Teva's 2nd-qtr 2010 profits leap 53%, boosted by strong US sales

Israeli generics giant Teva Pharmaceutical Industries posted a massive 53% leap in second-quarter 2010 net profit, excluding one-time items partly due to acquisition expenses, of $981 million, or $1.08 per diluted share. Net sales of $3.8 billion for the quarter of 2010, represented 12% year-on-year increase, fueled by organic growth.

The company saw a decrease in selling and marketing (S&M) expenses and general and administrative expenses fell by 0.8% and 4.1% year-on-year, respectively for the second quarter. The decrease in S&M expenses is attributable primarily to the termination of payments to France's Sanofi-Aventis in connection to North American sales of Copaxone (glatiramer acetate injection) as of the beginning of the quarter. This was, however, offset by higher royalty payments in connection with new and recently launched generic products in the USA, while foreign exchange rate fluctuations negatively affected the second quarter's net sales by around $52 million, but had a negligible effect on the company's operating income.

Geographical sales were especially strong in the North American market, accounting for 65% of total sales - a 17% y/y increase. Despite the difficult European market the company still registered 4% y/y growth accounting for 21% of total sales. The increase in North American quarterly sales resulted from the launch of generic versions of Hyzaar (losartan potassium-hydrochlorothiazide), Cozaar (losartan potassium) and Yaz (drospirenone and ethinyl estradiol), as well as continued strong sales of generic versions of Pulmicort Respules (budesonide), Mirapex (pramipexole) and Eloxatin (oxaliplatin) launched in previous quarters. Quarterly global in-market sales of Copaxone were $773 million, up 13%.