Oct. 29--Baxalta, the bioscience company spun off from Baxter International this summer, reported strong third-quarter sales and profits on robust demand for its hematology and immunology products. The company, based in the north suburb of Bannockburn, also raised its full-year outlook.
By the numbers: The company posted net income of $309 million, or 45 cents a share, up 25 percent from $246 million, or 36 cents a share a year ago. Adjusted for one-time gains and costs, earnings were 56 cents per share. Sales were $1.59 billion, up 7 percent from $1.49 billion a year ago.
The "why": Baxalta, which makes products that treat rare bleeding disorders and immune deficiencies, said it saw double-digit sales growth across many product lines, excluding the impact of foreign currency. Hematology revenues increased 10 percent to $935 million. Strong drivers in this category were products for hemophilia A and inhibitor treatments. Immunology sales were $626 million, up 13 percent. Baxalta said its portfolio of immunoglobulin therapies and specialty biotherapeutics saw brisk demand. Its new oncology business recorded sales of $34 million, reflecting the recent acquisition of a biologic treatment for acute lymphocytic leukemia.
Other highlights: The company said it continues to make progress toward its goal of achieving 20 new product launches by 2020. On a conference call with analysts, the company sidestepped questions of whether the strong results and outlook would give it more ammunition to fend off a $30 billion hostile bid from Irish drugmaker Shire.
Quote you on that: "What we see here is strong momentum," Ludwig Hantson, CEO and president, told analysts. "The spinoff allows us to focus."
Outlook: For the fourth quarter of 2015, Baxalta said it expects sales growth, excluding the impact of foreign currency, of 3 to 5 percent. Including the impact of foreign currency, the company expects pro forma sales to decline 1 to 3 percent. Baxalta also expects fourth-quarter 2015 adjusted earnings, before special items, of $0.55 to $0.57 per diluted share.
For the full-year 2015, Baxalta projected sales growth, excluding the impact of foreign currency, of approximately 8 percent, compared to its prior guidance of growth in the 6 to 7 percent range.
Market reaction: Shares of Baxalta closed down 4.2 percent at $34.45.
jrussell@tribpub.com
