TEL AVIV, Nov 3 (Reuters) - Teva Pharmaceutical Industries (TEVA.O), the world's largest generic drugmaker, reported higher quarterly net profit on Tuesday, boosted by sales of its multiple sclerosis drug Copaxone and respiratory business.
Teva President and Chief Executive Shlomo Yanai said he did not believe a generic version of Copaxone, the number one MS treatment, would reach the market any time soon.
"We think it's well protected legally and structurally. It is difficult to make an alternative because of its complexity, this will need clinical trials," he told reporters.
Teva last month sued Mylan Inc (MYL.O), alleging that the company's application to market a copycat version of Copaxone was infringing Teva patents, which extend until 2014.
Yanai said oral treatments for MS being developed would not substitute injectables such as Copaxone as they have some disadvantages. Teva is also developing an oral treatment for MS.
"It will take a long time till these products get market share," Yanai said. "MS is a complicated disease. It's an autoimmune disease so drugs have side effects that are not simple. People react better to some drugs than others so switching drugs is complicated."
Excluding one-off items Israel-based Teva (TEVA.TA) posted third-quarter earnings of 89 cents a share diluted, up 16 percent from a year earlier.
Revenue rose 25 percent to $3.55 billion.
Analysts expected Teva to earn 88 cents a share, excluding items, on revenue of $3.63 billion, according to Thomson Reuters I/B/E/S.
Global sales of Copaxone rose 38 percent to $776 million.
Strong sales of inhaler ProAir helped sales of Teva's global respiratory business rise 37 percent to $243 million.
Teva said a stronger dollar negatively impacted quarterly sales by $160 million, or 6 percent.
SHARES SLIP
Teva shares were down 0.4 percent at 190 shekels at midday, compared with declines of 1.7 percent in the broader market.
Analyst Gilad Alper of brokerage Excellence Nessuah noted that sales outside the United States were in line with forecasts, leading him to conclude that the U.S. generic market is showing signs of weakness either because consumers were saving on medicine or due to pricing pressures.
He said the gross margin was slightly lower than in the second quarter, "a disappointing result given the strength of the highly profitable Copaxone in the quarter".
"This again leads us to conclude that the U.S. generic market is showing signs of weakness or intense competition," said Alper, who rates Teva's shares as "outperform".
But Yanai said investors should not determine trends based on one quarter.
"This quarter was thin in new launches," he told reporters. "The generic buisness is good. It's developing and if one quarter looks weak it's just one quarter's volatility."
He added that 2009 as a whole was thin on new launches.
Teva said cash flow from operations topped $1 billion for the first time.
Yanai would not comment on plans for acquisitions, including the sale of German generic drugmaker Ratiopharm, which has asked bidders to submit offers by Nov. 4. Teva is said to be among the suitors preparing bids.
"We are constantly hearing speculation about Teva making acquisitions. Let me say that Teva is an acquiring company," Yanai said. "We are scrutinising the industry constantly looking for opportunities."
The rationale for any acquisition is that the company be a strategic fit for Teva with good economics and be accretive within a year, he added.
Teva declared a dividend of 0.6 shekels (15.9 cents) a share to be paid on Nov. 26, up from 0.45 shekels a year earlier.
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