* Q4 non-GAAP earnings per share $1.32 vs $1.33 forecast
* Q4 revenue $5.25 billion vs $5.26 bln forecast
* Raises quarterly dividend 15 pct, reaffirms 2013 outlook
* Mixed results unlikely to inspire-analyst
* To sell Irvine, CA injectables plant
By Tova Cohen
TEL AVIV, Feb 7 Teva Pharmaceutical Industries
, two months into a sweeping reorganisation it promised
would bring extra rewards for shareholders, dismayed investors
with a smaller rise in its dividend than expected.
The world's biggest generic drugmaker posted fourth-quarter
profit that missed expectations and said it would sell one of
its injectables manufacturing plants, in Irvine, California, as
part of a plan to save $1.5-$2 billion over the next few years.
"Overall, the results were a bit disappointing," Leader
Capital Markets analyst Sabina Podval said.
Canaccord Genuity analyst Randall Stanicky said sentiment
around the company had not been strong "but mixed results are
unlikely to inspire, nor is the lack of a more meaningful
"The story is clearly going to take time."
Israel-based Teva has grown rapidly in recent years through
a series of multibillion-dollar acquisitions but its shares have
badly underperformed its rivals in the past two years.
Among its key challenges is the looming 2015 patent
expiration of its most important branded product, the multiple
sclerosis drug Copaxone, which accounts for about 20 percent of
sales and some 50 percent of profit.
Copaxone posted a 14 percent rise in global sales to $1.1
billion. But the drug, which is injected, faces competition from
oral treatments that are either already available or expected to
hit the market in coming years.
The reorganisation announced in December promised to return
value to shareholders by streamlining operations, making
targeted acquisitions and discontinuing certain research
Chief Financial Officer Eyal Desheh said Teva remained
confident in its 2013 outlook, issued in late November, for
adjusted earnings per share of $4.85 to $5.15 in 2013 on revenue
of $19.5 billion to $20.5 billion.
Earnings per share excluding items were $5.35 in 2012.
"We continue to think guidance is conservative, which should
provide some comfort to (the) 2013 bottom line outlook," said
Teva declared a quarterly dividend of 1.15 shekels (31
cents) a share, up 15 percent from the third quarter. Several
analysts said the market was hoping for a bigger increase.
The company also bought back 12.7 million of its shares for
$500 million in the quarter as part of a $3 billion share
repurchase plan approved in December 2011.
Teva earned $1.32 per share excluding one-time items in the
fourth quarter, compared with $1.59 a year earlier. Revenue fell
8 percent to $5.25 billion.
Teva was forecast to earn $1.33 a share excluding items on
revenue of $5.26 billion, according to Thomson Reuters I/B/E/S.
Teva shares were down 0.75 percent to $37.87 in early New
York trade, not far above its year low of $36.64.
U.S. sales, which comprise 50 percent of total sales, fell
14 percent in the fourth quarter to $2.6 billion as sales of
sleep disorder drug Provigil fell substantially due to generic
competition that began in the second quarter.
Teva also attributed the decline to unusually high generic
revenue in the fourth quarter of 2011.
Chief Executive Jeremy Levin did not say how much Teva
expected to gain from the sale of the injectables plant.