Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) today reported lower profits on flat revenue for 2013, although it beat the analysts' consensus.
Full-year revenue was unchanged at $20.3 billion. GAAP-based net profit fell to $1.27 billion ($1.49 per share) in 2013 from $1.96 billion in 2012, and non-GAAP net profit fell to $4.26 billion ($5.01 per share) from $4.67 billion. The company beat the analysts' consensus of earnings per share of $4.98 on $20.1 billion revenue.
Global Copaxone revenue rose 8% to $4.3 billion in 2013 from $4 billion in 2012. US sales rose 11% to $3.2 billion, as a result of increases in both price and volume. Sales outside the US rose 2% to $1.1 billion, mainly as a result of higher revenues in certain countries in Europe. Fourth quarter Copaxone sales rose 8% to $1.14 billion from $1.06 billion for the corresponding quarter, due to higher sales in Russia and Germany, which offset a 2% drop in US sales, due to competition from oral treatments for multiple sclerosis.
A fall in global generic sales was offset by an increase in specialty medicine sales. Generic sales fell 5% to $9.9 billion in 2013 from $10.4 billion in 2012, while specialty medicines revenue rose 3% to $8.4 billion from $8.2 billion. Generic sales fell to 49% of total sales in 2013 from 51% in 2012. The increase in specialty medicines was due to higher sales of Copaxone, Treanda, Azilect, Qvar, and ProAir, which were partially offset by lower Provigil sales, due to its loss of exclusivity. During 2013, Teva launched several specialty medicines, including Quartette, the Plan B One-Step contraceptive, Lonquex, and Granix tbo-filgrastim.
Fourth quarter revenue rose 3% to $5.43 billion from $5.25 billion for the corresponding quarter of 2012. GAAP-based net profit fell to $377 million ($0.45 per share) from $380 million for the corresponding quarter, but non-GAAP net profit rose to $1.21 billion ($1.42 per share) from $1.14 billion. Teva beat the analysts' consensus of earnings per share of $1.40 on $5.19 billion revenue.
Fourth quarter cash flow from operations was halved to $816 million from to $1.58 billion for the corresponding quarter, and free cash, excluding net capital expenditures and dividends, fell by almost four-fifths to $236 million from $1 billion. The lower cash flow was mainly due to litigation costs and tax settlements.
"Teva is reporting today strong results for the fourth quarter of 2013, bringing to close a year largely in-line with our expectations," said Teva acting president and CEO Eyal Desheh. "During 2013, we had several key product launches, driven by a strong pipeline, which will continue to bear notable results in 2014, starting with the launch of Copaxone 40mg/mL. We continue to focus our efforts on our core R&D programs and go-to-market activities while increasing organizational effectiveness through our cost-reduction program to ensure Teva's growth and its role as a leader in the ever-changing pharmaceutical industry. 2013 was an important year for Teva and its shareholders. Many seeds were planted to ensure our long-term success and prosperity. 2014 will be a pivotal year in terms of execution and further enhancement of our strategic direction."
Published by Globes [online], Israel business news - www.globes-online.com - on February 6, 2014
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