Irish drugmaker Warner Chilcott PLC said Friday its profit surged in the fourth quarter as its acquisition and interest costs decreased.
Warner Chilcott said its profit rose to $90.3 million, or 36 cents per share, from $15.4 million, or 6 cents per share. Excluding $99 million in charges related to the restructuring of its Western Europe business and other items, Warner Chilcott said it earned 95 cents per share. Revenue slipped 7 percent, to $645.8 million from $694.4 million as generic competition cut into sales of its osteoporosis drug Actonel.
Analysts expected the company to report a profit of 90 cents per share on $654.2 million in revenue, according to FactSet.
Warner Chilcott refinanced a large chunk of its debt in early 2011, which reduced its interest rates. The restructuring of the Western Europe business also reduced its marketing costs. The company said it will eliminate around 500 jobs as part of the restructuring plan, which was announced in April 2011 and should be finished in 2012. The company wants to reduce operating costs in eight European countries, partly to counteract lower sales of Actonel.
In the fourth quarter of 2010, Warner Chilcott bought the U.S. rights to Novartis AG's overactive bladder treatment Enablex, which posted an 11 percent decline in sales year over year, to $40 million.
Generic versions of Actonel are now on the market in Western Europe, and fourth-quarter sales of the drug fell 23 percent to $180 million. However Warner Chilcott said sales of its ulcerative colitis treatment Asacol rose 1 percent to $178 million and sales of its antibiotic Doryx grew 43 percent to $46 million. It also reported $21 million in sales of its contraceptive Lo Loestrin FE, which was launched in early 2011.
Warner Chilcott's profit was nearly unchanged in 2011, as it earned $171.1 million versus $171 million in 2010. Earnings per share were flat at 67 cents. Revenue fell 8 percent, to $2.73 billion from $2.97 billion.
The company said it expects $30 million in restructuring costs in 2012.
Shares of Warner Chilcott declined 18 cents to $16.49 in morning trading.