Teva 2015 revenue forecast $1 billion lower than expected
- Teva is the world's largest manufacturer of generic drugs. Analysts had been expecting revenues of $20.1 billion next year, but the company is forecasting between $19.0-$19.4 billion on a range of $5.00 to $5.30 earnings per share.
- Teva's number one source of revenue is from their branded drug, Copaxone (glatiramer acetate injection) for the treatment of multiple sclerosis (MS).
- Various factors including foreign exchange moves and generic competition for Copaxone (glatiramer acetate injection) have caused this generics giant to downgrade earnings forecasts for 2015.
Just because Teva is the leading generics manufacturer in the world does not mean that it is not subject to the same pressures associated with patent expiry and generic erosion as other companies that develop branded products. In fact, Copaxone, which is going off patent, represents 50% of Teva's annual profit. Even in the midst of patent litigation and efforts to launch line extensions, Copaxone is still generating substantial revenues, with over $1 billion in sales for the third quarter of this year.
However, competition has emerged. Biogen Idec's oral MS treatment Tecfidera (dimethyl fumarate) was launched in March 2013 and had revenues of roughly $1.2 billion for the first half of the year. And other companies are hard at work developing generic versions of Copaxone, including Sandoz, Momenta, and Mylan/Natco.