Teva takes loss on $930M legal charge, other items
Teva Pharma posts a loss after taking $1.42B in legal charges; sales slip 1 percent
NEW YORK (AP) -- Teva posted a loss for the second quarter Tuesday as the generic drug company set aside $1.4 billion to cover costs related to a patent suit.
The company announced a $1.6 billion settlement in June of a patent infringement lawsuit over the heartburn drug Protonix. It had already set aside $670 million to cover a potential settlement and put aside another $930 million in the second quarter to cover the rest.
Teva also put $485 million in reserve for antitrust litigation over the sleep disorder drug Provigil, and it took $288 million in amortization costs related to acquisitions. Development costs also increased.
On top of legal costs, generic drug revenue fell 8 percent to $2.41 billion due to declining sales in the U.S. and Europe, including the antidepressant Lexapro. Revenue from generic Lipitor decreased with the expiration of royalties the company was booking last year.
Weak Japanese currency trimmed revenue by about $55 million.
The Israeli company lost $452 million, or 53 cents per share, in the second quarter. Teva reported net income of $863 million, or 99 cents per share a year ago. Excluding special items the company said it turned a profit, but its net income fell to $1.20 per share from $1.28 per share. Revenue declined 1 percent, to $4.92 billion from $4.99 billion.
Analysts expected net income of $1.20 per share and $4.94 billion in revenue, according to FactSet.
Revenue from sales of drugs that require special handling rose 5 percent to $2.05 billion. Sales of Teva's multiple sclerosis treatment Copaxone increased 9 percent to $1.07 billion. Over-the-counter drug revenue grew 17 percent to $205 million.
Protonix, or pantoprazole, is sold by Pfizer Inc. and Nycomed. The companies sued Teva after it started selling a generic version in December 2007. Teva will pay the companies $800 million in 2013 and $800 million in 2014.
Last week, a federal appeals court overturned several patents on Copaxone. Two generic drug companies hope to start selling their own versions of the drug in May. Teva plans to appeal that ruling.
Shares of Teva Pharmaceutical Industries Ltd.,fell 55 cents to $39.15 in morning trading.
