Teva Lifts 2015 Earnings View After Better Than Expected Q1

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Teva's headquarters in Jerusalem.
Teva's headquarters in Jerusalem.Credit: Bloomberg

Teva Pharmaceutical Industries, which is seeking to acquire rival Mylan Inc for over $40 billion, raised its full-year earnings outlook after posting a bigger-than-expected increase in first-quarter profit.

Teva, the world's largest generic drugmaker and Israel's biggest company, posted on Thursday quarterly earnings of $1.36 per diluted share excluding one-time items, compared with $1.23 a year earlier. Revenue was unchanged at $5.0 billion.

Teva was forecast to earn $1.25 a share excluding items on revenue of $4.84 billion, according to Thomson Reuters I/B/E/S.

Exchange rate fluctuations cut revenue by $368 million and adjusted operating income by $42 million. Excluding the currency impact and the divestment of U.S. over-the-counter plants, revenue grew 8 percent.

Revenue from generic drugs rose 9 percent in the first quarter to $2.6 billion, including a 37 percent jump in the United States, mainly due to the launch of a generic version of AstraZeneca's gastrointestinal drug Nexium.

In a bid to increase its share of the generic drug market, Teva has offered to pay $82 a share for Mylan in cash and stock, a bid that Mylan has rejected, saying it grossly undervalued the company.

Teva on Wednesday said it remains committed to acquiring Mylan, noting the deal was worth $43 billion on a fully diluted basis.

Global sales of its best-selling multiple sclerosis drug Copaxone, which accounts for about 50 percent of profit, fell 14 percent to $924 million.

Two weeks ago, U.S. regulators approved the first generic version of Copaxone, developed by Sandoz, a unit of Swiss drugmaker Novartis and Momenta Pharmaceuticals Inc . It is not yet known when they will launch their drug due to ongoing patent litigation.

Teva raised its 2015 estimate for diluted earnings per share excluding one-time items to $5.05-$5.35 from a previous forecast of $5.00-$5.30.

It declared a quarterly dividend of 34 cents a share.

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