After reporting record profits for the third quarter this morning, results greeted lukewarmly by the analysts, Teva raised its guidance in the conference call that followed.
First, CEO Shlomo Yanai reviewed the third quarter results Teva made a profit of $806 million on revenue of $3.55 billion. “Teva has launched 17 new products in the US since the beginning of the year,” Yanai said. The company has another 210 products awaiting US Food and Drug Administration approval, including 40 with tentative approval. Total US sales of the original products of which these are generic versions were more than $113 billion.
”In Europe, sales were especially strong in Germany, Spain, Holland, and Eastern Europe,” Yanai added. Commenting on multiple sclerosis treatment Copaxone, which led Teva’s third quarter sales, Yanai said, “More than 60% of revenue from Copaxone came from new sales. Copaxone proved its efficacy and safety among more than 940,000 patients. It is protected by patent until 2014.”
Yanai also mentioned that integration with US company Barr, which Teva acquired two years ago, was progressing well. He said it would lead to a saving of some $500 million by 2011. On Teva’s acquisition policy in general, Yanai said, “Every acquisition must be financially appropriate and contribute to the profit line within a reasonable time, which for Teva means by the end of the first year.”
Yanai then came to the main part of the conference call: the guidance. Teva did not update its revenue guidance, but as far as profit is concerned, it sees earnings per share of $87-97 in the fourth quarter, whereas market expectations were $0.93. This means that Teva expects to end 2009 with earnings per share of $3.30-3.40, which compares with earlier guidance of $3.20-3.30. However, market expectations were high, at $3.36.
For 2010, Teva raised its guidance to earnings per share of $4.40-4.60. The analyst consensus stands at $4.48. The immediate response of the share price in Tel Aviv was positive, wiping out a fall of 0.6% and switching to a rise of 0.3%.
Published by Globes [online], Israel business news - www.globes-online.com - on November 3, 2009
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