Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) today reported lower revenue and profits for the second quarter of 2013.
Revenue fell 1% to $4.92 billion for the second quarter from $4.99 billion for the corresponding quarter of 2012. GAAP-based net loss was $456 million ($0.53 per share) for the second quarter, compared with a GAAP-based net profit of $863 million for the corresponding quarter, and non-GAAP net profit fell to $1.02 billion ($1.20 per share) from $1.18 billion. The GAAP net loss was due to $1.44 billion in legal expenses, including the additional $930 million provision for the settlement of the Pantoprazole patent litigation and a $485 million provision for the Modafinil antitrust litigation.
The results were in line with the analysts' consensus of $1.20 earnings per share on $4.94 billion revenue.
Teva CEO and president Dr. Jeremy Levin said, “Teva is a different company than it was one year ago; I have great confidence in where the company is and in its future. We are building a strong and diverse business, as well as a robust pipeline that positions Teva to achieve a high level of performance and growth."
The decrease in revenue was primarily attributed to lower generic medicines sales in the US and Europe, and exchange rate fluctuations in the rest of the world, primarily in Japan, which had a negative impact of $55 million on sales. The decline was partially offset by higher revenues of Copaxone and other specialty medicines in the US and in Europe as well as by higher revenues from OTC products.
Sales of Copaxone, for the treatment of multiple sclerosis, rose 9% to $1.1 billion for the second quarter from $982 million for the corresponding quarter, due to the drug's continued global market share leadership. US sales rose 17% to $817 million, due to price and volume increases, but non-US sales fell 10% to $253 million, primarily due to the timing of tenders in Russia.
Sales of Azilect, for the treatment of Parkinson's fell 8% to $87 million for the second quarter, although global in-market sales rose 10% to $119 million, primarily due to increases in both price and volume in the US.
Teva increased its R&D expenditure to $336 million (6.8% of revenue) in the second quarter from $298 million (6% of revenue) in the corresponding quarter, mostly due to the progress in development activities.
Cash flow from operations fell 27% to $875 million for the second quarter from $1.2 billion for the corresponding quarter, and free cash flow (which excludes net capital expenditures and dividends) fell 47% to $378 million from $709 million.
Published by Globes [online], Israel business news - www.globes-online.com - on August 1, 2013
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