issued fourth-quarter results that easily beat Wall Street estimates, and the generic-drug maker signed three deals with
that executives say will provide more money for R&D efforts and greater certainty for upcoming years.
The announcements boosted Barr's stock by $2.18, or 4.2%, to $54.50 Tuesday.
For the three months ended June 30, Barr earned 84 cents a share, excluding special items, or 11 cents better than the average estimate compiled by Thomson First Call. For the fiscal year, Barr's profit of $3.23, excluding items, also beat the consensus by 11 cents.
Using generally accepted accounting principles, Barr reported a fourth-quarter profit of $82.3 million, or 76 cents a share, on revenue of $351.7 million. For the same period last year, Barr earned $42.1 million, or 40 cents a share, on revenue of $280.5 million.
"It's another strong quarter and another record year," said Bruce L. Downey, the chairman and CEO, in a conference call with analysts.
The company declined to provide guidance for the next 12 months because it's changing its fiscal year to conclude Dec. 31 rather than June 30. Instead, Barr forecast earnings for the next quarter in the range of 73 cents to 76 cents. The Thomson First Call consensus is 74 cents.
Barr's prediction excludes costs related to its attempt to acquire
, a generic-drug company based in Zagreb, Croatia. Barr, which is offering $2.3 billion
, is in a duel with Iceland's
Downey said Croatian regulators have approved Barr's proposal and are reviewing the Actavis bid. Pliva's board has backed Barr, which needs to acquire more than half of Pliva's shares through a tender offer. If the Barr tender offer is successful, it could complete the deal by October.
The Pliva deal is only one of several big issues that Barr has been juggling. On Monday night, the company reached an agreement to refrain from selling a generic version of Shire's biggest seller, Adderall XR for attention deficit hyperactivity disorder, until April 2009. The agreement, which will be reviewed by the Federal Trade Commission and trial court judges, puts a halt to two patent-infringement suits filed by Shire.
Downey said the deal gives Barr a chance to start selling generic Adderall XR nearly nine years before the last of Shire's Adderall XR patents expire in the U.S. Barr will get 180 days of exclusivity when it starts selling the generic drug. Barr also will pay a royalty.
Under a separate agreement, Barr will acquire the original Adderall, which has been subject to generic competition for several years. Barr itself has sold a version of the drug since early 2002. Shire will receive $63 million. Barr said branded sales of Adderall for the 12 months ended June 30 were about $40 million.
Additionally, thanks to a third pact, Barr has granted Shire a license to sell Seasonique, an oral contraceptive, in five west European markets. Shire also is licensing five experimental products from Barr for possible sales in western Europe. Shire will pay $25 million upfront and will reimburse Barr for development expenses of up to $140 million over eight years.
Seasonique reduces the number of menstrual periods from 13 to four a year. The drug was
approved by the Food and Drug Administration in May, and Barr is starting a full-scale launch in late August.
Although Barr specializes in generic drugs, Seasonique is part of its effort to expand its brand-name offerings. Fourth-quarter sales of brand-name drugs rose 21% from last year to $97 million and 18% to $330 million for the fiscal year. Generic-drug revenue gained 17% to $222 million for the fourth quarter and 12% to $839 million for the fiscal year.