Teva Pharmaceutical Industries. (Nasdaq: TEVA; TASE: TEVA) has reported a net profit for the first quarter of 2005 of $259 million, or $0.38 per share. This compares with a net loss of $428 million in the first quarter of 2004. That loss was mainly incurred because of costs related to the acquisition of Sicor. If the first quarter 2004 results are adjusted for these costs, the company made a net profit $205 million, or $0.31 per share. On this basis, the net profit for the first quarter of 2005 represents an increase of 26%, while EPS grew by 23%.
Revenue in the first quarter of 2005 totaled $1.3 billion, representing a increase of 24% over the first quarter of 2004. Sales of Teva's multiple sclerosis drug Copaxone amounted to $256 million, 23% more than in the first quarter of 2004.
The company generated $303 million cash in the first quarter.
The average of the analysts' estimates was a profit of $262 million, or $0.38 per share, on revenue of $1.31 billion. Teva's own guidance was for a profit of $248-282 million.
On May 2, Teva declared a cash dividend for the first quarter of 2005 of NIS 0.30 (approx. $0.07 according to the rate of exchange on May 2, 2005) per ADR. The record date will be May 9, and the payment date will be May 24.
Teva CEO Israel Makov explained the slackening in Teva's growth rate, which was 40% in 2004 and 56% in 2003, by the smaller number of patents expiring this year. "This quarter's excellent performance is a true testament to Teva's strategy and our ability to consistently generate profitable growth from our global operations, in spite of market fluctuations such as fewer generic product opportunities this year in the US," Makov said, and added, "We remain extremely positive about the prospects for our business and anticipate the significantly greater number of product opportunities in 2006 and beyond."
Makov pointed out that "Copaxone became the MS market leader in the US this quarter, both in terms of new and total prescriptions."
Teva shares closed at $31.14 in New York yesterday, giving the company a market cap of $19.04 billion. In the past two months, Teva has risen 20%, a rise partly driven by the withdrawal for safety reasons of Biogen and Elan's new multiple sclerosis drug Tysabri, which had been expected to compete strongly with Copaxone.
Published by Globes [online], Israel business news - www.globes.co.il - on May 3, 2005