Pharmaceutical and medication delivery company Hospira, Inc. (HSP), which is being acquired by Pfizer, Inc. (PFE), reported Thursday a profit for the fourth quarter that grew seven percent from last year, reflecting sales growth.
Adjusted earnings per share topped analysts' expectations, while quarter sales matched their estimates. The company also said it is not providing annual projections now due to its pending acquisition by Pfizer.
"Hospira's solid fourth-quarter results contributed to a year of excellent growth for the company. Despite the entry of generic competition in the United States for our proprietary sedative Precedex, we delivered a very good year for Hospira," CEO Michael Ball said in a statement.
The Lake Forest, Illinois-based provider of injectable drugs and infusion technologies reported net income of $35.8 million or $0.21 per share for the fourth quarter, higher than $33.5 million or $0.20 per share in the prior-year quarter.
Excluding the items, adjusted earnings for the quarter was $91.7 million or $0.53 per share, compared to $84.9 million or $0.51 per share in the year-ago quarter.
On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $0.42 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter increased 3.9 percent to $1.13 billion from $1.08 billion in the same quarter last year, and matched eleven Wall Street analysts' consensus estimate of $1.13 billion.
Excluding the impact of foreign currency fluctuations, net sales increased 6.2 percent from last year.
The company noted that sales growth was driven by continued positive performance in U.S. specialty injectable pharmaceuticals products and other pharma sales amid favorable pricing and continued supply recovery in the U.S.
Segment-wise, specialty injectable pharmaceuticals sales grew 2.7 percent or 5.0 percent in constant currency rates, to $752.8 million, while medication management sales were $210.7 million, down 5.0 percent or 2.2 percent in constant currency rates, from last year. Other pharma sales grew 25.4 percent or 26.8 percent in constant currency rates, to $163.0 million from a year ago.
Region-wise, total Americas sales improved 6.3 percent or 7.3 percent in constant currency rates, to $911.1 million, while sales in Europe, Middle East & Africa (EMEA) totaled $131.5 million, down 5.2 percent or up 2.5 percent in constant currency rates, from last year. Asia Pacific (APAC) sales decreased 5.5 percent or grew or 1.0 percent in constant currency rates, to $83.9 million from a year ago.
Operating margin for the quarter contracted 140 basis points to 3.5 percent from last year, as a 450 basis points improvement in gross profit margin was more than offset by higher costs and operating expenses.
"Just as 2014 was a year of significant accomplishments for Hospira, we expect 2015 to be another year of achievements and milestones, including the expected formation of the U.S. biosimilars market," Ball added.
However, the company noted that it is not providing annual projections now due to its pending acquisition by Pfizer.
Pfizer agreed a week ago to acquire Hospira for $15.23 billion in cash at a 39 percent premium to improve the growth trajectory of its global established pharmaceutical business. The deal, which has been approved by the Boards of Directors of both companies, is expected to close in the second half of 2015.
In Thursday's regular trading session, HSP is currently trading at $87.40, up $0.07 or 0.08% on a volume of 2.05 million shares.
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