Nov. 3 (Bloomberg) -- Teva Pharmaceutical Industries Ltd. said third-quarter profit rose 28 percent on sales of its multiple sclerosis medicine Copaxone and savings from last year’s purchase of Barr Pharmaceuticals Inc.

Net income excluding costs related to Barr climbed to $806 million, or 89 cents a share, from $630 million, or 77 cents, the Petah Tikva, Israel-based company said in a statement today. Earnings beat the average estimate of 88 cents a share from 19 analysts surveyed by Bloomberg.

Teva is seeking more acquisitions after the $7.4 billion takeover of Barr and wants to expand in women’s health products, Chief Executive Officer Shlomo Yanai said today. The company may move beyond generic drugs to specialty and biotechnology companies as it reduces dependence on Copaxone, which generates about 35 percent of earnings. U.S. regulators in September accepted Mylan Inc.’s application for a generic version of the injectible drug, and the product may face rival pills by Merck KGaA and Novartis AG as soon as next year.

“What the market is waiting for is some comments on strategic alternatives, acquisitions that will help to fuel growth after 2010,” Gilad Alper, a Tel Aviv-based analyst for Excellence Investments, said in a telephone interview. Record quarterly cash flow of $1.03 billion gives the company “a lot of ammunition when searching for the next acquisition target.”

Teva shares fell 0.4 percent to 190 shekels at 12:18 p.m. in Tel Aviv.

‘An Acquisitive Company’

“We are constantly hearing speculation about Teva making acquisitions,” Yanai told reporters in Petah Tikva today. “This is because for 30 years, Teva’s been an acquisitive company. We are constantly scrutinizing the industry and looking for opportunities.”

Sales rose 25 percent to $3.55 billion, falling short of the $3.64 billion average estimate of 17 analysts surveyed.

Copaxone sales were “extremely strong” so revenue may have fallen short of expectations because of weakness such as pricing pressure in the U.S. generic market, Alper said.

Total pharmaceutical sales in North America rose 34 percent to $2.16 billion. Revenue from Copaxone in the U.S. climbed 53 percent to $540 million. Worldwide, Copaxone sales increased 38 percent to $776 million.

Good Quarter

“That’s the difference between a good quarter and a bad quarter,” Gilad Sarig, a Tel Aviv-based analyst for Bank Hapoalim BM, said in a telephone interview. “Copaxone did the quarter by itself.” Growth after 2010 “won’t be easy, like now,” he said, because Copaxone is a mature product.

A new formulation of the multiple sclerosis injection being tested in a final-stage clinical trial may help Teva stave off generic competition, J.P. Morgan Securities analysts including Chris Schott wrote in a note to investors before today’s results.

“We view Teva’s unmatched size, ability to take risk and potential to realize considerable operating synergies from the Barr acquisition, coupled with a favorable macro environment, as placing the company in a solid position,” Schott wrote.

To contact the reporters on this story: Naomi Kresge in Zurich at nkresge@bloomberg.net; Jonathan Ferziger in Tel Aviv at jferziger@bloomberg.net

Last Updated: November 3, 2009 05:19 EST