Teva reports bump from Cephalon, but struggles in U.S. generic market

Teva Pharmaceuticals reported increases in non-GAAP profit and revenue for all of 2011 and the fourth quarter, but the results were skewed for comparison purposes by the acquisition of Cephalon and the company faced challenges in the U.S. generics market.

Teva bought Cephalon for $6.8 billion, with the sale closing in October 2011.

Teva said it had $18.3 billion in GAAP net revenue for all of 2011, vs. $16.1 billion in 2010.

The GAAP net income attributable to Teva was $2.8 billion for all of 2011 compared to $3.3 billion for 2010.

Teva is based in Israel, but has its Americas headquarters in North Wales and is planning a new facility in North Philadelphia.

Teva bought Cephalon, whose headquarters is in Frazer, to diversify the company and expand it branded-drug business. Teva shareholders were concerned that it was over-reliant on the multiple sclerosis drug Copaxone, which had $3.3 billion in sales in 2011.

The company said net revenues in the United States were $8.8 billion (representing 48% of total revenues), a decrease of 6% compared to 2010, primarily as a result of fewer significant new generic launches and decreases in revenues of key generic products compared to 2010, which was partially offset by higher revenues of branded products.

Jeremy Levin was named the new chief executive officer on Jan. 1 and he will replace Shlomo Yanai this spring.

"I am pleased to report that Teva ended 2011 on a strong note, despite the challenges we faced during the year” Yanai said in a statement. “Our results demonstrate the strength of our balanced business model, with its focus on growth and increasing diversity across geographies and business lines.

“Teva’s strategy is focused on growth and on reducing dependence on any one particular market or product, and during 2011 we made important progress in reaching our strategic goals with the acquisitions of Cephalon and Taiyo, and the creation of a unique joint venture with Procter & Gamble. Our strategic achievements in 2011 provide a strong foundation for Teva’s sustainable long term growth.”

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