PHARMACEUTICAL INDUSTRY

Berlin  -  The Israeli generic drug company Teva increased its turnover by a quarter to 13.9 billion US dollars last year; the profit lay at 2 billion dollars. The first-time consolidation of the competitor Barr, taken over at the end of 2008, had an effect on the US business in particular, whose share in the overall turnover increased from 58 to 62 percent. In contrast, the European share dropped from 27 to 24 percent due to a low level of growth and the strong euro.

In the US the revenues increased by 34 percent to 8.6 billion dollars. The company has thus come a great deal closer to its aim, announced in 2007, of generating at least 9.5 billion dollars in North America by 2012.

The turnover in Latin America, Russia and Israel equally rose by around a third, albeit in local currencies When adjusted, the revenues lie at 2 billion dollars, 20 percent above the previous year and thereby also according to plan.

On the other hand, at 3.3 billion dollars, the turnover in Europe lay 10 percent above the previous year and thus beneath the forecast. In local currencies, Teva increased its revenues by 22 percent; growth markets were in particular Germany, Spain, Poland and France. The company is announcing nothing about the respective results. With the Barr takeover, the German manufacturer AWD went across to Teva via the Croatian subsidiary Pliva. Out of the estimated turnover of around 160 million euros, around two thirds would account for revenues from AWD products.

Teva is being handled as an attractive candidate for the takeover of Ratiopharm. After CEO Shlomo Yanai already announced last year that large purchases were off the cards, the global market leader underlined the following growth strategy with its recently updated medium-term objectives: By 2015 the company turnover is to increase to 31 billion dollars; in Europe the revenues are even expected to almost treble to 9.2 billion dollars. Hence, in order to reach an average annual growth rate of just under 20 percent, Teva apparently needs new acquisitions in Europe.

Patrick Hollstein, Thu, Februay 25, 2010 12:14pm CET