Impax reports significant jump in revenues as it gets plant problems behind it

Impax CEO Fred Wilkinson

While remediation costs continued to drag on the financials for Impax Laboratories ($IPXL) last year to the tune of nearly $24 million, the drugmaker still saw some improvements in its financials for 2014 and finally bagged approval of its treatment for Parkinson's disease early this year.

The company this week reported that 2014 revenues were up in Q4 by 30.2% to $131.2 million and that its earnings-per-share broke even on a GAAP basis. For the year, revenues increased 16.5% to $596 million and on a GAAP basis its 2014 diluted EPS were $0.81. That was down considerably from $1.47 in 2013, but that was tied mostly to the $150 million in pre-tax settlements received that year, it said in its earnings statement.

"During the year, we continued implementing a global quality improvement program, achieved commercial success across our generic and brand divisions, optimized and refocused our R&D structure and accelerated our business development efforts," Impax CEO Fred Wilkinson said in a statement.

Impax received a warning letter for its Hayward, CA, plant in 2011 and then a series of additional FDA concerns there and at a plant in Taiwan delayed approval of its Parkinson's disease treatment Rytary. Remediation costs at the Hayward plant ran to $23.7 million last year, Impax reported with its earnings Tuesday. After working through those FDA issues, it finally got approval of Rytary in January, allowing it to focus on other new products.

Last fall, it added a portfolio of generic and branded products and some manufacturing expertise with a $700 million deal for Lineage Therapeutics and Tower Holdings, which brings along subsidiaries CorePharma and Amedra Pharmaceuticals. In the deal it got a DEA- and FDA-licensed manufacturing, packaging and warehousing campus in Middlesex, NJ, and some expertise that the company said will strengthen Impax's global Quality Improvement Program.

- here's the earnings release