Teva Reports 74% Rise In Nine-Month Profits

Teva, the Israeli pharmaceutical group, has reported a rise in netincome for the nine-month period ended September 30, 1997, surging from $43.1 million in the same period last year to $101.2 million. Total sales increased 22% to $825 million. Profits for the third quarter reached $35.8 million, up 50%, on sales of $286.7 million, a rise of 21% on the like, year-earlier period.

Eli Hurvitz, Teva's chief executive, said growth had been achieved despite a difficult quarter in which price erosion continued in most markets. Domestic growth was impacted by the changes in its relations with Merck, Sharp & Dohme (whereby Teva sells Merck products in Israel, but with a lower gross margin than the prior deal). Price erosion was offset by an increase in unit sales, the flow of synergies from the Biocraft merger (Marketletters passim) and other cost savings.

Teva is continuing to invest heavily in its best-selling product Copaxone (glatiramer acetate), for multiple sclerosis, including further R&D, European registration and launching expenses in the USA, as well as marketing preparation in Canada and other markets. Mr Hurvitz noted that Copaxone will not make a positive contribution to earnings per share until 1998.