Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you discuss your confidence that the quality control issues at the Indore facility are isolated and not indicative of broader problems across other facilities? A: Scott Smith, CEO: We had three facilities inspected in 2024. Indore received a warning letter and import alert, but our Carroll Park facility in Australia was closed out with no issues, and the classification for our Nasha, India facility is pending. All other facilities are in compliance with health authorities. Indore is just one of 26 facilities in our network.
Q: Regarding Cenerimod and Selatogrel, can we expect data from these programs in 2026 or 2027? A: Philippe Martin, Chief R&D Officer: We expect data for both programs in late 2026. Enrollment is progressing well, so it could be earlier if trends continue.
Q: Given the current stock price drop, why not be more aggressive with share buybacks beyond the guided range? A: Scott Smith, CEO: We plan to return $1 billion to $1.2 billion to shareholders through dividends and buybacks. We will evaluate the share price and consider increasing buybacks beyond the $500 million to $650 million range if the stock remains under pressure.
Q: Can you elaborate on the scope and timing of the enterprise review mentioned in the call? A: Scott Smith, CEO: The review is timely given past mergers and divestitures. It will assess our cost structure and resource allocation to ensure we are fit for future goals. Discussions have started, and we expect cost benefits to be realized in 2026.
Q: Why does the Indore facility issue impact revenues outside the US, and what are your generic pipeline assumptions for 2025? A: Scott Smith, CEO: Remediation efforts can cause supply issues, affecting product availability in Europe. We have 26 global facilities and seek alternate sources during remediation. Doretta Mistras, CFO: We are confident in achieving $450 million to $550 million in new product revenues, with 20% from already approved products and several complex products in the pipeline.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.