Impax Labs misses by $0.11, misses on revs; lowers FY16 guidance below consensus :
- Reports Q2 (Jun) earnings of $0.21 per share, excluding non-recurring items,$0.11 worse than the Capital IQ Consensus of $0.32; revenues fell 19.4% year/year to $172.6 mln vs the $223.67 mln Capital IQ Consensus. The decrease was primarily due to a 30% reduction in Generics division revenues which includes the impact of an approximate $15.0 million shelf-stock adjustment as a result of competition on diclofenac sodium gel 3% (Solaraze) and metaxalone (Skelaxin), as well as lower sales of mixed amphetamine salts (Adderall XR) partially offset by a 29% increase in Specialty Pharma division revenues.
- "Our second quarter results reflect the unexpected and rapid decline in sales of diclofenac and metaxalone as a result of additional competition," said Fred Wilkinson, President and Chief Executive Officer of Impax. "In particular, the change in the diclofenac market quickly moved us from an exclusive supplier position to a five competitor market. Unfortunately, the swiftness of the change in both of these product markets combined with lower sales of mixed amphetamine salts, more than offset solid growth from our epinephrine auto-injector and oxymorphone products, as well as growth in sales across our Specialty Pharma portfolio."
- Co issues downside guidance for FY16, lowers EPS to $1.57-1.70, excluding non-recurring items, vs. $1.78 Capital IQ Consensus; lowers FY16 revs to $900-940 mln from at least $989 mln vs. $994.34 mln Capital IQ Consensus.
- "While the addition of these acquired products [from TEVA] will partially offset the recent decline in Generics division revenues, we are revising our full-year financial expectations due to the five week delay in closing the transaction, further deterioration in the diclofenac market, delay in recapturing generic Adderall XR share, delay in supply of a third-party generic product and deferred timing of certain targeted 2016 generic product launches.
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