Teva Reports Fourth Quarter and Full Year 2012 Results

  Teva Reports Fourth Quarter and Full Year 2012 Results

  *Fourth Quarter 2012 Net Revenues of $5.2 Billion and Full Year Net
    Revenues of $20.3 Billion
  *Fourth Quarter 2012 Non-GAAP Diluted EPS of $1.32, GAAP Diluted EPS of
    $0.37; Full Year Non-GAAP Diluted EPS of $5.35, GAAP Diluted EPS of $2.25
  *15% Increase in Quarterly Dividend
  *Share Repurchases of $0.5 Billion and $1.2 Billion in Fourth Quarter and
    Full Year 2012, Respectively
  *Cash Flow from Operations of $1.6 Billion and $4.6 Billion in Fourth
    Quarter and Full Year 2012, Respectively

Business Wire

JERUSALEM -- February 7, 2013

Teva  Pharmaceutical Industries Ltd. (NYSE: TEVA) today reported results for
the quarter and year ended December 31, 2012.

“Our efforts over the past year clearly demonstrate Teva's ability and
commitment to transform the Company. Based on this, we will enter 2013 with a
strong and disciplined business focus," stated Dr. Jeremy Levin, Teva’s
President and Chief Executive Officer. "Our generic franchise remains the core
of our business. We launched 23 generic products in the U.S. in 2012, and
anticipate a similar number of launches in 2013. Our specialty medicines
business continues to drive value with strong fundamentals in multiple
sclerosis, central nervous system, respiratory, oncology and women’s
health.Copaxone^® continues to lead the multiple sclerosis market in sales
and market share. In March 2013, we plan to submit to the FDA a sNDA for
marketing approval of a '3 times a week' dose of Copaxone®.Our new R&D
organization is showing great progress. Our New Therapeutic Entities pipeline
is advancing as expected. At the same time, we are beginning to add external
opportunities through our 'Constellation' business development program.We
have launched our 'Reshape' program and are committed to managing our costs
while we invest in Teva’s future."

Dr. Levin added, "I am particularly pleased with the Board's decision to
increase Teva's dividend. Together with Teva's new strategy backed by our
ongoing share repurchase plan, this decision reflects the Board's and
management's optimism and confidence. We believe the course we have set for
Teva is the right one and will yield real value for patients, customers and
shareholders while ensuring the long-term growth of our company."

Revenues by Geography for the Fourth Quarter 2012^1

Net revenues in the United States in the fourth quarter were $2.6 billion (50%
of total revenues), a decrease of 14% compared to the fourth quarter of 2011.
Provigil^® sales declined substantially due to generic competition that began
in the second quarter of 2012, while the other factor affecting the comparison
is the unusually high generic revenues during the fourth quarter of 2011 due
to extraordinary contributions from our launch of generic Zyprexa^® and from
our agreement with Ranbaxy relating to its launch of generic Lipitor^®. The
absence of these contributions in the fourth quarter of 2012 was partially
offset by strong revenues from generic launches throughout 2012, as well as an
increase in Copaxone^® sales

Net revenues in Europe in the fourth quarter were $1.5 billion (29% of total
revenues), an increase of 2% compared to the fourth quarter of 2011, or 5% in
local currency terms. Revenues in Europe this quarter benefited from stronger
revenues from some of our specialty medicines, primarily Copaxone^®, following
the take-back of marketing and distribution rights, as well as increased sales
from our OTC business. We are continuing to manage our commercial model in
Europe in line with our strategy of sustainable and profitable growth.

Net revenues in the Rest of the World in the fourth quarter totaled $1.1
billion (21% of total revenues), a decrease of 3% compared to the fourth
quarter of 2011. In local currency terms, ROW revenues declined by 2%. The
slight decline in revenues resulted from the sale of certain businesses of
Mepha AG, which closed in the first quarter of 2012, as well as weaker
performance in Canada, due primarily to government-imposed price reforms. This
decrease was partially offset by growth in Latin America.

                                                            
              Three Months                           Percentage   Percentage
              Ended                                  Change       Change

              December 31,                           2012 from    2012 from
              2012     2011     % of      % of      2011         2011
                                 2012      2011
              U.S. $ in                                           in local
              millions                                            currencies
United
States:
Generic       1,034     1,242    20   %    22   %    (17   %)     (17   %)
Specialty     1,527     1,770    29   %    31   %    (14   %)     (14   %)
Others        60        33       1    %    1    %    82    %      82    %
Total
United        2,621     3,045    50   %    54   %    (14   %)     (14   %)
States
Europe*:
Generic       930       982      18   %    17   %    (5    %)     (3    %)
Specialty     420       329      8    %    6    %    28    %      32    %
Others        177       183      3    %    3    %    (3    %)     (4    %)
Total         1,527     1,494    29   %    26   %    2     %      5     %
Europe
Rest of the
World:
Generic       698       758      13   %    13   %    (8    %)     (7    %)
Specialty     159       155      3    %    3    %    3     %      4     %
Others        244       224      5    %    4    %    9     %      11    %
Total Rest
of the        1,101     1,137    21   %    20   %    (3    %)     (2    %)
World
Total         5,249     5,676    100  %    100  %    (8    %)     (7    %)
Revenues
                                                                             
*All members of the European Union as well as
Switzerland and Norway.
                                                                             

^1 For quarterly revenues by geography and by product line, beginning with the
fourth quarter of 2010, please visit our website at www.ir.tevapharm.com.

Revenues by Product Line for the Fourth Quarter 2012

Generic medicines net revenues in the fourth quarter were $2.7 billion
(including API sales of $202 million), a decrease of 11% compared to $3.0
billion in the fourth quarter of 2011. Generic revenues comprised 51% of total
revenues in the quarter, compared to 52% in the fourth quarter of 2011.
Generic revenues consisted of:

  *U.S. revenues of $1.0 billion, a decrease of 17% compared to the fourth
    quarter of 2011. The decline primarily reflects the significant launches
    in the comparable quarter (including the generic version of Zyprexa^® and
    our agreement with Ranbaxy relating to its launch of generic Lipitor^®,
    which did not contribute to revenues in the fourth quarter of 2012). The
    decrease was partially offset by continued revenues from launches earlier
    in 2012 and in the fourth quarter (including the generic version of
    TriCor^®).
  *European revenues of $930 million, a decrease of 5%, or 3% in local
    currency terms, compared to the fourth quarter of 2011. We saw declines in
    revenues in Italy and Spain that were partially offset by increases in
    Germany, the U.K., France, and Poland. During the quarter we continued to
    manage the generic business in the region for sustainable profitability,
    and had several launches, including generic versions of Seroquel XL^® and
    Detrol LA^® in the U.K.
  *ROW revenues of $698 million, a decrease of 8%, or 7% in local currency
    terms, compared to the fourth quarter of 2011. The decrease was primarily
    due to the sale of certain businesses of Mepha AG and lower sales in
    Canada, due primarily to government-imposed price reforms, partially
    offset by growth in Latin America and Russia.

                    Three Months Ended                          Percentage
                                                             Change
                    December 31,                                2012 from
                    2012      2011     % of 2012  % of 2011   2011
                    U.S. $ in millions
                                                                
Generic Medicines   $  2,662   $ 2,982   51    %    52    %     (11   %)
API                    202       197     4     %    3     %     3     %

Specialty medicines net revenues in the fourth quarter were $2.1 billion, a
decrease of 7% compared to $2.3 billion in the fourth quarter of 2011.
Specialty revenues consisted of:

  *U.S. revenues of $1.5 billion, a decrease of 14% compared to the fourth
    quarter of 2011.
  *European revenues of $420 million, an increase of 28%, or 32% in local
    currency terms, compared to the fourth quarter of 2011.
  *ROW revenues of $159 million, an increase of 3%, or 4% in local currency
    terms, compared to the fourth quarter of 2011.

Specialty revenues comprised 40% of total revenues in the quarter, unchanged
compared to the fourth quarter of 2011.

The decrease in specialty medicines revenues from the fourth quarter of 2011
was primarily due to the decline in Provigil^® as a result of the introduction
of generic competition during the year, which was partially offset by strong
sales of Copaxone^® and certain other specialty medicines.

Global revenues recorded by Teva for Copaxone^®, the leading multiple
sclerosis therapy in the U.S. and globally, increased 14%, or 15% in local
currency terms, to $1.1 billion compared to $927 million in the fourth quarter
of 2011. The increase primarily resulted from the take-back of marketing and
distribution rights in Europe and continued market share leadership. In the
U.S., sales increased 12% to $0.8 billion, as a result of price increases
throughout the year. Sales outside the U.S. were $237 million, an increase of
23%, or 27% in local currency terms, compared to the fourth quarter of 2011,
primarily because of the take-back of marketing and distribution rights in
Europe, partially offset by lower revenues in Russia due to the timing of
tenders.

Azilect^® revenues recorded by Teva increased 4% to $86 million, while global
in-market revenues increased 4% to $113 million, primarily due to increased
demand in the U.S. and Europe and a price increase.

                                                              
                      Three Months Ended                          Percentage
                                                                  Change
                      December 31,                                2012 from
                      2012       2011    % of 2012  % of 2011   2011
                      U.S. $ in millions
                                                                  
Specialty Medicines   2,106       2,254    40    %    40    %     (7    %)
CNS                   1,340       1,562    26    %    28    %     (14   %)
Copaxone®             1,059       927      20    %    16    %     14    %
Provigil®             25          350      §          6     %     (93   %)
Nuvigil®              78          86       1     %    2     %     (9    %)
Azilect®              86          83       2     %    1     %     4     %
Oncology              233         190      4     %    3     %     23    %
Treanda®              161         131      3     %    2     %     23    %
Respiratory           256         275      5     %    5     %     (7    %)
ProAir®               120         145      2     %    3     %     (17   %)
QVAR®                 92          93       2     %    2     %     (1    %)
Women's Health        132         93       2     %    2     %     42    %
Other Specialty       145         134      3     %    2     %     8     %
                                                                  
§ Less than 0.5%
                                                                  

OTC Total sales of PGT Healthcare, our joint venture with The Procter & Gamble
Company, in the fourth quarter of 2012 were $377 million, an increase of 11%,
or 12% in local currency terms, compared to the fourth quarter of 2011. Teva
net revenues in the quarter were $269 million, an increase of 24%, or 25% in
local currency terms, compared to $217 million in the fourth quarter of 2011,
primarily due to strong revenues and share growth in key markets including
Europe, specifically related to the ratiopharm brand, Russia and Israel, as
well as to sales of OTC products in the U.S. to Procter & Gamble, pursuant to
a manufacturing agreement, which commenced in November 2011.

Other net revenues in the quarter were $212 million, mostly from the
distribution of third-party products in Israel and Hungary, compared to $223
million in the fourth quarter of 2011.

                 Three Months Ended                          Percentage
                                                          Change
                 December 31,                                2012 from
                 2012       2011    % of 2012  % of 2011   2011
                 U.S. $ in millions
                                                             
All Others       481         440      9    %     8    %      9     %
OTC              269         217      5    %     4    %      24    %
Other Revenues   212         223      4    %     4    %      (5    %)

Revenues by Geography for the Full Year 2012

Net revenues in the United States were $10.4 billion (51% of total revenues),
an increase of 19% compared to 2011, reflecting the inclusion of Cephalon
commencing in the fourth quarter of 2011 as well as strong revenues from both
specialty and generic medicines.

Net revenues in Europe were $5.7 billion (28% of total revenues), in line with
2011, or an increase of 8% in local currency terms. Revenues in Europe this
year benefited from the inclusion of Cephalon medicines as well as stronger
revenues from some of our specialty medicines, primarily Copaxone^®, following
the take-back of marketing and distribution rights, as well as continued
growth in our OTC business. This growth was offset by the negative foreign
currency effects (primarily the euro, Hungarian forint and the Polish zloty),
as well as lower generic sales due to ongoing macro-economic conditions and
healthcare reforms in key European markets, which increased generic
penetration while lowering prices of generic medicines. In addition, our
revenues were negatively impacted by the effect of our renegotiations with
some of the wholesalers in the region, which resulted in reduced stock levels.
Despite these conditions, the majority of the markets maintained or increased
profitability in local currency terms, as a result of our strategy to focus on
a profitable commercial model in Europe.

Net revenues in the Rest of the World totaled $4.2 billion (21% of total
revenues), an increase of 9% compared to 2011. In local currency terms, ROW
revenues grew by 13%. The increase during the year was primarily due to the
consolidation of a full year of our acquisitions in Japan, higher revenues in
Russia and other Eastern European markets, as well as strong growth in Latin
America. In addition we saw growth of our OTC business in many of these
countries. This growth was partially offset by weaker performance in Canada,
due primarily to government-imposed price reforms. Revenues in our mature
generic markets (Canada and Israel) totaled $1.3 billion in 2012, a decrease
of 9% compared to 2011. Revenues in our emerging generic markets (Japan,
Russia, LATAM and other ROW countries) totaled $2.9 billion, an increase of
19% from the comparable year.

                                                            
             Year Ended                              Percentage   Percentage
             December 31,                            Change       Change
             2012      2011      % of      % of     2012 from    2012 from
                                  2012      2011     2011         2011
             U.S. $ in millions                                  in local
                                                                  currencies
United
States:
Generic      4,381      3,957     21   %    22   %   11   %       11    %
Specialty    5,857      4,804     29   %    26   %   22   %       22    %
Others       200        39        1    %    §        413  %       413   %
Total
United       10,438     8,800     51   %    48   %   19   %       19    %
States
Europe*:
Generic      3,387      3,810     17   %    21   %   (11  %)      (3    %)
Specialty    1,563      1,101     7    %    6    %   42   %       53    %
Others       723        749       4    %    4    %   (3   %)      §     
Total        5,673      5,660     28   %    31   %   §            8     %
Europe
Rest of
the World:
Generic      2,617      2,429     13   %    13   %   8    %       10    %
Specialty    730        588       4    %    3    %   24   %       31    %
Others       859        835       4    %    5    %   3    %       8     %
Total Rest
of the       4,206      3,852     21   %    21   %   9    %       13    %
World
Total        20,317     18,312    100  %    100  %   11   %       14    %
Revenues
                                                                             
*All members of the European Union as well as Switzerland and Norway.
§ Less than 0.5%.


Revenues by Product Line for the Full Year 2012

Generic medicines net revenues were $10.4 billion (including API sales of $796
million), an increase of 2% compared to $10.2 billion in 2011. Generic
revenues comprised 51% of total revenues for the year, compared to 56% in
2011. Generic revenues consisted of:

  *U.S. revenues of $4.4 billion, an increase of 11% compared to 2011. The
    U.S. generics business benefited from the launch of 23 new medicines
    throughout the year, including generic versions of ACTOS^® and ACTOplus
    met^®, as well as several medicines that were either exclusive,
    semi-exclusive or in limited competition markets such as the generic
    versions of Lexapro^® Provigil^® and TriCor^®.
  *European revenues of $3.4 billion, a decrease of 11%, or 3% in local
    currency terms, compared to 2011. This decrease was caused primarily by
    ongoing macro-economic conditions and healthcare reforms in key European
    markets. To address these conditions, we are continuing to adjust our
    strategy in Europe to focus more on profitable and sustainable growth
    rather than market share. The decrease this year also reflects the fact
    that revenues last year were high as a result of the launch of a generic
    version of Lipitor^® in the U.K. during 2011.
  *ROW revenues of $2.6 billion, an increase of 8%, or 10% in local currency
    terms, compared to 2011. We had strong performances in Latin America and
    Russia, and also benefited from the consolidation of a full year of our
    acquisitions in Japan, which were partially offset by a decrease in
    generics sales in Canada, due primarily to government-imposed price
    reforms.

                 Year Ended December 31,                         Percentage
                                                                    Change
                  2012         2011       % of 2012  % of 2011   2012 from
                                                                    2011
                  U.S. $ in millions
                                                                    
Generic           $  10,385     $  10,196   51    %     56    %     2     %
Medicines
API                  796           747      4     %     4     %     7     %

Specialty medicines net revenues were $8.2 billion, an increase of 26%
compared to $6.5 billion in 2011. Specialty revenues consisted of:

  *U.S. revenues of $5.9 billion, an increase of 22% compared to 2011.
  *European revenues of $1.6 billion, an increase of 42%, or 53% in local
    currency terms compared to 2011.
  *ROW revenues of $730 million, an increase of 24%, or 31% in local currency
    terms compared to 2011.

Specialty revenues comprised 40% of total revenues for the year, compared to
35% in 2011.

The increase in specialty medicines revenues from 2011 was primarily due to
the full year inclusion of Cephalon’s medicines (mainly Treanda^® with $608
million, Provigil^® with $417 million, and Nuvigil^® with $347 million) and
strong sales of Teva legacy medicines, primarily Copaxone^® and Azilect^®.

Global revenues recorded by Teva for Copaxone^®, the leading multiple
sclerosis therapy in the U.S. and globally, increased 12%, or 14% in local
currency terms, to $4.0 billion compared to $3.6 billion in 2011. The increase
primarily resulted from the successful take-back of marketing and distribution
rights in Europe and increased sales in ROW markets. In the U.S., sales
increased 4% to $2.9 billion, as a result of price increases taken throughout
the year. Sales outside the U.S. were $1.1 billion, an increase of 39%, or 49%
in local currency terms, compared to 2011, mainly as a result of the take back
in Europe and strong sales in Russia.

Azilect^® revenues recorded by Teva increased 14% to $330 million, while
global in-market revenues increased 7% to $420 million, primarily due to
increased demand in the U.S. and Europe and a price increase.

In addition, during the year we successfully launched several specialty
medicines including QNASL^®, Synribo^® and ProAir^® Dose Counter.

                   Year Ended December 31,                       Percentage
                                                                    Change
                    2012          2011      % of      % of       2012 from
                                              2012       2011       2011
                    U.S. $ in millions
                                                                    
Specialty           8,150          6,493      40   %     35   %     26    %
Medicines
CNS                 5,464          4,412      27   %     24   %     24    %
Copaxone®           3,996          3,570      20   %     19   %     12    %
Provigil®           417            350        2    %     2    %     19    %
Nuvigil®            347            86         2    %     §          303   %
Azilect®            330            290        2    %     2    %     14    %
Oncology            860            268        4    %     1    %     221   %
Treanda®            608            131        3    %     1    %     364   %
Respiratory         856            878        4    %     5    %     (3    %)
ProAir®             406            436        2    %     2    %     (7    %)
Qvar®               297            305        1    %     2    %     (3    %)
Women's Health      448            438        2    %     2    %     2     %
Other Specialty     522            497        3    %     3    %     5     %
                                                                    
§ Less than 0.5%.

OTC net revenues for the year were $936 million, an increase of 22%, or 28% in
local currency terms, compared to $765 million in 2011, primarily due to
growth in sales in Latin America and Europe, as well as sales of OTC products
in the U.S. to The Procter & Gamble Company, pursuant to a manufacturing
agreement, which commenced in November 2011. During the year, our joint
venture, PGT Healthcare, successfully launched the Vicks^® product line in
Hungary, Russia, Poland and the Czech Republic.

Other net revenues for the year were $846 million, mostly from the
distribution of third-party products in Israel and Hungary, compared to $858
million in 2011.

               Year Ended December                         Percentage
                31,                                           Change
                2012         2011      % of       % of      2012 from 2011
                                         2012       2011
                U.S. $ in millions
                                                                             
All Others      1,782         1,623      9    %     9    %    10      %
OTC             936           765        5    %     4    %    22      %
Other           846           858        4    %     5    %    (1      %)
Revenues

Key Metrics for the Fourth Quarter 2012

Exchange rate differences between this quarter and the fourth quarter of 2011
reduced our revenues by approximately $50million, while having a minor
positive impact on operating income. The impact on revenues resulted primarily
from the weakening of certain currencies (primarily the euro, Japanese yen,
and Israeli shekel) relative to the U.S. dollar.

Non-GAAP Information This quarter, we had net non-GAAP charges of $822
million, consisting primarily of impairments of $495 million and amortization
of purchased intangible assets of $284 million. Accordingly, the non-GAAP
figures below are adjusted to exclude these and certain other items, as
follows:

  *Impairments of $495 million, primarily related to the termination of the
    agreements with CureTech, as part of the on-going review of our R&D
    portfolio, impairments to manufacturing facilities, mostly in the U.S. and
    particularly in Irvine, and impairment of Gabitril®, due to the
    introduction of generic competition;
  *Amortization of purchased intangible assets totaling $284 million, of
    which $271 million are included in cost of goods sold and the remaining
    $13 million in selling and marketing expenses;
  *Restructuring and acquisition expenses of $136 million, mostly related to
    the integration of Cephalon and Theramex;
  *Purchase of in-process R&D of $68 million, primarily related to the
    Neurosearch and Xenon agreements;
  *Financial expenses of $32 million related to debt refinancing;
  *Costs of $25 million related to regulatory actions in our injectable and
    animal health plants;
  *$8 million in legal settlement expenses; and
  *Related tax benefits and minority interest benefits in CureTech of $226
    million.

Teva believes that excluding such items facilitates investors' understanding
of the Company's business. See the attached tables for a reconciliation of
U.S. GAAP results to the adjusted non-GAAP figures.

Quarterly non-GAAP operating income of $1.3 billion, down 22% compared to the
fourth quarter of 2011. Quarterly GAAP operating income was $330 million
compared to $610 million in the fourth quarter of 2011.

Non-GAAP net income and diluted EPS of $1.1 billion and $1.32 in the quarter
compared to $1.4 billion and $1.59 in the fourth quarter of 2011. GAAP net
income and GAAP EPS of $320 million and $0.37 in the quarter compared to $506
million and $0.57 in the fourth quarter of 2011.

Non-GAAP gross profit margin was 58.7% in the quarter, compared to 60.7% in
the fourth quarter of 2011. The decrease is primarily the result of the
commencement of generic competition for Provigil^®, coupled with lower
revenues from new generic launches in the United States in the fourth quarter
of 2012, and was partially offset by higher sales of Copaxone^®. GAAP gross
profit margin was 53.1% in the quarter, compared to 50.8% in the fourth
quarter of 2011, which was impacted by inventory step-up charges in the fourth
quarter of 2011.

                                                  
                    Q4 2012                       FY 2012
Product Line          Non-GAAP Gross Profit Margin  Non-GAAP Gross Profit
                                                     Margin
                    (% of total net revenues for  (% of total net revenues
                      the line)                      for the line)
Generic (incl API)   43.4%                         43.5%
Specialty (excl MS)  84.5%                         86.8%
MS                   87.5%                         89.2%

Net Research & Development (R&D) expenditures in the quarter (excluding
purchase of in-process R&D) totaled $374 million, or 7.1% of revenues,
compared to $371 million, or 6.5% of revenues in the fourth quarter of 2011.
The increase in R&D spending primarily reflects the progress in development
activities by our new integrated R&D organization. Gross R&D, before
reimbursement from third parties for certain R&D expenses and including
in-process R&D, totaled approximately $472 million, or 9.0% of revenues.

                                                  
                    Q4 2012                       FY 2012
Product Line          Non-GAAP R&D Expenses         Non-GAAP R&D Expenses
                    (% of total net revenues for  (% of total net revenues
                      the line)                      for the line)
Generic (incl API)   5.3%                          4.7%
Specialty (excl MS)  19.8%                         17.1%
MS                   2.3%                          2.1%

Selling and Marketing expenditures (excluding amortization of purchased
intangible assets) totaled $1,043 million, or 19.9% of revenues, in the
quarter, compared to $1,025 million, or 18.1% of revenues in the fourth
quarter of 2011. The increase was primarily due to higher expenses on
specialty medicines as well as to the take-back of Copaxone^® in Europe,
partially offset by exchange rate differences and lower royalty payments made
on generic medicines in the U.S.

                                                  
                    Q4 2012                       FY 2012
Product Line          Non-GAAP S&M Expenses         Non-GAAP S&M Expenses
                    (% of total net revenues for  (% of total net revenues
                      the line)                      for the line)
Generic (incl API)   19.0%                         19.0%
Specialty (excl MS)  31.8%                         28.4%
MS                   15.6%                         12.6%

General and Administrative (G&A) expenditures totaled $318 million in the
quarter, or 6.1% of revenues, compared with $315 million, or 5.5% of revenues,
for the fourth quarter of 2011.

Non-GAAP financial expenses totaled $114 million in the quarter (excluding
one-time notes' repayment expense of $32 million), compared with $68 million
in the fourth quarter of 2011. The increase is mainly due to higher interest
expenses resulting from the additional debt incurred in connection with the
acquisition of Cephalon as well as expenses related to debt refinancing during
the year and certain foreign exchange differences incurred this quarter.

The provision for non-GAAP tax for the quarter amounted to $80 million on
pre-tax non-GAAP income of $1.2 billion. The provision for tax in the fourth
quarter of 2011 was $239 million on pre-tax income of $1.7 billion. The annual
tax rate for 2012 compared to the annual tax rate in 2011 is slightly higher
primarily as a result of the change in geographic and product mix following
the Cephalon acquisition. On a GAAP basis, we recorded a tax benefit of $110
million this quarter as a result of a reduction in deferred tax liabilities,
which resulted from impairments and amortization relating to assets that had a
tax rate higher than our average tax rate.

Cash flow from operations during the quarter was approximately $1.6 billion,
compared to $1.4 billion in the fourth quarter of 2011, an increase of 10%.
Free cash flow, excluding net capital expenditures and dividends, was $1.0
billion, an 8% increase compared to $958 million in the fourth quarter of
2011.  The increase in cash flow mainly reflects a decrease in the level of
receivables during the quarter. Cash and marketable securities on December 31,
2012 amounted to $3.1 billion (before the redemption, in January 2013, of $1
billion of 1.7% senior notes due 2014).

During  the quarter, share repurchases totaled approximately 12.7 million
shares for an aggregate cost of approximately $0.5 billion. Since the
beginning of 2012, Teva has repurchased 28.1 million shares for approximately
$1.2 billion as part of $3.0 billion share repurchase plan authorized in
December 2011. As a result of the repurchases, the weighted average fully
diluted share count at December 31, 2012 was reduced by approximately
12million shares from December 31, 2011.

For the fourth quarter of 2012, the weighted average share count for the fully
diluted earnings per share calculation was 868 million on a GAAP and non-GAAP
basis. At December 31, 2012, the share count for calculating Teva's market
capitalization was approximately 857 million.

Total equity at December 31, 2012, was $22.9 billion, a decrease of $0.2
billion, compared to $23.1 billion at September 30, 2012. The decrease in
total equity is primarily a result of share repurchases and dividends
declared, partially offset by the GAAP net income of $320 million and positive
currency translation impact.

Dividend

The Board of Directors, at its meeting on February 5, 2013, declared a cash
dividend for the fourth quarter of 2012 of NIS 1.15 (approximately 31 cents
according to the rate of exchange on February 6, 2013) per share.

The record date will be February 21, 2013, and the payment date will be March
7, 2013. Tax will be withheld at a rate of 15%.

Conference Call

Teva will host a conference call to discuss its fourth quarter and full year
2012 results on Thursday, February 7, 2013, at 8:00 a.m. ET. The call will be
webcast and can be accessed through the Company's website at
www.tevapharm.com, or by dialing in to 1.888.771.4371 (U.S. and Canada) or
1.847.585.4405 (International). The conference ID is 34121499. Following the
conclusion of the call, a replay of the webcast will be available within 24
hours at the Company's website at www.tevapharm.com. A replay of the call will
also be available until February 14, 2013, at 11:59 p.m. ET, by calling
1.888.843.7419 (U.S. and Canada) or 1.630.652.3042 (International). The
Conference ID is 34121499#.

About Teva

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) is a leading global
pharmaceutical company, committed to increasing access to high-quality
healthcare by developing, producing and marketing affordable generic drugs as
well as innovative and specialty pharmaceuticals and active pharmaceutical
ingredients. Headquartered in Israel, Teva is the world's leading generic drug
maker, with a global product portfolio of more than 1,000 molecules and a
direct presence in about 60 countries. Teva's branded businesses focus on CNS,
oncology, pain, respiratory and women's health therapeutic areas as well as
biologics. Teva currently employs approximately 46,000 people around the world
and reached $20.3 billion in net revenues in 2012.

Teva's Safe Harbor Statement under the U. S. Private Securities Litigation
Reform Act of 1995:

This release contains forward-looking statements, which express the current
beliefs and expectations of management. Such statements are based on
management’s current beliefs and expectations and involve a number of known
and unknown risks and uncertainties that could cause our future results,
performance or achievements to differ significantly from the results,
performance or achievements 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 develop and
commercialize additional pharmaceutical products, competition for our
innovative products, especially Copaxone^® (including competition from
innovative orally-administered alternatives, as well as from potential
purported generic equivalents), competition for our generic products
(including from other pharmaceutical companies and as a result of increased
governmental pricing pressures), competition for our specialty pharmaceutical
businesses, our ability to achieve expected results through our innovative R&D
efforts, the effectiveness of our patents and other protections for innovative
products, decreasing opportunities to obtain U.S. market exclusivity for
significant new generic products, our ability to identify, consummate and
successfully integrate acquisitions, the effects of increased leverage as a
result of the acquisition of Cephalon, the extent to which any manufacturing
or quality control problems damage our reputation for high quality production
and require costly remediation, our potential exposure to product liability
claims to the extent not covered by insurance, increased government scrutiny
in both the U.S. and Europe of our agreements with brand companies, potential
liability for sales of generic products prior to a final resolution of
outstanding patent litigation, including that relating to the generic version
of Protonix^®, our exposure to currency fluctuations and restrictions as well
as credit risks, the effects of reforms in healthcare regulation and
pharmaceutical pricing and reimbursement, any failures to comply with complex
Medicare and Medicaid reporting and payment obligations, governmental
investigations into sales and marketing practices (particularly for our
specialty pharmaceutical products), uncertainties surrounding the legislative
and regulatory pathway for the registration and approval of
biotechnology-based products, adverse effects of political or economical
instability, major hostilities or acts of terrorism on our significant
worldwide operations, interruptions in our supply chain or problems with our
information technology systems that adversely affect our complex manufacturing
processes, any failure to retain key personnel or to attract additional
executive and managerial talent, the impact of continuing consolidation of our
distributors and customers, variations in patent laws that may adversely
affect our ability to manufacture our products in the most efficient manner,
potentially significant impairments of intangible assets and goodwill,
potential increases in tax liabilities, the termination or expiration of
governmental programs or tax benefits, environmental risks and other factors
that are discussed in our Annual Report on Form 20-F for the year ended
December 31, 2011 and in our other filings with the U.S. Securities and
Exchange Commission. Forward-looking statements speak only as of the date on
which they are made and the Company undertakes no obligation to update or
revise any forward-looking statement, whether as a result of new information,
future events or otherwise.

Teva is providing herein certain product line revenue and profit
information.The Company believes that such information, including comparisons
to forecasts, can be useful to investors.The additional information provided
is not a replacement for or a subset of the Company’s current segment
information.The Company is in the process of evaluating its reporting
structure as part of a review of its organization and business, and plans to
provide, if appropriate, entity-wide disclosure and segment information
reflecting the new structure of the organization and business accordingly.No
inference regarding the Company’s segment reporting in 2013 should be drawn
from the information included herein.

                                                               
                     Consolidated Statements of Income
                     (U.S. dollars in millions, except share and per share
                     data)
                                                                       
                                    Three months ended      Year ended
                                    December 31,            December 31,
                                    2012        2011        2012       2011
                                    Unaudited   Unaudited   Audited    Audited
Net revenues                        5,249       5,676       20,317     18,312
Cost of sales                       2,464      2,795      9,665     8,797
Gross profit                        2,785       2,881       10,652     9,515
Research and
development                         442         371         1,356      1,095
expenses – net
Selling and                         1,056       1,036       3,879      3,478
marketing expenses
General and
administrative                      318         315         1,238      932
expenses
Impairments, loss
contingencies,                      639        549        1,974     901
restructuring and
others – net
Operating income                    330         610         2,205      3,109
Financial expenses                  146        68         386       153
– net
Income before                       184         542         1,819      2,956
income taxes
Provision for                       (110   )    18          (137   )   127
income tax
Share in losses of
associated                          14         19         46        61
companies – net
Net income                          280         505         1,910      2,768
Net income (loss)
attributable to                     (40    )    (1     )    (53    )   9
non-controlling
interests
Net income
attributable to                     320        506        1,963     2,759
Teva
                                                                       
Earnings per share   Basic
attributable to      ($)            0.37       0.57       2.25      3.10
Teva:
                     Diluted        0.37       0.57       2.25      3.09
                     ($)
Weighted average
number of shares     Basic          867        885        872       890
(in millions):
                     Diluted        868        886        873       893
                                                           
Non-GAAP net
income                              1,142      1,407      4,671     4,438
attributable to
Teva:*
                                                                       
Non-GAAP earnings
per share            Basic          1.32       1.59       5.36      4.98
attributable to      ($)
Teva:
                     Diluted        1.32       1.59       5.35      4.97
                     ($)
                                                                       
Weighted average
number of shares     Basic          867        885        872       890
(in millions):
                     Diluted        868        886        873       893
                                                           
                                                                       
* See
reconciliation
attached.

                                               
                                                   Condensed Balance Sheets
                                                   (U.S. dollars in millions)
                                                                
                                                   December 31,   December 31,
                                                   2012           2011
ASSETS                                             Audited        Audited
Current assets:
Cash and cash equivalents                          2,879          1,096
Accounts receivable                                5,572          6,213
Inventories                                        5,502          5,012
Deferred taxes                                     1,142          966
Other current assets                               1,260          1,166
Total current assets                               16,355         14,453
Goodwill                                           18,856         18,293
Identifiable intangible assets, net                7,745          10,316
Property, plant and equipment, net                 6,315          5,947
Other non-current assets                           1,338          1,133
Total assets                                       50,609         50,142
                                                                  
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt and current maturities of          3,006          4,280
long term liabilities
Sales reserves and allowances                      4,934          4,428
Accounts payable and accruals                      3,376          3,572
Other current liabilities                          1,572          1,396
Total current liabilities                          12,888         13,676
Long-term liabilities:
Deferred income taxes                              1,849          2,610
Other taxes and long term payables                 1,293          1,277
Senior notes and loans                             11,712         10,236
Total long term liabilities                        14,854         14,123
Equity:
Teva shareholders’ equity                          22,768         22,195
Non-controlling interests                          99             148
Total equity                                       22,867         22,343
Total liabilities and equity                       50,609         50,142
                                                                  

                                                       
                                     Condensed Cash Flow
                                     (U.S. Dollars in millions)
                                                                     
                                     Three months ended      Year ended
                                     December 31,            December 31,
                                     2012        2011        2012      2011
                                     Unaudited   Unaudited   Audited   Audited
Operating activities:
Net income                           280         505         1,910     2,768
Net change in operating assets       448         611         414       594
and liabilities
Items not involving cash flow        849         312         2,248     772
                                                                    
Net cash provided by operating       1,577       1,428       4,572     4,134
activities
                                                                       
Net cash used in investing           (409)       (5,491)     (1,134)   (7,601)
activities
                                                                       
Net cash provided by (used in)       266         4,092       (1,678)   3,336
financing activities
                                                                       
Translation adjustment on cash       13          (18)        23        (21)
and cash equivalents
                                                                    
Net change in cash and cash          1,447       11          1,783     (152)
equivalents
                                                                       
Balance of cash and cash
equivalents at the beginning         1,432       1,085       1,096     1,248
of period
                                                                    
Balance of cash and cash
equivalents at the end of            2,879       1,096       2,879     1,096
period
                                                                       

                                                             
                          Revenues by Product line
                          (Unaudited)
                                   
                          Three Months Ended                        Percentage
                                                                    Change
                          December 31,
                          2012       2011      % of     % of 2011   2012 from
                                               2012                 2011
                          U.S. $ in millions
                                                                    
Generic Medicines         $  2,662   $ 2,982   51    %  52    %     (11   %)
API                          202       197     4     %  3     %     3     %
Specialty Medicines          2,106     2,254   40    %  40    %     (7    %)
CNS                          1,340     1,562   26    %  28    %     (14   %)
Copaxone®                    1,059     927     20    %  16    %     14    %
Provigil®                    25        350     §        6     %     (93   %)
Nuvigil®                     78        86      1     %  2     %     (9    %)
Azilect®                     86        83      2     %  1     %     4     %
Oncology                     233       190     4     %  3     %     23    %
Treanda®                     161       131     3     %  2     %     23    %
Respiratory                  256       275     5     %  5     %     (7    %)
ProAir®                      120       145     2     %  3     %     (17   %)
Qvar®                        92        93      2     %  2     %     (1    %)
Women's Health               132       93      2     %  2     %     42    %
Other Specialty              145       134     3     %  2     %     8     %
All Others                   481       440     9     %  8     %     9     %
OTC                          269       217     5     %  4     %     24    %
Other Revenues              212      223     4     %  4     %     (5    %)
Total                     $  5,249   $ 5,676   100   %  100   %     (8    %)
                                                                    
§ Less than 0.5%
                                                                    

                                                             
                      Revenues by Product line
                      (Audited)
                                 
                      Year Ended December 31,                      Percentage
                                                                    Change
                      2012          2011        % of      % of     2012 from
                                                2012      2011      2011
                      U.S. $ in millions
                                                                    
Generic               $  10,385     $  10,196   51   %    56    %   2     %
Medicines
API                      796           747      4    %    4     %   7     %
Specialty                8,150         6,493    40   %    35    %   26    %
Medicines
CNS                      5,464         4,412    27   %    24    %   24    %
Copaxone®                3,996         3,570    20   %    19    %   12    %
Provigil®                417           350      2    %    2     %   19    %
Nuvigil®                 347           86       2    %    §         303   %
Azilect®                 330           290      2    %    2     %   14    %
Oncology                 860           268      4    %    1     %   221   %
Treanda®                 608           131      3    %    1     %   364   %
Respiratory              856           878      4    %    5     %   (3    %)
ProAir®                  406           436      2    %    2     %   (7    %)
Qvar®                    297           305      1    %    2     %   (3    %)
Women's Health           448           438      2    %    2     %   2     %
Other Specialty          522           497      3    %    3     %   5     %
All Others               1,782         1,623    9    %    9     %   10    %
OTC                      936           765      5    %    4     %   22    %
Other Revenues          846          858      4    %    5     %   (1    %)
Total                 $  20,317     $  18,312   100  %    100   %   11    %
                                                                    
§ Less than
0.5%.
                                                                    

                                                         
                                      Non GAAP reconciliation items
                                      (U.S. Dollars in millions)
                                                                       
                                      Three months ended      Year ended
                                      December 31,            December 31,
                                      2012        2011        2012     2011
                                      Unaudited   Unaudited   Audited  Audited
Impairment of long-lived assets       495         171         1,071    201
Amortization of purchased
intangible assets - under cost        271         214         1,228    668
of sales
Related tax effect                    (190)       (221)       (798)    (465)
Restructuring, acquisition and        136         123         188      229
other expenses
Purchase of research and              68          -           73       15
development in process
Minority interest changes
related to impairments of             (36)        -           (36)     -
co-owned assets
Financial expenses related to
early repayment of senior notes       32          -           32       -
and other
Costs related to regulatory
actions taken in facilities -         25          40          128      170
under cost of sales
Amortization of purchased
intangible assets - under             13          11          44       38
selling and marketing expenses
Expense in connection with            8           255         45       441
legal settlements and reserves
Inventory step-up - under cost        -           308         63       352
of sales
Provision for loss contingency        -           -           670      30
                                                                       

                                                                                            
Reconciliation between reported Net Income attributable to Teva and Earnings per share as reported under US
GAAP to Non-GAAP Net Income attributable to Teva and Earnings per share
                                                                            
                           Year ended December 31, 2012              Year ended December 31, 2011
                           Audited, U.S. dollars and shares in millions (except per share amounts)
                           GAAP      Non-GAAP      Non-     % of Net   GAAP    Non-GAAP      Non-     % of Net
                                     Adjustments   GAAP     Revenues           Adjustments   GAAP     Revenues
                                                                                                      
      Gross profit         10,652   1,419         12,071   59%        9,515   1,190         10,705   58%
      (1)
      Operating            2,205     3,510         5,715    28%        3,109   2,144         5,253    29%
      income (1)(2)
      Net income
      attributable         1,963     2,708         4,671    23%        2,759   1,679         4,438    24%
      to Teva
      (1)(2)(3)
      Earnings per
      share
      attributable         2.25      3.10          5.35                3.09    1.88          4.97
      to Teva -
      diluted (4)
                                                                                                      
                                                                                                      
                                                                                                      
      Amortization
(1)   of purchased                   1,228                                     668
      intangible
      assets
      Costs related
      to regulatory                  128                                       170
      actions taken
      in facilities
      Inventory                      63                                        352
      step-up
      Gross profit                   1,419                                     1,190
      adjustments
                                                                                                      
      Impairment of
(2)   long-lived                     1,071                                     201
      assets
      Provision for
      loss                           670                                       30
      contingency
      Restructuring,
      acquisition                    261                                       244
      and other
      expenses
      Expense in
      connection
      with legal                     45                                        441
      settlements
      and reserves
      Amortization
      of purchased                   44                                        38
      intangible
      assets
                                     2,091                                     954
                                                                              
      Operating
      income                         3,510                                     2,144
      adjustments
                                                                                                      
(3)   Tax effect and                 (802)                                     (465)
      other items
                                                                              
      Net income                     2,708                                     1,679
      adjustments
                                                                                                      
      The weighted average number of shares was 873 and 893 million for the years ended December 31, 2012 and
(4)   2011, respectively.
     Non-GAAP earnings per share can be reconciled with GAAP earnings per share by dividing each of the
     amounts included in
      footnotes 1-3 above by the applicable weighted average share number.
                                                                                                      

                                                                                  
Reconciliation between reported Net Income attributable to Teva and Earnings per share as reported under
US GAAP to Non-GAAP Net Income attributable to Teva and Earnings per share
                                                                                             
                           Three months ended December 31, 2012     Three months ended December 31, 2011
                           Unaudited, U.S. dollars and shares in millions (except per share amounts)
                           GAAP    Non-GAAP      Non-    % of Net   GAAP    Non-GAAP      Non-    % of Net
                                   Adjustments   GAAP    Revenues           Adjustments   GAAP    Revenues
                                                                                                  
      Gross profit         2,785   296           3,081   59   %     2,881   562           3,443   61   %
      (1)
      Operating            330     1,016         1,346   26   %     610     1,122         1,732   31   %
      Profit (1)(2)
      Net income
      attributable         320     822           1,142   22   %     506     901           1,407   25   %
      to Teva
      (1)(2)(3)
      Earnings per
      share
      attributable         0.37    0.95          1.32               0.57    1.02          1.59
      to Teva -
      Diluted (4)
                                                                                                  
                                                                                                  
                                                                                                  
      Amortization
(1)   of purchased                 271                                      214
      intangible
      assets
      Costs related
      to regulatory                25                                       40
      actions taken
      in facilities
      Inventory                    -                                       308     
      step-up
      Gross profit                 296                                      562
      adjustments
      Impairment of
(2)   long-lived                   495                                      171
      assets
      Restructuring,
      acquisition                  204                                      123
      and other
      expenses
      Amortization
      of purchased                 13                                       11
      intangible
      assets
      Expense
      (income) in
      connection                   8                                       255     
      with legal
      settlements
      and reserves
                                   720                                     560     
                                                                          
      Operating
      profit                       1,016                                   1122    
      adjustments
(3)   Tax effect and               (194    )                                (221    )
      other items
      Net income                   822                                     901     
      adjustments
                                                                                                  
      The weighted average number of shares was 868 and 886 million for the three months ended December
      31, 2012 and 2011, respectively.
(4)   Non-GAAP earnings per share can be reconciled with GAAP earnings per share by dividing each of the
      amounts included in footnotes 1-3
      above by the applicable weighted average share number.
                                                                                                

                                                               
                 Revenues by Geographic Area
                                                                  
                 (Unaudited)
                                                  
                 Three Months
                 Ended                                 Percentage   Percentage
                                                       Change       Change
                 December 31,
                 2012      2011     % of      % of     2012 from    2012 from
                                    2012      2011     2011         2011
                 U.S. $ in                                          in local
                 millions                                           currencies
United
States:
Generic          1,034     1,242    20   %    22   %   (17   %)     (17   %)
Specialty        1,527     1,770    29   %    31   %   (14   %)     (14   %)
Others           60       33       1    %    1    %   82    %      82    %
Total
United           2,621     3,045    50   %    54   %   (14   %)     (14   %)
States
Europe*:
Generic          930       982      18   %    17   %   (5    %)     (3    %)
Specialty        420       329      8    %    6    %   28    %      32    %
Others           177      183      3    %    3    %   (3    %)     (4    %)
Total            1,527     1,494    29   %    26   %   2     %      5     %
Europe
Rest of
the World:
Generic          698       758      13   %    13   %   (8    %)     (7    %)
Specialty        159       155      3    %    3    %   3     %      4     %
Others           244      224      5    %    4    %   9     %      11    %
Total Rest
of the           1,101    1,137    21   %    20   %   (3    %)     (2    %)
World
Total            5,249    5,676    100  %    100  %   (8    %)     (7    %)
Revenues
                                                                    
*All members of the European Union as well as
Switzerland and Norway.
                                                                    

                                                              
                  Revenues by Geographic Area
                  
                  (Audited)
                                                   
                  Year Ended                           Percentage   Percentage
                  December 31,                         Change       Change
                  2012      2011      % of    % of    2012 from    2012 from
                                       2012    2011    2011         2011
                  U.S. $ in millions                                in local
                                                                    currencies
United
States:
Generic           4,381      3,957     21%     22%     11%          11%
Specialty         5,857      4,804     29%     26%     22%          22%
Others            200       39        1%      §       413%         413%
Total
United            10,438     8,800     51%     48%     19%          19%
States
Europe*:
Generic           3,387      3,810     17%     21%     (11%)        (3%)
Specialty         1,563      1,101     7%      6%      42%          53%
Others            723       749       4%      4%      (3%)         §
Total             5,673      5,660     28%     31%     §            8%
Europe
Rest of the
World:
Generic           2,617      2,429     13%     13%     8%           10%
Specialty         730        588       4%      3%      24%          31%
Others            859       835       4%      5%      3%           8%
Total Rest
of the            4,206     3,852     21%     21%     9%           13%
World
Total             20,317    18,312    100%    100%    11%          14%
Revenues
                                                                    
*All members of the European Union as well as Switzerland and Norway.
§ Less than 0.5%.

Contact:

Teva Pharmaceutical Industries Ltd.
IR:
Kevin C. Mannix, (215) 591-8912
United States
or
Kristen Frank, (215) 591-8908
United States
or
Tomer Amitai, 972 (3) 926-7656
Israel
or
PR
Hadar Vismunski-Weinberg,  972 (3) 926-7687
Israel
or
Denise Bradley, (215) 591-8974
United States
 
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