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Teva Reports Fourth Quarter and Full Year 2013 Results

Fri, 02/07/2014 - 8:14am

 

Teva Pharmaceutical Industries Ltd. today reported results for the quarter and year ended December 31, 2013.

“Teva is reporting today strong results for the fourth quarter of 2013, bringing to close a year largely in-line with our expectations. During 2013, we had several key product launches, driven by a strong pipeline, which will continue to bear notable results in 2014, starting with the launch of COPAXONE 40mg/mL,” stated Eyal Desheh, Acting President and CEO of Teva. “We continue to focus our efforts on our core R&D programs and go-to-market activities while increasing organizational effectiveness through our cost-reduction program to ensure Teva's growth and its role as a leader in the ever-changing pharmaceutical industry. 2013 was an important year for Teva and its shareholders. Many seeds were planted to ensure our long-term success and prosperity. 2014 will be a pivotal year in terms of execution and further enhancement of our strategic direction.”

Revenues for the three months ended December 31, 2013, were $5.4 billion, an increase of 3% compared to the fourth quarter of 2012. In local currency terms, revenues increased 4%. The increase was primarily attributable to higher sales of generic medicines in the U.S. and higher revenues from our global specialty medicines business, as well as higher sales of OTC products. This increase was partially offset by a decrease in generics sales outside the U.S., mostly in Japan, due to the weaker yen, and API sales to third parties.

Revenues by Segment for the Fourth Quarter 2013

                     
    Three Months Ended

December 31,

         

Percentage
Change

 

Percentage
Change

    2013   2012   % of 2013   % of 2012   2013-2012  

2013 from
2012

    U.S. $ in millions              

in local
currencies

Generic Medicines                        
United States   1,178   1,034   22%   20%   14%   14%
Europe*   940   955   17%   18%   (2%)   (5%)
Rest of the World   579   673   11%   13%   (14%)   (2%)
Total Generic Medicines   2,697   2,662   50%   51%   1%   3%
Specialty Medicines                        
United States   1,540   1,527   28%   29%   1%   1%
Europe*   463   422   8%   8%   10%   5%
Rest of the World   201   157   4%   3%   28%   36%
Total Specialty   2,204   2,106   40%   40%   5%   4%
Other Revenues                        
United States   69   60   1%   1%   15%   15%
Europe*   196   181   4%   3%   8%   6%
Rest of the World   264   240   5%   5%   10%   14%
Total Other Revenues   529   481   10%   9%   10%   11%
Total Revenues   5,430   5,249   100%   100%   3%   4%
                         

* All members of the European Union, Switzerland, Norway, Albania and the countries of former Yugoslavia.

Generic medicines net revenues in the fourth quarter were $2.7 billion (including API sales to third parties of $163 million), an increase of 1% compared to the fourth quarter of 2012. In local currency terms, revenues increased 3%. Generic revenues consisted of:

  • U.S. revenues of $1.2 billion, an increase of 14% compared to the fourth quarter of 2012. The increase resulted mainly from the exclusive launches of niacin ER, the generic version of Niaspan ®, and temozolomide, the generic version of Temodar ®, in the third quarter of 2013, and launches of duloxetine, the generic version of Cymbalta ®, and tobramycin, the generic version of Tobi ®, in the fourth quarter of 2013, as well as higher sales of budesonide inhalation, the generic version of Pulmicort ®.
  • European revenues of $940 million, a decrease of 2%, or 5% in local currency terms, compared to the fourth quarter of 2012. The decrease was mainly due to our strategic focus on profitable and sustainable business in Germany and Spain and a contraction of the market for generics in France, as well as lower API sales to third parties. The decrease was partially offset by higher revenues in the U.K. and Italy.
  • Rest of the World ("ROW") revenues of $579 million, a decrease of 14%, or 2% in local currency terms, compared to the fourth quarter of 2012. The decrease was primarily due to lower sales in Russia, due to a particularly weak winter season, and Japan, mainly because of the weakening of the yen.

Generics medicines comprised 50% of total revenues in the quarter, compared to 51% in the fourth quarter of 2012.

           
    Three Months Ended

December 31,

 

Percentage
Change

 
    2013   2012   % of 2013   % of 2012  

2013 from
2012

 
    U.S. $ in millions              
                       
Generic Medicines   $ 2,697   $ 2,662   50%   51%   1%  
API     163     202   3%   4%   (19%)  
                           

Specialty medicines net revenues in the fourth quarter were $2.2 billion, an increase of 5% compared to $2.1 billion in the fourth quarter of 2012. Specialty revenues consisted of:

  • U.S. revenues of $1.5 billion, an increase of 1% compared to the fourth quarter of 2012.
  • European revenues of $463 million, an increase of 10%, or 5% in local currency terms, compared to the fourth quarter of 2012.
  • ROW revenues of $201 million, an increase of 28%, or 36% in local currency terms, compared to the fourth quarter of 2012.

Specialty medicines comprised 40% of total revenues in the quarter, the same as in the fourth quarter of 2012.

The increase in specialty medicines revenues over the fourth quarter of 2012 was primarily due to increased sales of COPAXONE ® and TREANDA ®, partially offset by lower sales of respiratory and women’s health medicines.

Global revenues recorded by Teva for COPAXONE ®, the leading multiple sclerosis therapy in the U.S. and globally, increased 8% during the quarter both in U.S. dollar terms and in local currency terms to $1,142 million, compared to $1,059 million in the fourth quarter of 2012. The increase primarily resulted from higher sales in Russia and Germany. In the U.S., sales decreased 2% to $805 million, as a result of increased competition from oral MS therapies, partially offset by a price increase. Sales outside the U.S. were $337 million, an increase of 42%, or 43% in local currency terms, compared to the fourth quarter of 2012, primarily due to the timing of tenders in Russia and higher sales in Germany.

AZILECT ® revenues recorded by Teva this quarter increased 14% to $98 million, while global in-market revenues increased 18% to $133 million, primarily due to increased demand in the U.S. and Europe.

TREANDA ® revenues amounted to $177 million in the quarter, an increase of 10% over the comparable quarter, due to increases in both volume and price.

Respiratory medicines revenues were $238 million this quarter, a decrease of 7% from the comparable quarter of 2012. The decrease was primarily due to lower revenues in Europe, mainly as a result of pricing pressure.

Women’s Health products revenues were $127 million this quarter, a decrease of 4% from $132 million in the comparable quarter of 2012. The decrease was primarily due to decreased sales of PARAGARD ® in the U.S., partially offset by higher sales of other Women’s Health products.

       
    Three Months Ended

December 31,

Percentage
Change

    2013   2012   % of 2013   % of 2012  

2013 from
2012

    U.S. $ in millions            
                     
Specialty Medicines   2,204   2,106   40%   40%   5%
CNS   1,456   1,340   27%   26%   9%
Copaxone®   1,142   1,059   21%   20%   8%
Azilect®   98   86   2%   2%   14%
Nuvigil®   76   78   1%   1%   (3%)
Provigil®   26   25   §   §   4%
Oncology   261   233   5%   4%   12%
Treanda®   177   161   3%   3%   10%
Respiratory   238   256   4%   5%   (7%)
ProAir®   114   120   2%   2%   (5%)
Qvar®   89   92   2%   2%   (3%)
Women's Health   127   132   2%   2%   (4%)
Other Specialty   122   145   2%   3%   (16%)
                     
§ Less than 0.5%.                    

Other net revenues include:

  • OTC net revenues in the quarter were $316 million, an increase of 17%, or 21% in local currency terms, compared to $269 million in the fourth quarter of 2012, primarily due to higher sales from our PGT Healthcare joint venture.
  • Other net revenues in the quarter were $213 million, mostly from the distribution of third-party products in Israel and Hungary, compared to $212 million in the fourth quarter of 2012. In local currency terms, revenues decreased by 2%.
       
    Three Months Ended

December 31,

Percentage
Change

    2013   2012   % of 2013   % of 2012  

2013 from
2012

    U.S. $ in millions            
                     
All Others   529   481   10%   9%   10%
OTC   316   269   6%   5%   17%
Other Revenues   213   212   4%   4%   §
                     
§ Less than 0.5%.                    
                     

Revenues by Geography for the Fourth Quarter 2013

Net revenues in the U.S. in the fourth quarter were $2.8 billion (51% of total revenues), an increase of 6% compared to the fourth quarter of 2012, driven primarily by higher sales of both generic and specialty medicines.

Net revenues in Europe in the fourth quarter were $1.6 billion (29% of total revenues), an increase of 3% compared to the fourth quarter of 2012, or 1% decrease in local currency terms. Revenues in Europe this quarter benefited from stronger revenues from specialty medicines, primarily COPAXONE ®, as well as increased sales from our OTC business, partially offset by lower generic revenues.

Net revenues in the ROW in the fourth quarter totaled $1.0 billion (20% of total revenues), a decrease of 2% compared to the fourth quarter of 2012, mainly due to negative foreign currency effects. In local currency terms, ROW revenues increased 7%, mainly as a result of higher revenues in Russia, Latin America and Israel, partially offset by lower revenues in Japan.

    Year Ended December 31,          

Percentage
Change

 

Percentage
Change

    2013   2012   % of 2013   % of 2012   2013-2012  

2013 from
2012

    U.S. $ in millions              

in local
currencies

Generic Medicines                          
United States   4,181   $ 4,381   21%   22%   (5%)   (5%)
Europe*   3,485     3,482   17%   17%   §   (2%)
Rest of the World   2,240     2,522  

11%

  12%   (11%)   (1%)
Total Generic Medicines   9,906     10,385   49%   51%   (5%)   (3%)
Specialty Medicines                          
United States   6,026     5,857   30%   29%   3%   3%
Europe*   1,706     1,575   8%   8%   8%   6%
Rest of the World   670     718   3%   3%   (7%)   (3%)
Total Specialty   8,402     8,150   41%   40%   3%   3%
Other Revenues                          
United States   254     200   1%   1%   27%   27%
Europe*   797     741   4%   4%   8%   6%
Rest of the World   955     841   5%   4%   14%   16%
Total Other Revenues   2,006     1,782   10%   9%   13%   12%
Total Revenues   20,314     20,317   100%   100%   §   1%
                           
* All members of the European Union, Switzerland, Norway, Albania and the countries of former Yugoslavia.
§ Less than 0.5%.
 

Revenues by Segment for Full Year 2013

Generic medicines net revenues in 2013 were $9.9 billion (including API sales to third parties of $692 million), a decrease of 5% compared to $10.4 billion in 2012. Generic revenues consisted of:

  • U.S. revenues of $4.2 billion, a decrease of 5% compared to 2012. The decrease mainly reflected the absence of royalties related to sales of atorvastatin, the generic equivalent of Lipitor ® under our agreement with Ranbaxy, which we received in the first half of 2012, a decline in sales of escitalopram oxalate, the generic version of Lexapro ®, to which we had exclusive rights in the first half of 2012, and a decline in sales of generic versions of Actos ® (pioglitazone) and Actoplus met ® (pioglitazone/ metformin), which were launched in the third quarter of 2012.
  • European revenues of $3.5 billion, flat compared to 2012, or a 2% decrease in local currency terms. The decrease in local currency terms mainly resulted from lower sales in Germany and Spain, as well as lower sales of APIs.
  • ROW revenues of $2.2 billion, a decrease of 11%, or 1% in local currency terms, compared to 2012. The decrease was mainly due to lower revenues in Japan, partially offset by higher revenues in Russia and Latin America markets.

Generics medicines revenues comprised 49% of total revenues for the year, compared to 51% in 2012.

           
    Year Ended December 31,  

Percentage
Change

 
    2013   2012   % of 2013   % of 2012  

2013 from
2012

 
    U.S. $ in millions              
                       
Generic Medicines   $ 9,906   $ 10,385   49%   51%   (5%)  
API   692   796   3%   4%   (13%)  
                       

Specialty medicines net revenues in 2013 were $8.4 billion, an increase of 3% compared to $8.2 billion in 2012. Specialty revenues consisted of:

  • U.S. revenues of $6.0 billion, an increase of 3% compared to 2012.
  • European revenues of $1.7 billion, an increase of 8%, or 6% in local currency terms compared to 2012.
  • ROW revenues of $670 million, a decrease of 7%, or 3% in local currency terms compared to 2012.

Specialty medicines revenues comprised 41% of total revenues for the year, compared to 40% in 2012.

The increase in specialty medicines revenues from 2012 was due to higher sales of several specialty medicines, primarily COPAXONE ®, TREANDA ®, AZILECT ®, QVAR ® and ProAir ®, partially offset by a decrease in Provigil ® sales due to its loss of exclusivity.

Global revenues recorded by Teva for COPAXONE ®, the leading multiple sclerosis therapy in the U.S. and globally, increased 8% to $4.3 billion, compared to $4.0 billion in 2012. In the U.S., sales increased 11% to $3.2 billion, as a result of increases in both price and volume. Sales outside the U.S. were $1.1 billion, an increase of 2%, compared to 2012, mainly as a result of higher revenues in certain countries in Europe.

This article has been truncated. You can see the rest of this article by visiting http://www.businesswire.com/news/home/20140206005647/en.

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