Teva misses on revenue, beats analysts on profit

Third quarter sales were stronger in Europe and weaker in North America, while Copaxone continues to achieve new sales records.

Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) today reported revenue of $4.34 billion in the third quarter of 2011, up 2% from $4.25 billion in the corresponding quarter of 2010, and up 3% from $4.21 billion in the second quarter of 2011. Revenue in the third quarter of 2011 was below the analysts' consensus of $4.54 billion.

Teva reported Non-GAAP net profit of $1.111 billion ($1.25 per share) compared with $1.182 billion ($1.30 per share) in the corresponding quarter of 2010, and $984 million ($1.10 per share) in the preceding quarter of 2011. Non-GAAP net profit earnings per share beat the analysts' consensus of ($1.23 per share).

Teva lowered its profit guidance for 2011 from NIS 4.90-5.20 to NIS 4.90-5.02 and its revenue forecast from $18.7-$18.9 billion to $18.5 billion.

In the third quarter, Teva reported 34% sales growth in Europe of 34% (24% in local currencies) and 56% in EEMA, Latin America and Asia (49% in local currencies). Teva also reported sales growth in all its branded franchises - respiratory (15%), Azilect (20%), Copaxone (26%), and women's health (6%) - as well as API (15%).

However, revenue continued to fall in North America where third quarter revenue was down 20% from the corresponding quarter to $2.183 billion - 50% of total revenue.

Global sales of Multiple Sclerosis treatment Copaxone reached a record $1.021 billion in the third quarter of 2011, up 26% from the corresponding quarter, as a result of higher volume and price increases.

Global sales of Parkinson's treatment Azilect reached $97 million in the third quarter of 2011, up 20% from the corresponding quarter.

Teva president and CEO Shlomo Yanai said, "The third quarter produced an overall mixed performance. We had strong European and International generic sales, combined with strong results from our branded units. This helped to offset our U.S. generics business, which lacked any significant new launches. We expect a strong fourth quarter including an improved U.S. generics business, led by the exclusive launch of generic Zyprexa."

Teva said that the company solidified its leadership position in the Japanese generics market by acquiring Taiyo Pharmaceutical Industry Co. Ltd. and the remaining 50% interest in Teva-Kowa Pharma Co. Ltd. The company noted that it also made an additional investment in CureTech Ltd., bringing its interest in the company to 75%. Teva also recalled that it completed the acquisition of Cephalon Inc. for approximately $6.5 billion dollars on October 14, 2011.

Teva said that it had declared a cash dividend for the third quarter of 2011 of NIS 0.80 (just under $0.22 per share according to the rate of exchange on November 1, 2011) The record date will be November 14, 2011, and the payment date will be November 30, 2011. Tax will be withheld at a rate of 20%.

Published by Globes, Israel business news - - on November 2, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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