Impax Laboratories Stock Plunges As Competition Pushes Results Well Below Expectations

Impax Laboratories Inc.'s stock plunged 26% in premarket trade, putting it on track to open at a near two-year low, after the drugmaker's second-quarter results fell well short of expectations. Losses for the latest quarter widened to $2.7 million, or 4 cents a share, from $1.9 million, or 3 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 21 cents, missing the FactSet consensus of 32 cents. Revenue fell to $172.6 million from $214.2 million, due primarily because of a 30% decline in generics revenue, to miss the FactSet consensus of $223.7 million. "Our second quarter results reflect the unexpected and rapid decline in sales of diclofenac and metaxalone as a result of additional competition," said Chief Executive Fred Wilkinson. "In particular, the change in the diclofenac market quickly moved us from an exclusive supplier position to a five competitor market." The stock had tumbled 28% year to date through Monday, while the SPDR S&P Biotech ETF has lost 10% and the S&P 500 has gained 6.7%.