from the June 2010 issue

Teva beats earnings estimate

Strong sales of its multiple sclerosis drug Copaxone helped Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) beat analyst estimates in a strong first quarter.

Revenue for the quarter was $3.65 billion, 16% higher than the corresponding quarter of 2009.

Non-GAAP net profit was $830 million ($0.91 per share). The earnings per share figure was 28% higher than the first quarter of 2009. Analysts had expected $0.89 per share for this quarter.

Teva reported record quarterly global in-market sales of Copaxone of $796 million, 28% higher than the corresponding quarter of 2009.

North America sales in the first quarter, rose 20% compared with the corresponding quarter, to $2.31 billion, and accounted for 63% of total sales. Teva said the increase in quarterly sales resulted from the launch of a generic version of Mirapex in the quarter, as well as the continued strong sales of generic versions of Adderall XR, Pulmicort Respules, Accutane, and Eloxatin launched in previous quarters. The quarter's sales also reflected continued strong sales of Copaxone.

As of April 26, 2010, Teva had 210 product applications awaiting final FDA approval, including 44 tentative approvals. Collectively, the brand products covered by these applications had annual U.S. sales of over $113 billion. Of these applications, 133 were Paragraph IV applications challenging patents of branded products. Teva believes it is the first to file on 83 of the applications, which represent products with annual US branded sales of more than $50 billion.

First quarter sales in Europe were $812 million, 22% of total sales. Sales in Europe rose 10% compared with the corresponding quarter of 2009. Teva attributed the rise to higher sales of Copaxone and Azilect. As of March 31, 2010, Teva had approximately 3,207 marketing authorization applications pending approval in 30 European countries.

Sales outside North America and Europe rose 10%, mainly due to sales growth in Israel and Russia, and reached $532 million, 15% of total sales.

Teva said Copaxone remains the number one multiple sclerosis therapy in the world. Global sales were $796 million. In the US, quarterly in-market sales increased 19% from the corresponding quarter to $513 million. In-market sales outside the US jumped 48% to $283 million. Global in-market sales of Azilect reached a record $77 million in the quarter, a 40% increase over the comparable period in 2009. Teva said sales growth both outside the US (primarily in Spain, Italy, Turkey and France) and in the US contributed to the increase in in-market sales in the first quarter of 2010.

Reprinted from the Israel High-Tech & Investment Report June 2010

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