Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) today reported lower revenue and profits for the first quarter of 2013, as sales of Provigil, acquired through Cephalon, fell 92%, despite continued growth in sales of Teva's multiple sclerosis treatment Copaxone.
Revenue fell 4% to $4.9 billion for the first quarter from $5.1 billion for the corresponding quarter of 2012. The 11% growth in European sales to $1.5 billion for the first quarter from $1.35 billion for the corresponding quarter, failed to offset the 11% slump in US sales to $2.4 billion from $2.75 billion. Sales in the rest of the world totaled $966 million.
GAAP-based net profit fell to $630 million ($0.74 per share) for the first quarter from for $859 million the corresponding quarter, and non-GAAP net profit fell 26% to $960 million ($1.12 per share) from $1.3 billion.
Despite the drop in revenue and profits, Teva beat the analysts' consensus of earnings per share of $1.10 on $4.85 billion revenue.
Global Copaxone sales rose 17% to $1.1 billion for the second quarter from $900 million for the corresponding quarter, due to higher quantities and prices in the US and the successful take-back of marketing and distribution rights in Europe. US Copaxone sales totaled $806 million and non-US sales totaled $258 million.
However, Provigil sales in the US fell 92% to $24 million for the first quarter from $291 million for the corresponding quarter, due to the launch of competitive products last year.
Global generic medicines revenue fell 12% to $2.3 billion for the first quarter from $2.6 billion for the corresponding quarter, and their share of total revenue fell to 47% from 51%.
Cash flow from operations rose 46% to $1.1 billion for the first quarter from $756 million for the corresponding quarter, and free cash flow (which excludes net capital expenditures and dividends) rose to $640 million form $414 million. Cash and marketable securities fell to $1.6 billion at the end of March from $3.1 billion at the end of 2012, due to $1.8 billion in debt repayments and $200 million in share buybacks.
Teva president and CEO Dr. Jeremy Levin said, “Over the past year, we have executed on the strategic plan which we articulated in December and with the recent addition of some key leadership appointments, we now have an organizational structure in place which supports our strategic plan. I firmly believe that Teva is poised to seize today’s opportunities and successfully meet our industry’s changing dynamics tomorrow.”
Published by Globes [online], Israel business news - www.globes-online.com - on May 2, 2013
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