Sepracor swings to fourth-quarter loss
Sepracor Inc., a research-based pharmaceutical company, said today that it swung to a fourth-quarter loss, due to a hefty drug-licensing payment.
For the quarter ended Dec. 31, the Marlborough company lost $5 million, or 5 cents per share, compared with profit of $95.2 million, or 82 cents per share, a year ago. The recent quarter included a $75 million, or 70 cent per share, upfront payment to Bial to license its pipeline product, eslicarbazepine acetate, for epilepsy.
In addition, the company said it plans to restate its financials back to 2005 to reduce the amount of product revenue earned, due to government drug pricing.
Revenue fell 4 percent to $340 million from $353.3 million, hurt by the Centers for Medicare and Medicaid Services' (CMS) decision during the second quarter 2007 to institute a new, bundled payment amount for two of its inhalable products: Xopenex and generic albuterol.
Analysts polled by Thomson Financial, on average, expected profit of 53 cents per share, on revenue of $341.3 million.
"This past year was a challenging but transitional year for Sepracor. We took major steps toward securing the next phase of our planned growth, as evidenced by our corporate partnerships for the Lunesta franchise outside of the United States, advancements in our clinical pipeline, and strengthening of our commercial capabilities and organization," said president and chief executive Adrian Adams.
For the full year, profit fell to $58.3 million, or 50 cents per share, from $171.2 million, or $1.48 per share. Revenue rose to $1.23 billion from $1.18 billion.
Looking ahead to 2008, Sepracor projected earnings per share of $1.40 to $1.80, on revenue of $1.35 billion to $1.45 billion. In October, the company forecast earnings per share between $2.35 and $2.45.
Analysts forecast earnings of $2.28 per share on revenue of $1.34 billion. (AP)
Comment
Permalink
E-mail
