Warner Chilcott Provides 2013 View - Analyst Blog

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Warner Chilcott ( WCRX ) recently revealed its financial guidance for 2013. The company expects to earn $3.20-$3.30 per share on total revenues of $2.3-$2.4 billion in 2013. While revenue guidance was in line with expectations, earnings guidance missed it with the Zacks Consensus Estimate standing at $3.60 per share.

The guidance assumes continued sales erosion of its osteoporosis drug, Actonel. We remind investors that Actonel - acquired from Procter & Gamble Company ( PG ) in 2009 - went off-patent in Western Europe in late 2010, thus significantly hampering revenues at Warner Chilcott.

Actonel accounted for 70% of the company's 2010 revenues from the region. Moreover, the contraction of the US bisphosphonate market is expected to hamper US Actonel sales in 2013.

However, Warner Chilcott expects products, such as Lo Loestrin FE (oral contraceptive) and Estrace Cream (hormone therapy) to perform well in 2013. The addition of ulcerative colitis drug Delzicol - approved earlier in the month and expected to be launched next month - to the company's product portfolio should also augment its top line.

We are positive on the addition of the new product to Warner Chilcott's product portfolio since many of its key drugs are facing declining sales due to generic competition. The generic competition that Warner Chilcott is currently facing or expects to face for its various drugs has put significant pressure on it.

Warner Chilcott expects selling, general and administrative (SG&A) expense in 2013 in the range of $750-$800 million (2012 expectation: $725-$775 million). Research and development (R&D) expenses in 2012 are expected in the range of $115-$135 million (2012 expectation: $90-$110 million).

Warner Chilcott currently carries a Zacks Rank #3 (Hold). Valeant Pharmaceuticals ( VRX ) and United Therapeutics ( UTHR ) are well placed in the pharmaceutical space with a Zacks Rank #1 (Strong Buy).



PROCTER & GAMBL (PG): Free Stock Analysis Report

UTD THERAPEUTIC (UTHR): Free Stock Analysis Report

VALEANT PHARMA (VRX): Free Stock Analysis Report

WARNER CHIL PLC (WCRX): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: PG , UTHR , VRX , WCRX

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