Profits for generics’ giant Teva soar

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Profits for generics’ giant Teva soar

Generics/News | Posted 31/01/2011 0 Post your comment

Israel-based generics’ giant Teva Pharmaceutical Industries has reported a third quarter 2010 profit rise of 47%, mainly attributed to sales of its multiple sclerosis drug Copaxone (glatiramer acetate), its acquisition of Ratiopharm and generic launches in the US.

Earnings climbed from US$806 million in the third quarter of 2009 to US$1.18 billion, while profits rose above the average estimate of US$1.27 per share.

Total net sales increased by 20% to US$4.25 billion compared to US$3.55 billion in the same period in 2009.

Sales in North America in the third quarter reached US$2,724 million, accounting for 64% of total sales and representing an increase of 22% compared to the third quarter of 2009.

Sales in Europe in the third quarter of 2010 totalled US$1,001 million, accounting for 24% of total sales and representing an increase of 21% compared to the third quarter of last year.

Teva completed its acquisition of Ratiopharm for approximately US$4.95 billion in August 2010 as a means to reduce its dependence on its Copaxone treatment, used to treat multiple sclerosis in the US. The drug is responsible for approximately 19% of the company’s sales and now faces competition from Novartis’ Gilenya pill-based alternative.

Since the beginning of 2010, Teva has received 1,461 generic approvals in Europe relating to 174 compounds in 351 formulations, including five European Commission approvals valid in all EU member states. In addition, Teva has currently 3,706 marketing authorisation applications pending approval in 30 European countries, relating to 287 compounds in 583 formulations, including nine applications pending with the EMA.

Teva currently has 203 product applications awaiting final FDA approval, including 45 tentative approvals. Collectively, the brand products covered by these applications had annual US sales of over US$118 billion. Of these applications, 134 were ‘Paragraph IV’ applications challenging patents of branded products. Teva believes it is the first to file on 83 of the applications, relating to products with annual US branded sales exceeding US$55 billion.

Source: Teva