Today’s investing news updates cover catching up on closed-end and exchange-traded funds, plus news from Brazil, Guinea, Finland, Britain, Belgium, The Netherlands, Israel, India, Mexico, Spain, and Canada.
*Iusacell, the Mexican cellphone firm, is to be acquired from Mexico’s TV magnate Ricardo Salinas Pliego’s Grupo Televisa (which owns 50% ) by Telefonica of Spain, according to a Spanish newspaper report. Price not given but the leak seems to have come from Spanish banks being asked to finance the deal. Salinas Pliego is the 4th richest Mexican. This would challenge the 70% dominant Mexican mobile phone operator run by Mexico’s richest man, Carlos Slim Helu, America Movil. TEF has about 20% of the Mexican market in its own right and Iusacell about 6% according to Eduardo Garcia of www.sentidocomun.co.mx.
*Bombardier has been been awarded a GBP 1 bn pound contract for the Crossrail trains which will connect Heathrow Airport to Canary Wharf in London, the BBC just announced. BDRAF also annnounced yesterday the first sale of corporate Learjet 75s. Five were bought by fellow Canadian firm London Air Services for hauling up to 8 business travelers more cheaply thanks to fuel efficient and carbon fibers as well as more comfortably than in the earlier Lear 45. Price was not given but this is mostly a prestige deal among Canadians.
*Teva reported Q4 2013 revenues at $5.43 bn up 2.9%. However for 2013 overall, Teva reported essentially flat sales at $20.314 bn vs $20.317 bn in 2012. Its Q4 profit was $380 mn. vs prior year $320 mn, with EPS at 45 cents. For the year EPS was $1.42 vs prior year’s 1.32. This beat the average forecast by two cents. It loudly reiterated its upbeat outlook for 2014.
TEVA dependence on Copaxone actually rose 8% in Q4. Copaxone accounted for 21% of sales last year, $4.33 bn, vs 20% or $3.996 bn in 2012. Overall, its former dominant line of generics fell by 5% to $9.906 bn.
Oncology drug Treanda was Teva’s third largest seller, up 17% to $117 mn, up 10% in Q4 over Q4 2012. OTC meds lumped together accounted for $1.17 bn, up 24% y/o/y. Another winner seems to be Agilect/Azilect for Parkinson’s disease which in Q4 rose 18% to $133 mn.
I think we are seeing some of the impact of Dr. Jeremy Levin’s tenure at Teva which ended with his ouster in Oct.
By region the US remains Teva’s big market with $2.787 bn of sales, 14% of total but competition for multiple sclerosis drug Copaxone began to hurt in Q4. Europe continues to fall, down 1% and with generics down 5% while specialties sales rose. The rest of the world saw very rapid growth thanks to new ventures in Japan and increased sales in Russia. ROW saw a rise in specialty sales of 36% although overall sales remained flat.
The quarterly dividend was raised 5% to NIS 1.21, about 34 US cents.
*GlaxoSmithKline remains on Deutsche Bank‘s buy list but its target price was cut of GBP 16.2/sh from 17 after yesterday’s report on Q4 and 2013. It cited the 2014-5 drug pipeline for its rating. Here are the 2013 numbers which were not released in time for my Wednesday blog. Sales rose 1% to GBP 26.5 bn ($43 bn) , and profits by 4% to GBP1.122/sh, both on a constant currency basis. Full year profits were GBP 8 bn or $13 bn.
