Barr Pharmaceuticals Slumps

Barr Pharmaceuticals (BRL Quote) slumped more than 9% as the specialty drugmaker registered a drop in first-quarter profit and reaffirmed full-year guidance that is roughly in line with analysts' expectations.

Barr had net income of $35.1 million, or 33 cents a share, for the quarter ended March 31, down from $45.9 million, or 44 cents a share, in the same period a year ago.

Excluding items, Barr reported earnings of $62.2 million, or 58 cents a share, which beat analysts' quarterly estimates of 57 cents a share.

Shares fell $3.79, or 8.22%, to $42.30.

Revenue came in at $321 million for the quarter, up 87% from $172 million a year ago, propelled by strong sales of contraceptives.

The company said its gains came from sales of generic contraceptives, the Ciprofloxacin antibiotic and Barr's Seasonale brand oral contraceptive.

Payments on a spate of acquisitions cut net earnings in the quarter. Barr said the costs came primarily from charges on its $22.3 million acquisition of Schering AG's (SHR Quote) female anti-incontinence product; a $10.3 million charge for emergency, or "morning-after" contraceptives bought from Women's Capital Corp. and Gynetics Inc.; and a $35.6 write-down for the purchase of research and development processes from Endeavor Pharmaceuticals Inc.

Barr expects 20% to 25% earnings growth for its fiscal year ending June 30. The company held to its previous guidance of $2.10 to $2.18 a share for 2004, versus $1.75 a share in the year-ago period and analysts' consensus estimate of $2.15 a share, according to Thomson First Call.