Specialty pharmaceutical company Warner Chilcott Plc (WCRX) reported Friday a profit for the fourth quarter that increased from last year, reflecting lower expenses and sales growth in several key promoted products, primarily LO Loestrin FE and Asacol. Both adjusted cash earnings per share and quarterly revenues topped analysts' expectations.
The Dublin, Ireland-based company, which in early 2010 shifted base from Rockaway, New Jersey, reported net income of $124 million or $0.49 per share for the fourth quarter, higher than $90 million or $0.36 per share in the prior-year quarter.
Cash net income or CNI, for the quarter, which adjusts for some non-cash items in both periods, edged up to $242 million from $240 million in the year-ago quarter. Excluding items, adjusted cash net income was $228 million or $0.91 per share.
On average, 16 analysts polled by Thomson Reuters expected the company to earn $0.73 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter declined 5 percent to $612 million from $646 million in the same quarter last year, but topped thirteen Wall Street analysts' consensus estimate of $565.21 million.
The company attributed the revenue decline to the drop in sales of Actonel and Doryx, partially offset by net sales growth in certain other promoted products, primarily LO Loestrin FE, and Asacol, with the combined sales of these products increasing 24 percent.
Total Actonel revenues declined 42 percent to $104 million from last year. The company expects to continue to experience significant declines in total Actonel revenues in future periods also. Meanwhile, Atelvia net sales increased to $21 million from $13 million last year.
Net sales of oral contraceptive products increased 40 percent, with Loestrin 24 FE sales rising 25 percent, and LO Loestrin FE sales doubling from last year. Among other products, net sales of Estrace Cream increased 21 percent, and Asacol net sales grew 15 percent, while net sales of Enablex declined 2 percent, and net sales of Doryx decreased 59 percent from last year.
The company noted that it expects the decline in Enablex net sales to increase in 2013 due in part to the focus of the urology sales force on Estrace Cream.
Meanwhile, the company is expecting to commercially launch Delzicol, its new 400 mg mesalamine product indicated for the treatment of ulcerative colitis, in March 2013.
For fiscal 2012, the company reported net income of $403 million or $1.61 per share, sharply higher than $171 million or $0.67 per share in the prior year.
Cash net income or CNI, for the year, which adjusts for some non-cash items in both periods, increased to $1.01 billion from $843 million in the year ago. Excluding items, adjusted cash net income was $1.02 billion, compared to $974 million last year.
Total revenues for the full year declined to $2.54 billion from $2.73 billion in the previous year.
Analysts expected the company to report earnings of $3.90 per share on revenues of $2.49 billion.
Looking ahead to fiscal 2013, the company has not mentioned any guidance, but in early February had revealed initial earnings guidance in a range of $1.44 to $1.54 per share and cash earnings in the range of $3.20 to $3.30 per share, on projected revenues between $2.3 billion and $2.4 billion.
Street is currently looking for full-year 2013 earnings of $3.32 per share on annual revenues of $2.35 billion.
WCRX closed Thursday's regular trading session at $13.76, down $0.53 on a volume of 5.60 million shares. In the past 52-week period, the stock has been trading in a range of $10.85 to $23.28.
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