Hospira says buyout and restructuring costs hurt 4Q profit; oxaliplatin and Precedex sales up

Hospira 4Q profit slips 8 percent on charges

LAKE FOREST, Ill. — Drug and medical device maker Hospira Inc. said Thursday its profit fell 8 percent in the fourth quarter due to acquisition and restructuring costs.

The company said its profit decreased to $96.7 million, or 58 cents per share, from $104.6 million, or 65 cents per share, a year earlier. Hospira said it earned 87 cents per share excluding one-time costs.

Revenue rose 16 percent to $1.06 billion from $913.7 million, due to greater sales of the generic chemotherapy drug oxaliplatin and the sedative Precedex.

Analysts were expecting a profit of 69 cents per share and $963.5 million in revenue, according to a Thomson Reuters survey.

One-time items in the quarter included amortization charges related to Hospira’s purchase of Mayne Pharma in 2007, and costs related to Hospira’s Project Fuel restructuring and job-cutting plan.

The company said sales of specialty drugs rose 26 percent to $578.3 million, and sales of other drugs gained 8 percent to $197.2 million. Medical device revenue edged up 3 percent to $279.7 million.

For 2009, Hospira said its profit rose 26 percent, to $403.9 million, or $2.47 per share, from $320.9 million, or $1.99 per share. Revenue grew 7 percent to $3.88 billion from $3.63 billion.

The company is expecting a profit of $3.25 to $3.35 per share in 2010, excluding special items. It said revenue will be about equal to 2009, or slightly greater.

Analysts are expecting a profit of $3.30 per share and revenue of $3.95 billion.

In midday trading, Hospira stock lost $1.17, or 2.3 percent, to $50.64.