Copaxone provided 63% of Teva's operating profit

Teva's dependency on Copaxone increased in 2013.

Sales growth of Copaxone slowed to 8% in 2013 from 12% in 2012 and 21% in 2011, but its share of the total revenue of Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) rose to an all-time high of 21% in 2013 from 19% in 2011, according to the company 20-F filing with the US Securities and Exchange Commission (SEC). The figures mean that Teva's other sources of revenue grew more slowly than Copaxone, highlighting the risk of Teva's dependency on its multiple sclerosis treatment.

For the first time, Teva disclosed its operating profits from Copaxone, which also highlight the company's dependency on the drug. The operating profit from Copaxone was $3.3 billion in 2013, 76% of sales, up from $3 billion (74% of sales) in 2012, and $2.8 billion (79% of sales) in 2011.

For the sake of comparison, Teva's overall operating profit was $5.2 billion in 2013, of which Copaxone accounted for 63%. Copaxone accounted for 55% of Teva's operating profit in 2012 and 57% in 2011.

Copaxone's patents are set to expire in May, and Teva will have to deal with generic competitors, as well oral treatments for multiple sclerosis. Teva's oral treatment, Laquinimod, has not yet been launched.

Published by Globes [online], Israel business news - - on February 12, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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