February 2, 2009 / 4:08 PM / 10 years ago

UPDATE 1-BioScrip sees Q4 loss on non-cash charge

BANGALORE, Feb 2 (Reuters) - Specialty pharmaceutical company BioScrip Inc (BIOS.O) said it expects to post a fourth-quarter net loss due to a non-cash charge related to goodwill impairment and write off of intangible assets.

“It is not bad news. It (the charge) will, we believe, ultimately result in lower amortization expense. And the tax rate could be lower in the future than it would have been otherwise,” Dougherty & Co analyst Brooks O’Neil said.

BioScrip shares rose as much as 11 percent to $1.87 Monday morning on Nasdaq.

The company said it would take a charge of $80 million in the fourth quarter, after a tax benefit of $14 million, related to goodwill impairment and write-off of intangible assets.

The write off and impairment are due to adverse market conditions that led to a decrease in current market valuations in the healthcare services industry and the company’s stock price, it said.

The company, whose shares had shed 78 percent over the past year through Friday, still sees revenue growth of 10 percent to 15 percent for 2009. (Reporting by Vidya L Nathan in Bangalore; Editing by Deepak Kannan)

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