Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) was given a badly needed boost this afternoon by its fourth quarter and full year 2016 results. Moreover, the Israeli pharmaceutical company reiterated its 2017 forecast of $23.8 - 24.5 billion revenue and non-GAAP earnings per share of $4.90-5.30, quashing predictions that guidance would be lowered. Immediately after the results were published, Teva's share price had risen 4.3%.
Fourth quarter revenue was $6.5 billion, up 33% from the corresponding quarter of 2015, primarily due to the inclusion of Actavis generics business. This beat the analysts' consensus of $6.26 billion. Non-GAAP earnings per share was $1.38, up from $1.28 in the corresponding quarter of 2015 and higher than the analysts' estimate of $1.36. On a GAAP basis Teva lost $1.1 billion in the fourth quarter compared with GAAP profit of $1.1 billion in the corresponding quarter.
Revenue in 2016 was $21.9 billion, up 11% from 2015, primarily due to the inclusion, following the closing on August 2, of the results of the Actavis Generics business. Non-GAAP net profit attributable to ordinary shareholders for calculating diluted EPS and non-GAAP diluted EPS were $5.2 billion and $5.14, respectively in 2016, compared with $4.7 billion and $5.42 in 2015.
Teva interim president and CEO Dr. Yitzhak Peterburg said, "2016 was a transitional year for Teva - one that included significant achievements, as well as challenges. While we continue to manage through a turbulent and constantly evolving industry, we are committed to execute against our strategy with more diversified revenue sources and profit streams, all backed by strong product development engines in both generics and specialty."
He added, "In 2017, our main focus will be extracting synergies related to the Actavis Generics transaction, driving additional efficiencies throughout the organization, supporting cash generation and paying down our debt to maintain a strong balance sheet and delivering on the promise of the specialty pipeline and key generic launches. We are laser focused on execution at this critical juncture and are determined to deliver on our key priorities."
Sales of Teva's flagship branded drug Copaxone rose 6% in the fourth quarter to $1.065 billion, up from $960 million in the corresponding quarter of 2015. However, this valuable source of revenue and profit from the blockbuster multiple sclerosis treatment is liable to be hit during 2017 after the US court struck down four patents on 40mg Copaxone earlier this month, and Teva will soon face generic competition.
Published by Globes [online], Israel business news - www.globes-online.com - on February 13, 2017
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