Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) published its results for the second quarter of 2015 today. The pharmaceutical giant had already published preliminary results earlier this week so revenue and profit were previously known. Much attention was focused on sales of Teva's flagship Copaxone drug for the treatment of multiple sclerosis, which has faced competition from Sandoz's generic version Glatopa since June 18. This is the first generic version to challenge Copaxone.
Despite the competition, global sales of Copaxone (20 mg/mL and 40 mg/mL) amounted to $1.1 billion, up 12% compared with the second quarter of 2014. In the US, sales of Copaxone were $870 million, up 31% compared with the second quarter of 2014. The increase was mainly due to higher sales volume in the second quarter of 2015 as well as price increases in August 2014 and January 2015. In addition, US Copaxone revenue in the second quarter of 2014 was relatively low following the launch of Copaxone 40 mg/mL in January 2014. At the end of the second quarter of 2015, according to June 2015 IMS data, Teva's market shares for the Copaxone products in terms of new and total prescriptions were 23.8% and 31.2%, respectively. Copaxone 40 mg/mL accounted for 68.5% of total Copaxone prescriptions in the US.
Teva's second quarter revenue was $4.97 billion, down 2% compared with the corresponding quarter of 2014, although above the Wall Street analysts forecast. Excluding the impact of foreign exchange fluctuations and the sale of US OTC plants in July 2014, revenues increased 6% compared with the second quarter of 2014.
Non-GAAP diluted earnings per share (EPS) was $1.43 in the second quarter of 2015, up 15% from the second quarter of 2014. Non-GAAP net profit was $1.6 billion, up 16% from the second quarter of 2014.
Cash flow from operations was $1.5 billion, up 41% compared from the second quarter of 2014 and free cash flow was $1.3 billion, up 51% compared with the second quarter of 2014.
Teva president and CEO Erez Vigodman said, “Teva’s second quarter solid performance was driven by important contributions from across our integrated portfolio of high-quality generic and specialty medicines. We continue to deliver on our promise to take bold steps forward, both organic and inorganic, to position Teva for sustainable, profitable growth, execute on our strategic and operational initiatives, improve our profitability, strengthen our cash flow generation, and build the most competitive operating network in the industry.”
He added, “Based on our strong performance in the first half of the year, we are raising our guidance for 2015. We expect to complete the acquisition of Allergan’s global generics business in the first quarter of 2016, which will further diversify our business and support the continued creation of shareholder value. We remain excited about our future as we continue the positive momentum to transform our company.”
Published by Globes [online], Israel business news - www.globes-online.com - on July 30, 2015
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