Teva Pharmaceutical Industries Ltd. (TEVA) Thursday said its second-quarter profit improved from last year, as revenues grew 19 percent reflecting strong performance from both branded and generic drugs. Earnings for the quarter surpassed estimates, while revenues fell shy of expectations. Looking ahead, the company also reaffirmed its full year 2012 goals.
Chief Executive Jeremy Levin said, "This was a significant quarter for Teva as we remain on track to reach our financial goals for the year."
"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 of this year," Levin observed.
Generic medicines for the quarter grew 9 percent to $2.61 billion, while branded medicines surged 37 percent to $1.95 billion, year-over-year.
US revenues grew 28 percent, as generic medicine sales rose 16 percent with help of four new drugs, while branded medicines grew 35 percent. Sales from US represents about half of total revenues. The inclusion of Cephalon also boosted top line growth. Teva bought Frazer, Pennsylvania-based Cephalon for $6.5 billion last year.
Net revenues in Europe remained relatively unchanged at $1.47 billion, as generic medicines dropped 12 percent hurt mainly by stronger dollar, while branded drugs rose 46 percent. Europe sales represents 30 percent of total revenues.
Net revenues from Rest of the World increased 30 percent to $1.06 billion, primarily helped by the inclusion of Taiyo and Cephalon, as well as strong performance in Russia, Eastern Europe, Latin America and Israel.
Teva, which is the the world's largest generic drug maker, said revenues for the quarter grew 19 percent to $4.99 billion from last year's $4.21 billion. Nevertheless, revenues fell short of analysts' estimate of $5.08 billion for the quarter.
Jerusalem, Israel-based Teva's profit for the quarter rose to $863 million or $0.99 per share from $576 million or $0.64 per share last year.
On an adjusted basis, earnings rose to $1.28 per share from $1.10 per share last year. Analysts polled by Thomson Reuters expected earnings of $1.28 per share for the quarter. Analysts' estimates typically exclude one-time items.
For the full year 2012, the company continues to expect adjusted earnings of $5.30 to $5.40 per share, with revenues of $20 billion to $21 billion. Analysts currently expect earnings of $5.37 per share on revenues of 20.58 billion.
TEVA is currently trading at $39.52, down $1.35 or 3.30%, on a volume of 4 million shares on the Nasdaq.
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