Akorn rises after boosting 2012 forecastsThe Associated Press
NEW YORK -- Shares of Akorn Inc. rose Tuesday after the generic drugmaker posted strong second-quarter results and raised its expectations for the full year, pointing to revenue from its new version of the antibiotic Vancocin.
Akorn's adjusted earnings and its revenue were both a bit better than analysts had expected. The company raised its 2012 income estimate by 6 cents per share and added $20 million to its revenue forecast to include sales of generic Vancocin. The brand-name version of the drug is made by ViroPharma Inc., and Akorn and two other companies started selling generic versions in April.
Vancocin, or vancomycin, is used to treat diarrhea associated with the bacteria C. difficile and for gastrointestinal infections caused by Staphylococcus aureus.
Akorn shares picked up 87 cents, or 6.5 percent, to $14.23 in midday trading.
Akorn said Tuesday its net income fell 41 percent in the second quarter compared to a year ago. In the second quarter of 2011, the company recorded a one-time gain after it sold the products from a joint venture to Pfizer Inc. Its net income slipped to $10.6 million, or 10 cents per share, from $17.9 million, or 17 cents per share. If one-time costs are excluded, Akorn said it earned 12 cents per share in the most recent quarter.
The Lake Forest, Ill., company's revenue nearly doubled to $63.3 million from $32.1 million after the approval of generic Vancocin and the recent acquisitions of Advanced Vision Research, assets from Kilitch Drugs of India, and three products made by H. Lundbeck of Denmark.
Analysts expected Akorn to report adjusted net income of 11 cents per share and $60.1 million in revenue, according to FactSet.
Akorn now projects adjusted net income of 50 to 52 cents per share in 2012 on $248 million to $258 million in revenue. Previously the company said it would earn 44 to 46 cents per share on revenue of $228 million to $238 million.
Analysts had expected adjusted net income of 51 cents per share and revenue of $252.6 million on average.
The company also said it will restate its first-quarter results to make adjustments to the accounting for its purchase of the Kilitch assets, and because it understated its net cash from operating activities.