Akorn, Inc. (NASDAQ: AKRX), a niche generic pharmaceutical company, today reported financial results for its second quarter ended June 30, 2013.
Raj Rai, Chief Executive Officer, commented, "We are pleased with our second quarter results. The results reflect the actions we took to address the challenges that we were faced with around certain new product launches. In addition, we are making good progress on our strategic initiatives and expect another great year of performance and are reaffirming our adjusted diluted EPS 2013 guidance of $0.53 to $0.55.”
Second Quarter 2013 Highlights
- Achieved record consolidated revenue of $77.0 million, up 22% over the prior year quarter.
- Generated record operating cash flow of $14.5 million.
- Completed development on 1 injectable and 3 ophthalmic ANDAs with a combined annual IMS market size of approximately $500 million.
- Increased Nembutal sales sequentially by 14%.
- Launched Clindamycin Phosphate Injection in 5% Dextrose premix in three strengths, with a combined IMS addressable market size of $65 million.
- Commercialized expanded capacity at Company’s Somerset, New Jersey ophthalmic manufacturing plant.
Financial Results for the Quarter Ended June 30, 2013Consolidated revenue for the second quarter of 2013 was $77.0 million, up 22% over the prior year quarter’s consolidated revenue of $63.3 million. The increase in revenue was primarily the result of sales of new products launched late in 2012, along with increases in sales volume for existing products, partially offset by decreases in average sales price for existing products and lower sales from our subsidiary in India, Akorn India Private Limited. Consolidated gross margin for the second quarter of 2013 was 54.7% compared to 56.5% in the comparable prior year period. Gross profit for the second quarter of 2013 included a $1.3 million reduction to cost of sales related to the reversal of a product warranty reserve. The decrease in gross margin was primarily the result of various new products launched late in 2012 which generate lower gross margins as a result of being either partnered or manufactured through third parties.