Teva Pharm reports strong second-quarter revenue
TEL AVIV (Reuters) - Teva Pharmaceutical Industries (TEVA.N), Israel's biggest company, on Thursday reported sharply higher revenue driven partly by new generic drugs in the United States.
"This was a significant quarter for Teva as we remain on track to reach our financial goals for the year," said Jeremy Levin, who took over in May as president and CEO of the world's largest generic drugmaker.
"The U.S. generics business continued to recover with a positive trend, our global branded division experienced strong growth, and our European generics business, while down from last year's second-quarter results due to macroeconomic conditions, showed solid sequential growth from the first quarter."
The company reaffirmed its full-year outlook from May, which sees revenue of $20-$21 billion and EPS excluding one-off items of $5.30-$5.40. This was down from a previous outlook.
"We expect that in keeping with this reaffirmation we'll have a Q3 that is lighter than Q2 but a strong Q4," Levin told analysts on a conference call.
Teva shares were down 2.8 percent to $39.74 in New York.
Levin said Teva will present its highly anticipated strategic plan for 2013 to investors in New York on December 11. Teva's new CEO, who came from Bristol-Myers Squibb, is expected to put his stamp on the company and he has said that some businesses could be divested and more emphasis placed on expanding Teva's branded drug activities.
"The bigger driver to us is still the pending business update later this year that we think will start to garner greater investor focus over the ensuing months," Canaccord Genuity analyst Randall Stanicky said.
IN LINE QUARTER
Israel-based Teva (TEVA.TA) earned $1.28 per share, excluding one-time items, in the second quarter, compared with $1.10 a year earlier. Revenue rose 19 percent to $5.0 billion.
Teva was forecast to earn $1.28 a share on revenue of $5.08 billion, according to Thomson Reuters I/B/E/S.
Goldman Sachs analyst Jami Rubin said the quarter was mostly in line but "low quality" as revenue was slightly softer than expected as were gross margins. The shortfall was offset by lower research and development and taxes, noted Rubin, who rates the shares "neutral".
Teva owes much of its growth in recent years to several multibillion-dollar acquisitions, including last year's $6.5 billion purchase of U.S. specialty drugmaker Cephalon.
U.S. sales, which comprise 49 percent of total sales, rose 28 percent to $2.5 billion due to the launch of four new generic products as well as branded products, including Cephalon.
European sales were unchanged at $1.5 billion though generic sales fell 12 percent, or 1 percent in local currency terms, to $884 million due to macro-economic conditions and health care reforms in key European markets, Teva said.
This was slightly more than forecast by Goldman Sachs and "could signal a turning point for EU", Rubin said.
Copaxone, the leading multiple sclerosis treatment, posted a 12 percent rise in sales to $982 million but the injected drug faces competition from oral treatments that are available or expected to hit the market in coming years.
During the quarter there were favorable U.S. and UK court rulings which should ensure protection of Copaxone from generic competition until September 2015, Teva said.
In addition, Teva had positive results from an advanced trial for a more convenient three-times-a-week dosing regimen of Copaxone and expects to submit the results to the U.S. Food and Drug Administration in the first quarter of 2013 with a possible launch in 2014, Levin said.
Teva declared a quarterly dividend of 1.0 shekel (25 cents) a share, identical to the first quarter.
(Additional reporting by Steven Scheer; Editing by Stephen Powell)