New Products Help Warner Chilcott Narrow Fourth Quarter Loss
Warner Chilcott PLC said Monday that its fourth-quarter loss narrowed as its acquisition of Procter & Gamble's global branded prescription drug unit added to revenue.
The Irish company, which makes women's health and dermatology products, recorded a loss of $9.5 million, or 4 cents per share, in the three months that ended Dec. 31. That compares with a loss of $115.7 million, or 46 cents per share, in the same quarter of 2008.
Revenue more than doubled to $686.2 million.
Not counting one-time items like a $127 million amortization charge, adjusted earnings were 65 cents per share for the quarter.
The company also recorded a $33.5 million gain in the quarter from the sale of certain inventories to Leo Pharma in connection with a deal it completed in the third quarter of 2009.
Analysts polled by Thomson Reuters expected, on average, earnings of 60 cents per share on $588.1 million in revenue.
In October, Warner Chilcott completed a $3.1 billion buyout of P&G's global branded prescription drug unit. The company gained a portfolio of products worth about $2.3 billion in annual revenue including blockbuster osteoporosis drug Actonel.
Products from P&G contributed a total of $351.8 million in revenue growth in the fourth quarter. Aside from Actonel, that included the ulcerative colitis treatment Asacol and Enablex, a treatment for overactive bladders.
Warner Chilcott also said selling, general and administrative expenses more than quintupled in the quarter, to $277.5 million, due in part to costs tied to the P&G deal.
The company's shares fell 67 cents, or 2.5 percent, to close at $26.55.