Mallinckrodt Reports Better-Than-Expected Q1, Raises Guidance
Mallinckrodt earned $2.09 per share in the first quarter on revenue of $914.80 million. Wall Street analysts were expecting the company to earn $1.58 per share on revenue of $886.60 million.
Net sales for the first quarter rose 20.3 percent from a year ago and was driven by the Exceptional Specialty Brands segment that grew 45.4 million. The company noted it saw "solid" organic growth in H.P. Acthar Gel and the inclusion of INOMAX for inhalation and Therakos immunotherapy.
GAAP net income for the quarter rose to $115.9 million from $87.4 million a year ago and reflects increased net sales and profits from recently acquired assets in the Specialty Brands segment and contributions from Acthar.
"The first quarter of fiscal 2016 was a strong one for Mallinckrodt, building on fourth quarter fiscal 2015 momentum, and driven by commercial execution across our Specialty Brands portfolio, particularly for Acthar and INOMAX," said Mark Trudeau, President and Chief Executive Officer. "We are also pleased with the volume performance of OFIRMEV® (acetaminophen) injection and Therakos. The Specialty Brands segment now contributes nearly 60% of our total net sales.
Mallinckrodt's management also revised its full year fiscal 2016 guidance and expects to earn $7.85 to $8.30 per share. The company previously guided its earnings per share to be in a range of $7.70 to $8.20.
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