Warner Chilcott 3Q net income more than triples

Drugmaker Warner Chilcott 3rd-qtr net income more than triples as restructuring charges ease

Associated Press

NEW YORK (AP) -- Irish drugmaker Warner Chilcott PLC said Friday its net income more than tripled in the third quarter, as restructuring costs decreased, which counteracted weakening sales of its osteoporosis drug Actonel.

In the third quarter of 2011 Warner Chilcott spent $45 million restructuring its Western European operations. With that restructuring essentially complete, the company's expenses dropped.

Warner Chilcott said its quarterly revenue fell 7 percent as sales of Actonel dropped, but it raised its full-year profit forecast.

The Dublin-based company said its net income rose to $113 million, or 45 cents per share, for the three months ended Sept. 30. A year ago, it reported income of $33 million, or 13 cents per share.

Revenue fell to $606 million from $655 million, with Actonel responsible for almost the entire decline: revenue from the drug sank 28 percent to $119 million. Actonel lost exclusivity in Western Europe in 2010 and sales outside of North America fell almost 50 percent in the third quarter.

Analysts expected Warner Chilcott to report net income of 78 cents per share and $599.4 million in revenue, according to FactSet.

Sales of Actonel outside North America fell to $25 million from $48 million. U.S. sales slipped 7 percent to $77 million, as use of Actonel and similar drugs have decreased.

Warner Chilcott expects sales of a newer osteoporosis drug, Atelvia, to help offset some of the losses from Actonel in the U.S. In the third quarter, sales of Atelvia rose to $19 million from $11 million a year ago.

The company now expects net income of $3.75 to $3.85 per share in 2012, up from its previous estimate of $3.55 to $3.65 per share. Warner Chilcott still forecasts $2.4 billion to $2.5 billion in revenue.

Analysts are projecting net income of $3.68 per share, on average, with estimates ranging from $3.43 to $3.90. Wall Street expects $2.5 billion in revenue, on average, with estimates ranging from $2.46 billion to $2.57 billion.

Shares of Warner Chilcott rose 25 cents to $11.71 in morning trading. The stock has changed hands between $11.21 and $23.28 in the past 52 weeks and is down about 23 percent since the start of the year.

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