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Teva Pharm Expects 2015 Revenue Lesser Than Analysts’ Forecast

January 7, 2015 By Melanie Quintal

Teva Pharm Expects 2015 Revenue Lesser Than Analysts’ ForecastTeva Pharmaceutical Industries’ 2015 revenue forecast is below the average expectation of analysts, brought about by hostile foreign exchange moves as well as generic competition for Copaxone, the company’s best-selling treatment for Multiple Sclerosis (MS).

Teva is the largest generic drug maker in the world, but branded Copaxone drug is also the company’s most expensive product, which is accountable for 20% of its sales and 50% of its profit. The MS injectable drug is facing intense competition from oral drugs to cheaper generic treatments in the coming years.

On Thursday, the company assumes its 2015 forecast will face two big generic competitors within the United States starting September next year, saying earlier entries by generics would reduce its operating income between 30 million US dollars and 50 million every month.

There are two companies creating cheaper forms of Copaxone, one is the Sandoz Inc and Momenta Pharmaceuticals Inc and the Natco Pharma Ltd.

The company forecast 2015 weakened earnings per share that exclude one-time products of between 5.00 and 5.30 dollars for 19.0 to 19.4 billion-dollar revenue. The average forecast of analysts, on the other hand, is currently at 5.06 earnings per share and 20.1billion in revenue.

The company expects to earn 5.06 dollars per share on 20.3 billion revenues in 2014.

The generics business’ profitability of Teva is expected to increase in 2015 since it has shifted to less profitable markets, while benefiting from cost cuts.

It is also expecting its Pulmicort, asthma treatment, to be likewise hit by further generic competition towards 2015’s first-half. The company expects between 1 and 2 billion dollar spending on share buybacks by 2015.

Filed Under: Business & Economy Tagged With: Teva Pharmaceutical Industries’

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