Chemotherapy drug sales boost Hospira 3Q profit

Hospira profit climbs on sales of generic chemotherapy treatment and other specialty drugs

• On 10:58 am EDT, Tuesday October 27, 2009

LAKE FOREST, Ill. (AP) -- Hospira Inc. said Tuesday its profit jumped 42 percent in the third quarter due to rising sales of specialty drugs, primarily a generic chemotherapy treatment.

The drug and medication delivery system maker said its net income grew to $116.2 million, or 71 cents per share, from $81.8 million, or 51 cents per share, a year earlier. Excluding one-time items, Hospira said it earned 90 cents per share. Analysts polled by Thomson Reuters forecast earnings per share of 69 cents, on average.

Revenue rose 9 percent, to $1.01 billion from $925.5 million. Analysts had expected $936.2 million.

Hospira said sales of specialty drugs -- or drugs that require special handling -- climbed 24 percent to $575.7 million. That was partly due to sales of a generic version of the chemotherapy drug oxaliplatin, which was launched during the quarter.

Oxaliplatin is a generic version of Sanofi-Aventis' drug Eloxatin.

Hospira said sales of non-specialty drugs fell 10 percent to $157.4 million. Medication management delivery system revenue was unchanged at $162.6 million, and other device revenue fell 8 percent to $111.8 million.

The company raised its annual profit forecasts to a range of $2.85 to $2.90 per share from $2.80 to $2.85 per share, excluding one-time costs. Analysts expect an average of $2.84 per share.

Including restructuring, acquisition and other one-time expenses, Hospira expects to earn $2.25 to $2.30 per share. It said revenue will grow 5 to 7 percent excluding the effects of foreign currency exchange.

Hospira stock set an annual high of $48.23 in morning trading, and later shares traded up 37 cents to $46.67.

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