Foreign exchange affects cut into Teva Pharmaceutical Industries Ltd.'s (Nasdaq: TEVA; TASE: TEVA) first quarter revenue, but its quarterly profit beat analyst forecasts.
The consolidation of financial results with recently acquired Barr led to higher global sales for Teva, especially in the US, Russia, Poland, Germany, and Croatia. Teva president and CEO Shlomo Yanai said, “The Barr integration is proceeding ahead of schedule, and we now believe that we will derive even more value from this acquisition than we originally expected".
Teva's first quarter revenue of $3.15 billion was up 22% compared with the corresponding quarter of 2008. Teva said that the appreciation of the US dollar reduced its sales figure by $200 million. Analysts had expected $3.4 billion revenue, so that even without the foreign exchange impact, revenue missed slightly.
On a non-GAAP basis, net profit was $634 million, 4% higher than the corresponding quarter. Earnings per share (EPS) on a non-GAAP basis came to $0.71. The per-share figure was 4% lower than the first quarter of 2008, though it beat the average analyst estimate of $0.68 per share. Teva attributed the figure to higher financial expenses, tax rate, and share count resulting from the Barr acquisition.
Non-GAAP EPS was $0.71, down 4% compared with the first quarter of 2008, due to higher financial expenses, tax rate and share count resulting from the Barr acquisition. GAAP diluted EPS totaled $0.51.
On a GAAP (generally accepted accounting principles) basis, net profit totaled $451 million, and EPS was $0.51.
Sales of Copaxone rose to $621 million, 15% higher than the first quarter of 2008. US sales rose 38% compared with the corresponding quarter to $430 million. Sales outside the US were $191 million, 17% lower than the first quarter of 2008. The decrease resulted primarily from an unfavorable foreign currency effect, as unit sales actually rose.
First quarter pharmaceuticals sales, including Copaxone, in North America, rose 36% compared with the corresponding quarter and reached $1.86 billion, which was 62% of total pharmaceutical sales. In Europe, pharmaceutical sales rose 4% compared with the corresponding quarter to $692 million, representing 23% of total pharmaceutical sales.
As of April 27, 2009, Teva had 197 product applications awaiting final FDA approval, including 40 tentative approvals. The branded products covered by these applications had annual US sales of over $109 billion. Of these applications, 134 were “Paragraph IV” applications challenging patents of branded products. Teva believes it is the first to file on 84 of the 134 applications, relating to products with annual US branded sales of over $53 billion.
As of March 31, 2009, Teva had approximately 3,447 marketing authorization applications pending approval in 30 European countries, relating to 235 compounds in 477 formulations, including 16 applications pending with the European Medicines Agency (EMEA).
Since the beginning of 2009, Teva received 283 generic approvals in Europe relating to 81 compounds in 153 formulations.
The purchase of Barr added to Teva’s women’s health business. The unit had sales of $97 million, an increase of 39% from $70 million sold by Barr in the comparable quarter in 2008.
Shares in Teva closed down 0.09% at $44.12 yesterday, giving a market cap of $39.21 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on May 5, 2009
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