Teva Pharmaceuticals (Nasdaq, TASE:TEVA) will earn at least $92 million in the third quarter, says its chief executive and president, after the company handily beat second-quarter 2002 profit forecasts by 10%.
"We had a very successful quarter, a record-breaker," Makov said at a press conference Monday. "We at least will be able in the third quarter to repeat the profit in the second quarter and there is a good chance of an upside," he added.
Chief Financial Officer Dan Suesskind said Teva was "comfortable with consensus estimates of 73 cents per share in the fourth quarter", Reuter adds. EPS of 68 cents in the third quarter and 73 cents in the last quarter would brings EPS for 2002 to $2.73, compared with the consensus estimate of $2.65.
The Israeli drugmaker reported sales of $572 million for the second quarter, versus the average analyst forecast of $565 million. It netted $91.9 million, up 43% from the second quarter of 2001. With earnings per share of 68 cents, it beat the average Street forecast by six cents.
The company expects to do no worse in the third quarter, declares its chief executive.
The average of current analyst predictions is for third-quarter EPS of 64 cents, and revenue of $575 million.
Teva increased its core generic drugs business in the United States, Canada and Europe and can boast the biggest pipeline in the industry, with 62 drugs awaiting Food and Drug Administration approval, Makov said.
Whether Teva will beat third-quarter forecasts depends to a degree on two drugs that the company hopes to begin marketing in the third quarter: anti-inflammation treatment Augmentin and the anti-depressant remeron.
Remeron is the generic version of Mirtazapine, an oral antidepressant made by Akzo Nobel. Its marketing depends on the outcome of a lawsuit by Holland-based Organon, and Akzo Nobel, which claim infringement of their patent.
Regarding Augmentin, Teva won the court's support to market the generic version in the U.S., after the expiry of Glaxo SmithKline's patent. Rival drug company Geneva said it has started to sell Augmentin. Teva has not provided a precise picture of when it will start to compete. Teva CFO Dan Suesskind said in the past that Geneva, or even the addition of another competitor, do not worry Teva because Augmentin commands a market of $1.5 billion a year.
While in the past Teva expanded its marketing through strategic partnerships in order to diversify risk, Makov sees it forging ahead alone in the United States, while continuing with teamwork in Europe, he said today.
Teva has set itself a target of doubling sales every four years and doubling profit every three years, Suesskind said.
Global sales of Copaxone, a treatment for multiple sclerosis and Teva's largest product, totalled $130 million in the second quarter. Analysts had forecast Copaxone sales would amount to $115 million in the second quarter and $472 million in all of 2002.
The company declared a dividend for the second quarter of 0.43 shekel (9.1 cents) per American depositary receipt. Suesskind said Teva in the second quarter was the most active ADR on Nasdaq and the seventh most active in U.S. markets, with the top six listed on the New York Stock Exchange.