Mallinckrodt Tops Q2 Earnings & Revenues On Acquisitions

Mallinckrodt plc (MNK – Analyst Report) reported adjusted earnings of $1.72 per share in the second quarter of fiscal 2015 (ended Mar 27, 2015), beating the Zacks Consensus Estimate of $1.48. Earnings also exceeded the year-ago figure of 95 cents per share. Earnings in the reported quarter were boosted by acquisitions in fiscal 2014.

Net sales for the quarter were $909.9 million, up 63.1% from the year-ago quarter, easily surpassing the Zacks Consensus Estimate of $853 million.

Quarter in Details

Post the recent acquisitions (erstwhile Questcor Pharmaceuticals and Cadence), the company changed its financial reporting and operates under three segments now – Specialty Brands, Specialty Generics and Global Medical Imaging.

Sales from the Specialty Brands segment soared to $334.3 million from $55.1 million in the year-ago quarter. The increase in net sales was primarily driven by the inclusion of Acthar and Ofirmev, which generated net sales of $296.1 million. Sales in the segment were partially offset by a decline in Exalgo sales following its loss of exclusivity in May 2014.

Specialty Generics generated sales of $362.8 million from $269.2 million in the year-ago quarter primarily driven by an increase in sales of hydrocodone-related products and oxycodone-related products along with the inclusion of sales from BioVectra. However, sales in this segment were impacted by a decrease in methylphenidate ER sales due to the FDA’s reclassification of these products from an AB rating to a BX rating in Nov 2014.

Sales from the Global Medical Imaging segment were $202.6 million in the reported quarter, down 8.9% year over year.

Research and development expenses came in at $47.0 million, up 13.5% from the year-ago quarter. Selling, general and administrative expenses were $343.5 million, up from $194.1 million in the year-ago quarter. The increase was due to higher Ofirmev and Acthar selling expenses.

2015 Outlook

Mallinckrodt expects net sales to come between $3.75 billion and $3.85 billion. The Zacks Consensus Estimate of $3.7 billion is well within the guided range. Earnings per share are projected between $7.10 and $7.50. The Zacks Consensus Estimate of $7.29 is within the projected range.

Print Friendly, PDF & Email

Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

Share This Post On

Submit a Comment

Your email address will not be published. Required fields are marked *