Mallinckrodt plc (MNK) topped market expectations on revenue and earnings for the fourth quarter of 2018, sending the shares soaring 12.9% in premarket hours on Tuesday.
Net sales grew 5.4% to $834.9 million from the same period last year. On a constant-currency basis, sales growth was 5.6%.
On a GAAP basis, the company reported a net loss of $3.7 billion, or $44.64 per share, compared to a net income of $1.6 billion, or $17.41 per share, in the prior-year period, mainly due to a non-cash goodwill impairment charge. Adjusted EPS improved 8.5% year-over-year to $2.18.
Mallinckrodt stated that the Specialty Generics Disposal Group, which was previously classified in discontinued operations, has been recast to continuing operations and the company now operates two reportable segments – the Specialty Brands segment and the Specialty Generics and Amitiza segment.
During the quarter, sales in the Specialty Brands segment totaled $586.5 million. INOMAX and OFIRMEV posted sales increases of 10.4% and 11.8% respectively, helped by strong demand and execution.
Net sales for HP Acthar Gel dropped 4.1% as the brand continues to tackle patient withdrawal issues and growing payer scrutiny on overall specialty pharmaceutical spending. Therakos net sales dipped slightly to $57 million in the quarter.
Also see: Mallinckrodt Q4 2018 Earnings Conference Call Transcript
In the Specialty Generics and Amitiza segment, net sales grew 23.8% to $248.4 million, mainly due to the inclusion of AMITIZA in early 2018. Excluding AMITIZA, net sales of the other Specialty Generics products dropped 8.4%. Mallinckrodt expects these declines to moderate and the segment to return to growth in 2019.
For the full year of 2019, Mallinckrodt expects adjusted EPS of $8.10 to $8.40. Total net sales for both the Specialty Brands and Specialty Generics and Amitiza segments are expected to increase 1-4%.
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