) reported fourth-quarter of fiscal 2013 (ending Sept 2013)
adjusted earnings of 77 cents per share, missing the Zacks
Consensus Estimate of 86 cents. Earnings were above the year-ago
figure of 49 cents per share.
Net sales for the quarter were $552.2 million, up 7.6% from
the year-ago quarter. Revenues missed the Zacks Consensus
Estimate of $576 million. Revenues were mainly driven by sales
from the Specialty Pharmaceuticals segment.
Full year 2013 earnings per share were $1.33 as against the
year-ago loss of $2.59 per share. Revenues in 2013 were $2.2
billion, compared with $2.1 billion in 2012.
Quarter in Details
Mallinckrodt reports revenues under two segments, Specialty
Pharmaceuticals and Global Medical Imaging.
Sales from the Specialty Pharmaceuticals segment were $311.4
million in the reported quarter, up from $258.9 million in the
prior-year quarter. This segment is composed of Brands as well as
Generics and Active Pharmaceutical Ingredients (API) sub
segments. Net sales in Brands were $53.9 million, up 36.1% driven
by net sales from Exalgo ($30.7 million). Net sales in Generics
and API were $257.5 million, up 17.4%. This was driven by net
sales from Methylphenidate HCl Extended-Release Tablets ($63
Sales from the Global Medical Imaging segment were $229
million in the reported quarter, down from $242.8 million in the
prior-year quarter. This segment is composed of Contrast Media
and Delivery Systems (CMDS) as well as Nuclear Imaging sub
segments. Net sales in CMDS were $119.6 million, down 11% driven
by continued commoditization in mature markets. Net sales in
Nuclear Imaging segment were almost flat at $109.4 million.
In the fourth quarter of fiscal 2013, research and development
(R&D) expenses were $44.1 million, compared with $36.6
million in the year-ago quarter. The increase in R&D spend
reflects expenses in support of developing its pipeline and
milestone payment related to MNK-795 (to treat moderate-to-severe
Selling, general and administrative (SG&A) expenses were
$137 million, compared with $140 million in the year-ago quarter.
The expenses fell mainly due to cost control and benefits from
Mallinckrodt has several late-stage candidates in its pipeline
including MNK-795 and MNK-395, which are currently under
regulatory review. In July 2013, the U.S. Food and Drug
Administration (FDA) accepted the marketing application for
MNK-795 for treating moderate-to-severe acute pain. The
regulatory body is reviewing the marketing application on a
priority review. The FDA decision will be out by year end.
The marketing application for MNK-395 in pain associated with
osteoarthritis of the knee was submitted in Aug 2013. The FDA
decision will be out by early 2014.
Another pain candidate, MNK-155, is currently being evaluated
in phase III trials with regulatory submission expected by the
first half of calendar 2014.
Mallinckrodt expects net sales in the range of $2.15 billion
to $2.25 billion in fiscal 2014. The Zacks Consensus Estimate
currently stands at $2.19 billion. Adjusted earnings per share
are expected in the range of $2.45 to $2.65 per share. The Zacks
Consensus Estimate currently stands at $2.58 per share.
Mallinckrodt carries a Zacks Rank #3 (Hold). Currently,
Jazz Pharmaceuticals Ltd.
Impax Laboratories Inc.
) look well-positioned with a Zacks Rank #1 (Strong Buy).
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