Teva turns 3Q loss on litigation, other charges
Teva Pharmaceutical Industries Ltd. turned a third-quarter loss, as big charges tied to litigation and potential drugs weighed on the pharmaceutical company's performance. But its adjusted earnings topped Wall Street expectations.
The Israeli drugmaker said Thursday it recorded a $670 million charge in the quarter as it set aside money in case it has to cover damages in patient infringement case. It also recorded a $481 million charge due to a review of its research and development work that reduced the estimated value of products in its drug development pipeline.
Those charges countered revenue that grew 14 percent to $4.97 billion.
Overall, Teva lost $79 million, or 9 cents per share, in the three months that ended Sept. 30. That compares to earnings of $916 million, or $1.03 per share, in last year's quarter. Not counting the charges and other one-time items, Teva earned $1.28 per share.
Analysts surveyed by FactSet expected, on average, earnings of $1.25 per share on $5.06 billion in revenue.
Teva said its U.S. revenue, which makes up slightly more than half its total, climbed 33 percent in the quarter due in part to the inclusion of Cephalon, a branded drugmaker it acquired last fall.
Global revenue from Teva's multiple sclerosis treatment Copaxone climbed 13 percent in the quarter to $1.05 billion.
The company also said Thursday it narrowed its guidance for 2012. It now expects adjusted earnings of between $5.32 and $5.38 per share. That compares to its forecast in August for $5.30 to $5.40 per share.
Analysts expect, on average, 2012 earnings of $5.37 per share.
U.S.-traded shares of Teva climbed 77 cents to $41.19 in afternoon trading.