Teva Pharmaceutical Industries Ltd. (TEVA - Analyst Report) reported first quarter 2015 earnings of $1.36 per share, up 10.6% from the year-ago period and well above the Zacks Consensus Estimate of $1.26.
First quarter revenues remained flat at $4.982 billion, but were slightly above the Zacks Consensus Estimate of $4.798 billion. Currency fluctuations had a negative impact of $368 million on total revenues.
Quarter in Detail
Generic segment revenues grew 9% to $2.6 billion. Revenues from the U.S. generics business increased 37% to $1.4 billion thanks to the launch of the generic version of Nexium. Other products including the generic version of Lovaza also performed well.
European generic revenues continued to decline with sales coming in at $680 million, down 17% from the year-ago period. Teva reported lower revenues in France and Spain, partially offset by increases in Italy and Germany.
Specialty medicines revenues declined 7% to $2 billion in the first quarter of 2015 reflecting lower Copaxone sales that were partially offset by higher respiratory product sales (up 15% to $265 million). Oncology product sales grew 1% to $264 million.
Central nervous system (CNS) sales declined 14% to $1.2 billion with Azilect declining 6% to $107 million.
Meanwhile, worldwide Copaxone revenues declined 14% to $924 million. While sales in the U.S. slipped 10% to $732 million, ex-U.S. sales fell 24% to $192 million.
The new 40 mg thrice-weekly (3TW - three times a week) formulation accounted for 66% of total Copaxone scrips. The company reported a conversion rate of 67%. Sanodz, Novartis’ (NVS - Analyst Report) generic arm, has gained FDA approval for its generic version of Copaxone 20 mg and could launch its product any time.
The women’s health business recorded revenues of $129 million, up 4%.
API revenues decreased 12% to $157 million. OTC revenues declined 20.8% to $213 million reflecting the sale of U.S. OTC plants.
Research & Development expense decreased to $328 million from $351 million in the year-ago period. Meanwhile, Selling and Marketing (S&M) expenditures declined to $908 million from $963 million in the year-ago period.
The company bought back shares worth $0.4 billion during the quarter.
2015 EPS Outlook Up
Teva raised its earnings outlook for 2015 by 5 cents per share to $5.05-$5.35 per share. The Zacks Consensus Estimate is currently $5.16 per share.
Our Take
Teva’s first quarter results were good with the company beating on both the top-and bottom line. The improvement in U.S. generic segment sales is encouraging. However, the company could start facing generic competition for its lead branded drug, Copaxone, this year now that the FDA has granted approval to Sandoz’s generic.
Teva is actively pursuing business development deals. Apart from the Auspex acquisition deal, Teva is looking to acquire Mylan (MYL - Analyst Report). Investor focus will remain on the company’s efforts to acquire Mylan.
Teva is a Zacks Rank #3 (Hold) stock. Actavis (ACT - Analyst Report) is a better-ranked stock sporting a Zacks Rank #2 (Buy).
Comments
Log in or sign up to join the conversation.