antiquity
02-14-2002, 10:26 AM
Israel's Teva profits rise, strong growth seen
By Albert Robinson
TEL AVIV, Feb 14 (Reuters) - Israeli drugmaker Teva Pharmaceutical Industries Ltd <TEVA.TA> reported better than expected fourth-quarter results on Thursday and predicted strong growth, but shares stuttered on some disappointing drug trials.
The Jerusalem-based company, one of the world's largest makers of generic drugs, posted earnings of $89.3 million, or 66 cents per diluted share, before one-off items, helped by a strong rise in sales of its Copaxone multiple sclerosis drug.
That compared with $57.9 million, or 43 cents per share, in the fourth quarter of 2000.
"In the next four years we can double our top line and in the next three years we will double our bottom line," Chief Executive Officer and President Eli Hurvitz told Reuters.
"That's without acquisitions. With acquisitions our growth will be very high."
Including a one-off restructuring charge of $10 million after tax, net income for the fourth quarter was $80 million, or 59 cents per share.
Analysts' mean estimate was 61 cents per share, with estimates ranging from 59 cents to 62 cents per share, according to earnings tracking firm Thomson Financial/First Call.
"Excellent, much better than I expected," said Haim Israel, analyst at Nessuah-Zannex Securities, who had been looking for 62 cents per share.
"Teva's management can achieve a 20 percent growth rate annually. The company has what it takes to be a leader in this market."
He welcomed Teva's announcement that Chief Operating Officer Israel Makov would replace Hurvitz as president and chief executive in April while Hurvitz becomes chairman.
"He (Makov) is very experienced and it's not as if Hurvitz is disappearing, he's staying as chairman. Makov can take the company on much further."
SHARE FALLS
Teva's Tel Aviv share price closed down 0.2 percent at 280.2 shekels compared with a fall on the broader market of 0.5 after earlier falling by more than one percent. Teva's Nasdaq shares were up 52 cents, or 0.9 percent, at $60.51 in early trading.
Analyst Kobbi Finkelstein of Investec Clali said the dull share price could be due to continuing disappointment over trial results for an oral version of Copaxone announced on Wednesday.
Teva's fourth quarter revenues rose to $567.1 million from $518.5 million. North America accounted for 64 percent of sales and Europe for 21 percent.
For the full year, net profit, excluding the one-time charges totalled $288 million or $2.11 per diluted share, compared with $184 million or $1.41 a share in 2000.
Sales in 2001 rose 19 percent to $2.08 billion while sales of Copaxone increased 47 percent to $363 million.
Gross profit margin was 42.3 percent in the fourth quarter from 39.7 percent in the same period of 2000, reflecting an improved product mix and synergies throughout the company.
Teva's board declared a fourth quarter dividend of 0.43 shekels per share, or about 9 cents per American depositary receipt.
($1 = 4.64 shekels)
10:41 02-14-02
By Albert Robinson
TEL AVIV, Feb 14 (Reuters) - Israeli drugmaker Teva Pharmaceutical Industries Ltd <TEVA.TA> reported better than expected fourth-quarter results on Thursday and predicted strong growth, but shares stuttered on some disappointing drug trials.
The Jerusalem-based company, one of the world's largest makers of generic drugs, posted earnings of $89.3 million, or 66 cents per diluted share, before one-off items, helped by a strong rise in sales of its Copaxone multiple sclerosis drug.
That compared with $57.9 million, or 43 cents per share, in the fourth quarter of 2000.
"In the next four years we can double our top line and in the next three years we will double our bottom line," Chief Executive Officer and President Eli Hurvitz told Reuters.
"That's without acquisitions. With acquisitions our growth will be very high."
Including a one-off restructuring charge of $10 million after tax, net income for the fourth quarter was $80 million, or 59 cents per share.
Analysts' mean estimate was 61 cents per share, with estimates ranging from 59 cents to 62 cents per share, according to earnings tracking firm Thomson Financial/First Call.
"Excellent, much better than I expected," said Haim Israel, analyst at Nessuah-Zannex Securities, who had been looking for 62 cents per share.
"Teva's management can achieve a 20 percent growth rate annually. The company has what it takes to be a leader in this market."
He welcomed Teva's announcement that Chief Operating Officer Israel Makov would replace Hurvitz as president and chief executive in April while Hurvitz becomes chairman.
"He (Makov) is very experienced and it's not as if Hurvitz is disappearing, he's staying as chairman. Makov can take the company on much further."
SHARE FALLS
Teva's Tel Aviv share price closed down 0.2 percent at 280.2 shekels compared with a fall on the broader market of 0.5 after earlier falling by more than one percent. Teva's Nasdaq shares were up 52 cents, or 0.9 percent, at $60.51 in early trading.
Analyst Kobbi Finkelstein of Investec Clali said the dull share price could be due to continuing disappointment over trial results for an oral version of Copaxone announced on Wednesday.
Teva's fourth quarter revenues rose to $567.1 million from $518.5 million. North America accounted for 64 percent of sales and Europe for 21 percent.
For the full year, net profit, excluding the one-time charges totalled $288 million or $2.11 per diluted share, compared with $184 million or $1.41 a share in 2000.
Sales in 2001 rose 19 percent to $2.08 billion while sales of Copaxone increased 47 percent to $363 million.
Gross profit margin was 42.3 percent in the fourth quarter from 39.7 percent in the same period of 2000, reflecting an improved product mix and synergies throughout the company.
Teva's board declared a fourth quarter dividend of 0.43 shekels per share, or about 9 cents per American depositary receipt.
($1 = 4.64 shekels)
10:41 02-14-02