Israeli-based Teva, the world's leading generic pharmaceutical company, reported sales of $11.1 billion for the year, 18% more than in 2007. It earned $634 million in the fourth quarter of 2008, following its acquisition of Barr.
Teva grew by over 20% in the international market in 2008, though only 13% in Europe. It launched 28 new products in the United States over the year, where it has a full 24% of the generic drug markets. Teva CEO Shlomo Yannai said that every 1% of growth in the generic drug market in the U.S. saves Americans $7 billion each year – indicating further expected growth in light of the financial hardships Americans are continuing to face.
Teva is also making inroads in Japan, the world’s 2nd-largest pharmaceutical market. It has set a goal of $1 billion in sales in Japan by 2015.
Teva manufactures innovative drugs in niche markets where it has a relative advantage in research and development, and also manufactures generic drugs (copies of known drugs after the original patents have expired) of all types.
The company had been foreseeing a growth of 28% in the year 2009, but after releasing the reports of record profits in 2008, upped its growth forecasts to as much as 31%.
Acquired Barr and Bentley
Teva recently acquired the New Jersey-based Barr pharmaceutical company. “There were several challenges on the way to closing the Barr deal,” said CEO Yannai, “because the world turned upside down [financially] over the past few months. We are now at the height of the integration. This is most definitely our crowning achievement of the past year, and of the coming years.”
Teva’s market share in Spain has jumped from 1.5% to 10%, because of its purchase of the Bentley drug company. Bentley manufactures and markets 130 pharmaceutical products, mainly in Spain. Teva introduced 30 new products to Spain in the past year.
Copaxone for MS
Teva’s flagship product is Copaxone, a unique immuno-modulator therapy used for the treatment of Relapsing-Remitting Multiple Sclerosis. The first innovative drug to be developed in Israel and to receive FDA approval, Copaxone was originally discovered by Professor Sela, Professor Arnon and Dr. Teitelbaum at the Weizmann Institute of Science in Rehovot, Israel. Teva was granted world-wide exclusive license for Copaxone and became the developer of the product.
On its website, Teva emphasizes that it recognizes that “multiple sclerosis encompasses more than drug therapy alone. While the company is working to bring this emerging therapy to market, it is also dedicated to working with the multiple sclerosis community to develop solutions that address the far-reaching implications of the disease. As part of this commitment, Teva currently supports a variety of programs and services for the multiple sclerosis community.”