UPDATE 2-Impax Q1 beats Wall Street view

Tue May 4, 2010 9:18am EDT

* Q1 EPS $2.06 vs est $0.51

* Q1 rev $323.3 mln vs est $163.4 mln

* Generic Flomax salesin Q1 $176.2 mln * Shares up as much as 16 percent pre-mkt

(Recasts, adds details; updates stock movement)

May 4 (Reuters) - Impax Laboratories Inc's (IPXL.O) quarterly profit handily beat market estimates, helped by higher sales in its generic drugs division and a new drug launch, sending its shares up as much as 16 percent in Tuesday pre-market trade.

The company said its recently launched generic urinary drug added $176.2 million to its total revenue and $167.9 million to its gross profit.

However, Chief Executive Larry Hsu said the company does not expect future sales of generic Flomax to remain at first-quarter levels as competing generic versions of the product entered the market in late April and are likely to result in price erosion and reduction of market share.

Impax got U.S. marketing approval for a copycat version of Astellas Pharma's (4503.T) Flomax in March.

Net income for the first quarter was $131.5 million, or $2.06 a share, compared with $2.2 million, or 4 cents a share, in the prior-year quarter.

Revenue for the quarter increased more than four-fold to $323.3 million.

Analysts on average were expecting the company to earn 51 cents a share, excluding items, on revenue of $163.4 million, according to Thomson Reuters I/B/E/S.

The company said revenue from its generic Adderall used in the treatment of narcolepsy and attention deficit hyperactivity disorder, continued to remain strong in the first-quarter.

Impax launched the drug in October last year.

Chief Executive Hsu said the company was "aggressively looking at generic and brand opportunities to acquire products, technologies or companies with strategic value to create long-term growth opportunities".

Shares of the company went up as much 16 percent to $20.85 in Tuesday pre-market trade. They closed at $17.96 Monday on Nasdaq.

For the alerts, double click [ID:nASA00B3I] (Reporting by Krishnakali Sengupta in Bangalore; Editing by Roshni Menon)

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