Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) reported its second quarter results this morning. For the first time, Teva's results include those of IVAX, the acquisition of which was completed in January.
Teva reported second quarter revenue of $2.172 billion, above the consensus analysts' estimate of $2.08 billion.
On a GAAP basis, Teva made a net profit of $488 million, or $0.59 per share. The consensus analysts' estimate was for a net profit of $362.5 million, or $0.46 per share.
The GAAP results include $31 million of inventory step-up in connection with the IVAX acquisition, $22 million of product rights impairment, and $12 million of restructuring charges, impairment of fixed assets and in-process R&D in associated companies.
Excluding these charges, Teva's net profit for the second quarter was $541 million, up 124% over the comparable quarter of 2005. Adjusted fully diluted earnings per share amounted to $0.66, up 83% over the $0.36 earned in the comparable quarter of 2005.
Teva updated its guidance for 2006. The company currently expects 2006 sales to reach approximately $8.5 billion. It has raised its previously announced 2006 non-GAAP earnings per share range expectations from $2.02-2.15 (including simvastatin exclusivity) to $2.15-2.25.
Teva president and CEO Israel Makov said, "This was an outstanding and exciting quarter for Teva--a quarter of record-breaking financial results and major strategic achievements. The highlight was our extremely successful launch of simvastatin, the largest in the history of the generics industry. This launch, like all of our accomplishments during the quarter, speaks eloquently to Teva's robust business model, the unmatched strength and flexibility of our global supply chain, and our excellence in executing our strategies. Teva is well positioned to continue to capitalize on its strengths and address the opportunities and challenges of our dynamic global marketplace."
"We also made tremendous progress on the IVAX integration, which is proceeding at a record pace. In fact, we are already reaping the fruits of the IVAX acquisition, which is already accretive, and is expected to be so for the entire year, and thereafter."
Teva's board has declared a cash dividend for the second quarter of 2006 of NIS 0.34 (approximately $0.077 according to the rate of exchange on August 7, 2006) per ADR. The record date will be August 15, 2006 and the payment date will be August 31, 2006.
Teva shares are currently up more than 5% on the Tel Aviv Stock Exchange, at NIS 158.80.
Published by Globes [online], Israel business news - www.globes.co.il - on August 8, 2006
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