Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) today reported growth in revenue and profit for the third quarter of 2012. Revenue reached $5 billion, up 14% from $4.3 billion in the corresponding quarter of 2011. Teva said that organic growth was 6%, excluding the efect of generic competition on Provigil. The robust growth was driven by a 33% rise in US revenue and continuing strong sales of Copaxone.
Teva reported non-GAAP profit of $1.4 billion ($1.28 per share) in the third quarter of 2012, up 6% from $1.3 billion ($1.25 per share) in the corresponding quarter of 2011.
Teva met the analysts' consensus of $5.07 billion revenue and beat the consensus of $1.25 earnings per share. It will distribute a dividend of NIS 1 per share of December 3; the ex date is November 15.
However, Teva did slip to a GAAP loss of $79 million ($0.09 per share) compared with a profit of $916 million ($1.03 per share) in the third quarter of 2011. Teva said that the GAAP loss was primarily caused by two large charges: a provision for a loss contingency of $670 million relating to pending patent litigation, and impairment, mostly related to in-process R&D, of $481 million.
Teva reported that cash flow from operations was $1 billion, up 117% from $482 million in the corresponding quarter of 2011. Free cash flow was $577 million compared to $2 million in the third quarter of 2011.
Despite competition in the multiple sclerosis treatment market, Copaxone sales continue to grow. Sales of Teva's flagship branded drug reached $1.05 billion in the third quarter of 2012, up 13% from $928 million in the corresponding quarter of 2011.
Teva reiterated its full year guidance for 2012 of revenue between $20.1 and $20.7 billion and non-GAAP diluted earnings per share between $5.32 and $5.38.
Teva president and CEO Dr. Jeremy Levin said, "We are pleased to report solid operating results for the quarter and look forward to closing the year within the guidance we provided in May. In addition we were also encouraged by results from the ongoing development of both Copaxone and Laquinimod and pleased by the approval of Synribo. These successes underpin our commitment to provide the best therapeutic options to multiple sclerosis and other patients worldwide."
US revenue in the third quarter was $2.6 billion (52% of total revenue), up 33% compared to the third quarter of 2011, driven by the inclusion of Cephalon as well as strong revenue of both branded and generic medicines. Revenue in Europe in the third quarter was $1.4 billion (28% of total revenue), up 1% from the third quarter of 2011, and 13% in local currency terms. Revenue in the rest of the world in the third quarter totaled $1 billion (20% of total revenue), down 3% compared with the corresponding quarter of 2011. In local currency terms, rest of the world revenue grew by 1%.
Published by Globes [online], Israel business news - www.globes-online.com - on November 1, 2012
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