Woodcliff Lake, New Jersey-based Par Pharmaceutical Companies, Inc. (PRX) reported Friday a sharp increase in third-quarter profit, reflecting a 98% growth in revenues, and also the absence of one-time charges that severely impacted year-ago results.
For the third quarter, net income shot up to $26.34 million or $0.76 per share from $475 thousand or $0.01 per share in the previous year. Income from continuing operations surged to $26.51 million or $0.77 a share from $625 thousand or $0.01 a share.
The results of the latest quarter included restructuring adjustments of $230 thousand. The prior-year results included write-offs relating to 2008 Trimming of Generic Portfolio of $5.42 million, contingent liabilities of $4.59 million, loss on Marketable Security of $2.51 million and development Milestone Payments of $1.25 million.
Excluding items, earnings increased to $26.19 million or $0.76 a share from $9.01 million or $0.27 a share in the year-ago period.
On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $0.49 per share in the third quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter surged 98% to $294.80 million from $148.97 million, attributed to limited competition in metoprolol succinate, sumatriptan succinate, meclizine, and dronabinol, as well as the launches of nateglinide and clonidine in the third quarter 2009. Seven analysts were expecting revenues of $290.44 million for the third quarter.
Net product sales advanced year-over-year to $290.96 million from $144.76 million, while other product related revenues declined to $3.84 million from $4.20 million.
Gross margin was $92.1 million, or 31.3% of total revenue, an increase of $40.7 million from the same period in 2008. Total generic gross margin climbed to $72.9 million, or 27.1% of total generic revenue, from $35.9 million, or 27.8% of total generic revenue, mainly because of higher sales of metoprolol coupled with the launches of sumatriptan, dronabinol, and clonidine.
Selling, general and administrative expenses increased to $45.3 million from $30.7 million in the prior-year quarter, reflecting on-going expenditures supporting Strativa sales and marketing, driven by an increase in the field force and other activities related to the re-launch of Nascobal B12 Nasal Spray, as well as accruals of higher bonus compensation expenses related to significantly better year-to-date financial performance through the first nine months of 2009.
Research and development outlay reduced 53% to $6.46 million from $13.78 million, chiefly because of the resizing of the generic division, which included a headcount reduction and lower development and biostudy costs.
For the nine-month period, net income was $66.23 million or $1.95 per share, compared to loss of $19.31 million or $0.57 per share in fiscal 2008. Adjusted net income was $63.59 million or $1.87 per share, compared to adjusted loss of $6.63 million or $0.20 per share in the past year. Total revenues grew to $902.84 million from $416.83 million last year.
PRX is currently trading at $23.03, up $0.25 or 1.10%, on the NYSE.
For comments and feedback: editorial@rttnews.com