Teva Pharmaceutical (TEVA) said this morning that total third-quarter revenue grew from a year ago due to its $40.5 billion acquisition of Allergan's (AGN) generics business, Actavis Generics, though sales of specialty medicines were down year over year. (Allergan is a holding in the Action Alerts PLUS charitable trust portfolio.)
Shares were falling roughly 3% to $39.72 in premarket trading on Tuesday.
The Israeli pharmaceutical company reported revenue that rose 15% to $5.56 billion in the most recent period, but missed the FactSet consensus of $5.71 billion.
Sales of generic medicines increased to $2.90 billion from $2.20 billion a year ago, driven by the inclusion of $887 million of the Actavis generics business. Revenue within the specialty medicines segment fell to $2.05 billion from $2.18 billion, as the unit was negatively impacted by a drop in sales within Teva's core therapeutic areas.
Research and development costs surged 84% to $663 million in the quarter, primarily due to the $250 million paid to Regeneron Pharmaceuticals (REGN) to develop and commercialize its pain medication fasinumab.
Adjusted earnings of $1.31 per share were down from $1.35 per share a year prior. Analysts were modeling adjusted earnings of $1.28 a share.
For the full year, Teva now expects to report adjusted earnings between $5.10 and $5.20 per share on revenue between $21.6 billion and $21.9 billion. The company had previously anticipated adjusted earnings between $5.20 and $5.40 a share on revenue between $22.0 billion and $22.5 billion.