Shares of Impax Laboratories Inc. (IPXL) reached a 52-week high of $24.28 during the course of the trading session on Nov 29, 2013. The closing price of $24.04 of the company reflects a year-to-date return of 16.4%.
This technology-based specialty pharmaceutical company, with a Zacks #1 Rank (Strong Buy), has a market cap of $1.7 billion. Average volume of shares traded during the trading session stood at 513,107.
What's Driving the Price?
Share price of the company has been on an uptrend ever since the release of impressive third quarter results on Nov 4, 2013, aided by positive estimate revisions.
The company’s third quarter 2013 earnings of 25 cents per share were way ahead of the Zacks Consensus Estimate of a loss of 6 cents. Total revenues of $132.6 million in the third quarter were also above the Zacks Consensus Estimate of $109 million.
A strong performance of the Global Pharmaceuticals division was driven by sales of new generic products. Segmental revenues climbed 15.3% to $115.7 million during the quarter. Growth was partially offset by lower sales of Impax’ authorized generic version of Shire’s (SHPG) attention-deficit hyperactivity disorder (ADHD) treatment, Adderall XR.
A few weeks ago, Impax announced the launch of its generic version of Novartis’ (NVS) Solaraze gel approved for the topical treatment of actinic keratoses. According to IMS Health, Solaraze generated revenues of approximately $78 million in the 12 months ending Sep 2013 from the U.S.
The company expects gross margins to be approximately 50% in 2013, which is higher than the previous guidance of mid-to-high 40% range.
Following better than expected results analysts have increased their estimates for the company. The Zacks Consensus Estimate for 2013 and 2014 now stand at 75 cents and 61 cents per share respectively up from 41 cents and 49 cents per share, 30 days ago.
The company has beaten the Zacks Consensus Estimate in all of the last four quarters, with an average positive surprise of 275.6%.
Other Stocks to Consider
Some other stocks worth considering in the space include Jazz Pharmaceuticals (JAZZ). The stock carries a Zacks Rank #1.
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