|Generic Medicine Segment|
|Three Months Ended March 31,||Percentage Change|
|2014||2013||2014 - 2013|
|U.S.$ in millions / % of Segment Revenues|
|* Segment profitability consists of gross profit, less S&M and R&D expenses related to the segment.Segment profitability does not include G&A expenses, amortization and certain other items.We recently changed the classification of certain of our products. The data presented have beenconformed to reflect the revised classification for all periods.|
- U.S. revenues of $1.0 billion, an increase of 17% compared to the first quarter of 2013. The increase resulted mainly from the exclusive launch of capecitabine (Xeloda ®), the launch of tolterodine tartrate (Detrol ®) and higher sales of budesonide inhalation (Pulmicort ®) as well as products that were sold in 2014 and not sold in the first quarter of 2013, the largest of which were niacin ER (Niaspan ®) and tobramycin (Tobi ®). These increases were partially offset by declines in other products due to loss of exclusivity or additional competition, the most significant of which were amphetamine salts (Adderall ®), fenofibrate (Tricor ®) and clonidine patch (Catapres TTS ®).
- European revenues of $818 million, a decrease of 4%, or 7% in local currency terms, compared to the first quarter of 2013. The decrease in revenues was due to lower sales of API to third parties and of generic medicine in certain markets, as we pursue our strategy of profitable and sustainable business in the region, and take a selective approach to the tender market. Results in central and eastern Europe were affected by the mild winter season.
- ROW revenues of $532 million, a decrease of 9%, but an increase of 1% in local currency terms, compared to the first quarter of 2013. The increase in local currency terms was driven by higher sales in Latin America and Canada, largely offset by a decline in Russia, which was affected by the mild winter season. Our ROW markets were impacted significantly by the weakening of various local currencies compared to the U.S. dollar.