Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) released its third quarter results this afternoon, reporting a non-GAAP profit of $1.1 billion, or $1.32 per share, on revenue of $5.1 billion. The profit figure is 6% higher than in the corresponding quarter of last year. The consensus analysts' estimate was for earnings per share of $1.23 on revenue of $5.09 billion.
On a GAAP basis, Teva made a net profit of $876 million ($1.02 per share) in the third quarter of 2014, compared with $711 million ($0.84 per share) in the third quarter of 2013.
Profitability of generic drugs shot up by 40% to $556 million. Cash flow rose substantially, to $1.4 billion.
Teva has raised in annual guidance to earnings per share of $5-5.1, compared with $4.9-5.1 previously. The company has also announced that it is expanding its share buyback program to $3 billion, and that it intends buying back shares immediately.
Sales of Teva's flagship ethical drug Copaxone, for multiple sclerosis, rose by 5% to $1.1 billion. US Copaxone sales were $800 million, similar to the level in the corresponding quarter of last year.
Teva CEO Erez Vigodman said, “The effort we have put forth thus far in 2014 towards solidifying our foundation to drive organic growth is reflected in our strong third quarter results. We delivered improvement in profitability in all businesses, particularly in global generics, which saw profitability increase by 40% year over year. The quarter results are an important example of Teva’s commitment to strengthen our global leadership position in generics, fully execute our cost reduction program, and focus on cash and cash flow generation. We also remain fully committed to transform and simplify our operational network and make quality a competitive competency for us.
“We recently announced our strategic decision to focus our therapeutic areas, and, at the same time, we continue to see progress in both the development and commercialization efforts of new specialty products including our NDA for hydrocodone bitartrate ER tablets, which was accepted by the US Food and Drug Administration. Our pipeline is poised to deliver significant long-term value and we will continue the efforts to further deepen and develop it.
“We are well positioned to achieve our goals for 2014. Additionally, our board of directors has approved to resume and increase our share repurchase program. Leveraging our strong cash flow, we will continue to focus on creating value through a balanced approach to capital allocation via dividend distribution and share repurchases while continuing to pursue strategic business development opportunities," Vigodman concluded.
On the Tel Aviv Stock Exchange, in a generally very weak market today, Teva's share price is currently up 0.29%, at NIS 205.60.
Published by Globes [online], Israel business news - www.globes-online.com - on October 30, 2014
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