Israel-based group Teva Pharmaceutical today has reported its second quarter financial results. EPS was $0.78, instead of the expected $0.64, however revenues were $4.7bn (-18%), instead of the expected $4.74bn. Cash flow was $0.6bn and the price cut plan has already helped Teva save $1bn. The plan has reduced the huge debt caused by the previous management–from $30.2bn to the current $28.4bn. The multiple sclerosis blockbuster Copaxone, which has recently lost its patent protection, is losing market share more slowly than expected, despite competitor Mylan has drastically lowered the price for its generic version of Copaxone. Copaxone is likely to reach $2bn in sales in 2018, Teva’s analysts say. On the occasion, the group’s CFO has improved the profitability estimates for the second time this year. Concern has spread (-28%) due to the revenues in the US, the most important generic market. Although Teva appears on track, investors have not welcomed the generics’ price drop and the revenues drop in the US, indeed shares declined by 8%.
(Source: TEVA Transcript)