PETAH TIKVA (dpa-AFX) - Teva Pharmaceutical Industries Ltd. (TEVA) Thursday forecast revenues for full year 2015 below analysts' estimates, citing increased competition in its generic market.
The company noted that its multiple sclerosis drug Copaxone, is expected to face two AB-rated generic competitors in the U.S. beginning in September 2015, and the earlier entry by generics could reduce operating income by $30 million to $50 million per month.
For the year ending December 31, 2015, the company expects non-GAAP earnings per share to be in the range of $5.00 to $5.30. Net revenues are anticipated to be between $19 billion and $19.4 billion.
On average, 27 analysts polled by Thomson Reuters expect the company to report fiscal 2015 earnings per share of $5.06, on revenue of $20.07 billion. Analysts' estimates typically exclude special items.
The company noted that costs of equity compensation will be excluded from non-GAAP results starting in 2015. The corresponding adjustment to 2014 is expected to result in an increase of $0.08 to 2014 non-GAAP earnings per share.
The company sees R&D expenses of $1.3 billion to $1.4 billion for 2015.
For generics segment, Teva expects net revenues to be between $9.1 billion and $9.5 billion. The firm noted that profit and profitability of generics segment is expected to grow in 2015.
Compared to 2014, foreign exchange rate fluctuations are expected to have a $700 million adverse impact on revenues.
Generic Pulmicort will face additional generic competition in the first half of 2015, resulting in a decrease of revenues by $400 to $500 million and a decrease in operating profit of $100 to $200 million, compared to 2014, the firm said.
Copaxone 40 mg/mL will be launched in the EU and additional countries outside Europe commencing in the first quarter of 2015.
Erez Vigodman, president and CEO of Teva stated, 'Generics remain at the heart of our business, both as the cornerstone of the Company, but also as an area that has great impact on society. At the same time, we anticipate four specialty product approvals and five submissions in 2015 - which we believe will improve treatment options for patients, and add value for all of our stakeholders.'
According to the firm, the outlook is for its organic results only and does not include potential impact of any business development activities.
Further, the company said it expects to spend about $1 billion to $1.2 billion on share buybacks during 2015.
TEVA closed Wednesday's trading at $56.39. In the pre-market activity on Thursday, the shares are up 0.46 percent.
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