Akorn, Inc. Q4 2012 Earnings Conference Call Transcript - Thomson StreetEvents

Akorn, Inc. Q4 2012 Earnings Conference Call Transcript

Akorn, Inc. Q4 2012 Earnings Conference Call Transcript - Thomson StreetEvents
Akorn, Inc. Q4 2012 Earnings Conference Call Transcript
Published Feb 26, 2013
Published Feb 26, 2013
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Abstract:

Edited Transcript of AKRX earnings conference call or presentation 26-Feb-13 3:00pm GMT

  
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The following is excerpted from the question-and-answer section of the transcript.

(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)

Question: Steven Crowley - Craig-Hallum Capital Group - Analyst : Good morning gentlemen. On Pantoprazole, it seems like not only did that have an earlier contribution, it seems like you're doing well there. You've talked to us about a capacity constraint for that product. Have you mapped out and started to execute a plan to better deal with that?


Question: Steven Crowley - Craig-Hallum Capital Group - Analyst : Great. On the top of your capacity expansion, it seems like New Jersey is now -- Somerset's now in a position to come on stream, and does that dovetail nicely with what you can do with Latanoprost? And how quickly can you do that?


Question: Steven Crowley - Craig-Hallum Capital Group - Analyst : Okay. So that's Latanoprost into New Jersey. So even though I may have confused that a little bit it looks like you have a play there. And then just an additional question on new product launches. With your Td Vaccine experience so far, besides it contributing a little bit earlier than you thought, what can you tell us about effectiveness of the sales force with that product again, and the seeming receptiveness or lack thereof of the marketplace for it?


Question: Steven Crowley - Craig-Hallum Capital Group - Analyst : Great. I'll hop back in the queue. Thanks for taking my questions. companies.


Question: Elliot Wilbur - Needham & Company - Analyst : Thanks, good morning. I would assume it's fairly safe to conclude that there haven't been any changes to the guidance parameters that you guys offered back on January 17th. But specifically just thinking about SG&A, obviously the fourth quarter run rate quite a bit higher than normal, I would assume that's just true up of year end expenses, stock comp and the like. But just wanted to confirm in fact that, that is going to moderate obviously over the course of 2013.


Question: Elliot Wilbur - Needham & Company - Analyst : Okay. And then specifically with respect to the margin performance in the injectable segment, I guess I would have expected more moderation from 3Q, and not a rather strong sequential performance which you turned in. I guess my assumption previously was that Pantoprazole was a contract product and that would have a lower than average gross margin, so I'm not sure if that is incorrect or if it's just better product mix? But maybe if I had a little bit of color in terms of what drove the strong sequential margin performance.


Question: Elliot Wilbur - Needham & Company - Analyst : Okay. And then one final question for you Tim as well. Not that it's that germane to our estimates anyway, since we all excluded it in terms of adjustments, but can you just walk through again what your comments were surrounding the accrual of the Lundbeck payment? Obviously something changed that sort of triggered the recognition of that contingent portion of that liability. I don't know if it's just the passage of time or certain performance levels around the product. But maybe just walk through an explanation.


Question: Elliot Wilbur - Needham & Company - Analyst : Got it. All right, thank you. Those were my questions.


Question: Traver Davis - Piper Jaffray - Analyst : Hey, guys. This is Traver Davis on for David Amsellem. Thanks for taking the questions. Just a couple, one on Erythromycin ointment. So obviously, as we track third party script data for Erythromycin, it sort of has been showing pretty continued growth. So I guess the question is, is that a function of the expanded capacity at Somerset? And also, how much of the Erythromycin ointment market can you supply, given that you've expanded the capacity at least in Phase I at Somerset?


Question: Traver Davis - Piper Jaffray - Analyst : Yes, yes. And is that just as a result of remediation of the two week shut down or do you -- it appears that you're still grabbing a little bit more share from the market. Is that a sound assumption?


Question: Traver Davis - Piper Jaffray - Analyst : Okay.


Question: Traver Davis - Piper Jaffray - Analyst : Got you. Got you. And just a --


Question: Traver Davis - Piper Jaffray - Analyst : Got you, got you. Okay, thanks. And just switching gears real quick, so what does your latest intelligence tell you about who is out there potentially, even working on a Nembutal generic product if any? And just more of a hypothetical question I guess, what would it do to say your 2013 guidance if we saw a generic launch say in the second half of this year?


Question: Traver Davis - Piper Jaffray - Analyst : Got you. Okay. Thanks.


Question: Jason Gerberry - Leerink Swann - Analyst : Great. Thanks for taking the question. Just a question on Precedex actually. You've got tentative approval. It looks like Sandoz hasn't closed out its warning letter for its injectable facility, which raises questions about first to file, forfeiture, consideration and then Hospira's pediatric extension is -- for the product is to manufacture it out of Rocky Mount. So, the question is, at least in the investor community about whether they'll actually get pediatric extension. So, is it -- would you guys be ready to launch midyear if Sandoz were to forfeit its exclusivity? I wonder if you can comment on that opportunity.


Question: Jason Gerberry - Leerink Swann - Analyst : Okay. companies.


Question: Jason Gerberry - Leerink Swann - Analyst : Got it. Okay. And then just another pipeline question, I apologize if this has been asked maybe in past calls. But what are your guys' thoughts on the Restasis market opportunity? Obviously that patent goes away in 2014. Are the costs too prohibitive given some commentary from agency representatives that clinical trials may be required? Is that something that you guys consider? I'll stop there, thanks.


Question: Jason Gerberry - Leerink Swann - Analyst : Have you heard anything about guidance being issued on that particular product opportunity?


Question: Jason Gerberry - Leerink Swann - Analyst : Right, right. Okay. Thanks.


Question: Sumant Kulkarni - BofA Merrill Lynch - Analyst : Good morning. Thanks for taking my questions. The first one is, could you give us an update on your generic Tobramycin filing? There could be some loss of exclusivity there on the first filer potentially?


Question: Sumant Kulkarni - BofA Merrill Lynch - Analyst : Yes. The Toby product. companies.


Question: Sumant Kulkarni - BofA Merrill Lynch - Analyst : And could you give us an update on the time line for the inspection of the FDA plants in India? What's the earliest that the FDA could get in there? And we know that there's an NDA product that is potentially on a bit of a clock, so what would the time line be?


Question: Sumant Kulkarni - BofA Merrill Lynch - Analyst : And on the claw back on generic Nembutal that you have, could you give us some color on how that works, just in case a generic Nembutal comes in, let's say midyear, what kind of cash impact would it have on Akorn's statements?


Question: Sumant Kulkarni - BofA Merrill Lynch - Analyst : Okay. And you've launched your first vaccine now, how would you characterize the opportunity in that business? Is that something you're still invested in, and could you go about that in a bigger way?


Question: Sumant Kulkarni - BofA Merrill Lynch - Analyst : Thanks. companies.


Question: Florence Tsang - RBC Capital Markets - Analyst : Hi, thanks. This is Florence Tsang on behalf of Shibani. On the 2013 conference call, you talked about an interest in pursuing both baskets of products as well as Company acquisitions. Can you talk a little bit more about whether you are looking primarily on just the generics or the ophthalmology side, and -- or would you potentially be looking to build complementary assets or broaden into new areas? Thanks.


Question: Florence Tsang - RBC Capital Markets - Analyst : Okay. Thank you.


Question: David Steinberg - Deutsche Bank - Analyst : Yes just to [solve] on that question, you made a series of very good and strategic and financially accretive acquisitions, but it's been quite a while since you made one, I think Kilitch. Just curious, piggyback after the last question, are you seeing more competition? Are the price -- is the pricing -- you're very disciplined, but is pricing high? What can you say about sort of pricing opportunities, competition for both smaller products and larger companies?


Question: David Steinberg - Deutsche Bank - Analyst : Okay. Thanks.


Question: Steven Crowley - Craig-Hallum Capital Group - Analyst : Just a couple follow-ups. I noticed in one of your recent presentations, Raj, that it looks like you gained some decent traction in the veterinary business out of the chute. Can you tell us how that's going, and how your plans are evolving in that vet animal health marketplace?


Question: Steven Crowley - Craig-Hallum Capital Group - Analyst : And kind of a similar question about the status of the OTC, private label human business, and whether or not you've got some things in motion there that are notable?


Question: Steven Crowley - Craig-Hallum Capital Group - Analyst : And then just one more in terms of India, in terms of the outside India non-US opportunity set, I know you've got a bunch of different individual company market, and individual product opportunities. Is there anything to report on that front as to some progress spotty or otherwise?


Question: Steven Crowley - Craig-Hallum Capital Group - Analyst : Great, thanks for taking the questions.

Table Of Contents

Akorn, Inc. Q1 2014 Earnings Conference Call Transcript – 2014-05-06 – $54.00 – Edited Transcript of AKRX earnings conference call or presentation 6-May-14 2:00pm GMT

Akorn, Inc. Q4 2013 Earnings Conference Call Transcript – 2014-03-03 – $54.00 – Edited Transcript of AKRX earnings conference call or presentation 3-Mar-14 3:00pm GMT

Akorn, Inc. Q3 2013 Earnings Conference Call Transcript – 2013-11-05 – $54.00 – Edited Transcript of AKRX earnings conference call or presentation 5-Nov-13 3:00pm GMT

Akorn, Inc. Q2 2013 Earnings Conference Call Transcript – 2013-08-06 – $54.00 – Edited Transcript of AKRX earnings conference call or presentation 6-Aug-13 2:00pm GMT

Akorn, Inc. Q1 2013 Earnings Conference Call Transcript – 2013-05-07 – $54.00 – Edited Transcript of AKRX earnings conference call or presentation 7-May-13 2:00pm GMT

Akorn, Inc. 2013 Financial Guidance Call Transcript – 2013-01-17 – $54.00 – Edited Transcript of AKRX guidance conference call or presentation 17-Jan-13 9:00pm GMT

Akorn, Inc. Q3 2012 Earnings Conference Call Transcript – 2012-11-06 – $54.00 – Edited Transcript of AKRX earnings conference call or presentation 6-Nov-12 3:00pm GMT

Akorn, Inc. Q2 2012 Earnings Conference Call Transcript – 2012-08-07 – $54.00 – Edited Transcript of AKRX earnings conference call or presentation 7-Aug-12 2:00pm GMT

Akorn, Inc. Q1 2012 Earnings Conference Call Transcript – 2012-05-08 – $54.00 – Edited Transcript of AKRX earnings conference call or presentation 8-May-12 2:00pm GMT

Akorn, Inc. Q4 2011 Earnings Conference Call Transcript – 2012-03-06 – $54.00 – Edited Transcript of AKRX earnings conference call or presentation 6-Mar-12 3:00pm GMT

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Thomson StreetEvents. "Akorn, Inc. Q4 2012 Earnings Conference Call Transcript" Feb 26, 2013. Alacra Store. Jul 28, 2014. <http://www.alacrastore.com/thomson-streetevents-transcripts/Q4-2012-Akorn-Inc-Earnings-Conference-Call-T4987697>
  
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