Irish pharmaceutical firm Warner Chilcott Plc (WCRX: Quote) reported Friday a lower second-quarter profit, as revenues were dented by a 22 percent drop in sales in its osteoporosis drug Actonel. However, adjusted cash net income increased, reflecting net sales growth in certain promoted products and a decline in selling, general and administrative expenses.
The company lifted its adjusted cash net income guidance for full-year 2012, while maintained its total revenue outlook range.
Warner, which specializes in women's health care and gastroenterology, said it expects significant declines in total Actonel revenues throughout the remainder of the year, but sees net sales from new product Atelvia to grow and partially offset some of the declines in the U.S. Market.
The company said the decline in quarterly revenues reflected mainly a sharp drop in osteoporosis drug Actonel revenues, due in large part to overall declines in the U.S. oral bisphosphonate market. The results were also impacted by continued shrinkage in Actonel's net sales in rest of the world, as a result of loss of exclusivity in Western Europe in 2010.
In the U.S, revenues from Actonel dropped 15 percent, in non-U.S. North America the revenue fell 25 percent and in rest of world, Actonel revenues plunged 38 percent from last year.
Net sales of the company's oral contraceptive products increased 17 percent from the prior year.
In the second quarter, Warner Chilcott's net income declined to $53 million or $0.21 per share from $72 million or $0.28 per share in the previous year.
However, adjusted cash net income rose 8 percent to $258 million due to a 68 percent growth in net sales in certain promoted products, primarily oral contraceptives Lo Loestrin FE, hormone therapy Estrace Cream and osteoporosis drug Atelvia.
Adjusted cash net income for the recent quarter excluded a gain of $20 million, net of tax, related to reversal of a liability for contingent milestone payments to Novartis Pharmaceuticals Corp., the company said. For the latest period, adjusted cash net income per share was $1.03.
On average, 17 analysts polled by Thomson Reuters expected earnings of $0.80 per share for the quarter. Analysts' estimates typically exclude one-time items.
Total revenues for the quarter declined 5 percent to $638 million, but exceeded analysts' estimate of $605.63 million. Selling, general and administrative expenses dropped 30 percent from a year ago.
For the full year 2012, the company now expects adjusted cash net income per share in the range of $3.55 to $3.65, up from the prior forecast of $3.30 to $3.40 range.
The company maintained its 2012 total revenue guidance of $2.40 billion to $2.50 billion. Analysts project earnings per share of $3.45 on $2.48 billion revenue for 2012.
WCRX is currently trading at $17.33, up $0.67 or 4.02 percent, on a volume of 1.38 million shares on the Nasdaq.
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by RTT Staff Writer
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