Product launches, Cephalon acquisition drive Teva's Q1 revenues

JERUSALEM — Net revenues for Teva rose more than 24% for the first quarter ended March 31, thanks to new drug launches and the company's acquisition of drug maker Cephalon.

First-quarter net revenues totaled $5.1 billion, compared with $4.1 billion in the year-ago period, while net income and earnings per share totaled $1.3 billion and $1.47 diluted earnings per share, an increase of 39% and 41%, respectively, compared with first quarter 2011.

For its generic business, Teva reported net revenues in the first quarter were $2.6 billion (including API net revenues of $199 million), an increase of 12%, compared with $2.3 billion in the first quarter of 2011, thanks to the launch of such products as escitalopram, modafinil, progesterone, irbesartan and irbesartan/HCTZ, quetiapine and olanzapine ODT. Teva also said its U.S. generics business continued to benefit from its agreement with fellow generic drug maker Ranbaxy relating to the launch of generic Lipitor.

Teva also noted an "inventory step-up" due to its acquisition of Cephalon ($56 million). Teva added that it realized an increase in branded products revenues, primarily due to the inclusion of Cephalon sales (i.e., Provigil with $291 million in revenues, Treanda with $148 million and Nuvigil with $84 million).

"2012 is off to a good start for Teva," Teva president and CEO Shlomo Yanai said. "We enjoyed a quarter of strong growth for our branded products, in our U.S. 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 macroeconomic conditions in that region."

Yanai retired from his post at the company this month, being replaced by former Bristol-Myers Squibb executive Jeremy Levin.

"It has been an immense privilege to lead Teva’s outstanding global team through such an exciting period," Yanai said. "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."

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