Teva Pharmaceutical Industries reports financial results for fourth quarter and year ended Dec. 31, 1996.JERUSALEM Jerusalem (jər  `sələm, –zələm), Heb. Yerushalayim, Arab. Al Quds, city (1994 pop. 578,800), capital of Israel. , Israel--(BUSINESS WIRE)--Feb. 24, 1997--Declares an increased quarterly cash dividend Teva Pharmaceutical Industries Teva Pharmaceutical Industries Ltd. (Hebrew: טבע תעשיות פרמצבטיות בע"מ), NASDAQ: TEVA is an international pharmaceutical company headquartered in Ltd. (Nasdaq:TEVIY) today reported financial results for the fourth quarter and year ended December December: see month. 31, 1996. The results include the merger with Biocraft Laboratories Inc., and acquisitions of Biogal Pharmaceutical Works Ltd., ICI (language) ICI - An extensible, interpretated language by Tim Long with syntax similar to C. ICI adds high-level garbage-collected associative data structures, exception handling, sets, regular expressions, and dynamic arrays. S.p.A. and APS/Berk.(1) Net income for the fourth quarter of 1996 was $30.3 million, or $0.49 per ADR ADR - Astra Digital Radio , as compared to $18.8 million, or $0.31 per ADR, in the comparable period of 1995 before the General Health Fund (GHF GHF Global Health & Fitness GHF Global Heritage Fund (cultural preservation organization) GHF Gesellschaft für Handel und Finanz mbH (German: Society for Trade and Finance Ltd. ) write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. , an increase of 61% and 58% respectively. (Net income in 1995 fourth quarter, after giving effect to the GHF write-off amounted to $14.8 million). Total sales for the fourth quarter ended December 31, 1996 were $277.7 million, a 21% increase over the $230.2 million in the fourth quarter of 1995. Net income for the year ended December 31, 1996, before the $14.9 million after tax impact of non-recurring merger expenses, was $88.3 million, or $1.44 per ADR. This represents an increase of 19% over the 1995 net income (before the GHF write-off) of $74.3 million. Total sales for the year ended December 31, 1996 increased 17.6% to $953.8 million. Sales for the fourth quarter of 1995 and calendar year 1995, prior to giving effect to the Biocraft merger, were originally reported as $192.9 million and $667.7 million respectively. Mr. Eli Hurvitz, Chief Executive Officer of Teva, stated, "A number of significant milestones occurred at Teva during the last quarter of 1996. At the end of 1996 the long awaited a·wait v. a·wait·ed, a·wait·ing, a·waits v.tr. 1. a. To wait for. See Synonyms at expect. b. approval was received for the marketing of COPAXONE Copaxone® Glatiramer acetate, copolymer-1 Therapeutics A noninterferon, nonsteroidal agent that ↓ relapses in Pts with multiple sclerosis. See Multiple sclerosis. (R) (both in the USA and Israel). Marketing of COPAXONE is expected to commence in the first quarter of 1997. We expect to receive approvals during the course of the year for the marketing of COPAXONE in other countries, most notably in Europe. Teva also received FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. approval (NDA (Non Disclosure Agreement) An agreement signed between two parties that have to disclose confidential information to each other in order to do business. In general, the NDA states why the information is being divulged and stipulates that it cannot be used for any ) for another innovative drug, Galzin, a drug for the treatment of Wilson's disease Wil·son's disease n. An inherited disorder of copper metabolism characterized by cirrhosis, degeneration of the basal ganglia of the brain, and the deposition of green pigment in the periphery of the cornea. . This past year Teva experienced rapid expansion and in the second half of the year, attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. a sales level in excess of one billion dollars on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis. Two major acquisitions carried out this year, APS/Berk and Biocraft, strengthened Teva's base as a leader in the US generic market and advanced its status in the European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. generic market. At the same time the two companies acquired in Italy and Hungary during the last quarter of 1995 were absorbed into Teva's global operations Global Operations is a first-person shooter computer game developed by Barking Dog Studios and published by both Crave Entertainment and Electronic Arts. It was released in March of 2002, following its public multiplayer beta version which contained only the Quebec map. ," concluded Mr. Hurvitz. The Company continues to aggressively investigate possible new acquisitions and joint ventures. Sales outside of Israel represented 73.8% and 70.5% of the Company's total revenues in the fourth quarter and year end periods of 1996. North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. remains Teva's largest market, representing close to half of its revenues. European sales, for the quarter and year end periods, have become a meaningful share of worldwide sales, increasing to $162.4 million from $63.8 million in the 1995 year end period, accounting for 17% of Teva's total sales. This increase was due to the consolidation of the three companies acquired in late 1995 and in 1996 in Hungary, Italy and the United Kingdom. Total pharmaceutical sales for the fourth quarter and year ended December 31, 1996, amounted to $223.2 million and $738.0 million, respectively. Pharmaceuticals accounted for 80.4% of total sales in the quarter and 77.4% for the year. Bulk Pharmaceutical Chemicals (BPC BPC British Potato Council BPC Brewton-Parker College (Mt Vernon, GA) BPC Bible Presbyterian Church BPC Bangladesh Petroleum Corporation (Chittagong, Bangladesh) BPC British Pharmaceutical Codex ) sales to third parties increased 11.2% to $106.9 million for the year end period of 1996. This figure only accounts for about 55% of the output of the BPC division, the balance going to Teva's pharmaceutical division whose demand for such products continues to grow at a steady pace. Gross profit reached $110.9 million for the fourth quarter 1996, with an improvement of gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. from 35.1% to 39.9%. For the year end of 1996, gross profit reached $359.7 million, with a gross profit margin of 37.7% (1995: 36.6%). This increase reflects an improved product mix and the introduction of a number of products, mainly in the U.S. Teva Pharmaceuticals USA, Inc, the single corporate entity created by the merger of Lemmon and Biocraft, is one of the three largest generic pharmaceutical manufacturers in the U.S., reporting sales of $402.1 million for the year ended 1996. During the year, Teva Pharmaceuticals USA introduced six generic products to the American market place, the most significant being Clonazepam clonazepam /clo·naz·e·pam/ (klo-naz´e-pam) a benzodiazepine used as an anticonvulsant and as an antipanic agent. clo·naz·e·pam n. , the generic version of Roche's Klonopin Klon·o·pin A trademark for the drug clonazepam. clonazepam Alti-Clonazepam (CA), Apo-Clonazepam (CA), Clonapam (CA), Gen-Clonazepam (CA), Klonopin, Klonopin Wafer, Rivotril (CA) (UK) (R) and Sucralfate sucralfate /su·cral·fate/ (soo-kral´fat) a complex of aluminum and a sulfated polysaccharide, used as a gastrointestinal antiulcerative. su·cral·fate n. , the generic version of Hoechst Marion Roussel's (H.M.R.) Carafate Car·a·fate A trademark for the drug sucralfate. sucralfate Antepsin (UK), Carafate, Nu-Sucralfate (CA), PMS-Sucralfate (CA), Sulcrate (CA) Pharmacologic class: GI protectant (R). On December 23, 1996, Teva received FDA marketing clearance for COPAXONE, Teva's innovative treatment for multiple sclerosis multiple sclerosis (MS), chronic, slowly progressive autoimmune disease in which the body's immune system attacks the protective myelin sheaths that surround the nerve cells of the brain and spinal cord (a process called demyelination), resulting in damaged areas . COPAXONE will be marketed in the U.S. by Teva Marion Partners, a partnership established between Teva Pharmaceutical Industries Ltd. and H.M.R. The Company also received marketing clearance for COPAXONE in Israel and is working diligently dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d to receive additional approvals in Canada, the U.K. and other European Community European Community: see European Union. European Community (EC) Organization formed in 1967 with the merger of the European Economic Community, European Coal and Steel Community, and European Atomic Energy Community. (EC) countries. Total selling, general and administrative expenses amounted to $43.8 million for the quarter, constituting 15.8% of total sales as compared to 17.0% in the comparable quarter last year. It is noted that SG&A expenses decreased as a percentage of sales from 18.1% in the third quarter reflecting continued cost synergies Cost Synergy In the context of mergers, cost synergy is the savings in operating costs expected after two companies, who compliment each other's strengths, join. Notes: The savings in operating costs usually come in the form of laying off employees. realized in the merger of Lemmon and Biocraft. Gross research and development expenses amounted to $30.0 million for the fourth quarter, which is an increase of 14.4% over the comparable period of 1995. Net R&D, after grants and participations, rose to $24.2 million, an increase of 57.3% over the comparable quarter of 1995. This percentage reflects the relatively lower rate of grants received from the Office of the Chief Scientist Office of the Chief Scientist may refer to:
The Company also declared the payment of an increased fourth interim dividend for 1996 of approximately 9 cents (6 cents in previous quarters of 1996) per ADR. The record date for this dividend will be March 11, 1997 and the payment date will be March 26, 1997. At a special general meeting of shareholders held on February 10, 1997, it was resolved to consolidate the share capital of the Company. As a consequence, 10 shares of par value N.I.S. 0.01 were consolidated into 1 share of par N.I.S. 0.10. Prior to the consolidation, each ADR represented 10 ordinary shares. Accordingly, each ADR is now equivalent to one ordinary share. This consolidation will not change the economic value of an ADR or the legal rights associated with an ADR. Teva Pharmaceutical Industries Ltd., is Israel's largest pharmaceutical company, with three quarters of its sales outside Israel, mainly in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The Company develops, manufactures and markets branded and generic human pharmaceuticals, bulk pharmaceutical chemicals, medical disposable disposable Nursing adjective Referring to that which is discarded or disposed of noun An item used in health care-related Pt contact which is discarded after use–eg masks, gloves, gowns, needles, paper products, syringes, wipes. See Biohazardous waste. and veterinary veterinary /vet·er·i·nary/ (vet´er-i-nar?e) 1. pertaining to domestic animals and their diseases. 2. veterinarian. vet·er·i·nar·y adj. products. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: To the extent any statements made in this release contain information that is not historical, these statements are essentially forward looking and are subject to risks and uncertainties, including the difficulty of predicting FDA approvals, acceptance and demand for new pharmaceutical products, the impact of competitive products and pricing, new product development and launch, reliance on key strategic alliances, availability of raw materials, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. (1) The merger with Biocraft was accounted for as a "pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. " and accordingly the Company's consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge were restated for all periods prior to the merger to include the results of operations, financial position, and cash flows of Biocraft. -0-
Teva Pharmaceutical Industries Limited
Consolidated Statements of Income
(in thousands, except earnings per ADR)
Year Ended December 31
1996 (a)1995
U.S. Dollars
SALES 953,783 811,280
COST OF SALES 594,054 514,490
GROSS PROFIT 359,729 296,790
RESEARCH AND DEVELOPMENT
EXPENSES:
Total expenses 90,362 83,496
Less grants and
participations 27,553 36,345
________ _________
62,809 47,151
SELLING, MARKETING, GENERAL AND
ADMINISTRATION EXPENSES: 167,626 145,446
_______ ________
129,294 104,193
Merger expenses 19,790
Write-off of debt in accordance
with General Health Fund debt
agreement 4,745
OPERATING INCOME 109,504 99,448
FINANCIAL EXPENSES - NET 24,522 12,875
OTHER INCOME - net 8,342 4,909
INCOME BEFORE TAXES ON INCOME 93,324 91,482
TAXES ON INCOME 20,898 22,174
________ ________
72,426 69,308
SHARE IN PROFITS OF ASSOCIATED
COMPANIES 529 27
MINORITY INTERESTS IN LOSSES
(PROFITS) OF
CONSOLIDATED SUBSIDIARIES-net 467 967
NET INCOME 73,422 70,302
EARNINGS PER ADR (b) 1.20 1.15
(a) Restated to give the effect to the merger with Biocraft by way
of a "pooling of interests"
(b) Each ADR represents one Ordinary Share
Teva Pharmaceutical Industries Limited
Consolidated Statements of Income
(in thousands, except earnings per ADR)
Quarter Ended
December 31
1996 (a)1995
U.S. Dollars
SALES 277,658 230,178
COST OF SALES 166,773 149,369
GROSS PROFIT 110,885 80,809
RESEARCH AND DEVELOPMENT EXPENSES:
Total expenses 30,025 26,248
Less grants and participations 5,833 10,868
_______ ______
24,192 15,380
SELLING, MARKETING, GENERAL AND
ADMINISTRATION EXPENSES: 43,837 39,243
42,856 26,186
Write-off of debt in accordance
with General Health Fund debt
agreement 4,745
OPERATING INCOME 42,856 21,441
FINANCIAL EXPENSES - NET 6,053 2,980
OTHER INCOME - net 2,055 972
INCOME BEFORE TAXES ON INCOME 38,858 19,433
TAXES ON INCOME 9,337 5,249
________ ________
29,521 14,184
SHARE IN PROFITS OF ASSOCIATED
COMPANIES 387 80
MINORITY INTERESTS IN LOSSES (PROFITS)
OF CONSOLIDATED SUBSIDIARIES-net 361 540
NET INCOME 30,269 14,804
EARNINGS PER ADR (b) 0.49 0.24
(a) Restated to give the effect to the merger with Biocraft by
way of a "pooling of interests"
(b) Each ADR represents one Ordinary Share
Teva Pharmaceutical Industries Limited
Consolidated Balance Sheet Data (in thousands)
December 31
1996 (a)1995
U.S. Dollars
Assets
CURRENT ASSETS
Cash and cash equivalents 61,178 64,865
Short-term investments 8,002 10,273
Accounts receivable:
Trade 247,981 183,593
Other 80,088 56,157
Inventories 328,625 232,095
Total current assets 725,874 546,983
INVESTMENTS AND NON-CURRENT
RECEIVABLES 16,760 48,406
PROPERTY, PLANT AND EQUIPMENT:
Cost 647,952 556,644
Less Accumulated
depreciation 234,246 178,626
413,706 378,018
INTANGIBLE ASSETS,
net of accumulated
amortization 85,075 66,030
__________ __________
1,241,415 1,039,437
Liabilities and shareholders' equity
CURRENT LIABILITIES
Short-term credit-mainly
from banks 341,228 255,223
Accounts payable and
accruals:
Trade 119,539 115,281
Other 60,941 68,192
Total current
liabilities 521,708 438,696
LONG-TERM LIABILITIES:
Deferred income taxes 14,498 10,220
Accrued employee rights
upon retirement,
net of amount
Funded 8,918 10,210
Loans and other
liabilities 161,100 93,165
Total long-term liabilities184,516 113,595
Total Liabilities 706,224 552,291
MINORITY INTERESTS IN CONSOLIDATED
SUBSIDIARIES 1,002 4,679
SHAREHOLDERS' EQUITY
Share capital and additional
paid-in-capital 170,219 166,823
Other capital surplus 3,397 6,855
Retained earnings 376,433 319,801
Cost of Company shares held
by subsidiaries (15,860) (11,012)
Total shareholders' equity 534,189 482,467
___________ __________
1,241,415 1,039,437
(a) Restated to give effect to the merger with Biocraft
by way of a "pooling of interests"
Teva Pharmaceutical Industries Limited
Condensed Consolidated Statements of Income
(in thousands, except per ADR data)
Year Ended
1996 Quarter Ending December 31
March 31 June 30 Sept 30 Dec 31 1996
US Dollars
Unaudited Audited
Sales 220,085 219,437 236,603 277,658 953,783
Cost of Sales 140,418 142,617 144,246 166,773 594,054
Gross Profit 79,667 76,820 92,357 110,885 359,729
Research and
Development
Expenses 19,570 17,611 23,156 30,025 90,362
Less Grants
& Participations (8,023) (5,402) (8,295) (5,833) (27,553)
Selling, General
and Administrative
Expenses 40,096 40,816 42,877 43,837 167,626
Merger Expenses --- 19,790 --- --- 19,790
Operating Income 28,024 4,005 34,619 42,856 109,504
Financial Expenses
- net 5,003 6,199 7,267 6,053 24,522
Other Income - net 1,680 2,280 2,327 2,055 8,342
Income before Taxes
on Income 24,701 86 29,679 38,858 93,324
Taxes on Income 6,138 (686) 6,109 9,337 20,898
Share in Profits
(losses) of non-
consolidated associated
and Minority
Interest in Profits/
Losses of Consolidated
Subsidiaries - net 125 (167) 290 748 996
Net Income 18,688 (b)605 23,860 30,269 (b)73,422
Earnings per ADR(a) 0.30 (b)0.01 0.39 0.49 (b)1.20
Weighted Average
Number of
ADR's used in
Computation of
earnings per
ADR(a) 61,825 61,826 61,776 61,689 61,781
(a) Each ADR represents one Ordinary share (b) Net Income and Net Earnings per ADR are after deducting a one-time charge (after tax) of $14.9 million or $0.24 per ADR CONTACT: Teva Pharmaceutical Industries Limited, Jerusalem Dan Suesskind, (011) 9722-5-892-840 or Morgen-Walke Associates, Inc., Investor Relations Investor relations The process by which the corporation communicates with its investors. : Donna N. Stein Stein , William Howard 1911-1980. American biochemist. He shared a 1972 Nobel Prize for pioneering studies of ribonuclease. Press: Brian Maddox (212) 850-5600 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion