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IMPAX Labs Reports Fourth Quarter And Full Year 2016 Financial Results

Published: Mar 01, 2017

FORT WASHINGTON, Pa., March 1, 2017 /PRNewswire/ -- Impax Laboratories, Inc.(NASDAQ: IPXL), a specialty pharmaceutical company, today announced financial results for the fourth quarter and full year 2016.

Fourth Quarter 2016

  • Total revenues in the fourth quarter of 2016 decreased 29.7% to $198.4 million, compared to $282.1 million in the fourth quarter of 2015, due primarily to increased competition and/or lower pricing on generic diclofenac sodium gel 3%, metaxalone, fenofibrate and mixed amphetamine salts ER. The decline was partially offset by the addition of products acquired from Teva Pharmaceuticals Industries Ltd. and affiliates of Allergan plc (the "Teva Transaction") in August 2016; higher sales of epinephrine auto-injector, oxymorphone ER, Rytary® and Albenza®; and the addition of sales from the March 2016 launch of Emverm®.
  • On a GAAP basis, the Company recorded a per share loss of $3.91 in the fourth quarter of 2016, compared to income of $0.16 per diluted share in the fourth quarter of 2015. The fourth quarter of 2016 includes non-cash intangible asset impairment charges of $253.9 million due to competition, net price reductions and product discontinuations primarily related to certain products acquired in the Company's acquisition of Tower Holdings, Inc. and subsidiaries in March 2015 (the "Tower Acquisition").
  • Adjusted diluted earnings per share ("adjusted EPS") for the fourth quarter of 2016 were $0.16, compared to $0.62 in the fourth quarter of 2015. The decline was due primarily to lower generic product sales, as noted above. Refer to the attached "Non-GAAP Financial Measures" for a reconciliation of all GAAP to non-GAAP items.

Full Year 2016

  • Total revenues in 2016 decreased 4.2% to $824.4 million, compared to $860.5 million in 2015, due primarily to lower generic product sales as a result of increased competition and/or lower pricing, as noted above.
  • On a GAAP basis, the Company recorded a per share loss of $6.63 in 2016, compared to income of $0.54 per diluted share in 2015. The GAAP results for 2016 include non-cash intangible asset impairment charges of $541.6 million related to certain products acquired in the Teva Transaction and the Tower Acquisition.
  • Adjusted EPS in 2016 were $1.16, compared to $1.45 in 2015, due primarily to lower generic product sales, as noted above. Refer to the attached "Non-GAAP Financial Measures" for a reconciliation of all GAAP to non-GAAP items.

"During 2016, a number of our generic products faced aggressive competition and pricing pressure, which impacted our revenue and profitability. As we enter 2017, we expect these headwinds to persist and weigh on our results through the year," said Kevin Buchi, Interim President and Chief Executive Officer of Impax. "We continue to pursue opportunities to help offset these challenges by continuing the growth of our Specialty Pharma division, growing our share within key generic product markets, bringing new generic products to market and further reducing our cost base."

To read full press release, please click here.

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