The share price of Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) fell sharply on Nasdaq and the TASE, after new president and CEO Dr. Jeremy Levin refused to provide guidance until he reviewed the company.
At the conference call yesterday, Levin said, "I understand that, from time to time, Teva has commented on our guidance during these quarterly calls and in our other communications. As you know, I'm currently conducting a detailed business performance review for 2012, which is still underway. Once it is complete, I'll be able to talk about 2012.
"Until that time, we'll not be addressing our guidance."
Levin said, "As I take the reins of my new role, I'm examining where we will take Teva in the next part of its journey, how we can build on our strength and past achievements and to seize and capitalize on the unique opportunities that can drive our future. To that end, we've already put in place a set of initiatives designed to address key needs and articulate opportunities, which will help formulate Teva's agenda and develop its long-term strategy. We expect to unveil our strategy later in the year."
Outgoing CEO Shlomo Yanai said that the first quarter was the second consecutive quarter of solid results in Teva's US generics business, while despite rough macroeconomic conditions, sales grew by 3% during the quarter in local currencies to $1.3 billion. There was also strong increase in sales of branded products, due primarily to the inclusion of products acquired from Cephalon, and because Teva took back Copaxone distribution and marketing rights from Sanofi. Copaxone sales in the EU rose 7%.
Yanai said that sales in Eastern Europe and Latin America totaled $1 billion, up 23% in local currencies. In Japan, the integration of Teva's existing businesses into one new company, Teva Saikou, and Teva was very pleased with the enthusiastic response the Teva brand is receiving in Japan.
Yanai added, "During the quarter, we undertook an important initiative to streamline some of our commercial arrangements in the US In the near and midterm, these changes will yield important financial benefits for Teva. These moves had a negative impact on revenues of $180 million for the first quarter."
Teva's share price fell 2.1% by mid-afternoon on the TASE to NIS 162, after falling 5.1% on Nasdaq yesterday to $42.19, giving a market cap of $39.7 billion.
Published by Globes, Israel business news - www.globes-online.com - on May 10, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012