UPDATE 3-U.S. sales, Ratiopharm boost Teva Pharm Q3

* Q3 non-GAAP EPS up 46 pct to $1.30 vs $1.27 forecast

* Analysts concerned over European generic sales

* Sees 2010 rev $16.4 bln, EPS ex-items $4.50-$4.60

* To pay dividend of $0.193 a share

* Shares down 0.5 percent on Nasdaq

(Adds 2010 outlook, CEO quotes, Nasdaq share price)

By Tova Cohen

TEL AVIV, Nov 2 (BestGrowthStock) – Teva Pharmaceutical Industries
(TEVA.O: ), the world’s biggest maker of generic drugs, posted
higher quarterly net profit that beat expectations, boosted by
strong U.S. sales and its acquisition of Germany’s Ratiopharm.

Third quarter sales in North America rose 22 percent to
$2.72 billion while generic sales in the United States jumped 34
percent to $1.63 billion, Israel-based Teva said on Tuesday.

Teva (TEVA.TA: ) attributed the increase to the exclusive
launch of a generic version of Wyeth’s $2.75 billion-a-year
antidepressant Effexor XR in the quarter as well as strong sales
of generic drugs launched in previous quarters.

The results also reflected strong sales of Copaxone, Teva’s
leading branded treatment for multiple sclerosis, it said.

“The high profitability resulted from a sharp improvement in
gross profit margins due to the launch of new generic products
in the United States and high margins on branded products,” said
Steven Tepper, an analyst at Harel Finance brokerage.

But sales outside the United States, excluding the
Ratiopharm acquisition, were a bit lower than expected due to a
lack of growth for Copaxone other than U.S. price hikes, and
seasonal erosion in sales of respiratory products, he added.

“It is a strong report but it is important to hear what is
happening in the European generic market,” Tepper said.

Teva President and Chief Executive Shlomo Yanai said price
pressures and price erosions, especially in Europe, for generic
drugs were part of the business environment.

“As a market leader I believe we know how to manage this
type of phenomenon and increase our market share to exceed the
impact of price erosion,” he said on a call with analysts.

Teva shares slipped 0.5 percent to $50.98 in early Nasdaq
trade.

In the quarter, Teva completed its 3.7 billion euro
acquisition of Germany’s Ratiopharm, whose results were
consolidated since August 2010.

EXCHANGE RATE HITS SALES

Quarterly earnings excluding one-time items rose 46 percent
to $1.30 a share while sales rose 20 percent to $4.25 billion.

Exchange rate differences negatively impacted sales in the
quarter by $122 million compared with a year ago though the
effect on operating profit was negligible, Teva said.

Analysts on average expected Teva to earn $1.27 a share on
sales of $4.37 billion, according to Thomson Reuters I/B/E/S.

Yanai lifted Teva’s 2010 outlook for revenue to $16.4
billion from a previous $16 billion but left unchanged the
forecast from July for EPS ex-items of $4.50-$4.60.

Yanai said this was a quarter of strategic achievements and
operational successes, particularly in the United States with
high growth rates in the generics business, and in Europe.

He said Teva expected to complete the integration of
Ratiopharm ahead of schedule. Last week, Teva said it would buy
Merck KGaA’s (MRCG.DE: ) women’s health franchise outside the
United States for 265 million euros. [ID:nLDE69R1TO]

Global sales of Copaxone, which has a 30 percent market
share, rose 4 percent to a record $808 million. Copaxone sales
outside the United States fell due to the timing of tenders in
certain markets, the negative impact of exchange rates and
containment measures in Europe.

Teva said it would pay a dividend of 0.7 shekel (19.3 cents)
per share on Dec. 2, up from 0.6 shekel a year ago.

($1 = 3.62 shekels)

(Additional reporting by Steven Scheer; Editing by David
Cowell)

UPDATE 3-U.S. sales, Ratiopharm boost Teva Pharm Q3