Teva Q4 revenue, profits down

In line with analysts' expectations, non-GAAP net profit in the fourth quarter fell to $1.1 billion from $1.4 billion in the corresponding quarter.

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) today reported lower revenue and profits for the fourth quarter of 2012, although the results were in line with the analysts' consensus.

Fourth quarter revenue fell to $5.25 billion from $5.67 billion for the corresponding quarter of 2011. GAAP-based net profit fell to $320 million for the fourth quarter from $506 million ($0.37 per share) for and non-GAAP net profit fell to $1.1 billion ($1.32 per share) from $1.4 billion. Operating profit fell 22% to $1.3 billion.

Full-year revenue rose to $20.3 billion from $18.3 billion in 2011, mainly due to the acquisition of Cepahlon. Non-GAAP earnings per share were $1.32.

The analysts' consensus was $1.33 earnings per share on $5.26 billion revenue for the fourth quarter and $5.36 earnings per share on $20.3 billion revenue.

Global sales of multiple sclerosis treatment Copaxone rose 14% to $1.1 billion for the fourth quarter from $927 million for the corresponding quarter. US sales rose 12% to $800 million, due to price hikes during 2012, and non-US sales rose 23% to $237 million. Azilect sales rose 4% to $86 million primarily due to increased demand in the U.S. and Europe and a price increase.

Generic sales fell 11% to $2.7 billion (including API sales of $202 million) for the fourth quarter from $3 billion for the corresponding quarter. Generic sales accounted for 51% of total fourth quarter revenue down from 52% in the corresponding quarter. US generic sales fell 17% $1 billion and European sales fell 5% to $930 million. Fourth quarter sales in the rest of the world fell 8% to $698 million, mostly due to government-imposed price reforms in Canada, which were partially offset by sales growth in Latin America and Russia.

Teva also announced that it will increase its quarterly dividend by 15%.

Teva president and CEO Dr. Jeremy Levin said that the company ability and commitment to transform the company gives it a strong and disciplined business focus in 2013. He added, "Our generic franchise remains the core of our business. We launched 23 generic products in the US in 2012, and anticipate a similar number of launches in 2013. Our specialty medicines business continues to drive value with strong fundamentals in multiple sclerosis, central nervous system, respiratory, oncology and women’s health. Copaxone continues to lead the multiple sclerosis market in sales and market share. In March 2013, we plan to submit to the FDA a sNDA for marketing approval of a '3 times a week' dose of Copaxone."

Levin added, "Our new R&D organization is showing great progress. Our New Therapeutic Entities pipeline is advancing as expected. At the same time, we are beginning to add external opportunities through our 'Constellation' business development program. We have launched our 'Reshape' program and are committed to managing our costs while we invest in Teva’s future."

Published by Globes [online], Israel business news - - on February 7, 2013

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