) 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
) 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.
PROCTER & GAMBL (PG): Free Stock Analysis
UTD THERAPEUTIC (UTHR): Free Stock Analysis
VALEANT PHARMA (VRX): Free Stock Analysis
WARNER CHIL PLC (WCRX): Free Stock Analysis
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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).
) are well placed in the pharmaceutical space with a Zacks Rank
#1 (Strong Buy).