Warner Chilcott PLC said Friday its profit fell 42 percent in the third quarter as revenue from one of its biggest drugs, an osteoporosis treatment, fell sharply, and it had to pay for job cuts in Western Europe.
The Irish company said its profit declined to $33.1 million, or 13 cents per share, from $57.5 million, or 23 cents per share, a year ago. Excluding one-time items like the restructuring and refinancing costs, the company said it earned 89 cents per share. Revenue decreased 7 percent, to $655.5 million from $703.2 million.
Analysts expected the company to report a profit of 90 cents per share and $655.7 million in revenue, according to FactSet. Shares of Warner Chilcott sank $1.40, or 7.6 percent, to $16.97 in late afternoon trading. Shares are down about 25 percent this year.
Warner Chilcott said revenue from sales of its osteoporosis drug Actonel fell 38 percent to $166 million as generic versions of the bone drug reached the market in Western Europe. U.S. sales also fell. While revenue from its oral contraceptives rose 34 percent to $130 million, revenue in the company's overall women's healthcare products division fell 14 percent.
Revenue from its ulcerative colitis treatment Asacol edged up 5 percent to $190 million, and revenue from the overactive bladder treatment Enablex nearly doubled to $45 million.
The company acquired the U.S. rights to Enablex in October 2010 in a $400 million deal with Novartis AG.
The drug developer said it also spent $43 million, after taxes, on severance payments to workers laid off in Western Europe. The company said in April that it would eliminate 500 jobs as part of an effort to reduce costs.
The company said it believes total costs of the European restructuring and of converting a Puerto Rico manufacturing facility to a warehouse and distribution center will be between $160 million and $170 million, before taxes. It's already spent $135 million, before taxes, this year.
Warner Chilcott said it still expects an annual profit of $3.70 to $3.80 per share, excluding restructuring costs and other one-time charges, on $2.7 billion to $2.8 billion in revenue.
On average, analysts expect the company to earn $3.78 per share on $2.74 billion in revenue.