Teva, Valeant revenues rise but profits hurt by one-time costs
Generics giant Teva Pharmaceutical Industries saw its revenues grow 14% in the the third quarter but recorded a $79 million loss after setting aside $1.15 billion to cover special charges. It was one of a number of companies to report earnings toward the end of the week. Valeant Pharmaceuticals ($VRX) reported an 81% profit drop tied to charges for acquisitions.
Israel-based Teva ($TEVA) Thursday said it took a $670 million charge to cover costs from a patent infringement case and $481 million to write-down some of the R&D expenses, mostly tied to its $6.5 billion buyout last year of U.S. specialty drugmaker Cephalon, Reuters reports. Its revenue grew 14% to $4.97 billion and its earnings after charges beat what Wall Street was looking for from the drugmaker.
Teva is in the midst of a program to remake itself into a player in branded pharmaceuticals, while retaining its solid position generic drugmaking. CFO Eyal Desheh said the company will give details of that plan next month in New York, Reuters reports. CEO Jeremy Levin has indicated that Teva may sell off some businesses while building on its branded drug aspirations.
Valeant, Canada's biggest public drugmaker said its net fell to $7.6 million, or 2 cents per share, from $40.9 million, or 13 cents per share, a year earlier, as it took significant costs associated with its acquisition spree. Revenue was up 47% to $884.1 million, Reuters reports.
The Montreal-based company has done more than 50 deals since 2010 when it merged with Biovail. In September it announced it would pay $2.6 billion for U.S. dermatology rival Medicis Pharmaceutical and that it had paid Canadian biotech firm QLT $11.5 million for the rights to Visudyne, a drug used to treat age-related blindness.
- read the Reuters story
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