Israeli drug maker Teva (Nasdaq: TEVA) today reported that its net profit rose 53% to reach a record $137 million in the fourth quarter of 2002, compared with profit of $79.7 million a year earlier.
Teva’s profit per share for the fourth quarter was $0.50, beating analysts’ consensus forecasts that it would be $0.46.
Revenue for the quarter increased 36% from the same period in 2001, reaching $770 million, with North America accounting for 67% of these sales and Europe for 23%.
For 2002 as a whole, Teva had revenue of $2.518 billion, and a net profit of $410.3 million, or $1.52 per share. This compares with a net profit of $278.2 million, or $1.02 per share, in 2001. The 2002 profit was the highest annual profit ever recorded by an Israeli company. Some 67% of the company's sales were in North America.
Teva attributed the increase in revenue to sales of the generic version of GlaxoSmithKline’s Augmentin antibiotic, which was launched during the quarter, as well as to increased sales of Copaxone and fourteen additional generic products launched during 2002.
North American pharmaceutical sales, including sales of Teva’s multiple sclerosis treatment Copaxone, grew 46% in the fourth quarter and totaled $471 million, compared to $323 million in the corresponding period in 2001.
Global sales of Copaxone in the quarter were $156 million, an increase of 53%. US sales of the drug increased by 40% to $116 million, and outside the US by 103%, totaling $40 million.
Pharmaceutical sales in Europe, including Copaxone, increased 52% in the quarter to $153 million. Teva said its European results were boosted by the successful penetration of Copaxone in the continent, the revaluation of European currencies against the US dollar, and the consolidation of sales of its French unit Teva Classics.
Teva president and CEO Israel Makov said, "We are extremely proud of the results that we have achieved on a broad variety of fronts. Our performance in 2002 demonstrates the success of our global strategy, our commitment to bringing new generic products to market, and the growing recognition of the long term benefits of Copaxone.
“Our fourth quarter introduction of Amox/Clav [generic Augmentin] tablets significantly boosted both revenues and profitability, but should by no means overshadow the equally significant achievements of launching 14 additional new generic products into the US marketplace since January 2002," Makov added.
Teva's US generic pipeline currently comprises 61 generic drug applications, or ANDA’s (abbreviated new drug application), with total annual brand sales exceeding $42 billion. Of these ANDA’s, Teva believes that in the case of 17 applications it may be first to file to market a generic version, potentially providing the company with periods of exclusivity for products which have annual branded sales exceeding $8 billion in total.
Teva also noted that cash flow from operating activities amounted to $354 million in 2002, the highest ever achieved by the company, and compared to $273 million in 2001.
Teva declared a cash dividend of NIS 0.33 per share for the fourth quarter, up from NIS 0.215 for each of the past four quarters. The record date will be February 26, 2003, and the payment date will be March 13, 2003. The company’s total dividend payments for 2002 amounted to $53 million.
Teva’s Tel Aviv share closed on Monday at NIS 181.90.
Published by Globes [online] - www.globes.co.il - on 18 February, 2003