At the JPMorgan Healthcare Conference in San Francisco, Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) presented its successors to Copaxone, the company's intravenous treatment for multiple sclerosis, which accounts for a third to half of its profit. Market sources have feared fro a long time that Copaxone sales were set to fall as generic versions and oral treatments for multiple sclerosis come on the market.
Teva CFO Eyal Desheh and President & CEO, Teva Pharmaceuticals Americas William Marth discussed Copaxone and marked the possible heirs to Copaxone, at least on the financial side. "We recently raised the price of Copaxone," Marth said. "We estimate that Copaxone will peak in 2012, and it's clear that we must consider reality. When Copaxone sales slow, we have supplements in our pipeline, including from Cephalon."
Marth mentioned two drugs that will contribute to Teva's results. The first is Omapro (omacetaxine), a leukemia treatment, and the second is TD Hydrocodone for the treatment of pain. Both are brand drugs, which means that they have high profit margins, similar to Copaxone's margins, which Teva acquired through Cephalon.
Marth said, "We think that TD Hydrocodone will receive approval fairly soon, and can become a product with $300-500 million in sales within a few years."
Asked what Teva plans to do with its money, Desheh said, "We looked at other companies of our size in our industry, and we decided to buy back $3 billion worth of shares. This is a flexible plan, and we can do it in under the three years we set for it."
Desheh added that Teva's dividend for the fourth quarter would be increased, but noted that the company would also use its cash for growth. "There won't be deals of the size of Cephalon, Ratiopharm, and Barr, but it's possible to expect smaller acquisitions and acquisitions of products," he said.
Published by Globes [online], Israel business news - www.globes-online.com - on January 11, 2012
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