Falling Copaxone sales hit Teva Q4 results

Erez Vigodman
Erez Vigodman

Revenue fell 6% and profit was down 1% in the fourth quarter as global Copaxone sales fell 14%.

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) reported lower revenue and profit in the fourth quarter of 2015 due to lower Copaxone sales and foreign currency fluctuations.

Teva's revenue in the fourth quarter of 2015 was $4.9 billion, down 6% from the corresponding quarter of 2014. Excluding the impact of foreign exchange fluctuations, revenues declined 1%. Non-GAAP net profit was $1.1 billion, down 1% from the fourth quarter of 2014. GAAP net profit was $500 million in the fourth quarter of 2015, down from $687 million in the fourth quarter of 2014.

Excluding the impact of the December 2015 equity offerings, non-GAAP diluted EPS was $1.32, compared with $1.33 in the fourth quarter of 2014. Quarterly Non-GAAP diluted EPS was $1.28. GAAP diluted EPS was $0.55 in the fourth quarter of 2015, compared with $0.80 in the fourth quarter of 2014.

Now facing generic competition, lower sales of multiple sclerosis treatment Copaxone was finally felt in the fourth quarter with global sales of $960 million, down 14% from $1.12 billion in the fourth quarter of 2015.

Full year Revenue in 2015 was $19.7 billion, down 3% from 2014. Excluding the impact of foreign exchange fluctuations, revenue increased 4%. Non-GAAP net profit in 2015 was $4.7 billion, up 6% from $4.4 billion in 2014. GAAP net profit was $1.6 billion in 2015, compared with $3.1 billion in 2014.

Non-GAAP diluted EPS, excluding the impact of the December 2015 equity offerings, was $5.46, up 6% compared with non-GAAP diluted EPS of $5.14 in 2014. Non-GAAP diluted EPS was $5.42 in 2015. GAAP diluted EPS was $1.82 in 2015, compared with $3.56 in 2014

Looking ahead to the first quarter of 2016, Teva expects revenues of $4.7-$4.9 billion and non-GAAP EPS of $1.16-1.20.

Teva president and CEO Erez Vigodman said, "2015 was a year of exceptional strategic, operational and financial performance for Teva. Our strong focus on solidifying the foundation of Teva and improving the fundamentals of our business is manifesting itself in the consistent improvement of our operating and financial results.

He added, "Once the company was put on solid footing, we took the offensive and through a series of compelling acquisitions, partnerships and bold strategic moves, we are transforming Teva. We are building a new company with a solid foundation, significantly enhanced financial profile, excellent generic business, promising specialty franchises and pipeline and diversified net revenues and profit streams. We are positioned to offer top line and bottom line growth and to continue the transformation of our business model, serving hundreds of millions of patients in the world on a daily basis and unlocking significant value for our shareholders."

Vigodman continued, "In 2016, our main focus will be closing and integrating the Actavis Generics, Rimsa and Takeda BV deals, fully capturing first year synergies, and continuing to deliver on the promise in our specialty pipeline through launches, submissions and other important clinical milestones, in conjunction with potential measures we will take to further augment our core therapeutic areas. Teva is well positioned to become a pharmaceutical company that can truly make a difference in our world."

Published by Globes [online], Israel business news - www.globes-online.com - on February 11, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Erez Vigodman
Erez Vigodman
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