Shares of Hi-Tech Pharmacal Co. fell Thursday after the generic drug maker said its profit sank 45 percent in the fiscal third quarter as it spend more money on research and marketing.
Hi-Tech said its research and development costs doubled to $6 million during the quarter because it is spending more money on studies of proposed generic drugs. It also spent more money on advertising, and said most of those costs were related to its health care products unit.
The company's shares declined $2, or 5.3 percent, to $35.53 in afternoon trading.
For the three months ended Jan. 31, Hi-Tech's net income totaled $5.9 million, or 43 cents per share. That compares with a profit of $10.8 million, or 79 cents per share, one year earlier. Revenue rose 16 percent, to $64.3 million from $55.6 million.
Analysts were expecting greater income of 73 cents per share and $60.5 million in revenue, according to FactSet.
The Amityville, N.Y., company said sales of its generic version of the nasal spray Flonase rose to $23 million from $21.8 million. It said sales also improved because of the launch of new generic drugs. Those included Hi-Tech's versions of the antifungal product nystatin and epilepsy treatment levetiracetam.