Teva Pharmaceutical Industries (TEVA), the world's leading generic pharmaceuticals company, is scheduled to report Q4 FY2009 results on Tuesday, February 16, 2010. In the last four quarters ending September 2009, the company's earnings bettered the analysts' estimates comfortably.
The company also offers proprietary branded pharmaceuticals, biopharmaceuticals, veterinary pharmaceutical products and active pharmaceutical ingredients (APIs). The company has direct operations in over 60 countries in Americas, Europe, Asia and Israel. Its operational infrastructure includes manufacturing sites in 17 countries, 20 API manufacturing sites and 20 generic R&D centers around the world. Teva primarily operates through two segments: pharmaceuticals and API.
As of October 23, 2009, Teva had 210 product applications awaiting final FDA approval, including 40 tentative approvals. Collectively, the brand products covered by these applications had annual U.S. sales of over $113 billion. Of these applications, 136 were "Paragraph IV" applications challenging patents of branded products. In Q3 2009, for the first time, the company crossed the billion dollar mark in quarterly cash flow from operations. All of its business units and geographies grew during the quarter, with especially strong sales of Copaxone®, which continued to strengthen its position as the world's leading therapy for the treatment of multiple sclerosis, and of ProAir™, the leading Albuterol inhaler in the U.S. As a result, for the third quarter of 2009, the company reported GAAP net income of $649 million on net sales of $3.55 billion, compared to GAAP net income of $631 million on net sales of $2.84 billion in the third quarter of 2008.
Analysts' estimates for Q4 2009 range from a low of $0.92 to a high of $0.97, compared to a consensus estimate of $0.946. The consensus EPS forecast has increased over the past week from $0.943 to $0.946 (0.32%) and increased over the past month from $0.940 to $0.946 (0.64%). Of the 19 analysts making quarterly forecasts, 4 raised and none lowered their forecast.
Upward revision in the analysts' estimates is attributable to good product mix, and tight expense control. In the previous quarter, the company repaid around $800 million of debt taken to finance the acquisition of Barr. In November 2009, the company received favorable court decision regarding generic Prevacid® Solutab. Annual sales of the brand product were approximately $500 million in the United States for the twelve months that ended June 30, 2009 based on IMS sales data. In December 2009, the company signed a definitive agreement to acquire a majority of the outstanding shares of Taisho Pharmaceutical Industries, Ltd. Taisho manufactures and markets a portfolio of over 200 generic products to pharmacies, clinics, hospitals and wholesalers, through a well-established sales and marketing force.
The stock closed Friday at $56.76, compared to the 52 week range of $41.7 and $59.62. In the last one year the share price has gained more than 35.1. The company's earnings may not support further price appreciation till 2010.
