Teva’s MS drug Copaxone reports strong second-quarter sales
Teva Pharmaceutical Industries, which this week revealed plans to buy Allergan’s generics drugs business in a $40.5 billion deal, said on Thursday sales of its branded multiple sclerosis drug Copaxone rose 12 percent in the second quarter even though it faces new competition.
Teva, the world’s biggest generic drug maker, said global Copaxone sales rose to $1.1 billion in the April-June quarter and held a 31.2% share of total MS prescriptions in the United States.
Sales of the best-selling drug, had dropped 14% in the first quarter.
Sandoz, part of Swiss drugmaker Novartis AG, and Momenta Pharmaceuticals in June launched a once daily 20 mg. version of Copaxone called Glatopa.
To stem the tide of generic competition, Teva has been moving patients to a three times a week 40 mg. version of Copaxone, which the company said accounted for 68.5% of total Copaxone prescriptions in the United States.
Pressure had been growing on Teva Chief Executive Erez Vigodman to find new revenue sources to combat generic competition for Copaxone, which accounts for about half of Teva’s profit and 20% of revenue.
Teva already had published some details of its results on Monday when it unveiled its proposed purchase of Allergan’s generics business, the largest deal in Israel’s corporate history. The acquisition aims to give Teva greater economies of scale, which are crucial in the low-margin generic drugs business.
Teva on Thursday reiterated that it recorded quarterly earnings of $1.43 per diluted share excluding one-off items, up from $1.25 a year earlier and well above analysts’ estimates of $1.31 according to Thomson Reuters I/B/E/S.
Revenue in the quarter slipped 2% to $4.97b. but rose 6% excluding the impact of foreign exchange fluctuations and the sale of US over-thecounter plants.
The company declared a quarterly dividend of 34 cents a share.
Nice Systems profit climbs, raises EPS estimates
Software provider Nice Systems’ second-quarter profit rose 21%, topping estimates, boosted by higher sales and cost-cutting measures.
Nice said on Thursday it earned 70 cents per diluted share excluding one-time items in the quarter, up from 58 cents a year earlier. Revenue grew 6% to $234.8 million.
Excluding the impact of foreign currency exchange rates, revenue increased 9%, it said.
Analysts forecast Nice would earn 66 cents a share excluding items on revenue of $233.7m., according to Thomson Reuters I/B/E/S.
For the third quarter, Nice foresees revenue of $236$246m. and adjusted diluted EPS of 68-74 cents.
It raised its 2015 adjusted EPS estimate to $3.04-$3.15 from $3.01-$3.12, and maintained its full-year revenue outlook of $985m.-$1.005 billion.
Nice declared a cash dividend for the second quarter of 16 cents a share, unchanged from the first quarter.
Nice is banking on analytical tools, which allow companies to delve into large amounts of data to spot fraud and fend off security threats, to deliver faster growth amid slowing sales growth of systems helping call centers and surveillance of buildings and transport networks.
In May, Nice agreed to sell its cyber and intelligence division to defense contractor Elbit Systems for up to $157.9m. to focus more on its core markets.