Teva Pharmaceutical Industries reported results for the quarter ended September 30, 2015. Revenues in the third quarter of 2015 amounted to $4.8 billion, down 5% compared to the third quarter of 2014.
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Excluding the impact of foreign exchange fluctuations, revenues grew 3%.
Exchange rate differences (net of profits from certain hedging transactions) between the third quarter of 2015 and the third quarter of 2014 decreased our revenues by $371 million, our non-GAAP operating income by $72 million and our GAAP operating income by $56 million.
Non-GAAP gross profit was $3.0 billion in the third quarter of 2015, down 3% from the third quarter of 2014. Non-GAAP gross profit margin was 61.8% in the third quarter of 2015, compared to 60.6% in the third quarter of 2014. GAAP gross profit was $2.8 billion in the third quarter of 2015, down 1% compared to the third quarter of 2014.
GAAP gross profit margin was 57.5% in the quarter, compared to 55.5% in the third quarter of 2014.
Research and Development (R&D) expenditures (excluding equity compensation expenses and expenses related to the cancellation of R&D projects in 2014) in the third quarter of 2015 amounted to $356 million, compared to $357 million in the third quarter of 2014. R&D expenses were 7.4% of revenues in the quarter, compared to 7.1% in the third quarter of 2014.
R&D expenses related to our generic medicines segment amounted to $132 million, compared to $133 million in the third quarter of 2014. In local currency terms, expenses increased 3% as a result of additional development activities for the U.S. market.
R&D expenses related to our specialty medicines segment amounted to $220 million, compared to $221 million in the third quarter of 2014. In local currency terms, expenses increased 1%, mainly as a result of development costs related to assets acquired in the Labrys and Auspex transactions.
Selling and Marketing (S&M) expenditures (excluding amortization of purchased intangible assets and equity compensation expenses) amounted to $766 million, or 15.9% of revenues, in the third quarter of 2015, compared to $903 million, or 17.9% of revenues, in the third quarter of 2014.
S&M expenses related to our generic medicines segment amounted to $295 million, a decrease of 24% compared to $387 million in the third quarter of 2014. In local currency terms, S&M expenses decreased 13%, mainly due to lower royalties related to our sales of budesonide (Pulmicort) in the United States.
S&M expenses related to our specialty medicines segment amounted to $417 million, a decrease of 11% compared to $470 million in the third quarter of 2014. In local currency terms, S&M expenses decreased 6%.
General and Administrative (G&A) expenditures (excluding equity compensation expenses) amounted to $307 million in the third quarter of 2015, or 6.4% of revenues, compared to $283 million and 5.6% in the third quarter of 2014.
Quarterly non-GAAP operating income was $1.6 billion, an increase of 2% compared to the third quarter of 2014. Quarterly GAAP operating income was $1.0 billion in the third quarter of 2015, a decrease of 9% compared to $1.1 billion in the third quarter of 2014. ■