Impax Laboratories Inc.
) fourth-quarter 2013 loss of 2 cents per share missed the Zacks
Consensus Estimate of earnings of 7 cents. The company had
reported earnings of 33 cents per share in the year-ago
Results were affected by revenues resulting from the loss of
exclusivity of Zomig tablet and orally disintegrating tablet
(ZMT) products. Moreover, customer credits ($19.2 million)
resulting from fourth quarter pricing activities on certain
generic products also affected revenues.
Total revenues for the quarter declined 28.6% from the
year-ago period to $100.7 million, well below the Zacks Consensus
Estimate of $118 million.
For 2013, earnings per share were 82 cents, missing the Zacks
Consensus Estimate of 92 cents. Earnings were below the year-ago
figure of $1.96 per share.
Total revenues for 2013 declined 12.1% from the year-ago
period to $511.5 million, well below the Zacks Consensus Estimate
of $519 million.
Global Pharmaceuticals revenues came in at $86.9 million in
the fourth quarter, up 5.4% year over year. This increase was
driven by sales of new generic products launched throughout 2013,
partially offset by the unfavorable impact of customer credits
related to higher contract pricing of generic products.
Net sales of the Impax Pharmaceuticals division came in at
$13.8 million in the reported quarter, down 71.9% year over year.
Performance was impacted by generic competition faced by Zomig
tablets and ZMT products in the U.S.
The company intends to start selling its allotment of a
specified number of bottles of authorized generic Renvela tablets
from mid-Apr 2014.
Research and development expenses for the quarter decreased
22.0% to $17.6 million. Selling, general and administrative
expenses decreased 12.3% to $29.3 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 expects patent litigation expenses in the range of $11
million - $13 million.
Selling, general and administrative expenses for 2014 are
expected in the range of $115 million - $120 million.
While Impax is working with the FDA to re-file a new drug
application (NDA) for Rytary (for the symptomatic treatment of
Parkinson's disease), the company plans to file for EU approval
in the second half of 2014. As far as the Hayward manufacturing
facility is concerned, the FDA is yet to re-inspect the
Impax currently carries a Zacks Rank #3 (Hold). We expect
investor focus to remain on the resolution of the Hayward
manufacturing facility issues.
Some better-ranked stocks in the health care sector include
Dr. Reddy's Laboratories Ltd.
). While Mallinckrodt carries a Zacks Rank #1 (Strong Buy),
Actavis and Dr. Reddy's Labs hold a Zacks Rank #2 (Buy).
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