Sales reached $1.05 billion, up 39 per cent compared to the first quarter of 2003, while the first quarter loss came in at $428 million, or $1.44 per share. Excluding the Sicor effect, Teva estimates that net income would have risen 49 per cent to $205 million.
The first-quarter sales hike was mainly due to the addition of new generic products in Europe and the US and the contribution of Sicor's portfolio from 23 January. Teva's branded drug for multiple sclerosis, Copaxone (glatiramer acetate), also contributed strongly with a 42 per cent sales increase to $231 million. However, changes in the euro-dollar exchange rate were responsible for 14 per cent of Teva's business growth.
Third-part sales of APIs - a small sibling to the generics business but a valuable secondary engine - increased by 35 per cent to $119 million, with the increase primarily due to the first time inclusion of Sicor's API sales. Overall API sales, including internal sales to Teva's pharmaceutical businesses, totaled $205 million, an increase of 21 per cent from the first quarter of 2003.
Teva has also hiked its R&D spending as it gears up for a number of new product introductions. Gross R&D spend for the quarter grew by 45 per cent to $72 million, reflecting increases in both generic and innovative R&D activities as well as the inclusion of Sicor.
As of 28 April 28, Teva had 109 product appications awaiting final approval in the US, corresponding to annual US branded sales of over $67 billion. Teva believes it is first to file on 18 of these applications with annual US branded sales of over $15 billion.
For the full year, Teva currently expects 2004 sales to exceed $4.5 billion and adjusted, fully diluted earnings per share to reach a range of $800-$900 million, or $2.70-$2.74.