LAKE FOREST, Ill. (AP) – Drug and medical device maker Hospira Inc. said its net income rose 6 percent in the first quarter on strong sales of new products, including generic versions of the cancer drugs Gemzar and Taxotere.
Hospira reported a profit of $149.9 million, or 88 cents per share. In the first quarter of 2010 the company earned $141.7 million, or 84 cents per share. Excluding one-time items, Hospira said its profit decreased to 93 cents per share from 94 cents per share.
Revenue edged down less than 1 percent, to $1 billion from $1.01 billion.
Analysts expected a smaller profit of 78 cents per share and revenue of $948.7 million, according to FactSet. Analyst estimates generally exclude one-time costs and benefits.
Sales of specialty injectable drugs grew 4.4 percent to $638.6 million, but medication management revenue declined 4 percent to $240.2 million and other pharmaceutical revenue fell 15.5 percent to $123.5 million.
Hospira said it received a $19.7 million income tax benefit in the latest quarter.
Its revenue decreased because a year ago, the company was selling a generic version of the cancer drug Eloxatin. It stopped selling the drug after Sanofi-Aventis, which makes the branded version, sued Hospira and other companies for infringing on its patents. Hospira halted its sales on June 30 and will start selling the drug again in August 2012.
However the company’s revenue got a boost from a generic version of Eli Lilly & Co.’s cancer drug Gemzar and Sanofi-Aventis’ Taxotere. The generic version of Gemzar, or gemcitabine, reached the market in November, and generic docetaxel was launched in March.
Hospira also reported increased research and development costs as it develops new products.
The company maintained its adjusted 2011 profit forecast of $3.90 to $4 per share. It said sales will rise 5 to 7 percent excluding the effects of changes in currency exchange rates. Analysts are forecasting a profit of $3.97 per share and $4.16 billion in revenue, which represents growth of about 6 percent.
Date: April 26, 2011
Source: Associated Press
