PR Newswire
HAYWARD, Calif., Aug. 9, 2017
HAYWARD, Calif., Aug. 9, 2017 /PRNewswire/ -- Impax Laboratories, Inc. (NASDAQ: IPXL), today announced second quarter 2017 financial results.
Total revenues in the second quarter 2017 were $202.1 million, an increase of 17.1%, compared to $172.6 million in the prior year period, driven by a 24.0% increase in generic product sales.
GAAP net loss was $20.4 million or a loss of $0.28 per share for the second quarter 2017, compared to a loss of $2.7 million or a loss of $0.04 per share in the prior year period, primarily due to restructuring and severance charges related to the Company's previously announced consolidation and improvement plan, charges related to certain potential legal settlements, and higher acquisition-related amortization expenses compared to the prior year period.
Adjusted net income was $13.1 million or $0.18 per share in the second quarter 2017, compared to $15.0 million or $0.21 per share in the prior year period. Refer to the attached "Non-GAAP Financial Measures" for a reconciliation of all GAAP to non-GAAP items.
For the second quarter 2017, EBITDA (earnings before interest, taxes, depreciation and amortization) was $16.6 million, a decrease of 28.8%, compared to $23.4 million in the prior year period. Adjusted EBITDA was $39.2 million, a decrease of 3.6%, compared to the prior year period. Cash and cash equivalents were $171.4 million as of June 30, 2017.
"This was a solid quarter for Impax led by the growth in our Generics division," said Paul Bisaro, President and Chief Executive Officer of Impax. "Our results benefited from the prior year's acquisition of products from Teva Pharmaceuticals, as well as the successful second quarter launch of generic Vytorin® and continued growth of our epinephrine auto-injector product. In addition, we are pleased with the recent generic product approvals that should benefit future results, including our AB-rated generic version of Concerta®, which we expect to launch later this year."
"In our Specialty Pharma division, a 27% increase in sales of Rytary® helped to offset a decline in sales of Albenza®, which experienced a temporary supply disruption during the quarter."
"We continue to make progress on our consolidation and improvement plan aimed at enhancing operating efficiencies and improving our overall cost structure. We have completed the closure of the Middlesex manufacturing and R&D site, and expect to close the packaging facility by the end of the first quarter of 2018. Additionally, we recently divested a number of non-strategic approved products, the vast majority of which were not marketed, for $12 million and continue to work towards an efficient and timely exit of the Taiwan facility. These efforts better position us to advance our strategic objectives of driving earnings growth and maximizing shareholder value," concluded Bisaro.
Business Segment Information
The Company has two reportable segments, the Impax Generics division and the Impax Specialty Pharma division and does not allocate general corporate services to either segment. All information presented is on a GAAP basis unless otherwise noted.
Impax Generics Division Information | |||||||
(Unaudited; In thousands) | |||||||
| Three Months Ended | | Six Months Ended | ||||
| June 30, | | June 30, | ||||
| 2017 | | 2016 | | 2017 | | 2016 |
Revenues: | | | | | | | |
Impax Generics Product sales, net | $ 150,889 | | $ 121,695 | | $ 285,036 | | $ 291,774 |
Cost of revenues | 108,901 | | 82,794 | | 212,236 | | 192,916 |
Cost of revenues impairment charges | - | | 1,545 | | 39,280 | | 1,545 |
Gross profit | 41,988 | | 37,356 | | 33,520 | | 97,313 |
Operating expenses: | | | | | | | |
Selling, general and administrative | 8,034 | | 1,565 | | 14,502 | | 6,339 |
Research and development | 20,995 | | 16,143 | | 38,391 | | 30,738 |
In-process research and development | - | | 946 | | 6,079 | | 946 |
Patent litigation expense | 319 | | 155 | | 687 | | 269 |
Total operating expenses | 29,348 | | 18,809 | | 59,659 | | 38,292 |
Income (loss) from operations | $ 12,640 | | $ 18,547 | | $ (26,139) | | $ 59,021 |
| | | | | | | |
Gross margin | 27.8% | | 30.7% | | 11.8% | | 33.4% |
Adjusted gross profit (a) | $ 64,113 | | $ 48,945 | | $ 116,097 | | $ 115,760 |
Adjusted gross margin (a) | 42.5% | | 40.2% | | 40.7% | | 39.7% |
(a) | Adjusted gross profit is calculated as total revenues less adjusted cost of revenues. Adjusted gross margin is calculated as adjusted gross profit divided by total revenues. Refer to the "Non-GAAP Financial Measures" for a reconciliation of GAAP to non-GAAP items. |
Total revenues for the Impax Generics division in the second quarter 2017 were $150.9 million, an increase of 24.0%, compared to the prior year period. The increase was primarily due to the addition of products acquired as part of the products acquisition from Teva (the "Teva Transaction") and sales from new product launches including generic Vytorin, as well as higher sales of epinephrine auto-injector.
Gross margin in the second quarter 2017 was 27.8%, compared to 30.7% in the prior year period. Adjusted gross margin in the second quarter 2017 was 42.5%, compared to 40.2% in the prior year period, driven largely by product sales mix.
Total operating expenses in the second quarter 2017 were $29.3 million, compared to $18.8 million in the prior year period, primarily due to higher selling, general and administrative expenses as a result of higher failure-to-supply fees in the current period, while the prior year period included a credit for such fees, and increased investments in research and development projects during the current period.
Impax Specialty Pharma Division Information | |||||||
(Unaudited; In thousands) Werbung Mehr Nachrichten zur Impax Laboratories Aktie kostenlos abonnieren
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