Warner Chilcott forecasts lower 2013 income, sales

Warner Chilcott forecasts smaller profit, less revenue in 2013 as Actonel sales keep falling

Associated Press

NEW YORK (AP) -- The drugmaker Warner Chilcott PLC said Friday that it expects lower net income and revenue in 2013 than a year earlier as sales of its osteoporosis drug Actonel continue to fall.

The Irish company said it expects adjusted net income of $3.20 to $3.30 per share for the year on revenue of $2.3 billion to $2.4 billion. Analysts expected earnings of $3.60 per share and revenue of $2.38 billion, according to FactSet.

Warner Chilcott said sales of Actonel will keep declining. It expects greater sales of its low-dose contraceptive Lo Loestrin FE and its menopause symptom treatment Estrace, but acknowledged that growth won't be enough to cancel out weakening Actonel sales. Warner Chilcott also plans to start selling a new ulcerative colitis drug called Delzicol in March.

Actonel lost market exclusivity in Western Europe in 2010 and the drug is also facing generic competition in Canada. Sales of drugs like Actonel have also declined in the U.S. Total sales of the drug dropped 30 percent to $415 million over the first three quarters of 2012. Over the same period, Lo Loestrin FE sales more than doubled to $95 million and Estrace sales grew 24 percent to $143 million.

The Food and Drug Administration approved Delzicol on Tuesday.

Warner Chilcott has not yet reported its fourth quarter and full year results for 2012. But in November, the company said it expected to report 2012 net income of $3.75 to $3.85 per share on $2.4 billion to $2.5 billion in revenue.

Analysts expect annual earnings of $3.90 per share on revenue of $2.49 billion.

Shares of Warner Chilcott lost 20 cents, or 1.4 percent, to $14.25 in midday trading Friday. Its shares are up from a low of $10.85 in mid-December. They traded as high as $23.28 in late August.

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