Impax Laboratories Inc.
) shares gained 1.6% immediately after the company reported
better-than-expected earnings per share in the first quarter of
2014. However, shares declined 1.3% in the following trading
session. Overall, shares were up 0.3% since the company released
first quarter results.
The company posted earnings of 24 cents per share in the first
quarter of 2014, beating the Zacks Consensus Estimate of 13 cents
per share but down 35.1% from the year-ago quarter.
Total revenues for the reported quarter were $118.7 million,
down 20% from the year-ago quarter. The decrease in revenues was
primarily due to the genericization of Zomig tablets and orally
disintegrating tablets (ZMT). This decline was partially offset
by an increase in generic revenues resulting from a favorable
product mix and sales from new generic products launched in the
second half of 2013. Revenues were just shy of the Zacks
Consensus Estimate of $119 million.
Global Pharmaceuticals revenues came in at $109.1 million in
the first quarter, up 7.4% year over year. This increase was
primarily driven by sales of the authorized generic version of
TriLipix, generic Solaraze and Digoxin, but partially offset by a
decline in the sales of authorized generic Adderall and
Net sales of the Impax Pharmaceuticals division were $9.6 million
in the reported quarter, down 79.6% year over year. This decrease
was mainly due to lower sales of Zomig tablet and ZMT products,
partially offset by higher sales of Zomig nasal spray.
Last month, the U.S. Food and Drug Administration (FDA) accepted
the re-submission of the New Drug Application (NDA) for Impax's
Rytary for the symptomatic treatment of Parkinson's disease. A
response from the agency should be out by Oct 9, 2014. The
company expects to launch Rytary in the U.S. in the first quarter
of 2015, if approved. Impax also intends to file for EU approval
for Rytary in the second half of 2014.
Additionally, in Apr 2014, Impax launched the authorized generic
) Renvela, which should be a major contributor to revenues this
year. Impax is also looking to get its own generic version of
Research and development expenses for the quarter increased
10.9% to $21.7 million. Selling, general and administrative
expenses decreased 14.3% to $25.5 million.
The company maintained its guidance for research and
development at $82 million - $88 million. This includes generic
research and development expenses of $46 million - $49 million
and brand research and development expenses of $36 million - $39
Impax continues to expect patent litigation expenses in the
range of $11 million - $13 million. Selling, general and
administrative expenses for 2014 are still expected in the range
of $115 million - $120 million.
Impax is working with the FDA and expects the agency to
re-inspect its Hayward manufacturing facility. The company
expects Hayward facility remediation costs in the range of $25.0
million − $30.0 million in 2014.
Impax currently carries a Zacks Rank #2 (Buy). We expect
investor focus to remain on the resolution of the Hayward
manufacturing facility issues.
Some other stocks looking equally good in the health care
Dr. Reddy's Laboratories Ltd.
). While Mallinckrodt carries a Zacks Rank #1 (Strong Buy), Dr.
Reddy's Labs hold a Zacks Rank #2 (Buy).
IMPAX LABORATRS (IPXL): Free Stock Analysis
MALLINCKRODT PL (MNK): Free Stock Analysis
DOCTOR REDDYS (RDY): Free Stock Analysis
SANOFI-AVENTIS (SNY): Free Stock Analysis
To read this article on Zacks.com click here.