Impax Laboratories (NASDAQ:IPXL), a pharmaceutical company based in Hayward, California, posted impressive growth for the third quarter but still fell short of analyst estimates.
On a GAAP basis, third quarter profits came in at $75.2 million, or $1.15 per diluted share, compared to $6.7 million, or $0.11 per diluted share in the prior year period. GAAP revenue for the third quarter was $304 million.
But GAAP profits and revenue for the quarter was affected by an accounting change associated with the company’s contract with the generic drugs giant Teva (NASDAQ:TEVA). The accounting change let the company recognize previously deferred revenue of $196.4 million during the third quarter that would have been recognized over the remaining life of the Teva agreement under prior standards.
Excluding accounting effects, third quarter profits totalled 15.8 million, or $0.24 per diluted share, compared to $9.0 million, or $0.15 per diluted share, in the prior year period. Revenue, adjusted for the accounting change, was $107.6 million for the third quarter, up from $65 million for the year-ago period. The 66% increase in adjusted revenue was driven by sales of the generic version of Adderall for which there were no sales in the third quarter of 2009.
On a segment basis, the company’s generic products division posted Q3 sales of $103.7 million, excluding the effects of the accounting change. The brand name products division contributed sales of $3.9 million.
Despite the impressive growth, the third quarter results fell short of analyst estimates of 27 cents on revenue of $129.7 million. The company’s shares were relatively unresponsive to the news, edging up by 0.8% to trade at $18.89 as of 1:10 ET.
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