Teva revenue with IVAX up 28% in first quarter The company has consolidated the results of newly-acquired IVAX for the first time. Net profit excluding acquisition expenses was $286 million.
Roee Bergman 10 May 06 14:55
Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) has reported its first quarter results, and for the first time has consolidated the results of IVAX. The IVAX acquisition was completed on January 26, and Teva's results included IVAX from February 1. Net sales in the first quarter of 2006 increased 28% over the comparable quarter last year to $1,672 million, net of $39 million negative currency impact. IVAX's sales, which are included in this figure, amounted to $329 million. Net of IVAX, Teva's sales totaled $1.343 billion in the first quarter, only slightly more than the $1.304 billion recorded in the first quarter of 2005.
The results miss by a wide margin the consenus analysts' estimate for sales of $1.94 billion.
Global in-market sales of multiple sclerosis treatment Copaxone during the first quarter were $329 million, representing an increase of 29% over the first quarter of 2005, and, according to Teva, positioning Copaxone as the second largest MS therapy worldwide, in terms of sales.
On a GAAP basis, Teva lost $1,009 million, or $1.40 per share, in the first quarter. This loss includes a write off of $1.2 billion of in-process R&D and $64 million of inventory step-up in connection with the IVAX acquisition
Excluding these charges, Teva made a net profit of $286 million, up 10% over the comparable quarter of 2005, while adjusted fully diluted EPS reached $0.37, compared with $0.38 in the comparable quarter.
Teva began expensing stock options in the first quarter of 2006. The reported diluted loss per share and adjusted fully diluted EPS both include approximately $0.01 per share expense related to this effect.
Teva president and CEO Israel Makov said, "We are very pleased with the results of this special quarter in which we began, and have made excellent progress in the integration of IVAX into Teva. Today, Teva's scope, scale, and geographic reach are unmatched in the industry, and this allows us to create exceptional value for patients, for customers, and for our shareholders.
"This was an especially good quarter for Copaxone, which continues to break sales records and to outpace the growth of the global MS market. We are very excited about 2006, which we believe will be a great year for Teva."
Teva shares closed at $42.91 in New York yesterday, giving the company a market cap of $26.64 billion.
Published by Globes [online], Israel business news - www.globes.co.il - on May 10, 2006
Teva falls far short of Q1 forecasts with $1.61 billion revenues
10.5.06 | 15:13 By Asaf Rothem Charges connected with the acquisition of Ivax Corp reduced generic drugs giant Teva Pharmaceuticals (TASE, Nasdaq: TEVA) to a huge billion-dollar loss for the first quarter of 2006.
Minus the charges, which are unrelated to Teva's regular course of business, it netted $286 million on revenues of $1.67 billion.
The rub is that both figures are well below the Wall Street forecasts for Teva, which upon the purchase of Ivax regained the crown of the world's biggest generic drug company. Shares in Teva are retreating by 4% in early trade in New York.
However one looks at Teva's report, it is not a thing of beauty. Analysts had expected revenues of $1.94 billion at best or $1.81 billion at worst, but Teva fell short of even that.
The difference may lie in the consolidation with Ivax, which contributed $329 million in the quarter - but consolidation applied to only two of the quarter's three months.
Comparison with the previous quarter is irrelevant because then, Teva had not been consolidating its results with Ivax.
Also, exchange rate fluctuations cost Teva $39 million in revenues.
Gross margins were high at 47.1%,Teva said, and cash flow from regular operations was $288 million, leaving the company with $1.5 billion in cash and equivalents as March ended.
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