Impax Laboratories (IPXL) Misses Q2 EPS by 11c; Guides Lower

August 9, 2016 7:05 AM EDT

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Impax Laboratories (NASDAQ: IPXL) reported Q2 EPS of $0.21, $0.11 worse than the analyst estimate of $0.32. Revenue for the quarter came in at $173 million versus the consensus estimate of $223.67 million.

"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."

"Last week we completed the acquisition of the generic product portfolio from Teva Pharmaceutical Industries Ltd. and its affiliates and initiated commercialization activities. A majority of the marketed products have growth potential, an attractive margin profile and match up well with our current portfolio. In addition, our acquisition of the full commercial rights to generic Concerta® provides an additional opportunity to add another valuable launch and accentuates the strength of our internal R&D program. Following the close of the acquisition, we continue to have the financial resources and flexibility to invest in organic growth as well as judiciously pursue external growth opportunities that can strengthen our portfolio and create long-term stockholder value."

"While the addition of these acquired products 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. As a result of these recent developments, we have revised our full year 2016 forecast. We currently expect adjusted EPS to be between $1.57 and $1.70, compared to $1.45 in 2015."

GUIDANCE:

Impax Laboratories sees FY2016 EPS of $1.57-$1.70, versus the consensus of $1.77.

For earnings history and earnings-related data on Impax Laboratories (IPXL) click here.



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