View printer-friendly version
« Back
February 15, 2001 11:26 a.m.
Teva Reports Record Fourth Quarter and Year 2000 Results Earnings Per ADR: $0.43

Consolidated Statements of Income
Balance Sheet Data
Sales for the Quarter October-December 2000

Jerusalem, Israel, February 15, 2001 - Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA) today reported net income for the fourth quarter ended December 31, 2000 of $57.9 million or $0.43 per share fully diluted, an increase of 44% and 33% respectively.

Net sales for the fourth quarter of 2000 were $518.5 million, an increase of 36% over the comparable quarter of 1999. North America accounted for 64% of these sales, Europe for 20%, Israel for 12%, and Rest of the World, for 4%.

For the year ended December 31, 2000, net income before one-time charges for the acquisition of in-process research and development amounted to $184.1 million, an increase of 37% and fully diluted earnings per share amounted to $1.41, an increase of 29%. Net income after one-time charges amounted to $148.4 million in 2000, compared with $116.8 in 1999, an increase of 27%. Fully diluted EPS increased 20% to $1.14.

Net sales for the year ended December 31, 2000 amounted to $1.75 billion, an increase of 36% over the prior year. 

"We are extremely proud of our results," said Eli Hurvitz, President and CEO. "The development of the quarterly results during the year followed the pattern we indicated at the beginning of 2000. The fourth quarter was the strongest exceeding $500 million in quarterly sales. This makes us a $2 billion company in terms of revenue".

"The quarter growth was led by sales in North America and included the consolidation of our most recent acquisition, Novopharm that was consolidated into Teva's accounts as of the second quarter of 2000. Part of the synergies that we planned to create through the acquisitions of Novopharm and Copley (Copley was consolidated for the first time in the comparable quarter) are already reflected in our results but we expect to implement substantial additional ones gradually over the next 18 months," said Israel Makov, Teva's COO.

The improved results were achieved in spite of greatly increased costs for both generic and innovative research and development. R&D increased quarter over quarter by 60% to $43.6 million in the fourth quarter of 2000. Net R&D (after participations) increased quarter over quarter by 41% to $30.7 million. The extension of the strategic alliance with Lundbeck to include oral Copaxone enabled Teva to increase substantially its R&D expenditures while limiting the impact of such expenditures on its net income.

In-market global sales of Copaxone® amounted to $72.7 million, an increase of 48% over the comparable quarter of 1999. According to IMS data, Copaxone®, Teva's largest product, increased its market share in the U.S. for multiple sclerosis treatments to 26%. In-market sales of Copaxone® for the year amounted to $247 million, an increase of 54%.

"Recently published regulations in Israel permit Teva to fully adopt US GAAP. All the figures contained in this release are based on U.S. GAAP. Consequently, the comparative figures include some minor differences from those previously reported," said Dan Suesskind, CFO. "Our financial expenses decreased significantly in the fourth quarter reflecting the successful convertible debentures offering we made in October 2000."

"We are optimistic about our ability to continue Teva's strong performance record, especially in light of our U.S. generic drug pipeline of 49 pending applications," concluded Eli Hurvitz. 

It has been recommended that the Board of Directors at their meeting on March 5, 2001 declare a regular cash dividend of NIS 0.27 (approx. 6.6¢) per ADR with respect to the fourth quarter of 2000. 

Teva Pharmaceutical Industries Ltd. is Israel's largest pharmaceutical company, with over 85% of its sales outside Israel, mainly in North America and Europe. The Company develops, manufactures and markets generic and branded human pharmaceuticals and active pharmaceutical ingredients.


Consolidated Statements of Income
in thousands, except earnings per ADR)

 

October- December

January - December
  2000 1999 2000 1999
  U.S. Dollars 
SALES  518,471 379,904 1,749,854 1,282,406
COST OF SALES 312,783 227,203 1,057,975 767,627
GROSS PROFIT 205,688 152,701 691,879 514,779
R & D EXPENSES:
Total expenses
43,574 27,155 132,256 91,622
Less grants & participations 12,855 5,313 27,681 9,780
R & D EXPENSES - net 30,719 21,842 104,575 81,842
SELLING, GENERAL AND ADMINISTRATION EXPENSES 94,002 69,197 307,079 233,891
  80,967 61,662 280,225 199,046
ACQUISITION OF RESEARCH AND DEVELOPMENT IN PROCESS - - 35,697 17,700
OPERATING INCOME 80,967 61,662 244,528 181,346
FINANCIAL EXPENSES - net 8,910 10,513 46,015 30,598
OTHER INCOME - net 2,317 1,737 9,848 11,214
INCOME BEFORE TAXES 74,374 52,886 208,361 161,962
TAXES ON INCOME 17,249 12,016 59,568 45,389
  57,125 40,870 148,793 116,573
PROFITS (LOSSES) OF ASSOCIATED COMPANIES 415 (1,025) 374 (550)
MINORITY INTEREST - net 404 281 (750) 756
NET INCOME 57,944 40,126 148,417 116,779
EARNINGS PER ADR - basic ($) 0.44 0.33 1.15 0.95
EARNINGS PER ADR - diluted ($) 0.43 0.32 1.14 0.95
 
BEFORE DEDUCTING NON-RECURRING EXPENSES:
NET INCOME FOR THE PERIOD
EARNINGS PER ADR - basic ($)
EARNINGS PER ADR - diluted ($)


57,944
0.44
0.43


40,126
0.33
0.32


184,114
1.43
1.41


134,479
1.10
1.09
 
WEIGHTED AVERAGE NUMBER OF ADR'S - basic 130,852 122,731 128,965 122,613
WEIGHTED AVERAGE NUMBER OF ADR'S - diluted 138,379 123,677 131,839 123,287





Balance Sheet Data  (in thousands) 

  December 31
  2000  1999
  U.S. Dollars in thousands
ASSETS    
CURRENT ASSETS  1,608,846 918,031
INVESTMENTS & NON-CURRENT RECEIVABLES 100,054 65,393
FIXED ASSETS  - net 534,140 478,536
INTANGIBLE AND OTHER ASSETS  - net  605,578 293,319
TOTAL ASSETS 2,848,618 1,755,279
     
LIABILITIES AND SHAREHOLDERS' EQUITY     
CURRENT LIABILITIES 776,755 544,579
LONG-TERM LIABILITIES:  368,880 463,457
MINORITY INTEREST 1,637 17
CONVERTIBLE DEBENTURES 550,000 -
SHAREHOLDERS' EQUITY 1,151,346 747,226
Total Liabilities AND SHAREHOLDERS' EQUITY  2,848,618 1,755,279







Sales for the Quarter October-December 2000 (US $ thousands)

Sales by Geographical Areas        
Sales for the Period  2000 1999 % Change  % of Total
Israel  61,086 62,029 -1.5% 11.8%
North America 330,488 191,359 72.7% 63.8%
Europe  103,948 111,899 -7.1% 20.0%
Rest of the World  22,949 14,617 57.0% 4.4%
Total Outside Israel  457,385 317,875 43.9% 88.2%
Total 518,471 379,904 36.5% 100.0%
 
Sales by Business Segments        
Sales for the Period  2000  1999   % Change % of Total
Pharmaceuticals  460,405 330,587 39.3% 88.8%
A.P.I  52,900 44,024 20.2% 10.2%
Veterinary and other  5,166 5,293 -2.4% 1.0%
Total 518,471 379,904 36.5% 100.0%
 
Pharmaceutical Sales        
Sales for the Period  2000  1999  % Change % of Total
Israel 57,877 58,517 -1.1% 12.6%
North America  299,482 170,168 76.0% 65.0%
Europe 85,434 92,188 -7.3% 18.6%
Rest of the World  17,612 9,714 81.3% 3.8%
Total Outside Israel 402,528 272,070 48.0% 87.4%
Total 460,405 330,587 39.3% 100.0%
 


Safe Harbor Statement: This report contains forward-looking statements, which express the beliefs and expectations of management. Such statements are based on current expectations and involve a number of known and unknown risks and uncertainties that could cause the Company's future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward looking statements. Important factors that could cause or contribute to such differences include the impact of pharmaceutical industry regulation, the difficulty of predicting FDA and other regulatory authority approvals, the regulatory environment and changes in the health policies and structure of various countries, acceptance and demand for new pharmaceutical products and new therapies, the impact of competitive products and pricing, the availability and pricing of ingredients used in the manufacture of pharmaceutical products, uncertainties regarding market acceptance of innovative products newly launched , currently being sold or in development , the impact of restructuring of clients , reliance on strategic alliances , fluctuations in currency, exchange and interest rates , operating results , the impact of the year 2000 issue and other factors that are discussed in the Company's Annual Report on Form 20-F and the Company's other filings with the U.S. Securities and Exchange Commission.