On February 13, 2017 Teva Pharmaceutical Industries Ltd. (NYSE: TEVA, TASE: TEVA) reported results for the year and the quarter ended December 31, 2016 (Press release, Teva, FEB 13, 2017, View Source [SID1234517709]).Schedule your 30 min Free 1stOncology Demo!
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FY 2016
Q4 2016
Revenues $21.9 billion $6.5 billion
Cash flow from operations $5.2 billion $1.4 billion
GAAP EPS $0.07 ($1.10)
Non-GAAP EPS $5.14 $1.38
Teva reaffirms its 2017 full year non-GAAP guidance;
including revenues of $23.8 – 24.5 billion, and
non-GAAP EPS of $4.90 – 5.30
"2016 was a transitional year for Teva – one that included significant achievements, as well as challenges," stated Dr. Yitzhak Peterburg, Interim President and CEO of Teva. "While we continue to manage through a turbulent and constantly evolving industry, we are committed to execute against our strategy with more diversified revenue sources and profit streams, all backed by strong product development engines in both generics and specialty."
"In 2017, our main focus will be extracting synergies related to the Actavis Generics transaction, driving additional efficiencies throughout the organization, supporting cash generation and paying down our debt to maintain a strong balance sheet and delivering on the promise of the specialty pipeline and key generic launches. We are laser focused on execution at this critical juncture and are determined to deliver on our key priorities."
Dr. Peterburg continued, "With the entire Teva team, I am conducting a thorough review of the business to find additional opportunities to enhance value. Our management team is committed to delivering for our shareholders and unlocking the full potential of our pipeline and global business. We remain excited about the future as we strive to create a platform that supports continued growth and value creation for patients, shareholders and healthcare systems around the world."
2016 Annual Results
Revenues in 2016 were $21.9 billion, an increase of 11% compared to 2015, primarily due to the inclusion, following the closing on August 2, of the results of the Actavis Generics business.
Exchange rate differences between 2016 and 2015 decreased revenues by $174 million, decreased GAAP operating income by $81 million and decreased non-GAAP operating income by $55 million. In addition, the Venezuelan bolivar exchange rates that we used and inflation-driven price increases in Venezuela increased revenues by $526 million, increased GAAP operating income by $23 million and increased non-GAAP operating income by $133 million.
In light of the economic conditions in Venezuela, we exclude the 2016 increases in revenues and operating profit in any discussion of currency effects.
GAAP gross profit was $11.9 billion in 2016, up 4% compared to 2015. GAAP gross profit margin for the year was 54.1%, compared to 57.8% in 2015. Non-GAAP gross profit was $13.4 billion in 2016, up 10% compared to 2015. Non-GAAP gross profit margin was 61.3% in 2016, compared to 62.2% in 2015.
Research and Development (R&D) expenses in 2016 were $2.1 billion, an increase of 38% compared to 2015. R&D expenses excluding equity compensation expenses and purchase of in-process R&D in 2016 were $1.7 billion or 7.6% of revenues, compared to $1.4 billion, or 7.3% of revenues, in 2015. R&D expenses related to our generic medicines segment were $659 million, compared to $519 million in 2015. R&D expenses related to our specialty medicines segment were $998 million, compared to $918 million in 2015.
Selling and Marketing (S&M) expenses in 2016 were $3.9 billion, an increase of 11% compared to 2015. S&M expenses excluding amortization of purchased intangible assets and equity compensation expenses were $3.7 million, or 17.0% of revenues, in 2016, compared to $3.4 million, or 17.4% of revenues, in 2015. S&M expenses related to our generic medicines segment were $1.7 billion, an increase of 18% compared to $1.5 billion in 2015. S&M expenses related to our specialty medicines segment were $1.9 billion, a decrease of 1% compared to 2015.
General and Administrative (G&A) expenses in 2016 and in 2015 were $1.2 billion. G&A expenses excluding equity compensation expenses were $1.2 billion in 2016, or 5.4% of revenues, compared to $1.2 billion and 6.0% in 2015.
Operating income was $2.2 billion in 2016 compared to $3.4 billion in 2015. Non-GAAP operating income was $6.8 billion, up 11% compared to $6.2 billion in 2015.
Adjusted EBITDA (non-GAAP operating income, which excludes amortization and certain other items, and excluding depreciation expenses) for 2016 was $7.3 billion, up 11% compared to 2015.
In 2016, financial expenses were $1.3 billion, compared to $1.0 billion in 2015. Non-GAAP financial expenses were $442 million in 2016, compared to $223 million in 2015.
GAAP income tax expenses for 2016 were $521 million or 63% on pre-tax income of $824 million. In 2015, the provision for income taxes was $634 million or 27% on pre-tax income of $2.4 billion. The provision for non-GAAP income taxes for 2016 was $1.1 billion on pre-tax non-GAAP income of $6.4 billion, for an annual tax rate of 17%. The provision for non-GAAP income taxes in 2015 was $1.3 billion on pre-tax non-GAAP income of $6.0 billion, for an annual tax rate of 21%.
GAAP net income attributable to ordinary shareholders and GAAP diluted EPS were $68 million and $0.07, respectively, in 2016, compared to $1.6 billion and $1.82, respectively, in 2015. Non-GAAP net income attributable to ordinary shareholders for calculating diluted EPS and non-GAAP diluted EPS were $5.2 billion and $5.14, respectively in 2016, compared to $4.7 billion and $5.42 in 2015.
Non-GAAP information: Net non-GAAP adjustments in 2016 were $4.9 billion. Non-GAAP net income and non-GAAP EPS for the year were adjusted to exclude the following items:
amortization of purchased intangible assets totaling $993 million, of which $881 million is included in cost of goods sold and the remaining $112 million in selling and marketing expenses;
an impairment of goodwill of $900 million, relating to the acquisition of Rimsa;
legal settlements and loss contingencies of $899 million, primarily $519 million in connection with the FCPA settlement with the DOJ and SEC and $225 million in connection with the ciprofloxacin (Cipro) settlement;
financial expenses of $888 million, including $746 million related to the impairment of our monetary balance sheet items in Venezuela following our decisions to adopt different exchange rates and $99 million related to the impairment of our investment in Mesoblast;
impairment of long-lived assets of $746 million, mainly related to Revascor and Zecuity ($506 million) and to an impairment of property, plant and equipment ($149 million);
R&D-related expenses of $423 million, comprised mainly of an upfront payment of $250 million to Regeneron pursuant to our collaborative agreement to develop and commercialize its pain medication product fasinumab and an upfront payment of $160 million to Celltrion pursuant to our exclusive partnership to commercialize two of Celltrion’s biosimilar products;
inventory step-up of $383 million, related mainly to the acquisition of the Actavis Generics business;
acquisition and integration expenses of $261 million;
restructuring expenses of $245 million;
costs related to regulatory actions taken in facilities of $153 million;
cost of sales adjustment of $133 million, to adjust our inventory balance in Venezuela to reflect the U.S. dollar fair market value of the inventory;
equity compensation of $121 million;
contingent consideration of $83 million;
other non-GAAP items of $49 million;
net gain of $693 million from the divestments of products in connection with the acquisition of the Actavis Generics business;
minority interest adjustment of negative $76 million; and
related tax effect of $593 million.
Teva believes that excluding such items facilitates investors’ understanding of its business. See the attached tables for a reconciliation of the U.S. GAAP results to the adjusted non-GAAP figures.
Cash flow from operations generated during 2016 was $5.2 billion, down 6% compared to $5.5 billion in 2015. Free cash flow, excluding net capital expenditures, was $4.4 billion compared to $4.9 billion in 2015, a decrease of 11%.
Total balance sheet assets were $92.9 billion as of December 31, 2016, compared to $98.7 billion as of September 30, 2016 and $54.2 billion at December 31, 2015. The decrease from September 30, 2016 was mainly due to a decrease of $8.1 billion in identifiable intangible assets, partially offset by an increase of $4.1 billion of goodwill, both related mainly to the Actavis and Rimsa acquisitions.
Cash and investments at December 31, 2016 decreased to $1.9 billion, compared to $2.7 billion at September 30, 2016 and $8.4 billion at December 31, 2015.
As of December 31, 2016, our debt was $35.8 billion, a decrease of $1.1 billion compared to $36.9 billion as of September 30, 2016 and $9.9 billion at December 31, 2015. The portion of total debt classified as short-term as of December 31, 2016 was 9%.
Total shareholders’ equity was $35.0 billion at December 31, 2016, compared to $37.0 billion at September 30, 2016 and $29.9 billion at December 31, 2015.
Fourth Quarter 2016 Results
Revenues in the fourth quarter of 2016 were $6.5 billion, up 33% compared to the fourth quarter of 2015, primarily due to the inclusion, following the closing on August 2, of the results of the Actavis Generics business.
Exchange rate differences between the fourth quarter of 2016 and the fourth quarter of 2015 decreased revenues by $41 million, decreased GAAP operating income by $14 million and decreased non-GAAP operating income by $9 million. In addition, the Venezuelan bolivar exchange rates that we used and inflation-driven price increases in Venezuela increased revenues by $184 million, decreased GAAP operating income by $34 million and increased non-GAAP operating income by $75 million.
In light of the economic conditions in Venezuela, we exclude the 2016 changes in revenues and operating profit in any discussion of currency effects.
GAAP gross profit was $3.4 billion in the fourth quarter of 2016, up 19% compared to the fourth quarter of 2015. GAAP gross profit margin was 52.2% in the quarter, compared to 58.3% in the fourth quarter of 2015. Non-GAAP gross profit was $3.9 billion in the fourth quarter of 2016, up 26% from the fourth quarter of 2015. Non-GAAP gross profit margin was 59.4% in the fourth quarter of 2016, compared to 62.6% in the fourth quarter of 2015.
Research and Development (R&D) expenses for the fourth quarter of 2016 were $684 million, up 53% compared to the fourth quarter of 2015 mainly due to higher R&D expenses for both generics and specialty, as well as the upfront payment of $160 million to Celltrion. R&D expenses excluding equity compensation expenses and purchase of in-process R&D in the fourth quarter of 2016 were $514 million or 7.9% of quarterly revenues, compared to $395 million or 8.1% in the fourth quarter of 2015. R&D expenses related to our generic medicines segment were $211 million, compared to $133 million in the fourth quarter of 2015, an increase of 59%, mainly due to the inclusion of expenses of the Actavis Generics business. R&D expenses related to our specialty medicines segment were $296 million, an increase of 13% compared to $263 million in the fourth quarter of 2015, mainly due to increased spending on our late-stage compound for the treatment of migraine, TEV-48125 (fremanezumab).
Selling and Marketing (S&M) expenses in the fourth quarter of 2016 were $1.1 billion, an increase of 23% compared to the fourth quarter of 2015. S&M expenses excluding amortization of purchased intangible assets and equity compensation expenses were $1.1 billion, or 17.0% of revenues, in the fourth quarter of 2016, compared to $898 million, or 18.4% of revenues, in the fourth quarter of 2015. S&M expenses related to our generic medicines segment were $549 million, an increase of 60% compared to $343 million in the fourth quarter of 2015, mainly due to additional costs related to the inclusion of the Actavis Generics business from August 2016 and the launch of our business venture in Japan in the second quarter of 2016. S&M expenses related to our specialty medicines segment were $506 million, a decrease of 10% compared to $561 million in the fourth quarter of 2015. The decrease was mainly due to decreased investment in specific products such as Nuvigil, which is facing generic competition, and Zecuity, which was withdrawn from the market.
General and Administrative (G&A) expenses in the fourth quarter of 2016 were $311 million, compared to $291 million in the fourth quarter of 2015. G&A expenses excluding equity compensation expenses were $294 million in the fourth quarter of 2016, or 4.5% of revenues, compared to $280 million and 5.7% in the fourth quarter of 2015.
Quarterly GAAP operating loss was $0.1 billion in the fourth quarter of 2016, compared to income of $0.9 billion in the fourth quarter of 2015. Quarterly non-GAAP operating income was $1.9 billion, up 31%, compared to $1.5 billion in the fourth quarter of 2015.
Adjusted EBITDA (non-GAAP operating income, which excludes amortization and certain other items, and excluding depreciation expenses) was $2.1 billion, up 31%, compared to $1.6 billion in the fourth quarter of 2015.
GAAP financial expenses for the fourth quarter of 2016 were $777 million, compared to $70 million in the fourth quarter of 2015. This increase is mainly the result of an impairment of $500 million of our monetary balance sheet items in Venezuela following our decision to begin utilizing a blended exchange rate effective on December 1, 2016, as well as higher interest expenses. Non-GAAP financial expenses were $233 million in the fourth quarter of 2016, compared to $68 million in the fourth quarter of 2015.
GAAP income tax expenses for the fourth quarter of 2016 were $57 million on pre-tax loss of $914 million. In the fourth quarter of 2015, the provision for income taxes was $249 million, or 29% on pre-tax income of $861 million. The provision for non-GAAP income taxes for the fourth quarter of 2016 was $218 million on pre-tax non-GAAP income of $1.7 billion, for a quarterly tax rate of 13%. The provision for non-GAAP income taxes in the fourth quarter of 2015 was $289 million on pre-tax non-GAAP income of $1.4 billion, for a quarterly tax rate of 21%.
GAAP net loss attributable to ordinary shareholders and GAAP diluted EPS were $1.0 billion and a loss of $1.10, respectively, in the fourth quarter of 2016, compared to income of $500 million and EPS of $0.55 in the fourth quarter of 2015. Non-GAAP net income attributable to ordinary shareholders for calculating diluted EPS and non-GAAP diluted EPS were $1.5 billion and $1.38, respectively, in the fourth quarter of 2016, compared to $1.1 billion and $1.28 in the fourth quarter of 2015.
For the fourth quarter of 2016, the weighted average outstanding shares for the fully diluted earnings per share calculation was 1,015 million on a GAAP basis and 1,076 million on a non-GAAP basis. The number of average weighted diluted shares outstanding used for the fully diluted share calculation for the fourth quarter of 2015 was 875 million shares on a GAAP and 888 million on a non-GAAP basis. The increase in the number of shares resulted from our December 2015 equity offerings and from the issuance of shares to Allergan in August 2016 in connection with the closing of the Actavis Generics acquisition. The number of shares on a non-GAAP basis includes the potential dilution resulting from our mandatory convertible preferred shares, which had a dilutive effect on our non-GAAP earnings per share.
As of December 31, 2016, the fully diluted share count for calculating Teva’s market capitalization was approximately 1,079 million shares.
Non-GAAP information: Net non-GAAP adjustments in the fourth quarter of 2016 were $2.5 billion. Non-GAAP net income and non-GAAP EPS for the quarter were adjusted to exclude the following items:
an impairment of goodwill of $900 million, relating to the acquisition of Rimsa;
financial expenses of $544 million, primarily $500 million related to the impairment of our monetary balance sheet items in Venezuela following our decision to adopt a blended exchange rate;
legal settlements and loss contingencies of $225 million in connection with the ciprofloxacin (Cipro) settlement;
amortization of purchased intangible assets totaling $182 million, of which $170 million is included in cost of goods sold and the remaining $12 million in selling and marketing expenses. Amortization expenses were particularly low this quarter due to the impact of the changes in the value of the Actavis and Rimsa intangible assets;
R&D-related expenses of $161 million, comprised mainly of an upfront payment of $160 million to Celltrion pursuant to our exclusive partnership to commercialize two of Celltrion’s biosimilar products;
inventory step-up of $140 million, related mainly to the acquisition of the Actavis Generics business;
cost of sales adjustment of $133 million, to adjust our inventory balance in Venezuela to reflect the U.S. dollar fair market value of the inventory;
impairment of long-lived assets of $132 million, $80 million of which was related to our facility in Godollo, Hungary;
restructuring expenses of $91 million;
acquisition, integration and related expenses including contingent consideration of $75 million;
equity compensation expenses of $38 million;
costs related to regulatory actions taken in facilities of $30 million;
other non-GAAP items of negative $26 million;
minority interest adjustment of negative $11 million; and
related tax effect of $161 million.
Teva believes that excluding such items facilitates investors’ understanding of its business. See the attached tables for a reconciliation of the GAAP results to the adjusted non-GAAP figures.
Cash flow from operations generated during the fourth quarter of 2016 was $1.4 billion, a decrease of 12% compared to the fourth quarter of 2015 mainly due to changes in our working capital. Free cash flow, excluding net capital expenditures, was $1.1 billion, down 19% compared to the fourth quarter of 2015.
Segment Results for the Fourth Quarter 2016
Beginning in the fourth quarter of 2016, and following the acquisition of Actavis Generics, we revised our segment structure so that our generic medicines segment, which includes chemical and therapeutic equivalents of originator medicines in a variety of dosage forms, now includes our OTC business, conducted primarily through PGT, as well as our API manufacturing business.
All data presented has been conformed to the new segment structure.
Generic Medicines Segment
Three Months Ended December 31,
2016 2015
U.S.$ in millions / % of Segment Revenues
Revenues $ 3,716 100.0% $ 2,573 100.0%
Gross profit 1,835 49.4% 1,169 45.4%
R&D expenses 211 5.7% 133 5.2%
S&M expenses 549 14.8% 343 13.3%
Segment profit* $ 1,075 28.9% $ 693 26.9%
*Segment profit consists of gross profit for the segment, less R&D and S&M expenses related to the segment. Segment profit does not include G&A expenses, amortization, inventory step up and certain other items.
Generic Medicines Revenues
Generic medicines revenues in the fourth quarter of 2016 were $3.7 billion, an increase of 44% compared to the fourth quarter of 2015, reflecting the results of the Actavis Generics business from August 2, 2016.
Generic revenues consisted of:
U.S. revenues of $1.4 billion, an increase of 40% compared to the fourth quarter of 2015, mainly due to the inclusion of Actavis Generics with revenues of $630 million.
European revenues of $1.1 billion, an increase of 33%, or 38% in local currency terms, compared to the fourth quarter of 2015, mainly due to the inclusion of Actavis Generics with revenues of $360 million.
ROW revenues of $1.3 billion, an increase of 62%, or 36% in local currency terms, compared to the fourth quarter of 2015. The increase in local currency terms was mainly due to the results of our business venture with Takeda in Japan which commenced operations in April 2016, and the inclusion of $150 million of revenues from Actavis Generics.
Our OTC revenues (which are included in the market revenues above) were $412 million, an increase of 28% compared to $321 million in the fourth quarter of 2015. In local currency terms, revenues increased 7%. PGT’s in-market sales were $530 million in the fourth quarter of 2016, compared to $450 million in the fourth quarter of 2015.
API sales to third parties of $181 million (which are included in the market revenues above), a decrease of 10%, compared to the fourth quarter of 2015, mainly as sales to Actavis Generics are no longer classified as sales to third parties.
Generic medicines revenues comprised 57% of our total revenues in the quarter, compared to 53% in the fourth quarter of 2015.
Generic Medicines Gross Profit
Gross profit of our generic medicines segment in the fourth quarter of 2016 was $1.8 billion, an increase of 57% compared to $1.2 billion in the fourth quarter of 2015. The higher gross profit was mainly a result of the inclusion of Actavis Generics and our business venture with Takeda in Japan, both of which impacted the current quarter but not the fourth quarter of 2015.
Gross profit margin for our generic medicines segment in the fourth quarter of 2016 increased to 49.4%, from 45.4% in the fourth quarter of 2015.
Generic Medicines Profit
Our generic medicines segment generated profit of $1.1 billion in the fourth quarter of 2016, an increase of 55% compared to the fourth quarter of 2015. Generic medicines profitability as a percentage of generic medicines revenues was 28.9% in the fourth quarter of 2016, up from 26.9% in the fourth quarter of 2015.
Specialty Medicines Segment
Three Months Ended December 31,
2016 2015
U.S.$ in millions / % of Segment Revenues
Revenues $ 2,203 100.0% $ 2,114 100.0%
Gross profit 1,926 87.4% 1,855 87.7%
R&D expenses 296 13.4% 263 12.4%
S&M expenses 506 23.0% 561 26.5%
Segment profit* $ 1,124 51.0% $ 1,031 48.8%
*Segment profit consists of gross profit for the segment, less R&D and S&M expenses related to the segment. Segment profit does not include G&A expenses, amortization, inventory step up and certain other items.
Specialty Medicines Revenues
Specialty medicines revenues in the fourth quarter of 2016 were $2.2 billion, up 4% compared to the fourth quarter of 2015. U.S. specialty medicines revenues were $1.7 billion, up 5% compared to the fourth quarter of 2015. European specialty medicines revenues were $384 million, an increase of 5%, or 9% in local currency terms, compared to the fourth quarter of 2015. ROW specialty revenues were $102 million, down 6%, or 4% in local currency terms, compared to the fourth quarter of 2015.
Specialty medicines revenues comprised 34% of our total revenues in the quarter, compared to 43% in the fourth quarter of 2015.
The following table presents revenues by therapeutic area and key products for our specialty medicines segment for the three months ended December 31, 2016 and 2015:
Three Months Ended
December 31,
Percentage
Change
2016 2015 2016 – 2015
U.S. $ in millions
CNS $ 1,243 $ 1,274 (2%)
Copaxone 1,015 960 6%
Azilect 88 80 10%
Nuvigil 25 100 (75%)
Respiratory 325 326 (0%)
ProAir 139 148 (6%)
QVAR 116 119 (3%)
Oncology 268 318 (16%)
Treanda and Bendeka 150 198 (24%)
Women’s Health 122 107 14%
Other Specialty 245 89 175%
Total Specialty Medicines $ 2,203 $ 2,114 4%
Global revenues of Copaxone (20 mg/mL and 40 mg/mL), the leading multiple sclerosis therapy in the U.S. and globally, were $1.0 billion, an increase of 6% compared to the fourth quarter of 2015.
Copaxone revenues in the United States were $829 million, up 9% compared to $760 million in the fourth quarter of 2015, mainly due to a price increase of 7.9% in January 2016. At the end of the fourth quarter of 2016, according to December 2016 IMS data, our U.S. market shares for the Copaxone products in terms of new and total prescriptions were 27.9% and 29.3%, respectively. Copaxone 40 mg/mL accounted for over 84% of total Copaxone prescriptions in the U.S.
Copaxone revenues outside the United States were $186 million, a decrease of 7%, compared to the fourth quarter of 2015 mainly due to loss of tender orders in Russia, partially offset by a volume increase in Europe.
Our global Azilect revenues were $88 million, an increase of 10% compared to the fourth quarter of 2015. Global in-market sales decreased 31%, mainly due to generic competition in certain European markets.
Revenues of our respiratory products were $325 million, in line with results in the fourth quarter of 2015. ProAir revenues in the quarter were $139 million, down 6% compared to the fourth quarter of 2015, due to lower volumes related to changes in our market access. QVAR global revenues were $116 million in the fourth quarter of 2016, down 3% compared to the fourth quarter of 2015, mainly due to net pricing effects.
Revenues of our oncology products were $268 million in the fourth quarter of 2016, down 16% compared to the fourth quarter of 2015. Revenues of Treanda and Bendeka were $150 million, down 24% compared to the fourth quarter of 2015, due to increased competition from other therapies and normalization of inventory levels following the launch of Bendeka.
Specialty Medicines Gross Profit
Gross profit of our specialty medicines segment was $1.9 billion, up 4% compared to the fourth quarter of 2015. Gross profit margin for our specialty medicines segment in the fourth quarter of 2016 was 87.4%, compared to 87.7% in the fourth quarter of 2015.
Specialty Medicines Profit
Our specialty medicines segment profit was $1.1 billion in the fourth quarter of 2016, up 9% compared to the fourth quarter of 2015.
Specialty medicines profit as a percentage of segment revenues was 51.0% in the fourth quarter of 2016, up from 48.8% in the fourth quarter of 2015.
The following tables present information regarding our multiple sclerosis franchise and of our other specialty medicines for the three months ended December 31, 2016 and 2015:
Multiple Sclerosis
Three months ended December 31,
2016 2015
U.S.$ in millions / % of MS Revenues
Revenues $ 1,015 100.0% $ 960 100.0%
Gross profit 927 91.3% 866 90.2%
R&D expenses 30 3.0% 32 3.3%
S&M expenses 81 7.9% 121 12.6%
MS profit $ 816 80.4% $ 713 74.3%
Other Specialty
Three months ended December 31,
2016 2015
U.S.$ in millions / % of Other Specialty Revenues
Revenues $ 1,188 100.0% $ 1,154 100.0%
Gross profit 999 84.1% 989 85.7%
R&D expenses 266 22.4% 231 20.0%
S&M expenses 425 35.8% 440 38.1%
Other Specialty profit $ 308 25.9% $ 318 27.6%
Other Activities
Other revenues, primarily sales of third-party products for which we act as distributor, mostly in the United States via Anda, as well as in Israel and Hungary, sales of medical devices, contract manufacturing services related to products divested in connection with the Actavis Generics acquisition and other miscellaneous items, were $573 million in the fourth quarter of 2016, compared to $194 million, in the fourth quarter of 2015. The increase was mainly related to the inclusion of Anda’s revenues beginning in the fourth quarter of 2016.
Revenues of our other activities comprised 9% of our total revenues in the quarter, compared to 4% in the fourth quarter of 2015.
Outlook for 2017 Non-GAAP Results
Teva reaffirms its 2017 full year non-GAAP guidance, including the items below:
We expect revenues for full year 2017 to be $23.8 – 24.5 billion.
Non-GAAP EPS for 2017 is expected to be $4.90 – 5.30, based on a weighted average number of shares of 1,076 million.
These estimates reflect management`s current expectations for Teva’s performance in 2017. Actual results may vary, whether as a result of exchange rate differences, market conditions or other factors. In addition, the non-GAAP figures exclude the amortization of purchased intangible assets, costs related to certain regulatory actions, inventory step-up, legal settlements and reserves, impairments and related tax effects.
Dividends
On February 7, 2017, the Board of Directors declared a cash dividend of $0.34 per ordinary share for the fourth quarter of 2016. For holders of our ordinary shares that are traded on the Tel Aviv Stock Exchange, the dividend will be converted into new Israeli shekels based on the official exchange rate as of February 13, 2017. The record date will be March 2, 2017, and the payment date will be March 20, 2017. Tax will be withheld at a rate of 15%.
Also, on February 7, 2017, the Board of Directors declared a cash dividend of $17.50 per mandatory convertible preferred share for the fourth quarter of 2016. The record date will be March 1, 2017 and the payment date will be March 15, 2017. Tax will be withheld at a rate of 15%.