Feb 8 Specialty pharmaceutical company Warner
Chilcott Plc forecast 2013 adjusted earnings below
analysts' estimates as it expects research and development
expenses to increase with some of its drugs moving into
Warner Chilcott said it would spend about $115 million to
$135 million on research and development in 2013.
On a conference call with analysts, the company said it also
expects higher legal costs, but did not elaborate further.
"I think the company is being very conservative with its
estimates. They set a very low bar for themselves," said
Susquehanna analyst Gary Nachman.
"I don't think they're going to end up spending as much as
they guided," Nachman said.
Shares of Warner Chilcott, which makes drugs used in women's
healthcare, dermatology, gastroenterology and urology, were down
about 1 percent at $14.27 in morning trade on the Nasdaq. They
fell to a low of $14.06 earlier in the session.
The company's key drug, osteoporosis treatment Actonel, is
seeing declining sales from generic competition, while birth
control pill Lo Loestrin Fe and bladder drug Enablex are also
expected to go off patents in a couple of years.
Warner Chilcott, which expects sales of Lo Loestrin Fe and
vaginal cream Estrace to offset the Actonel declines, expects
2013 revenue of $2.3 billion to $2.4 billion.
Analysts on average were expecting $2.38 billion.
The company said its capsule Delzicol, to treat ulcerative
colitis - a type of inflammatory bowel disease - will be
launched in March 2013.
Delzicol will replace Asacol, the company's tablet for the
same indication and its most profitable franchise.
According to a filing, Asacol contributed $743 million to
the company's revenue in 2011, second only to Actonel.
"The FDA did not want us to have two products in the
marketplace, because that would cause confusion to the
patients," Chief Executive Roger Boissonneault said on a
conference call to analysts.
The company expects adjusted earnings of $3.20 to $3.30 per
share in the period, below analysts' estimates of $3.59 per
share, according to Thomson Reuters I/B/E/S.