impax laboratories inc (IPXL) Key Developments
Avanir Pharmaceuticals, Inc. Announces Appeals Court Ruling in NUEDEXTA Patent Case in US Against Par Pharmaceuticals, Inc. and Impax Laboratories, Inc
Aug 27 15
Avanir Pharmaceuticals, Inc. has announced that a panel of the US Court of Appeals for the Federal Circuit has upheld the validity and enforceability of Avanir's patents covering NUEDEXTA, a FDA-approved product for the treatment of Pseudobulbar affect, or PBA. The decision confirms patent protection for NUEDEXTA, or the 282 patent and the 484 patent, until 2026 in the US. The Appeals Court ruling affirmed the April 2014 decision upholding the '282' and '484' patents' validity by the US District Court for the District of Delaware in a lawsuit brought by Avanir against the Par Pharmaceuticals, Inc. and Impax Laboratories, Inc.
Impax Laboratories Inc. Reports Consolidated Unaudited Earnings Results for the Second Quarter and Six Months Ended June 30, 2015; Provides Earnings Guidance for the Full Year 2015
Aug 10 15
Impax Laboratories Inc. reported consolidated unaudited earnings results for the second quarter and six months ended June 30, 2015. For the quarter, the company reported total revenues were $214,182,000 against $188,121,000 a year ago. The increase was primarily due to the addition of product revenues from the company's acquisition on March 9, 2015 of Tower Holdings Inc. and Lineage Therapeutics Inc., and sales from new brand and generic product launched in 2015. Income from operations was $18,053,000 against $53,936,000 a year ago. Loss before income taxes was $4,548,000 against income before income taxes of $54,425,000 a year ago. Net loss was $1,852,000 against net income of $35,071,000 a year ago. Net loss diluted per share was $0.03 against net income of $0.50 a year ago. Adjusted net income was $24.446 million against $42.294 million a year ago. Net income adjusted per diluted share was $0.34 against $0.60 a year ago. EBITDA was $9.759 million against $59.661 million a year ago. Adjusted EBITDA was $59.835 million against $76.222 million a year ago. Adjusted earnings per diluted share decreased $0.34 in the second quarter of 2015 compared to $0.60 last year. This decrease was primarily attributable to the loss of $49 million of high-margin generic RENVELA sales, the loss of approximately $9 million of gross profit from third party profit share and milestone payments, a decline in gross profit earned on generic digoxin due to additional competition, higher interest expense of $6 million and a higher adjusted tax rate. The adjusted gross margin was 81% up from 31% in last year's second quarter. The increase in specialty pharma sales in second quarter 2015 drove a $33 million improvement and adjusted operating income.
For the six months, the company reported total revenues were $357,278,000 against $306,839,000 a year ago. Income from operations was $11,205,000 against $62,167,000 a year ago. Loss before income taxes was $15,253,000 against income before income taxes of $63,055,000 a year ago. Net loss was $8,185,000 against net income of $41,496,000 a year ago. Net loss diluted per share was $0.12 against net income of $0.59 a year ago. Net cash used in operating activities was $32,585,000 against net cash provided by operating activities of $12,420,000 a year ago. Purchases of property, plant and equipment was $8,482,000 against $18,271,000 a year ago. Adjusted net income was $30.792 million against $58.775 million a year ago. Net income adjusted per diluted share was $0.43 against $0.84 a year ago. EBITDA was $8.903 million against $73.553 million a year ago. Adjusted EBITDA was $83.824 million against $111.001 million a year ago.
The company provided earnings guidance for the full year 2015. For the period, the company expected adjusted gross margins as a percentage of total revenue are expected to be in the low 50% range (previously mid 50% range). The company expected adjusted interest expense of approximately $14 million, capital expenditures of approximately $45 million to $50 million and effective tax rate of approximately 34% to 36% on a GAAP basis, which assumes that the U.S. R&D tax credit is renewed for 2015.
Impax Laboratories Inc. Enters into a Senior Secured Revolving Credit Facility of Up to $100 Million
Aug 5 15
On August 4, 2015, Impax Laboratories Inc. entered into a senior secured revolving credit facility of up to $100 million, pursuant to a credit agreement, dated as of August 4, 2015, by and among the Company, the lenders party thereto from time to time and Royal Bank of Canada, as administrative agent and collateral agent (the “Revolving Credit Facility Agreement”). The Revolving Credit Facility is available for working capital and other general corporate purposes. Borrowings under the Revolving Credit Facility will accrue interest at a rate equal to LIBOR or the base rate, plus an applicable margin. The applicable margin may be increased or reduced by 0.75% based on the company’s total net leverage ratio. The Revolving Credit Facility will mature on August 4, 2020. No borrowings have been drawn from the Revolving Credit Facility to date. Up to $12.5 million of the Revolving Credit Facility is available for issuances of letters of credit and any such issuance of letters of credit will reduce the amount available under the Revolving Credit Facility on a dollar-for-dollar basis. The Company is required to pay a commitment fee to the lenders on the average daily unused portion of the Revolving Credit Facility at an initial rate of 0.375% per annum. The commitment fee rate may be increased or reduced by 0.125% based on the Company’s total net leverage ratio.
Motley Rice LLC Proposes $4.75 Million Settlement with Impax Laboratories, Inc
Aug 4 15
Motley Rice LLC announced that class action against Impax Laboratories is pending and that a settlement of it for $4,750,000.00 has been proposed. A hearing will be held before the Honorable James Donato in Courtroom 11, 19th Floor of the United States District for the Northern District of California, 450 Golden Gate Avenue, San Francisco, California 94102-3489, at 10:00 a.m., on October 28, 2015 to determine whether: the proposed settlement should be approved by the Court as fair, reasonable, and adequate; Lead Counsels' application for an award of attorneys' fees and reimbursement should be approved; and the claims against all Defendants should be dismissed with prejudice.
Impax Laboratories Inc. to Report Q2, 2015 Results on Aug 10, 2015
Jul 6 15
Impax Laboratories Inc. announced that they will report Q2, 2015 results at 9:00 AM, Eastern Standard Time on Aug 10, 2015