(Source: Associated Press/AP Online)
BRISTOL, Tenn. - Drug developer King Pharmaceuticals said Thursday its third-quarter profit was cut in half by charges for related to its $1.6 billion buyout of rival Alpharma Inc.
Still, the company topped Wall Street forecasts, with revenue gaining ground from the addition of Alpharma's animal health unit.
King earned $42.5 million, or 17 cents per share, compared with profit of $82.5 million, or 34 cents per share, during the same period a year prior. Revenue rose 19 percent to $463.3 million from $388.4 million.
Excluding charges related to the December Alpharma buyout, the company earned 29 cents per share. Analysts polled by Thomson Reuters expected, on average, profit of 27 cents per share on $445 million in revenue.
Revenue from branded drugs fell 6 percent to $283 million in the quarter, due primarily to generic competition for the blood-pressure medication Altace, and lower sales of the bleeding-control drug Thrombin-JMI.
King recorded $96 million in revenue from its animal health business, which it acquired in the Alpharma deal. Its Meridian unit gained 6 percent to $72 million. Royalty revenue fell to $12 million.
Shares of King Pharmaceuticals rose 46 cents, or 4.5 percent, to $10.65.
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