The Hayward, Calif.-based company posted profits of $7.7 million on sales of $184.4 million for the 3 months ended March 31, for bottom-line loss of -75% on sales loss of -18.2% compared with the same period last year.
Adjusted to exclude 1-time items, earnings per share were 11¢, behind consensus on The Street, where analysts were looking for sales of $193.2 million.
“While our 1st quarter results reflect a challenging macro environment, Impax continues to have a number of strong performing products and R&D opportunities within our portfolio,” president & CEO Paul Bisaro said in prepared remarks. “Since I joined the Company in March, we have carefully evaluated how best to improve profitability and capitalize on Impax’s growth opportunities in both our generics and our specialty businesses. As a result of this work, we have made the decision to consolidate Impax’s Generic R&D, manufacturing and packaging operations in Hayward, which will allow us to achieve operating efficiencies, improve manufacturing utilization, reduce costs and facilitate sharing of best practices.”
Impax also said earlier this week that it plans to review its generic portfolio and eliminate low-value products.
IPXL shares were trading at $16.85 apiece today in morning activity, down -1.2%.