What happened
Impax Laboratories (IPXL) is up 7.6% at 11:53 a.m. EDT, having been up as much as 17.9% earlier today, after reporting solid second-quarter earnings.
So what
Revenue from the drugmaker was up 17% year over year, boosted by a 24% jump in sales of generic drugs. The division was helped by new generic drugs acquired from Teva Pharmaceutical and the launch of generic Vytorin, as well as growth in sales of Impax's epinephrine auto-injector.
Sales in the specialty pharma division were basically flat, up just 0.6% year over year. The company had a temporary supply disruption of Albenza during the quarter, although that was made up for by sales of Rytary, which increased 27% year over year.
On the bottom line, the company lost $0.28 per share on a GAAP basis, but that was due to charges associated with restructuring, severance, legal settlements, and acquisition-related expenses. Backing out those one-time changes, the company posted an income of $0.18 per share.
Image source: Getty Images.
Now what
Management reiterated its 2017 adjusted earnings guidance of $0.55 to $0.70 per share. To get into the top half of earnings guidance, Impax will have to accelerate earnings in the second half, given that adjusted earnings in the first half came in at $0.29 per share, putting it on pace for $0.58 per share for the year. A recently approved generic version of Concerta, which will launch later this year, as well as the return of Albenza, should help Impax reach that goal.
