Barr shares fall 15% on disappointing 1st qtr

Shares in Barr Pharmaceuticals fell 15% in premarket trading on May 8, after the US generics giant reported disappointing first-quarter 2008 profit and lowered its full-year earnings projection. The firm saw net earnings of $23.0 million, or $0.21 per share, versus $12.0 million, or $0.11 per share, in the like, year-ago period, as revenues totaled $608.0 million vs $597.0 million.

"While our results for the first quarter did not meet our expectations, we believe that these results will improve in the second half of the year and demonstrate the value of expanding our operations and markets outside the USA," said company chief executive Bruce Downey. On a non-GAAP basis, adjusted earnings per share were $0.57 vs $0.73 per share. Analysts polled by Reuters Estimates were expecting $0.78 per share.

During the period, the company's generic product sales totaled $469.0 million vs $471.0 million, as the contribution from the USA fell to $261.0 million vs $307.0 million due to lower sales of several products including ondansetron ODT, cyclosporine capsules and desmopressin. Oral contraceptives, the company's largest single category of copycat drug, were lower in the quarter, as expected, decreasing to $93.0 million vs $113.0 million, reflecting lower volume on several lines due to lower market share. Overseas sales of generics totaled $208.0 million vs $164.0 million largely thanks to the positive impact of foreign currency exchange during the quarter and higher sales in Barr's key markets of Germany, Russia and Poland.