Strong U.S. and international sales of its generic drugs sent second-quarter earnings higher for Israeli-based Teva Pharmaceutical Industries, the world's largest generic drugmaker. U.S. generic sales rose 10% in the quarter, while overall generic revenue was up 5%, and generic profitability rose 41%, the Jerusalem-based pharmaceutical
Net income for the quarter hit $748 million, compared with a $452 million loss in the same period last year. Total company revenue for the quarter reached $5 billion, compared with $4.9 billion in the second quarter of 2013, Teva reported.
“We are pleased with the results of the second quarter of 2014, delivering organic growth in revenues and all profit lines over the comparable quarter last year. Our generic business delivered solid results, with significantly improved profitability,” said Teva CEO Erez Vigodman.
Turning to the company's specialty business, Vigodman noted that “we have successfully converted, to date, 51% of the Copaxone family in the U.S. to the newly launched Copaxone 40mg/mL, and are continuing to stably lead the global and U.S. relapsing-remitting multiple-sclerosis market.” Teva's patent for Copaxone has been the subject of a fierce U.S. court battle
Also during the quarter, Teva created a new global generics group and engaged in cost-cutting measures which “yielded additional net savings,” Vigodman said.
Vigodman became Teva's CEO earlier this year after the ouster of its former chief executive
, who was not Israeli, as Vigodman is.
U.S. gross profits from generics hit $1.05 billion in the quarter, compared with $989 million in the same period past year. In its latest earnings release, Teva stated, “The increase resulted mainly from a full quarter of sales of capecitabine (the generic equivalent of Xeloda), which was launched exclusively in March of 2014, and the launch of omega-3-acid ethyl esters (the generic equivalent of Lovaza), for which we were first to market.”
Six-month net income hit $1.5 billion, compared with $178 million in the first six months of 2013. Six-month revenue worldwide reached $10 billion, compared with $9.8 billion in the same period last year.Follow John N. Frank on Twitter: @MHJFrank