Teva Pharmaceutical Industries Limited (TEVA)
2012 Business Outlook Conference Call
December 21, 2011 8:30 am ET
Kevin C. Mannix – Vice President, Investor Relations
Shlomo Yanai – President and Chief Executive Officer
Eyal Desheh – Chief Financial Officer
William S. Marth – President and Chief Executive Officer, Americas
Gerard W.M. Van Odijk – President and Chief Executive Officer, Europe
Ken Cacciatore – Cowen and Company
Gregg Gilbert – Bank of America/Merrill Lynch
Marc Goodman – UBS
Elliot Wilbur – Needham & Company
Ronny Gal – Alliance Bernstein
John Boris – Citi
Michael Faerm – Credit Suisse - North America
Louise Chen – Colling Stewart LLC
Randall Stanicky – Canaccord Genuity
Tim Chiang – CRT Capital Group LLC
David Amsellem – Piper Jaffray
Previous Statements by TEVA
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Good day, ladies and gentlemen, and welcome to the Teva 2012 Business Outlook Conference Call. My name is [Eiena] and I’ll be the operator for today. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. (Operator Instructions) As a remainder, today's conference is being recorded for replay purposes.
I would now like to turn the conference over to your host, Mr. Kevin Mannix, Vice President, Investor Relations. Please proceed.
Kevin C. Mannix
Thank you, operator. Good morning and good afternoon everyone. Thank you for joining us today to review Teva’s 2012 Business Outlook. I'm joined today by our CEO, Shlomo Yanai, our Chief Financial Officer Eyal Desheh, Bill Marth, President and CEO of Teva Americas and Dr. Gerard Van Odijk, President and CEO of Teva, Europe.
Shlomo and I will start by providing an overview of our outlook for 2012 and then we will open the call for a question and answer period. Before we start, I’d like to remind you that our discussions during this conference will include forward-looking statements. Actual results could differ materially from those projected in the forward-looking statements and the factors that could cause actual results to differ are discussed in Teva’s 2010 report on Form 20-F.
Also, we are presenting non-GAAP data, which excludes the amortization of purchased intangible assets, costs related to certain regulatory actions, inventory step-up, legal settlements and reserves, impairment and related tax effects. And these are amounts that we cannot predict at this point.
As mentioned in the past, we present these non-GAAP figures to show you how we, the management team and our Board look at our financial data.
I’ll now turn the call over to Shlomo Yanai, President and CEO of Teva. Shlomo, if you would please.
Thank you, Kevin. Welcome everyone and thank you for joining us today to review our financial guidance for full-year 2012.
As mentioned in our third quarter call, we recognized that it is important this year to provide early an increased transparency regarding our expectations for the upcoming year. We look forward to doing that on this call by providing a new level of detail that would assist investors and analysts to better understand our business activities.
Teva today combines the leading global generic company with a world-class specialty Pharma business and a new OTC joint venture. As such, Teva is uniquely positioned to capitalize on the attractive dynamics of a growing generic market, aging population, governments under economic pressure to provide less expensive health care, legislative reform and decision power moving to payers.
With the largest product offering in the industry, economics of scale, extensive geographic reach and globally integrated infrastructure more than any other pharmaceutical company, Teva is best prepared to take advantage of these new market realities.
Throughout 2011, we have made great strides in achieving our goals which set us up for strong growth year. 2012 will be highlighted by total sales of approximately $22 billion and EPS in the range of $5.48 to $5.68.
In just a few minutes, Eyal will provide more color on our financial outlook for the year. But before turning the call over to Eyal, I would like to make a few brief comments on our different market sectors.
And let me start with the U.S., the U.S. remains Teva's largest and most important generic market. Indeed, the U.S. generic market is the largest generic market in the world and is expected to remain so for the foreseeable future. We have been the number one player in this market for almost a decade, and Teva is committed to remain in this position for years to come. 2011 has been a tough year for all the U.S. generics business as we experienced a decline in sales for a variety of reasons.
We see 2012 as a pivotal year, where we anticipate an unprecedented number of patent expirations and product launches. And where many of those products launches come with robust competition, we will compete effectively and increase our share in that market. Through our commitment to service level excellence, world-class R&D, and deep reach customer relations, we expect to grow faster than the market in 2012.
Europe continues to be a success story for Teva. We are the number one generic company in Europe, and we expect to grow faster than the market in 2012. On the back of a record number of over 400 launches, our pan-European diversity is best-in-class, as we had a balanced presence in 27 European countries. We expect to further solidify our leadership in Germany, where as you know, we reached the number one position in value since September this year. This comes on top of our leadership position in other major European markets like UK, Italy and Spain.
In our emerging market business, we are expecting a combination of double-digit growth in 2012. Following the completion of the Taiyo acquisition, we are now the number three generic player in Japan, with the aspiration to become the leading generic player. At the same time, we continue to see growth across the globe, most notably in Russia and Latin America.
We continue to see great potential for further geographic diversification. Although we're not expecting any major acquisitions in 2012, we may make some smaller complementary partnerships, alliances or acquisitions in emerging markets.