Hospira returns to profit, with EPS beating expectations

USA-based Hospira (NYSE: HSP), a global leader in injectable drugs and infusion technologies, reported results for the third quarter of 2012, with net sales rising1.8% to $994 million, and adjusted diluted earnings per share at $0.47, versus a net loss of $88.9 million, or $0.54 per share, in the 2011 quarter, and beating analysts’ consensus expectations of $0.46. Diluted earnings per share on a Generally Accepted Accounting Principles (GAAP) basis were $0.01.

"Results for the third quarter were in line with our expectations, and we continued to advance our overall quality improvement initiatives," said Michael Ball, chief executive, adding: "We remain fully committed to reinforcing Hospira's foundation, and we believe we are making progress in this regard. As we head toward the end of what has been a challenging year for Hospira, I am pleased with our dedicated focus, the improvements we are making across the organization and the advancements of Hospira's growth expansion initiatives."

On a constant-currency basis, third-quarter 2012 net sales increased 3.9% compared to the third quarter of 2011. Strong US sales of several Specialty Injectable Pharmaceutical (SIP) products, including Precedex and the oncolytic oxaliplatin, which was relaunched during the quarter, as well as higher volumes for certain SIP products in the company's Europe, Middle East and Africa (EMEA) region, contributed to the positive performance in the quarter. The strong SIP performance more than offset the impact to supply in 2012 of the company's quality-improvement and remediation initiatives, said Hospira.