Teva reported Tuesday that third-quarter net income surged 62 percent to $1.1 billion, boosted by strong US sales and increased European revenue following the acquisition of ratiopharm. The company reported that sales of Copaxone, which now has a 30-percent global market share, grew 4 percent to $808 million, driven by increased revenue in the US.
Teva said that sales of the multiple sclerosis drug fell 6 percent to $220 million outside the US due in part to the timing of tenders in certain markets, the negative impact of exchange rates and cost containment measures in Europe. Overall sales for the third quarter jumped 20 percent to $4.3 billion, although the figure came in below analysts' estimates of $4.4 billion.
Quarterly sales in North America reached $2.7 billion, up 22 percent compared with the prior-year period, while revenue from generic drugs in the US climbed 34 percent to $1.6 billion. The company attributed the growth in the US in part to the launch of a generic version of Pfizer's antidepressant Effexor XR, which was approved in June. Sales in Europe rose 21 percent to $1 billion, which Teva noted was due to an increase in generic sales in Germany, Spain, Italy, and France, as well as being the first quarter to include ratiopharm's results.
Harel Finance analyst Steven Tepper commented that sales outside the US were lower than expected due to a lack of growth for Copaxone, coupled with seasonal erosion in sales of respiratory products. "It is a strong report but it is important to hear [from management] what is happening in the European generic market," Tepper said, adding "is competition already being felt in the multiple sclerosis market?"
The company noted it has 203 product applications awaiting final FDA approval. Teva said it may be the first to file on 83 of these applications, relating to products whose annual US branded sales are worth over $55 billion.
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