LAKE FOREST, Ill. (AP) — Generic drug maker Akorn Inc. said Tuesday its profit slipped 76 percent in the fourth quarter compared to a year earlier, when it sold off a joint venture.
The company's 2012 revenue forecast fell short of Wall Street expectations, and its stock sank 65 cents, or 5.2 percent, to $11.93 in morning trading.
Akorn said its net income for the quarter ended in December fell to $5.7 million, or 5 cents per share, from $23.7 million, or 23 cents per share. In the fourth quarter of 2010 the company sold the products of its Akorn-Strides joint venture to Pfizer Inc., and it reported a gain of $22 million, or 21 cents per share. Its revenue jumped 77 percent, to $42.6 million from $24 million.
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Analysts expected Akorn to report a profit of 8 cents per share on $38.5 million in revenue, according to FactSet.
Akorn said its sales improved because of the launch of several new products and relaunch of products that are facing shortages. It has also made several recent acquisitions, buying Advanced Vision Research and acquiring three drugs from Danish drugmaker H. Lundbeck, and taking a minority stake in eye drug maker Aciex Therapeutics.
In February Akorn bought a manufacturing plant from Kilitch Drugs Ltd. Akorn is also getting that facility's contracts and business.
In 2011, Akorn's profit nearly doubled to $43 million, or 41 cents per share, from $21.8 million, or 22 cents per share. Revenue rose 58 percent, to $136.9 million from $86.4 million.
The company said it expects an adjusted profit of 44 to 46 cents per share in 2012, on revenue of $228 million to $238 million.
On average analysts expect Akorn to report a profit of 47 cents per share on greater sales of $246.4 million.
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