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Original Source: FD (FAIR DISCLOSURE) WIRE
. Elana Holzman, Teva Pharmaceutical, IR . Shlomo Yanai, Teva Pharmaceutical, President & CEO . Eyal Desheh, Teva Pharmaceutical, CFO . Randall Stanicky, Goldman Sachs, Analyst . Bill Marth, Teva North America, President and CEO . Gregg Gilbert, Merrill Lynch, Analyst . Ricky Goldwasser, UBS, Analyst . Marc Goodman, Credit Suisse, Analyst . Ken Cacciatore, Cower & Co, Analyst . Tim Chiang, FTN Midwest Securities, Analyst . Moshe Manor, Teva Pharmaceutical, Group VP, Global Innovative Resources. . David Buck, Buckingham Research Group, Analyst . Ronny Gal, Sanford Bernstein, Analyst . Elly Coburn, Banc of America Securities, Analyst . Rich Silver, Lehman Brothers, Analyst
TEVA reported 2Q08 record revenue of more than $2.8b, up 18% or approx. $437m YoverY. Revenue produced net income of $539m, up 5% YoverY and EPS of $0.65, up 3% YoverY. Mgt. increased 2008 EPS guidance from $2.60-$2.75 to $2.69-2.75.
A. Key Data From Call 1. 2Q08 revenue = more than $2.8b 2. 2Q08 net income = $539m 3. 2Q08 EPS = $0.65 4. 2Q08 gross margin = 53.3
5. 2Q08 DSO = 54 days 6. 2Q08 capex = $202m 7. 2008 EPS guidance = $2.69-2.75
S1. Overview (S.Y.) 1. 2Q08 Highlights: 1. 2Q08 excellent financially and strategically. 2. Record breaking net sales of $2.8b. 3. Gross margin of 53.3%. 4. Operating profit was $638m. 5. Net profit of $539m. 6. Diluted EPS of $0.65. 2. Geographies and Market Share: 1. Strong contribution from many businesses and geographies drove results in 2Q08. 2. Launched nine products in 2Q08.
1. Launched  YTD. 3. Expanded leading market share in US, generic and brand to 12.6% of total prescriptions. 4. North American sales: 1. Driven by major launches of Risperadone and Budeprion XL 150. 2. Enjoy strong sales of recently launched amlodipine [benazepril] capsules and Alendronate sodium. 3. Base products sales grew more than 7% YoverY. 5. Outside US:
1. Europe sales up 25% YoverY. 2. Especially strong in Hungary and France. 1. Increased customer base and market share in growing
generics market. 3. Benefited from FX in European markets. 1. Growth still positive. 2. Even with short-term issues in UK and Netherlands. 4. International business had record breaking sales, up 38% YoverY. 1. Supported by strong results in Russia, Latin America and Israel. 2. Composed of many high growth markets. 5. Enthusiastic about opportunities ahead. 3. Global Business: 1. Sales down slightly YoverY. 1. However, optimistic about growth in 2008. 2. EPA and FDA clearly communicated no CFC based inhalers may be sold after December 31. 1. Health care providers taking steps to ensure that approx. 40% of patients still using CFC make the switch. 2. Expect ProAir to remain market leader.
3. Preparing for expected increase in demand. 4. Copaxone:
1. Great 2Q08 for innovative business: 2. Record breaking 2Q08 for Copaxone, in-market sales growing 29% YoverY. 1. US in-market sales up 17%. 2. Outside US, in-market sales up 53%.
3. First time Copaxone led market in US net sales and new and
total prescriptions. 1. Second time [led] in global sales.
4. Continues to outpace market growth. 1. Expect to remain leading therapy for MS and continue to grow. 5. Azilect: 1. 2Q08 sales rose 50% YoverY. 2. Completed Phase III clinical trial ADAGIO. 1. Trial is designed to test Azilect's efficacy in slowing
progression of Parkinson's. 2. One of most clinical unmet needs in Parkinson's treatment. 3. Met all three primary end points.
4. Confirmed safety and tolerability. 5. Results will be presented at: 1. 12th Congress of European Federation of Neurological
Societies on August 26 in Madrid. 2. US Neurology Association in Salt Lake City on September 21. 3. Promising results may lead to significant increase in Azilect's market potential.
1. Leading it to become another major TEVA drug for neurological disorders. 6. 2012 Strategy: 1. Significantly increased production capacity. 1. Up to annual run rate of 47b tablets. 2. Expected to reach 53b tablets by year end. 3. Allowing TEVA to meet growing demand from largest customers providing better service. 2. Increased R&D from 5.7% to 7% of total sales. 1. Allows co. to increase number of products under development. 2. Set ambitious goals for R&D output. 3. Well on way to reaching them. 3. Acquisitions:
1. Acquired CoGenesis. 1. Part of long-term commitment to becoming leader in biologics. 2. Acquired Bentley. 1. Strong platform in fast growing generics markets of Spain. 2. Deal closed one week ago. 4. Progress in short-term since launch of [aciplane].
1. Tremendous enthusiasm in TEVA to keep momentum strong. 2. Heading toward next phases of plan. 5. Acquisition of Barr provides strategic and economic benefits. 1. Allows co. to exceed 20/20 target. 7. Summary: 1. Based on co.'s strong performance in 1H08 and positive outlook. 1. Now expect 2008 EPS of $2.69-2.75 vs. $2.60-$2.75 previous guidance. 2. Due to uncertain timing of key product launches over next two quarters revenue stream may not be linear. 1. Likely strength of 2H08 will be most visible in 1Q09. …