Bethel Finance: Strong growth at Teva as Yanai era ends

www.bethelfinance.com Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) reported strong growth in revenue and profit for the first quarter of 2012, as CEO Shlomo Yanai left the company today. Teva reported net revenue of $5.1 billion, up 25% from $4.1 billion in the corresponding quarter of 2011. Non-GAAP profit was $1.3 billion ($1.47 per share) up 39% from $900 million (1.04 per share) in the first quarter of 2011. Teva president and CEO Shlomo Yanai said, “After five extremely rewarding years as Teva’s CEO, I will be stepping down today. It has been an immense privilege to lead Teva’s outstanding global team through such an exciting period. Together we turned Teva into a highly diversified global pharmaceutical company, with an expanded geographical footprint and additional lines of business. Over the last few months I have had the great pleasure of working closely with my successor, Dr. Jeremy Levin, to ensure a smooth transition. I am very confident that Jeremy will lead Teva to even new heights and I wish him every success.” Commenting on the results Yanai said, “2012 is off to a good start for Teva. We enjoyed a quarter of strong growth for our branded products, in our US generics business, and in the developing markets Teva operates in. All of these served to offset weaker generics sales in Europe, which resulted primarily from the macro-economic conditions in that region." Revenue in the US in the first quarter of 2012 was $2.8 billion (54% of total revenue), up 46% from the first quarter of 2011, as a result of strong revenue of both generic products, including the launch of seven new products not sold in the first quarter of 2011, and branded products, primarily due to the inclusion of Cephalon. Revenue in Europe in the first quarter of 2012 was $1.3 billion (26% of total revenue), down 2% from the first quarter of 2011, but up 3% in local currency terms. Revenue in Europe benefited from the inclusion of Cephalon products and sales synergies following the successful integration of the acquisition, as well as stronger revenue from branded products, primarily Copaxone. Revenue in the rest of the world (including Canada, Israel, certain markets in Eastern Europe, Latin America and Asia) in the first quarter totaled $1 billion (20% of total revenue), up 21% from the first quarter of 2011. In local currency terms, this revenue grew 23%. The growth in revenue resulted primarily from the inclusion of Taiyo and Cephalon, as well as from a strong performance in Eastern Europe, Latin America and Israel. Branded products revenue in the first quarter was $2.1 billion, up 54% compared to $1.4 billion in the first quarter of 2011. The increase in branded products revenue was mainly due to the inclusion of Cephalon sales (mainly Provigil with $291 million in revenue, Treanda with $148 million and Nuvigil with $84 million). Most of Teva’s major branded products also had strong revenue. Global revenue recorded by Teva for multiple sclerosis treatment Copaxone rose 8% to $909 million from $838 million in the first quarter of 2011. Global in-market sales of Copaxone rose 4% to $941 million. Azilect revenue recorded by Teva rose 9% to $72 million, while global in-market revenue rose 7% to $96 million. Teva will distribute a cash dividend for the first quarter of 2012 of NIS 1.00 per share. The record date will be May 21, 2012, and the payment date will be June 1, 2012. Tax will be withheld at a rate of 25%.