Barr Pharmaceuticals Guides Lower

Second-quarter guidance is well below forecasts but the company meets in its first quarter.
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Barr Pharmaceuticals

(BRL)

Thursday reported first-quarter earnings that matched Wall Street estimates as higher generic-product and oral-contraceptive sales offset a dramatic decline in revenue from an antibiotic product.

Barr earned $52.1 million, or 49 cents a share, on revenue of $245 million for the three months ended Sept. 30, which is the first quarter of its current fiscal year. The consensus of analysts tracked by Thomson First Call forecast earnings of $52.4 million, or 49 cents a share, on revenue of $255.4 million.

For the same period last year, Barr earned $38.5 million, or 46 cents a share, on revenue of $311 million, excluding a one-time charge. When the charge is included, EPS were 37 cents.

Barr also said its second-quarter EPS should be 54 cents, which is 6 cents below the Thomson First Call consensus. Barr reiterated its fiscal year EPS guidance of $2.35 to $2.45. The average Wall Street estimate is $2.38 per share.

Barr's quarter was a mixture of highs and lows. On the positive side, sales of proprietary products, including the oral contraceptive Seasonale, rose 107% to $63 million while sales of generic oral contraceptives gained 13% to $100 million.

On the negative side, sales of the antibiotic Ciprofloxacin virtually disappeared, falling to less than $1 million from the $115 million for the same period last year. The revenue collapse wasn't a surprise. Barr began distributing the antibiotic in June 2003 through a nonexclusive supply agreement. Twelve months later, the supplier lost patent protection on the drug and several other companies rushed into the market with generic versions.

In premarket trading, Barr's stock was down $1.84, or 5%, to $35.