Generic pharmaceuticals giant Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) beat analysts' profit expectations as its second quarter revenue rose to $3.4 billion, 20% higher than the $2.82 billion recorded in the corresponding quarter of 2008.
Teva succeeded in growing its revenue despite a stronger dollar, which negatively impacted sales by $256 million. Teva said its Barr acquisition, contributed to the higher revenue, particularly in the US, Russia, Poland, Germany, and Croatia.
In a conference call late this afternoon Teva reaffirmed its profit forecast for 2009, dashing expectations that it might raise the forecast. Tev expects a net profit of $3.20-3.40 per share this year. The company also said that it expects net profit to grow by at least 35% in 2010.
Teva president and CEO Shlomo Yanai said that the integration of Barr is ahead of schedule, calling the quarter exciting in terms of strategic achievements. Speaking of the Barr acquisition, Yanai said, "We are realizing more synergies more quickly than we had initially forecast."
On a non-GAAP (generally accepted accounting principles) basis, net profit rose to $742 million, 25% higher than the corresponding quarter of 2008, and non-GAAP earnings per share were $0.83, 15% higher than the corresponding quarter.
The per share figures beat analyst expectations of $0.80 per share.
GAAP net profit was $521 million, slightly below the $533 million recorded in the corresponding quarter. GAAP earnings per share was $0.58, lower than the $0.65 in the corresponding quarter.
Global in-market sales of Copaxone reached a record $682 million, up 21% compared to the second quarter of 2008.
In the US, Copaxone in-market sales rose 32%, compared with the corresponding quarter, to $438 million. Outside the US, in-market Copaxone sales were $243 million, 5% higher than the second quarter of 2008. In local currency , in-market sales of Copaxone outside the US grew 26%.
Revenue from Teva’s women’s health business, which it acquired with its purchase of Barr, reached $80 million, 4% higher than the $77 million sold by Barr in the corresponding quarter in 2008. Teva attributed the rise in sales to increased sales of its "morning after" pill Plan B.
In the second quarter, North American pharmaceutical sales rose 36% compared with the corresponding quarter, and reached $2.05 billion, accounting for 63% of total pharmaceutical sales. Quarterly sales benefited from the launch of a generic version of Adderall XR, as well as continued strong sales of generic versions of Lotrel, Yasmin, Protonix, and Imitrex. The quarter's sales also reflected strong sales of Copaxone and ProAir. As of July 21 Teva (including applications acquired through the acquisition of Barr) had 198 product applications awaiting final FDA approval, including 42 tentative approvals. The branded products covered by these applications had annual US sales of over $110 billion.
Pharmaceutical sales in Europe fell 4% compared with the corresponding quarter, to $732 million, accounting for 22% of total pharmaceutical sales. However, in local currency terms, sales in Europe rose 20%. The devaluation of major European currencies against the dollar in the second quarter of 2009 compared with the second quarter of 2008 adversely affected sales in Europe.
Since the beginning of the year, Teva received 464 generic approvals in Europe relating to 109 compounds in 225 formulations, including 3 EMEA approvals valid in all EU member states.
Published by Globes [online], Israel business news - www.globes-online.com - on July 28, 2009
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