Teva reports Q2 results showing $230 million profits, beating analyst projections. Shares suffer from recent sharp declines
Results for Israeli pharmaceutical Teva were pleasing, despite negative sentiment that hovered over its shares over the past several weeks. The company reported today that second quarter net profits for the year totaled $230 million – a 9% increase in comparison with the same quarter last year, when the company also included a one-time profit of $73 million. Earnings per share totaled 35 cents, 3 cents higher than analyst predictions. Offsetting one-time profits in the same quarter last year, profits grew sharply by 67%.
Company results in the quarter also included results for Sicor, which Teva acquired ten months ago based on a value of $3.4 billion. Sicor contributed to Teva income, which totaled $1.176 billion in the quarter, a 54% rise in contrast with the same quarter last year, when Sicor results were not included in Teva reports.
Yisrael Makov, CEO of Teva, said that he was proud of the results shown by the company, which had introduced 17 new products, with the acquisition of Sicor.
At a press conference held at TASE Visitor’s Center, Makov stated that nothing can stop the generic market growth. “The aging population is only increasing. This translates into increased amounts of medication, coupled with the demand for lower cost”. Makov added that the acquisition of Sicor – which cost Teva $3.4 billion (2 of which was paid in cash) – is an excellent purchase.
Last quarter, the American market, which is the primary market, comprised 64% of Teva sales ($676 million). Rapid, aggressive growth was recorded in the European market, however, where company sales totaled $274 million – a 42% increase.
The sale of Copaxone totaled $226 million and reflects a 28% growth in contrast to the same quarter last year.
Teva shares have recently suffered declines in heavy trading. Last week, on a particularly stormy session. Market experts believe that negative sentiment overtaking the pharmaceutical industry in general, and the generic industry in particular, raised doubts among investors regarding Teva’s ability to meet this quarter’s projections – doubts that proved to be groundless.