Teva provides 2014 financial outlook expecting big hit from Copaxone generics

Israel’s Teva Pharmaceutical Industries (NYSE: TEVA), the world’s largest generic drugmaker, is itself bracing for competition from copies to its best-selling multiple sclerosis drug Copaxone (glatiramer acetate), yesterday providing its current outlook for non-generally accepted accounting principle (GAAP) financial performance for the full year ending December 31, 2014.

The company now expects sales and operating profits to come in $550 million lower in 2014 if copies of Copaxone reach the market. Prior to a Court of Appeals ruling in July, Teva had not expected generic competition until later, believing that Copaxone had patent exclusivity until November 2015.

Markets were clearly not dismayed, as Teva’s shares closed up 2.2% at $41.03 by end of trading yesterday, on a volume of 3.74 million shares.