Boston, MA 11/01/2013 (wallstreetpr) – Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) was negatively impacted with the posting of the third quarter earnings results that failed to meet analysts and investors expectations. The abrupt departure of its Chief Executive Officer Jeremy Levin also continues to disrupt the fortunes of the drug maker. Teva’s Depositary receipts fell by 1.3% to clock at $37.20. Teva recorded third quarter profits totaling $1.27 a share The company’s earnings got a major boost from higher prices in the US from its bestselling product multiple sclerosis injection Copaxone.
The company’s earnings excluding costs declined by 4%, to clock $1.07 billion from a high of $1.1 billion a year ago the same quarter. Its sales experienced a growth of 2% to clock $5.1 billion beating analysts’ average estimates of $4.98 billion. Copaxone revenue on its own grew by 1% to clock a high of $1.05 billion. The company future looks uncertain especially after its CEO Jeremy Levin left the company after disagreeing with the board on how to go with restructuring plans. Replacing the outgoing CEO may be the greatest hurdle for the company at the moment as candidates may shy away due to interference from the board.
The company stocks slumped after the result by a high of 8.1%, the biggest drop to be experienced in two years. With the current trend, analysts expect Copaxone earnings to fall in the coming quarters. The product on its own makes up 20% of Teva’s revenue and 50% of the total profit. The decline is expected to continue for the next five years as patients continue to move from the older Teva injected product. Copaxone also faces generic competition as a result of pending US court decision. On the eve of Levin’s departure, Teva expects its earnings for the year excluding some costs to be in the margins of $4.95 to $5.05 a share. The company expects net sales to stand in the margins of $19.7 billion and $20.3 billion.