Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) today reported revenue and profit growth for the second quarter of 2012, in line with the analysts' consensus, and reiterated its full-year guidance.
Revenue rose 19% to $5 billion for the second quarter from $4.2 billion for the corresponding quarter of 2011. GAAP-based net profit rose 50% to $863 million ($0.99 per share) for second quarter from $576 million for the corresponding quarter, and non-GAAP profit rose 14% to $1.1 billion ($1.28 per share).
Cash flow from operations was $1.2 billion for the second quarter, 10% less than for the corresponding quarter and free cash flow was $709 million, down 21%.
Teva president and CEO Dr. Jeremy Levin said, “This was a significant quarter for Teva as we remain on track to reach our financial goals for the year. The US generics business continued to recover with a positive trend, our global branded division experienced strong growth, and our European generics business, while down from last year’s second quarter results due to macroeconomic conditions, showed solid sequential growth from the first quarter of this year. Overall, we continue to see tremendous opportunities ahead, and look forward to rebuilding shareholder value over time."
US sales totaled $2.5 billion for the second quarter, 49% of total revenue, 28% more than for the corresponding quarter. US generics sales rose 18% to $1.05 billion for the corresponding quarter from $908 million for the corresponding quarter, while brand sales, including Cephalon products and the launch of four new drugs, rose 35% to $1.37 billion from $1.01 billion. European sales were unchanged at $1.5 billion, 30% of total sales, where sales of Copaxone, Cephalon products and other brand drugs rose 46% to $402 million for the second quarter from $275 million for the corresponding quarter, offsetting a 1% drop in generic sales.
Teva's sales in the rest of the world rose 30% to $1.1 billion for the second quarter, driven by Cephalon and the acquisition of Taiyo Pharmaceuticals in Japan, and higher sales in Russia, Eastern Europe, Israel, and Latin America.
Worldwide sales of Teva's treatment for multiple sclerosis, Copaxone, rose 12% to $982 million for the second quarter from $877 million for the corresponding quarter, accounting for half of Teva's brand drug sales and a fifth of its total sales.
Brand sales rose 37% to $1.95 billion (39% of revenue) for the second quarter from $1.42 billion for the corresponding quarter (34% of revenue). Teva attributed most of the growth to Cephalon products, especially Treanda and Nuvigil, which offset lower sales of Provigil caused by generic launches of this drug.
Published by Globes [online], Israel business news - www.globes-online.com - on August 2, 2012
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