Teva posts 50 percent jump in Q2 profit, lifted by recovery in US

Teva reported Thursday that net income during the second quarter surged 50 percent to $863 million, boosted by the launch of new generic drugs in the US, as well as an increase in revenue of branded products from the inclusion of Cephalon's sales. Meanwhile, Copaxone generated $982 million globally in the quarter, 12 percent more than the prior-year period, due mainly to the company recording its first full-quarter of sales for the product since regaining full marketing rights from Sanofi in Europe.

The drugmaker said US sales of Copaxone were up 3 percent to $701 million, the result of a price increase in the first quarter, while revenue from the multiple sclerosis drug outside the country climbed 44 percent to $281 million, mainly because of a take-back and sales in Russia. Teva noted that during the quarter there were court rulings in both the US and UK that "should ensure protection of Copaxone from generic competition until September 2015." The company also said it expected to submit results from the late-stage GALA trial investigating a new dosing regimen for Copaxone in patients with relapsing-remitting MS to the FDA in the first quarter of 2013.

In other results, Teva said Azilect sales grew 36 percent to $95 million year-over-year, mainly because of strong sales in the US, France and the UK. Treanda and Nuvigil, both of which came with the acquisition of Cepahalon, generated three-month sales of $139 million and $91 million, respectively. Meanwhile, Teva reported that Provigil sales "declined substantially" to $48 million in the quarter due to the introduction of generic competition.

Overall sales grew 19 percent to $5 billion, falling just short of the $5.1 billion analysts projected. CEO Jeremy Levin noted that "the US generics business continued to recover with a positive trend," jumping 16 percent to $1.1 billion. Total sales in the market gained 28 percent to $2.5 billion, representing 49 percent of total revenue, including revenue from branded products of $1.4 billion, up 35 percent year-over-year.

The chief executive indicated that the "European generics business, while down from last year's second quarter results due to macroeconomic conditions, showed solid sequential growth from the first quarter of this year." Overall revenue in Europe was flat during the quarter at $1.5 billion. The company said sales of Copaxone, Cephalon products and other branded drugs in the region rose 46 percent to $402 million, offsetting a 12-percent drop in generic sales to $884 million, stemming from "continued economic and regulatory pressures in some key markets in Europe."

Looking ahead, Teva confirmed its full-year guidance for 2012, with Levin commenting that "this was a significant quarter for Teva as we remain on track to reach our financial goals for the year."

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