EXHIBIT 99.1
IVAX Reports 3rd Quarter 2005 Results; Revenues up 41% to Record
$617.7 Million; Net Income up 25% to $55.4 Million;
EPS up 18% to $0.20
MIAMI--(BUSINESS WIRE)--Nov. 8, 2005--IVAX Corporation (AMEX: IVX)
(LSE: IVX.L) (WSE: IVX) reported third quarter 2005 revenues of $617.7
million, an increase of 41% over revenues of $439.1 million in the
third quarter of 2004 and the highest quarterly revenues in IVAX'
eighteen year history. Net income for the third quarter 2005 was $55.4
million, a 25% increase over net income of $44.4 million for the third
quarter 2004. Third quarter earnings per share of $0.20 were 18%
higher than $0.17 in the third quarter 2004. For the nine months
ending September 30, 2005, revenues were $1.69 billion, and net income
$134.5 million or $0.49 per share compared to revenues of $1.33
billion, and net income of $134.8 million or $0.51 per share in 2004.
Neil Flanzraich, vice chairman and president of IVAX Corporation
said, "As this may well be our last quarter to report as an
independent company, we would like to thank all our investors and
employees for their loyalty and support throughout the years. This is
the eleventh consecutive quarter of year-over-year quarterly increases
of revenue and we are pleased that all major business regions
contributed to this growth. In the third quarter 2005, North American
revenues increased 39% from $213.0 million to $295.0 million. These
were the highest revenues ever for our North American operations and
the eleventh consecutive quarter of year-over-year quarterly revenue
growth. European revenues increased 26% from $151.2 million to $190.9
million; this increase was largely attributable to recognition in this
quarter of the previously disclosed deferred revenues from our
licensing agreement with Mayne Group Limited for Paxene(R) and
revenues of Polfa Kutno, acquired in December 2004. Latin American
revenues increased 14% from $83.2 million to $94.6 million, the tenth
consecutive quarter of year-over-year quarterly revenue growth.
"As announced on October 24, 2005, our third quarter earnings were
decreased by approximately $0.04 per share by items related to our
merger with Teva Pharmaceuticals Industries Ltd. These included
merger-related costs (required to be expensed by acquirees, much of
which is not tax deductible) and the dilutive effect of additional
shares now outstanding or deemed outstanding in connection with
options and convertible notes because of the recent rise in IVAX'
stock price. On October 27, 2005, IVAX and Teva announced that their
shareholders overwhelmingly approved the acquisition of IVAX by Teva;
closing of the transaction is still expected in late 2005 or early
2006, after completion of the Hart-Scott-Rodino clearance process,
obtaining other required antitrust approvals and satisfaction of other
closing conditions of the merger agreement."
IVAX will conduct a conference call at 11:00 A.M. Eastern Time
(Miami) to discuss the third quarter as well as other topics.
Interested parties can access the conference call by dialing
1-888-400-7916 from anywhere in the U.S. or by dialing 703-925-2612
from non-U.S. locations. The conference call will also be webcast. To
access and register for the webcast, go to IVAX' website at
http://www.ivax.com at least fifteen minutes before the 11:00 A.M.
conference call and click on the webcast link on IVAX' home page.
Replays of the conference call will be available starting at
approximately 2:00 P.M. on November 8th and will continue through
November 12th. To listen to the replay of the conference call, dial
800-475-6701 in the U.S. and internationally dial 320-365-3844, and
then enter the ID #802382. Replays of the webcast via IVAX' website
will be available.
IVAX Corporation, headquartered in Miami, Florida, discovers,
develops, manufactures, and markets branded and brand equivalent
(generic) pharmaceuticals and veterinary products in the U.S. and
internationally.
Copies of this and other news releases may be obtained free of
charge from IVAX' website at www.ivax.com.
Except for the historical matters contained herein, statements in
this press release are forward-looking and are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Investors are cautioned that forward-looking statements,
including, among others, statements relating to goals, plans,
expectations, estimates and projections regarding the company's
financial position, results of operations, market position and
business strategy involve risks and uncertainties that cannot be
predicted or quantified and, consequently, actual results may differ
materially from those expressed or implied by such forward-looking
statements. Such risks and uncertainties include, among others, risks
that could affect IVAX' earnings; that growth in any of the geographic
areas in which IVAX operates may be less than anticipated; that the
merger with Teva may not occur in late 2005 or early 2006 or at all;
and that the change of control of the Company or regulatory issues
arising from the proposed merger of the Company and Teva
Pharmaceutical Industries Limited could affect the Company's
relationships and/or agreements with third parties, including
distributors, manufacturers, suppliers and customers. In addition to
the risk factors set forth above, IVAX' forward looking statements may
also be adversely affected by whether and when the proposed
acquisition of IVAX by Teva Pharmaceutical Industries will be
consummated and the terms of any conditions imposed in connection with
such closing, including any required divestitures in connection with
obtaining antitrust approvals, diversion of management time on
merger-related issues, IVAX' ability to successfully develop and
commercialize additional pharmaceutical products, the introduction of
competitive generic products, the impact of competition from
brand-name companies that sell or license their own generic products
(so called "authorized generics") or successfully extend the
exclusivity period of their branded products, regulatory changes that
may prevent IVAX from exploiting exclusivity periods, potential
liability for sales of generic products prior to completion of
appellate litigation, including that relating to Neurontin(R), the
difficulty in predicting the timing and outcome of legal proceedings,
including patent-related matters such as patent challenge settlements
and patent infringement cases, court and FDA decisions on exclusivity
periods, the impact of pharmaceutical industry regulation and pending
legislation that could affect the pharmaceutical industry, the
difficulty of predicting U.S. Food and Drug Administration, European
Medicines Association and other regulatory authority approvals, the
regulatory environment and changes in the health policies and
structure of various countries, exposure to product liability claims,
dependence on patent and other protections for innovative products,
significant operations outside the United States that may be adversely
affected by fluctuations in currency, exchange and interest rates,
operating results and other factors that are discussed in IVAX' Annual
Report on Form 10-K and their other filings with the U.S. Securities
and Exchange Commission. Forward-looking statements speak only as of
the date on which they are made, and IVAX undertakes no obligation to
update publicly or revise any forward-looking statement, whether as a
result of new information, future developments or otherwise any
forward-looking statements to reflect events or circumstances after
the date hereof or to reflect the occurrence of unanticipated events.
Neurontin(R) is a registered trademark of Warner-Lambert Company, a
unit of Pfizer Inc.
IVAX Corporation and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Nine Months
Period Ended
September 30, 2005 2004 2005 2004
----------------------- -----------------------
(In thousands, except
per share data)
Net revenues $ 617,728 $ 439,086 $1,686,612 $1,328,239
Cost of sales
(excludes
amortization, which
is presented below) 356,721 248,530 986,094 713,723
----------------------- -----------------------
Gross profit 261,007 190,556 700,518 614,516
----------------------- -----------------------
Operating expenses:
Selling 77,371 66,441 235,742 194,308
General and
administrative 51,403 40,393 134,801 120,498
Research and
development 34,861 33,639 104,469 104,651
Amortization of
intangible assets 8,295 5,510 22,124 16,447
Restructuring costs
reversal 1,344 517 4,483 1,114
Merger expense 10,237 - 10,237 -
----------------------- -----------------------
Total operating
expenses 183,511 146,500 511,856 437,018
----------------------- -----------------------
Operating income 77,496 44,056 188,662 177,498
Total other income
(expense), net 1,324 (3,060) 246 (25,554)
----------------------- -----------------------
Income before income
taxes and minority
interest 78,820 40,996 188,908 151,944
Provision (benefit)
for income taxes 23,732 (3,358) 54,444 17,094
----------------------- -----------------------
Income before minority
interest 55,088 44,354 134,464 134,850
Minority interest 274 24 5 (33)
----------------------- -----------------------
Net income $ 55,362 $ 44,378 $ 134,469 $ 134,817
======================= =======================
Earnings per common
share:
Basic $ 0.20 $ 0.18 $ 0.51 $ 0.54
=========== =========== =========== ===========
Diluted $ 0.20 $ 0.17 $ 0.49 $ 0.51
======================= =======================
Weighted average
number of common
shares outstanding:
Basic 271,200 250,296 266,109 248,158
======================= =======================
Diluted 282,647 272,979 276,184 267,123
======================= =======================
IVAX Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
September December
30, 2005 31, 2004
-----------------------
(In thousands) (Unaudited)
Assets
- ------
Cash and cash equivalents $ 309,198 $ 391,988
Marketable securities, short term 260,361 6,058
Other current assets 1,216,163 1,123,597
Property, plant and equipment, net 615,597 604,647
Other assets 1,435,774 1,085,729
-----------------------
Total assets $3,837,093 $3,212,019
=======================
Liabilities and Shareholders' Equity
- ------------------------------------
Current portion of long-term debt $ 631,152 $ 60,145
Other current liabilities 553,881 518,276
Long-term debt 768,684 1,057,843
Other long-term liabilities 103,665 72,855
Minority interest 12,565 12,571
Commitments and contingencies
Shareholders' equity 1,767,146 1,490,329
-----------------------
Total liabilities and shareholders' equity $3,837,093 $3,212,019
=======================
IVAX Corporation and Subsidiaries
Reportable Segment Data
(Unaudited)
Period Ended Three Months Nine Months
September 30,
(In thousands) 2005 2004 2005 2004
----------------------- -----------------------
North America
External sales $ 294,100 $ 212,371 $ 780,680 $ 604,409
Intersegment sales 465 431 1,478 4,885
Other revenues 437 148 1,750 1,953
----------------------- -----------------------
Net revenues -
North America 295,002 212,950 783,908 611,247
----------------------- -----------------------
Europe
External sales 149,458 126,329 470,517 400,363
Intersegment sales 8,075 23,949 44,006 65,710
Other revenues 33,354 945 53,723 45,162
----------------------- -----------------------
Net revenues -
Europe 190,887 151,223 568,246 511,235
----------------------- -----------------------
Latin America
External sales 93,496 81,686 278,427 230,748
Other revenues 1,104 1,490 1,776 2,284
----------------------- -----------------------
Net revenues -
Latin America 94,600 83,176 280,203 233,032
----------------------- -----------------------
Corporate & other
External sales 42,456 10,614 91,034 36,217
Intersegment sales (8,540) (24,380) (45,484) (70,595)
Other revenues 3,323 5,503 8,705 7,103
----------------------- -----------------------
Net revenues -
Corporate & other 37,239 (8,263) 54,255 (27,275)
----------------------- -----------------------
----------------------- -----------------------
Consolidated net
revenues $ 617,728 $ 439,086 $1,686,612 $1,328,239
======================= =======================
CONTACT: IVAX Corporation, Miami
David Malina, 305-575-6043
www.ivax.com