TEVA Teva Pharmaceutical Industries Ltd

By Austen Hufford 

Teva Pharmaceuticals Industries Ltd. swung to a loss in its latest quarter on an acquisition write-down as its interim chief executive contends with a deal-driven debt load.

However, shares of the Israeli pharmaceutical company rose as it beat revenue and profit expectations.

Last week former Chairman Yitzhak Peterburg became interim CEO, succeeding Erez Vigodman. Mr. Peterburg relinquished the chairman's post, with Sol Barer, a member of Teva's board, becoming chairman.

Mr. Peterburg said Monday that in the year ahead he would pay down the company's debt to improve its balance sheet and that he was conducting a review of the company to find opportunities to add value.

Last year, Teva, known for its generic-drugs business, closed its $40.5 billion deal for Allergan's generics operations.

The company reported long-term debt of about $39.38 billion as of Dec. 31, up from about $11.3 billion a year earlier.

The company also took a $900 million goodwill impairment charge related to its 2016 deal to buy Mexican drugmaker Rimsa for $2.3 billion.

For the quarter, Teva reported a loss of $973 million, or $1.10 a share, compared with a profit of $500 million, or 55 cents a share, the same quarter the year before. Excluding certain items, per-share earnings were $1.38, up from $1.28 a share in the prior-year quarter.

Revenue grew 33% to $6.49 billion.

Analysts polled by Thomson Reuters had expected earnings of $1.35 a share on $6.28 billion in revenue.

Revenue in its generic-medicine segment grew 44% to $2.57 billion, largely due to the Allergan deal. In its specialty segment, revenue grew 4.2% to $2.2 billion due to higher revenue in other specialty drugs and women's health.

Research-and-development costs jumped 53% to $684 million, with expenses rising for both generics and specialty as well as from an upfront payment of $160 million to Celltrion to commercialize two biosimilar drugs.

Teva reaffirmed its annual guidance.

Shares of the company climbed 4.8% premarket to $33.72.

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

February 14, 2017 02:47 ET (07:47 GMT)

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