Teva profit beats forecasts

Sales of Teva's multiple sclerosis drug Copaxone reached a record $808 million.

Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) reported a 20% rise in third quarter net sales to $4.25 billion, compared with the corresponding period of 2009.

On a non-GAAP basis, net profit was $1.18 billion, or $1.30 in earnings per share (EPS). Net profit rose 47% compared with the corresponding quarter, and EPS rose 46%.

Analysts had expected EPS of $1.27, on revenue of $4.37 billion.

On a GAAP (generally accepted accounting principles) basis, net profit rose 62% compared with the corresponding quarter to $1.1 billion, and EPS of $1.15 was 60% higher than the third quarter of 2009.

Quarterly global in-market sales of Teva's multiple sclerosis drug Copaxone reached a record $808 million, up 4% over the third quarter of 2009. Copaxone has a 30% global market share.

US sales of Copaxone rose 9%,compared with the corresponding quater, to $588 million. In-market sales outside the US were $220 million, down 6% compared to the third quarter of 2009. Despite unit growth in several countries throughout Europe and Latin America, Teva attributed the decline to the timing of tenders in certain international markets, the negative impact of exchange rates, and cost containment measures in Europe.

Global in-market sales of Teva's Parkinson's disease treatment Azilect rose 28%,compared with the corresponding period, to $81 million. Teva said sales rose in the US and Europe. In local currency terms, global in-market sales of Azilect grew 35% in the third quarter of 2010.

Teva's women's health business sales reached $116 million in the quarter, 13% higher than the corresponding period. Teva said the division benefitted from strong sales of Seasonique and ParaGard.On October 28, Teva announced its agreement to acquire Theramex, a women's health business based in Europe.

The third quarter was the first one which included the results of German drug company Ratiopharm, which Teva acquired. Ratiopharm's operations were consolidated since August 2010.

Third quarter North America sales were $2.72 billion, about 64% of total sales. North America sales rose 22% compared to the corresponding period. Generic drug sales in the US were $1.63 billion in the quarter, up 34% compared to the corresponding quarter. Teva attributed the sales rise to the launch of a generic version of Effexor XR (venlafaxine) in the third quarter, as well as continued strong sales of generic versions of Pulmicort Respules, Adderall XR, Hyzaar, Cozaarm and Yaz launched in previous quarters. The quarter's results also reflected continued strong sales of Copaxone.

As of October 26, 2010, Teva had 203 product applications awaiting final FDA approval, including 45 tentative approvals. Collectively, the brand products covered by these applications had annual US sales of over $118 billion. Of these applications, 134 were “Paragraph IV” applications challenging patents of branded products. Teva believes it is the first to file on 83 of the applications, relating to products with annual US branded sales exceeding $55 billion.

In Europe, sales reached $1 billion, about 24% of total sales. The sales figure is 21% higher than the third quarter of last year. In local currency terms, sales in Europe grew 33% compared with the corresponding quarter. Teva said that the growth in sales was attributable to an increase in generic sales in Germany, Spain, Italy, and France due substantially to the first-time consolidation of Ratiopharm's results.

Since the beginning of 2010, Teva has received 1,461 generic approvals in Europe relating to 174 compounds in 351 formulations, including five European Commission approvals valid in all EU member states. In addition, as of September 30, 2010, Teva had 3,706 marketing authorization applications pending approval in 30 European countries, relating to 287 compounds in 583 formulations, including nine applications pending with the European Medicines Agency (EMA).

IBI healthcare analyst Natali Gotlieb said that this was a good financial report, as predicted, and that it showed strength in Europe and "taught a lesson" to all Teva's competitors. She added, "The Ratiopharm merger is proceeding as planned and sales of Copaxone and Azilect reached a new record, in part thanks to price rises. The fall in the respiratory product sector was expected and on Thursday Teva is expected to expand on this topic."

Published by Globes [online], Israel business news - - on November 2, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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