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May 02, 2001 11:30 a.m.
Teva Reports First Quarter 2001 Results Sales Up 46%; Net Income Up 56%; EPS Up 43%

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

Jerusalem, Israel, May 2, 2001 - Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA) today reported net income for the first quarter ended March 31, 2001 of $54.8 million or $0.40 per share fully diluted, an increase over last year of 56% and 43% respectively.

Net sales for the first quarter of 2001 were $491 million, an increase of 46% over the comparable quarter of 2000. North America accounted for 59% of total sales, Europe for 24%, Israel for 12%, with sales in the rest of the world, accounting for 5%.

Novopharm, which Teva acquired in April 2000, was not consolidated in the comparable quarter. Not including Novopharm's results, Teva's sales increased 21% over the comparable quarter of 2000.

Israel Makov, Teva's Chief Operating Officer stated: "Our results reflect the successful implementation of our strategy of growth through acquisitions, internal product development and successful market penetration. We achieved both top and bottom line growth, trends which we expect will continue as the year progresses."

North American pharmaceutical sales, which accounted in this quarter for 54% of total sales increased by 76% over Q1/00 and amounted to $267 million. Without Novopharm, North American sales increased by 41% led by generic products introduced in late 2000 and early 2001 as well as growth of existing generic products and Copaxone ® . During the quarter Teva launched two products and received tentative and final approvals from the FDA for six products. Subsequent to the end of the quarter Teva launched two additional generic products in the U.S. market and obtained two additional generic approvals.

Pharmaceutical sales in Europe increased over the comparable quarter by 41% due to the consolidation of Novopharm's sales in Europe.

In-market global sales of Copaxone ® , Teva's largest product, continued to grow, increasing 50% over last year's first quarter, to $74 million. 88% of these sales were in North America. According to the most recently published IMS monthly data, Copaxone ® increased its market share in the U.S. to an all time high 29.8% of new prescriptions as compared to 23.9% a year ago.

In Europe, Copaxone ® has been submitted for filing under the Mutual Recognition Process.

Dr. Aaron Schwartz, VP - Global Product Division stated: "The continuing growth in sales of Copaxone ® is being fueled by new scientific evidence on the sustained efficacy of Copaxone ® and the increased exposure of data about Copaxone ® at international scientific conferences".

Teva's overall gross margin for the first quarter of 2001 was 40.1% reflecting an improvement over the average gross profit margin of 2000, which stood on 39.5%. The higher 40.8% gross margin in last year's comparable quarter reflects the fact that Human, with its inherent low gross margins, was not yet consolidated.

Cash flow generated from operations in the reported quarter, amounted to $87 million compared with $166 million generated during all of 2000.

"With a U.S. generic drug pipeline of 51 pending applications and our ongoing acquisition efforts, we are optimistic about our ability to continue Teva's strong growth." concluded Eli Hurvitz, President and Chief Executive Officer.

It has been recommended that the Board of Directors at their meeting on May 13, 2001 declare a regular cash dividend of NIS 0.27 (approx. 6.5¢) per ADR with respect to the first quarter of 2001.

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 )
(unaudited)

  January - March
  2001 2000
  U.S. Dollars 
SALES  490,928 337,334
COST OF SALES 293,965 199,751
GROSS PROFIT 196,963 137,583
R & D EXPENSES: 38,586 22,257
Less grants & participations 10,588 2,334
R & D EXPENSES - net 27,998 19,923
SELLING, GENERAL AND ADMINISTRATION EXPENSES 90,061 61,662
OPERATING INCOME 78,904 55,998
FINANCIAL EXPENSES - net 8,756 11,364
OTHER INCOME - net 2,064 4,169
INCOME BEFORE TAXES 72,212 48,803
PROVISION FOR INCOME TAXES 16,855 13,868
55,357 34,935
PROFITS (LOSSES) ON EQUITY INVESTMENTS (233) 241
MINORITY INTEREST (372) (100)
NET INCOME 54,752 35,076
EARNINGS PER ADR:    
Basic ($) 0.41 0.28
Diluted ($) 0.40 0.28
WEIGHTED AVERAGE NUMBER OF ADR'S:    
Basic 132,164 123,190
Diluted 140,380 124,661





Balance Sheet Data 
(in thousands) 
(unaudited)

  March 31
2001
December 31
2000
  U.S. Dollars
ASSETS    
CURRENT ASSETS  1,577,203 1,608,846
INVESTMENTS & OTHER ASSETS 99,910 100,054
FIXED ASSETS  - net 526,808 534,140
INTANGIBLE ASSETS - net  593,551 612,578
TOTAL ASSETS 2,797,472 2,855,618
     
LIABILITIES AND SHAREHOLDERS' EQUITY     
CURRENT LIABILITIES 707,082 783,755
LONG-TERM LIABILITIES:  363,684 368,880
MINORITY INTERESTS 1,830 1,637
CONVERTIBLE SENIOR DEBENTURES 550,000 550,000
SHAREHOLDERS' EQUITY 1,174,876 1,151,346
Total Liabilities AND SHAREHOLDERS' EQUITY  2,797,472 2,855,618







Sales for the Quarter January - March 2001 (US $ thousands)

Sales by Geographical Areas        
Sales for the Period  2001 2000 % Change  % of Total
Israel  60,087 62,491 -3.9% 12.3%
North America 291,724 172,567 69.0% 59.4%
Europe  115,871 88,077 31.6% 23.6%
Rest of the World  23,246 14,199 63.7% 4.7%
Total Outside Israel  430,841 274,843 56.8% 87.7%
Total 490,928 337,334 45.5% 100.0%
 
Sales by Business Segments        
Sales for the Period  2001 2000 % Change % of Total
Pharmaceuticals  439,596 289,187 52.0% 89.5%
A.P.I  46,425 42,849 8.4% 9.5%
Veterinary and other  4,907 5,298 -7.4% 1.0%
Total 490,928 337,334 45.5% 100.0%
 
Pharmaceutical Sales        
Sales for the Period  2001 2000 % Change % of Total
Israel 56,820 58,908 -3.5% 12.9%
North America  267,348 152,174 75.7% 60.8%
Europe 97,900 69,328 41.2% 22.3%
Rest of the World  17,528 8,777 99.7% 4.0%
Total Outside Israel 382,776 230,279 66.2% 87.1%
Total 439,596 289,187 52.0% 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 , 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.