Leo Pharma payment lifts Warner Chilcott 3Q profit

Warner Chilcott profit rises after it ended licensing agreement with Danish drugmaker Leo

• On 8:27 am EST, Monday November 9, 2009

NEW YORK (AP) -- Warner Chilcott PLC said Monday its profit surged in the third quarter after it accepted $1 billion to end a licensing deal with Leo Pharma AS of Denmark.

Warner Chilcott, which makes women's health and dermatology products, said its net income rose to $424.2 million, or $1.69 per share. That compares with $40.1 million, or 16 cents per share, a year earlier.

After taxes, the company gained $380.1 million after it returned the license rights to a group of products including the psoriasis treatments Taclonex and Taclonex Scalp, and Dovonex ointment, to Leo Pharma. Under the terms of a new agreement, Warner Chilcott will distribute those products through the end of 2009 in return for a fee.

Excluding the gains from the Leo deal, the Irish company said it earned 41 cents per share. Analysts were expecting 42 cents per share, according to Thomson Reuters.

Revenue rose 9 percent, to $252.8 million from $231.9 million, due to better sales of products including the oral contraceptive Loestrin and the menopause treatment Estrace. Analysts had expected $254.8 million in revenue.