Teva Pharmaceuticals Reports Sales Decline
February 11 2016 - 08:50AM
Dow Jones News
Teva Pharmaceuticals Industries Ltd. reported a decline in
revenue as drug sales fell across its generic and specialty
segments.
The company also released projections for the current quarter,
saying it expects adjusted earnings in the range of $1.16 to $1.20
and revenue of $4.7 billion to $4.9 billion. When the impacts of a
December equity offering are removed, earnings will be between
$1.32 and $1.36 a share. Analysts had predicted earnings of $1.20
on revenue of $4.88 billion.
The Israeli pharmaceutical company known for its generic drugs
business said in July it would buy the generics operations of
Allergan PLC for about $40 billion, a move that followed a
several-way tug of war among drugmakers. The deal is expected to
close in the current quarter. That deal pushed Teva to drop its
previous pursuit of Mylan NV.
Revenue in its generic medicine segment fell 8.6% to $2.26
billion on declining sales of cholesterol controlling medicine
Lovaza, Crohn's disease treatment Pulmicort and cancer drug
Xeloda.
In its specialty segment, revenue fell 5.8% to $2.11 billion on
lower sales of multiple sclerosis drug Copaxone and Parkinson's
treatment Azilect. The declines were partially offset by increased
sales of its respiratory products.
Teva reported a profit of $485 million, or 55 cents a share,
down from $687 million, or 80 cents a share. Excluding certain
items, per-share earnings were $1.28. Teva also noted that,
factoring out equity it offered in December, earnings were
$1.32.
Revenue fell 5.6% to $4.88 billion. Excluding the impact of
foreign exchange rates, revenue fell 1%.
Analysts polled by Thomson Reuters had expected earnings of
$1.29 a share on $4.84 billion in revenue.
Teva has been working to develop and get approval for biosimilar
drugs, which are the genetic equivalent of drugs created by living
cells. These drugs, known as biologicals, are more complex and
harder to make than normal drugs. The U.S. Food and Drug
Administration approved the first biosimilar last March.
The development of complex products for the U.S. lead research
and development costs up 14% to $395 million for the quarter. They
were 8.1% of quarterly revenues, compared with 6.7% a year ago.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
February 11, 2016 08:35 ET (13:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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