Hospira 2nd-qtr income falls 45%, hit by costs

USA-based Hospira (NYSE: HSP), a leading provider of injectable drugs and infusion technologies, reported results for the second quarter 2012 results, with net sales down 3% to $1 billion. Global specialty injectable pharmaceutical sales came in at $644.2 million, down 4.6% at actual currencies (-1.7% at constant exchange rates), with turnover in the Americas down 7% (-5.8% at CER) to $491.7 million.

Adjusted income from operations decreased 45% to $117 million in the second quarter of 2012. The majority of the decline reflects the impact of costs associated with higher year-over-year manufacturing expense and inventory losses. Additionally, operating costs increased in the second quarter of 2012 due to expected higher research and development spending, as well as higher selling and promotional costs.

Excluding the impact of foreign exchange, net sales were flat on a year-over-year basis. Higher volumes for certain specialty injectable pharmaceutical compounds outside the USA and favorable medication management sales were offset by a difficult year-over-year comparison to strong second-quarter 2011 performance, driven primarily by strong US sales of the oncolytic docetaxel and other newer compounds, as well as the adverse impact to supply in 2012 of the company's quality-improvement and remediation initiatives, the company said.