WASHINGTON (dpa-AFX) - Akorn Inc. (AKRX), a manufacturer of diagnostic and therapeutic ophthalmic pharmaceuticals, reported Tuesday a higher profit for its fourth-quarter on increased sales, despite margin pressure. Adjusted earnings per share and top line beat analysts' estimates.
Net income for the fourth quarter was $8.81 million or $0.08 per share, compared to $5.73 million or $0.05 per share in the prior year. Adjusted net income, which excluded certain items, grew to $14.6 million or $0.13 per share from $11.4 million or $0.11 per share last year.
On average, six analysts polled by Thomson Reuters expected earnings of $0.12 per share for the quarter. Such estimates typically exclude special items.
Consolidated revenue was $71.52 million, 68 percent higher than prior year's $42.63 million, beating analysts' estimate of $69.42 million.
The company attributed the increase to the Lundbeck and Kilitch acquisitions, the sale of newly approved and re-launched products, and organic growth of established products, offset by decreases in the US contract services business.
The revenue impact of Hurricane Sandy was partially offset by earlier than anticipated sales of pantoprazole and Td vaccine.
Consolidated gross margin dropped to 58.7 percent from 60 percent last year mainly due to lower margins from Akorn India.
Raj Rai, Chief Executive Officer said, 'We achieved record growth in revenues and profits in 2012 as a result of our strategic growth initiatives - acquisitions, revival of products impacted by hospital drug shortages and new product launches. In addition, we continued to build a robust R&D pipeline.'
Looking ahead, the company said it plans to further invest in R&D domestically, while expanding the infrastructure in India facilities to build new capacities, seek growth from new markets and prepare for FDA inspection.
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