Teva Pharma Swings To Profit In Q3, Results Beat View

(RTTNews) - Generic drugmaker Teva Pharmaceutical Industries Ltd. (TEVA) on Thursday reported a turnaround to profit in the third quarter on higher sales in the U.S. and Europe. Both revenue and adjusted earnings per share beat analysts' estimates.

The quarterly results come just a day after the resignation of the company's Chief Executive Officer Jeremy Levin. Looking ahead, the company tightened its financial outlook for fiscal 2013.

Eyal Desheh, acting president and CEO of Teva said, "During the quarter we had six successful generic product launches in the U.S. alone, and are pleased that our generic business continues to benefit from a long-term, sustainable and profitable growth. We are also satisfied with the performance of our Global Specialty Medicines business and OTC joint venture."

The Israel-based company's net income for the third quarter was $711 million or $0.84 per share, compared to net loss of $79 million or $0.09 per share in the year-ago period.

Adjusted net income for the quarter was $1.07 billion or $1.27 per share, compared to $1.11 billion or $1.28 per share in the same quarter last year. On average, eighteen analysts polled by Thomson Reuters expected the company to report earnings of $1.26 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter increased 2 percent to $5.06 billion from $4.97 billion in the year-ago period. Analysts had a consensus revenue estimate of $5.00 billion for the quarter.

In local currency terms also, revenues increased 2 percent. The increase was primarily attributable to higher sales of generic medicines in the U.S. as well as higher revenues from the company's global specialty and OTC medicines. This increase was partially offset by a decrease in global API sales to third parties.

Teva's quarterly revenues in the U.S. rose 4 percent to $2.71 billion, and accounted for 54 percent of total revenues. The increase reflects strong performance of the company's generic medicines business as well as an increase in the specialty medicines business.

Meanwhile, net revenues for the quarter in Europe increased 4 percent to $1.44 billion, while net revenues in the Rest of the World segment declined 8 percent to $910 million.

Teva's generic medicines net revenues were flat with the year-ago period at $2.48 billion, while specialty medicines net revenues rose 3 percent to $2.08 billion. Sales of Teva's multiple sclerosis drug Copaxone increased 1 percent to $1.05 billion and accounted for 21 percent of the company's revenues.

Generic medicines revenues comprised 49 percent of Teva's total revenues in the quarter, down from 50 percent last year. Specialty medicines revenues comprised 41 percent of total revenues, unchanged from the prior-year period.

Teva's board of directors declared a cash dividend of 1.15 Israeli new shekel or about 32.6 cents per share for the third quarter. The record date will be November 20, 2013, and the payment date will be December 2, 2013.

Looking ahead to fiscal 2013, Teva now forecasts adjusted earnings per share in a range of $4.95 to $5.05 per share, and net revenues in a range of $19.7 billion to $20.3 billion.

Teva earlier said it expected to end the year near the midpoint of its original 2013 ranges for adjusted earnings per share of $4.85 to $5.15, and revenues of $19.5 billion to $20.5 billion.

Analysts expect the company to report earnings of $5.00 per share for the year on revenues of $20.06 billion.

On Wednesday, Teva said that its board agreed with Jeremy Levin that he will step down as president and CEO. As per reports, the resignation follows a feud between Levin and the Board Chairman Phillip Frost. The company named Eyal Desheh, executive vice president and chief financial officer, as president and CEO on an interim basis.

Teva said in early October that it would reduce its global workforce by about 10 percent or 5,000 employees, as part of its worldwide restructuring program introduced in December 2012. Majority of these reductions will be completed by the end of 2014. The company, which sees $2 billion in annual cost savings by the end of 2017, then backed its full year outlook.

In Thursday's regular session, TEVA is trading at $36.94, down $0.76 or 2.02 percent on a volume of 3.01 million shares.