Teva Posts $452 Million Loss for Second Quarter

Settlement of patent infringement lawsuit with Pfizer drags down what was an otherwise profitable quarter with company revenue of $4.92 billion falling just shy of analysts' forecasts.

Teva Pharmaceuticals declared a $452 million loss for the second quarter of 2013 due to $1.6 billion compensation the company must pay Pfizer for patent infringement in its quarterly earnings report issued Wednesday. Teva had to take a one-time charge of $1.5 billion to make the payment, leading to the quarterly loss equivalent to $0.53 per share.

The company's revenues dropped 1.4% in the second quarter of 2013 compared to the same quarter the year before, reaching $4.92 billion. On average, analysts had predicted quarterly revenues of $4.95 billion. Teva's performance during the quarter was hurt by a drop in generic drug sales in the European and American markets.

The company is eight months into a sweeping reorganization it promised would bring extra rewards for shareholders. The company has grown rapidly in recent years through a series of multibillion-dollar acquisitions, but its shares have badly underperformed rivals in the past two years.

Among its challenges is the looming 2014 patent expiration of its most important branded product, the multiple sclerosis drug Copaxone, which accounts for about 20 percent of sales and some 50 percent of profit. Copaxone posted a 9 percent rise in global sales in the quarter to $1.1 billion. The drug, which is injected, faces competition from oral treatments that are already available or expected to hit the market in coming years.

Teva's U.S. sales, which comprise 51% of total turnover, rose 2 percent in the second quarter to $2.5 billion as higher sales of Copaxone offset lower revenue of generic medicines.

Teva declared a quarterly dividend of $0.32 a share, unchanged from the first quarter.

Bloomberg