the CEO said.
Looking forward, the company expects to see "some reversal" of the strong demand seen in March, but Schultz said full-year revenue should fall within its guidance.
Teva Supply Chain Update
One of Teva's drugs, propofol, experienced shipping delays due to the COVID-19 pandemic. Part of the problem stems from a reduction in air traffic, less air cargo availability and some countries placing new restrictions on imported goods.
While air cargo issues remain a problem, Teva is seeing improving conditions, as it has been able to increase volume outputs, but with higher transportation costs.
In the meantime, all of Teva's facilities are operating at "full capacity," Schultz said, and the "majority" of logistical problems have been overcome.
Teva And The Hydroxychloroquine Controversy
Teva is one of the few makers of the anti-malaria drug hydroxychloroquine, which has come under its fair share of controversy.
The CEO said he can't at this time offer a "clarifying answer" on the efficacy of the drug in treating COVID-19. The ultimate responsibility rests with the health care professionals, he said.
Nevertheless, Teva was able to respond to the growing demand for the drug and was "quite successful" in shipping the product, Schultz said.
Teva CEO On Coronavirus Second Wave Concerns
The coronavirus could return for a "second wave" in the fall season, but it is "too early to say" what, if any, actions hospitals are taking now to prepare themselves, Schultz said.
It is nevertheless important for all companies to increase the production of products to better prepare in the event of a second wave outbreak, he said.
Teva shares were up 10.11% at $11.54 at the time of publication Thursday.
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