Impax Laboratories Slips To Loss

(RTTNews) - Impax Laboratories Inc. (IPXL) Monday reported third-quarter net loss of $2 million or breakeven per share compared with net income of $20 million or $0.29 per share last year.

Results for the recent quarter included intangible asset impairment charges of $13.9 million and an $8 million increase in remediation costs related to the Hayward facility.

Excluding items, adjusted earnings for the quarter were $16.6 million or $0.25 per share compared with $33 million or $0.48 per share a year ago.

Total revenues for the quarter were lower at $132.6 million, compared with $145.6 million in the prior year. Revenues at its Global Pharmaceuticals Division rose to $111.7 million from $99.5 million in the prior year.

Analysts polled by Thomson Reuters estimated a loss of $0.07 per share on revenues of $111.83 million for the quarter. Analysts' estimates typically exclude special items.

Results were impacted mainly due to the loss of exclusivity in mid-May 2013 of branded Zomig tablet and orally disintegrating tablet (ZMT) products, the company said.

"We were able to reduce some of the third quarter 2013 decline by capturing sales with our authorized generic Trilipix products, which we launched in mid-July. In addition, new competition on a few generic products had a less than expected impact on this quarter's sales," said CEO Larry Hsu.

"However, we anticipate that our fourth quarter revenues may very well be negatively impacted by this additional competition and lower authorized generic Trilipix product sales following our strong launch, compared to this quarter."

For 2013, the company now expects gross margins of about 50%, compared with its prior estimate of mid to upper 40% range.

It now expects Hayward facility remediation costs of about $30 million, from prior range of $10 to $15 million), due to work to be performed in the fourth quarter of 2013 that had been previously planned to occur in the first half of 2014.