firstwordpharmaFebruary 14, 2017
Tag: teva , sales result
Teva reported Monday that fourth-quarter sales surged 33 percent year-over-year to $6.5 billion, topping analyst estimates of $6.3 billion. The company noted that revenue was boosted by the purchase in August of the Actavis generics business, which added $1.1 billion to sales in the three-month period. Meanwhile, Teva posted a loss of $973 million in the quarter, down from a profit of $500 million in the same period of 2015, which the drugmaker explained was primarily due to an impairment of goodwill of $900 million related to the acquisition of Rimsa.
Interim CEO Yitzhak Peterburg remarked "2016 was a transitional year for Teva – one that included significant achievements, as well as challenges." Peterburg, who assumed the role of chief executive last week following the departure of Erez Vigodman, added "with the entire Teva team, I am conducting a thorough review of the business to find additional opportunities to enhance value." Sources suggested Monday that the drugmaker is currently considering a sale of its branded generics drugs business as it works to reduce debt, although the company may also consider a spin-off of the unit.
In the fourth quarter, generics revenue for Teva surged 44 percent versus the year-ago period to $3.7 billion, which the drugmaker attributed in part to the Actavis transaction. Meanwhile, sales for the company's specialty segment rose by 4 percent to $2.2 billion, boosted by higher revenue for certain specialty drugs and women's health.
In the three-month period, revenue from the multiple sclerosis drug Copaxone improved by 6 percent to $1 billion. Last month, a US court invalidated a number of patents covering Teva's thrice-weekly version of the therapy, which was cleared by the FDA in January 2014, based on obviousness. Teva noted that the thrice-weekly formulation accounted for over 84 percent of all Copaxone prescriptions in the US.
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According to Teva, R&D spending in the fourth quarter increased by 53 percent to $684 million due to expenses related to generic and specialty therapies, as well as an upfront payment of $160 million to Celltrion related to a partnership to develop and commercialise two investigational biosimilars.
For the full year, Teva generated $21.9 billion in sales, an increase of 11 percent compared to 2015, while net income reached $329 million, down from $1.6 billion in the preceding year. For 2017, the drugmaker reaffirmed prior guidance that sales are expected to be between $23.8 billion and $24.5 billion, with earnings per share in the range of $4.90 to $5.30.
"In 2017, our main focus will be extracting synergies related to the Actavis generics transaction, driving additional efficiencies throughout the organisation, supporting cash generation and paying down our debt to maintain a strong balance sheet and delivering on the promise of the specialty pipeline and key generic launches," Peterburg stated, continuing "this is a critical time for Teva, and we are here to fix what is not working." For related analysis, read ViewPoints: Teva seeks another new CEO, but challenges remain the same; if not harder.
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