Impax Laboratories Inc.
) second-quarter 2013 adjusted earnings of 23 cents per share
were above the Zacks Consensus Estimate of 4 cents but below the
year-ago earnings of 61 cents per share.
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Quarter in Details
Total revenue for the quarter stood at $129.6 million, down 22.2%
year over year. However, second-quarter revenues were ahead of
the Zacks Consensus Estimate of $121 million. The figure
comprised revenues from the Global Pharmaceuticals and Impax
Global Pharmaceuticals revenues came in at $94 million in the
second quarter, down 30% year over year. Revenues declined due to
lower sales of Impax's authorized generic version of Adderall XR
following the entry of additional generic competition and lower
sales of its generic fenofibrate products. However, this was
partially mitigated by the January launch of the company's non-AB
rated Opana (oxymorphone hydrochloride) extended-release tablets.
Revenues from the Impax Pharmaceuticals division came in at $35.7
million in the reported quarter, up 6.9% year over year. Growth
was driven by U.S. sales of Zomig. However, U.S. exclusivity on
Zomig tablets and orally disintegrating tablets, which accounted
for about 85% of Zomig product sales in the reported quarter,
expired on May 14, 2013. With several generic competitors
entering the market, sales of these two dosage forms have been
Total research and development expenses for the quarter decreased
21.8% to $15.5 million. Selling, general and administrative
expenses increased 33.8% to $33.3 million.
During the reported quarter, Impax launched its authorized
generic version of Zomig. Impax also launched the authorized
generic version of TriLipix delayed release capsules, 45 mg and
Apart from announcing financial results, Impax announced its
expense guidance for 2013. Total research and development
expenses are now expected in the range of $80-$87 million
compared to the old guidance of $87-$95 million. This includes
generic research and development expenses of $45-$49 million
(previously $49-$53 million) and brand research and development
expenses of $35-$38 million (previously $38-$42 million).
Impax increased its patent litigation expenses estimates to the
range of $12-$15 million compared to the old guidance of $10-$12
The company lowered its selling, general and administrative
expenses for 2013 to $113-$118 million from $115-$120 million.
As far as the warning letter for the Hayward facility is
concerned, Impax said that product approvals will continue
getting delayed until the issue is resolved. Given the lack of
new product approvals, additional generic competition and Zomig
share erosion, Impax expects operating losses in the second half
Impax currently carries a Zacks Rank #3 (Hold). Companies that
look attractive at present include
Gilead Sciences Inc.
) with a Zacks Rank #1 (Strong Buy), and
Jazz Pharmaceuticals Public Limited Company
) with a Zacks Rank #2 (Buy).