Generic drugmaker Teva Pharmaceutical Industries Ltd. (TEVA) reported Thursday a profit for the first quarter that declined from last year, reflecting lower charges and continuing drop in sales of generic drugs amid growing competition. Adjusted earnings per share and quarterly revenues topped analysts' expectations.
"During the quarter, we were pleased by the overall performance of our specialty products and results of our OTC joint venture. Our generic operations, which are a core component of our business, performed in line with our expectations and were particularly strong in Western and Eastern Europe," President and CEO Jeremy Levin said.
Petach Tikva, Israel-based Teva reported net income of $630 million or $0.74 per share for the first quarter, down from $859 million or $0.97 per share in the prior-year quarter. The latest quarter's results include charges of $330 million, while the year-ago included $441 million of charges.
Excluding items, adjusted net income for the quarter was $960 million or $1.12 per share, compared to $1.30 billion or $1.47 per share in the year-ago quarter.
On average, 21 analysts polled by Thomson Reuters expected the company to report earnings of $1.10 per share for the quarter. Analysts' estimates typically exclude one-time items.
Net revenues for the quarter declined 4 percent to $4.90 billion from $5.10 billion in the same quarter last year, but topped twenty Wall Street analysts' consensus estimate of $4.85 billion.
Teva's quarterly revenues in the U.S. declined 11 percent to $2.44 billion or 50 percent of total revenues, reflecting lower sales of sleep disorder drug Provigil due to generic competition since second quarter 2012. U.S. generic net revenues declined 27 percent from last year to $895 million.
In addition, the year-ago results recorded higher generic revenues due to contributions from the company's launch of generic Zyprexa and from agreement with Ranbaxy relating to the launch of generic Lipitor.
This decrease was partially offset by strong revenues from multiple sclerosis drug Copaxone, Treanda, Azilect and respiratory products, and from other generic products that were not sold in the first quarter of 2012.
In Europe, revenues for the quarter rose 11 percent to $1.49 billion or 10 percent in local currency. Net revenues in the rest of the world declined 3 percent to $966 million or 1 percent growth in local currency.
Teva's generic medicines net revenues in the quarter declined 12 percent from the year-ago period to $2.32 billion, while specialty medicines net revenues remained relatively flat with last year at $2.07 billion.
The decrease in specialty revenues was primarily due to the 92 percent plunge in sales of Provigil, partially offset mainly by 17 percent sales increase of Copaxone.
In Thursday's regular trading session, TEVA is currently trading at $37.62, down $0.48 or 1.26% on a volume of 3.30 million shares. In the past 52-week period, the stock has been trading in a range of $36.63 to $46.00.
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