Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) has reported a drop in its third quarter net profit compared with the corresponding quarter of last year.
The firm noted that revenue rose to $2.366 billion, an increase of 4% over the corresponding quarter of 2006. The third quarter of 2006 was particularly strong, as the firm enjoyed exclusivity on three of the largest products in the industry’s history.
Net profit was $525 million, or $0.64 per share, in the third quarter of 2007, compared with $606, or $0.74 per share, in the third quarter of 2006.
Teva president and CEO Shlomo Yanai said, “This was another very strong quarter for Teva, a quarter which once again demonstrated the soundness and strength of our balanced business model. Despite the very challenging comparisons to the third quarter of 2006 - a quarter during which we had exclusivity on three of the largest products in our industry’s history - sales were up by 4%. Contributions from across our businesses and geographies once again fueled our growth, with especially strong performances in Western and Eastern Europe."
“This was also an excellent quarter for Copaxone, which is now the leading therapy for multiple sclerosis in the U.S., the world’s largest market, and which continues to capture the largest share of the growth in the global MS market.”
Sales of Teva's multiple sclerosis treatment Copaxone were $441 million, up 24% year-over year, and there was a year-over-year increase of 34% in global respiratory sales.
Global in-market sales of Azilect, for the treatment of Parkinson's disease, reached $33 million in the quarter compared with $16 million in the third quarter of 2006, an increase of 106% over the comparable quarter. Azilect is now available in 29 countries.
The generic pharmaceuticals giant noted that currency fluctuations had little net impact on its overall results, pointing out that sales outside of the U.S. were positively impacted by favorable exchange rates, increasing them by approximately $78 million. However, there were also increased expenses recorded due to these currency movements. Overall, changes in these exchange rates had a negligible effect on operating and net profit.
Teva also announced today that CFO Dan Suesskind plans to retire in mid-2008. Eyal Desheh, currently Executive Vice President and CFO of Check Point Software Technologies Ltd. (Nasdaq: CHKP) has been appointed to succeed Mr. Suesskind as Teva’s CFO. It is a homecoming of sorts for Desheh, who also served for 6 years as Teva’s deputy CFO.
Eli Hurvitz, Chairman of the Board of Directors at Teva, said, “Since Dan was appointed CFO in 1977, he has played a pivotal role in all of Teva’s strategic initiatives, including the acquisition of more than 30 companies. Dan’s contributions have been critical in creating value for Teva’s shareholders, by transforming Teva from a small, Israeli company with a market cap of $37 million, into a leading global company with a market cap exceeding $34 billion. We will of course miss Dan tremendously, but after all these years, Dan and Teva are inextricably linked, and although he is retiring, Dan will always remain a member of the Teva family.”
Dan Suesskind said, “My 31 years as CFO of Teva have been extremely gratifying". He added that "But now that the time is right, I am eager to start a new phase of my life, and I am looking forward to having the time to pursue my many other interests."
Published by Globes [online], Israel business news - www.globes.co.il - on October 30, 2007
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