Alpharma's 4th-qtr 2006 EPS plummets 70%

US drugmaker Alpharma's fourth-quarter 2006 diluted earnings per share from continuing operations totaled $0.34, a 70.7% drop on the comparable period last year which, according to the firm, was favorably impacted by certain tax adjustments, including the reversal of a tax valuation allowance, partially offset by tax expense associated with the repatriation of earnings. EPS in fourth-quarter 2006, including discontinued operations, was $0.29.

However, revenues during the period grew 9% to $170.3 million, driven by gains in each of the company's businesses, as R&D spending increased $9.6 million, primarily due to the development of its branded pharmaceuticals unit and its abuse-deterrent new product pipeline.

Operating income fell to $23.1 million from $31.9 million, due to increased R&D spending in Alpharma's pharmaceuticals division and reduced margins in the company's active pharmaceutical ingredients business, partially offset by a pension curtailment gain.