Generic drugmaker Teva Pharmaceutical Industries Ltd. (TEVA) on Thursday reported a 37 percent decline in profit for the fourth quarter on lower sales of generic drugs amid growing competition. Adjusted earnings per share missed analysts' estimates by a penny. However, Teva hiked its quarterly dividend by 15 percent.
Israel-based Teva's quarterly revenues in the U.S. declined 14 percent to $2.62 billion, reflecting lower sales of sleep disorder drug Provigil due to generic competition.
In addition, the year-ago results recorded higher generic revenues due to contributions from the company's launch of generic Zyprexa and from Teva's agreement with Ranbaxy relating to the launch of generic Lipitor.
The U.S. revenues accounted for 50 percent of the company's total revenues. U.S. generics net revenues declined 17 percent from the year-ago period to $1.03 billion.
In Europe, revenues for the quarter rose 2 percent to $1.53 billion or 5 percent in local currency. Net revenues in the rest of the world declined 3 percent to $1.10 billion.
Teva's generic medicines net revenues in the quarter declined 11 percent from the year-ago period to $2.66 billion, while specialty medicines net revenues decreased 7 percent to $2.11 billion.
The decrease in specialty revenues was primarily due to the decline in sales of Provigil as a result of the introduction of generic competition during the year, partly offset by strong sales of multiple sclerosis drug Copaxone and certain other specialty medicines.
Sales of Copaxone increased 14 percent from the year-ago period to $1.06 billion. The increase primarily resulted from the take-back of marketing and distribution rights in Europe and continued market share leadership.
Teva's fourth-quarter net income was $320 million or $0.37 per share, down from $506 million or $0.57 per share in the year-ago period. The latest quarter's results include charges of $822 million, consisting primarily of impairments of $495 million and amortization of purchased intangible assets of $284 million.
Adjusted net income for the quarter was $1.14 billion or $1.32 per share, compared to adjusted net income of $1.41 billion or $1.59 per share last year. On average, 23 analysts polled by Thomson Reuters expected the company to report earnings of $1.33 per share for the quarter. Analysts' estimates typically exclude one-time items.
Net revenues for the quarter declined 8 percent to $5.25 billion from $5.68 billion in the same period last year. Analysts had a consensus revenue estimate of $5.26 billion.
For fiscal 2012, Teva's net income declined to $1.96 billion or $2.25 per share from $2.76 billion or $3.09 per share in the previous year.
However, adjusted net income rose to $4.67 billion or $5.35 per share from $4.44 billion or $4.97 per share in the prior year. Net revenues grew 11 percent to $20.32 billion from $18.31 billion last year.
Analysts expected the company to earn $5.36 per share for the year on revenues of $20.34 billion.
Teva's board of directors declared a cash dividend for the fourth quarter of NIS 1.15 per share or around $0.31 per share, according to the rate of exchange on February 6, 2013. The record date would be February 21 and the payment date would be March 7. The company's previous quarterly dividend was NIS 1.00 per share.
In Thursday's regular session, TEVA is trading at $37.81, down $0.35 or 0.90 percent on a volume of 181,271 shares.
by RTT Staff Writer
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