* Third-quarter adjusted profit $0.48/share vs est
* Third-quarter revenue $145.6 mln vs est $164.4 mln
* Generics sales fall 12 pct
* Takes $2 million charge related to drug withdrawal
Oct 30 Drugmaker Impax Laboratories
reported lower-than-expected third-quarter revenue as one of its
drugs was withdrawn from the market and generic competition
eroded its market share.
Total revenue at Impax, which has over 100 generic products,
rose 21 percent to $145.6 million in the quarter, but missed
analysts' expectations of $164.4 million, according to Thomson
Sales at the company's generics business fell 12 percent to
$100.4 million. The Rx partner business - part of its generics
revenue stream - reported a loss of $792,000 on lower sales of
Impax reported lower revenue from its hyperactivity drug
Adderall, which was a money spinner for the company, as it lost
market share to Swiss drugmaker Actavis' generic version that
was approved in June. Actavis is being acquired by Watson
"Actavis had gained share slower than most expected, but
most of the share had been coming out of Impax's pocket,"
analyst Corey Davis of Jefferies said in a note dated Oct. 25.
Ireland-based Shire, which supplies Adderall to
Impax, also reported lower royalties from the drug in the third
quarter, impacted by Actavis' generic version.
Impax suffered another setback earlier this month when the
FDA said its generic antidepressant Budeprion XL 300 mg was not
therapeutically equivalent to the original drug --
Impax stopped shipping the drug and took a $2 million charge
for the voluntary withdrawal.
Two drugs in Impax's portfolio contribute significantly to
its revenues -- Adderall and a generic version of Teva
Pharmaceutical Industries Ltd's lipid drug, Lofibra.
Last week, the U.S. health regulator approved another
version of the lipid drug by Mylan Inc. ()
Impax's third-quarter net income rose to $20 million, or 29
cents per share, from $17.2 million, or 26 cents per share, a
Excluding items, the company earned 48 cents per share.
Analysts were expecting a profit of 50 cents per share.
With patents expiring on blockbuster drugs, large generic
drugmakers like Mylan and Teva are buying smaller companies to
gain and retain market share.
Impax, which has a market value of $1.64 billion, has relied
on drug licensing deals, such as its agreement to market
AstraZeneca's migraine drug.
Shares of Hayward, California-based Impax closed at $24.34
on Friday on the Nasdaq. The exchange remained closed on Monday
as the United States braced for one of the biggest storms to hit