Teva's Shlomo Yanai Sees Benefit From Obama Health Reforms
Teva Pharmaceutical Industries, the world's largest generics drugmaker, said it stands to benefit from the Obama administration's healthcare reform and other plans aimed at getting cheaper medicines to the U.S. market.
"The healthcare reform and biologics reform are going in the right direction from Teva's perspective," Teva Chief Executive Shlomo Yanai told Reuters on Tuesday after a ceremony to inaugurate the company's new distribution center.
"If we take the healthcare potential future for us, we see an additional 31 million Americans that would buy medicine they cannot afford today and probably buy generics and not the very expensive innovative products," he said.
Earlier this month, U.S. President Barack Obama, as part of his 2012 budget proposal, called for cutting the number of years drugmakers could exclusively market brand name biologic drugs to seven years from 12.
He also set his sights on ending controversial "pay-for-delay" deals that affect traditional, chemical drugs by giving the U.S. Federal Trade Commission power to block such pacts. In those types of deals, brand name and generic drugmakers settle patent challenges with payoffs that delay lower-cost rivals from reaching the market.
Teva saw its generic sales in the United States rise 16% in 2010 to $5.8 billion.
Its shares have dropped more than 8% in the wake of fourth-quarter results that missed expectations and a 2011 profit outlook that fell short of forecasts.
Teva has estimated revenue in 2011 would rise about 17% to between $18.5 billion and $19.0 billion while earnings per share before items would reach $4.90 to $5.20. Analysts were expecting revenue of $18.98 billion and adjusted EPS of $5.30, according to Thomson Reuters I/B/E/S.
"We always give guidance as what we believe is the best way to do so," Yanai said. "I am very optimistic on the year. I believe Teva will do as we always do - it will be another good year for growth and for achieving Teva's long-term goals."
He said the new logistics center, in which Teva invested more than $100 million, will help the company streamline its operations in Israel by unifying its distribution and being near Israel's international airport and main highways.
"It will save us a lot of money," Yanai said, adding Teva will see its investment returned in five years.
Yanai also said Teva was working with the U.S. Food and Drug Administration regarding a generic version of blood thinner Lovenox, but declined to comment further.
