Published Date : Nov 02, 2015
Teva Pharmaceuticals, the world’s largest manufacturer of generic drugs, has reported profits in the third financial quarter of the year that have beaten estimates. The company has thus raised its forecast for the entire financial year.
Teva Pharmaceuticals, which is currently in the process of buying the generic medicines wing of the Ireland-based pharmaceutical company Allergen for US$40.5 billion and the Mexican company Rimsa for US$2.3 billion, stated on Thursday that the company had earned US$1.35 per share apart from one-time items over the period between July and September, up from the US$1.33 per share a year earlier.
Analysts had forecast that Teva will earn US$1.28 per share excluding one-time items on revenue of US$4.76 billion.
The sales of Teva’s best selling medicine for multiple sclerosis, Copaxone, fell by 2 percent and reached a valuation of US$1.09 billion. Sales of Copaxone account for nearly 20 percent of Teva’s overall revenues and nearly 50% of its profits. Now that the drug is facing competition in the market, Teva’s revenues were forecast to get dwindled over the third financial quarter of the year.
Copaxone is facing competition from the 20 mg once daily version of Copaxone, which was launched in June by Sandoz, a subsidiary of the Swiss pharma company Novartis Ag, and Momenta Pharmaceuticals.
To stem the competition from the tide of generic alternatives, Teva’s Copaxone is prescribed in a 40 mg course three times a week, which the company says accounts for nearly 76 percent of the overall Copaxone prescriptions across the United States.
Owing to the unexpected results at the end of the third quarter of this financial year, Teva has raised its estimates for this entire year to US$5.40-US$5.45 from the early estimate of US$5.14 to US$5.40 and revenue estimate from US$19.0-US$19.4 billion to US$19.4-US$19.6 billion.