By Austen Hufford
Teva Pharmaceuticals Industries Ltd. reported acquisition-driven revenue growth in its latest quarter, but sales fell across much of its specialty-drug business.
Shares fell 3.6% in premarket trading as Teva also cut its guidance for the year.
Teva also disclosed that it had set aside $520 million as it was in advanced discussions with the U.S. Department of Justice and the U.S. Securities and Exchange Commission to settle potential violations of foreign corruption laws. The potential settlement relates to conduct in Russia, Mexico and Ukraine from 2007 to 2013. Teva said the conduct doesn't involve its U.S. business. Teva said in response to the investigation that it had ended "problematic" business relationships, withdrawn from some countries, gotten rid of relevant employees and overhauled the management of several subsidiaries.
Teva cut its revenue guidance for the year to between $21.6 billion and $21.9 billion, from between $22 billion and $22.5 billion previously. It also expects adjusted earnings per share to be between $5.10 and $5.20, down from $5.20 to $5.40 previously.
During the quarter, the Israeli pharmaceutical company known for its generic-drugs business closed its $40.5 billion deal for Allergan's generics business.
Revenue in its generic medicine segment grew 32% to $2.9 billion, largely due to the Allergan deal. In its specialty segment, revenue fell 6% to $2.05 billion due to lower sales of its multiple sclerosis drug copaxone and sleepiness treatment nuvigil. Sales fell across most of its specialty segment's divisions including central nervous system, respiratory, cancer and women's health.
Research-and-development costs jumped 84% to $663 million, with the increase largely being attributed to $250 million paid to Regeneron Pharmaceuticals Inc. related to development of pain medication product fasinumab.
For the quarter, Teva reported a profit of $412 million, or 35 cents a share, up from $103 million, or 12 cents a share, the same quarter last year. Excluding certain items, per-share earnings were $1.31, down from $1.35 a share in the prior-year quarter. Revenue grew 15% to $5.56 billion.
Analysts polled by Thomson Reuters had expected earnings of $1.28 a share on $5.71 billion in revenue.
Write to Austen Hufford at firstname.lastname@example.org
(END) Dow Jones Newswires
November 15, 2016 09:46 ET (14:46 GMT)
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