Impax Laboratories Inc (NASDAQ:IPXL) posted fourth quarter 2017 financial report. Total revenues came at $182.9 million as compared to $198.4 million in the same period, a year ago. This decline can be attributed to a drop in sales of generic products, partly offset by a jump in sales of specialty products.
Paul Bisaro, the CEO and President of Impax, expressed that 2017 marked as a year of transition for company. Throughout the year they successfully executed on their Path Forward growth plan. They continued to establish momentum in their Specialty Pharma franchise which recorded strong sales growth of Rytary® with a jump of 24% over 2016. Their Generics franchise, experiencing a challenging generic market setup, worked hard to lower the impact of those problems on their business.
The CEO of Impax expressed that they also completed their cost improvement and operational program almost one year ahead of plan. Key highlights comprised the sale of their Taiwan manufacturing subsidiary unit for $18.5 million, concluding the closure of their Middlesex, New Jersey packaging and R&D facility, and completing their product optimization plans across their generic portfolio. These actions are anticipated to generate run-rate savings of around $85 million.
Bisaro added that they made considerable progress in preparing for their combination with Amneal Pharmaceuticals. As per the update, integration planning teams are closing on key Day 1 strategies to warrant business continuity after the close of the deal.
They remain thrilled about the worth of this combination, which will establish a more diversified firm with one of the market’s major best-value generic product pipelines. They are presently on track to close the deal in Q2 2018 and expect to offer combined firm full year 2018 projection after the close of the deal. Total revenue for the Generics segment in the Q4 2017 came at $112.9 million, a drop of 18.9%, over the prior year period.