Teva Pharmaceutical (NASDAQ: TEVA), the world's largest generic drugmaker, is scheduled to release its fiscal fourth-quarter 2009 financial results on Tuesday, February 16, 2009. Analysts, on average, expect the company to report earnings of 95 cents a share on revenue of $3.81 billion. In the year ago period, the company posted earnings of 76 cents per share on revenue of $2.85 billion.
Teva Pharmaceutical Industries Limited engages in the development, production, and sale of a range of generic and branded pharmaceuticals, biogenerics, and active pharmaceutical ingredients (APIs) worldwide. Its research and development efforts focus on therapies for the central nervous system (with emphasis on multiple sclerosis), autoimmune diseases, and oncology.
Early in November, the Petach Tikva, Israel-based company reported that its third quarter net income $649 million, up from $631 million in the year-ago quarter. However, per share earnings dropped to $0.72 from $0.77 reported in the same quarter of last year. On a non-GAAP basis, net income attributable to Teva advanced 28% to $806 million, from $630 million in the prior-year quarter. Non-GAAP earnings per share grew 16% to $0.89 from $0.77 in the comparable quarter of the previous year. Revenue totaled $3.55 billion, 25% higher than the previous year's net sales of $2.84 billion. Analysts, on average, expected the company to post earnings of $0.88 per share on revenue of $3.63 billion. In the quarter, GAAP gross profit margin rose to 54.3% from 52.5% a year ago.
Global in-market sales of Teva's flagship product Copaxone- the world's leading therapy for the treatment of multiple sclerosis, was $776 million, up 38% year-over-year. In the U.S., in-market sales climbed 53% to reach $540 million from 2008. In-market sales outside the U.S. totaled $236 million, up 12% year-over-year. In local currencies, in-market sales of Copaxone outside the U.S. grew 23%.
Teva expects to double revenues by 2015, anticipating robust growth in its core generic business. For 2015, the Israel-based company plans to achieve revenue of $31 billion, and non-GAAP net income of $6.8 billion. It expects the growing worldwide demand for generic drugs to boost the growth of its core business in the U.S., as well as globally. A significant portion of the growth is expected to come from those European and international markets that are currently characterized by low generic penetration rates. It intends to strengthen its branded business further through internal R&D, licensing and other business development opportunities, and geographic expansion of its existing product portfolio. The company is also focusing on Biogenerics, which is another important growth driver, and has indicated taking significant steps to build the necessary infrastructure to accomplish its goal as a market leader in this field. Teva hopes to exceed market growth by its market leadership and competitive advantages, its high degree of back integration, the robustness of its product portfolio and track record in being first to market in the U.S. and other regions and its commitment to high quality.
Early this month, the pharmaceutical company stated that several of its US subsidiaries reached a settlement in principle to resolve claims brought by Ven-A-Care of the Florida Keys, Inc. on behalf of the United States, Texas, Florida, and California under federal and state False Claims Acts. As a result, Teva will record a charge of around $315 million in its fourth quarter results.
In December, Teva Pharmaceutical Industries and OncoGenex Pharmaceuticals (NASDAQ: OGXI) entered into a global license and collaboration agreement to develop and commercialize cancer drug candidate OGX-011. Moshe Manor, Teva's Group vice president, Global Branded Products, said, "We see OGX-011 as a key component of our branded oncology medicines franchise, expanding our pipeline of existing oncology therapeutics and broadening the future available therapies made by Teva for oncology patients and care providers."
Teva estimates that the agreement will further enhance its oncology offerings and strengthen its global branded product pipeline with a promising product candidate entering three Phase III trials involving large patient populations.
In January, the company said that the FDA has granted tentative approval for its abbreviated new drug application to market its generic version of Novartis' breast cancer treatment Femara Tablets, 2.5 mg. In November, the generic-drug maker said that the U.S. Food and Drug Administration granted it final approval to market the generic version of Tap Pharmaceutical's proton pump inhibitor Prevacid.
The company's stock currently trades at a forward P/E (fye 31-Dec-10) of 12.64 and PEG Ratio (5 yr expected) of 1.11. In terms of stock performance, Teva shares have gained 34 percent over the past year.
Disclosure: Author doesn't own any of the stocks discussed here.
