Business in Brief: Perrigo Posts Quarterly Loss; Alvarion to Be Sold

Drug maker posts losses on Omega write-down | Alvarion due to be sold by court to SuperCom | Chiasma to appeal FDA rejection of its drug

Outgo9ing Perrigo CEO Joseph Pappa.
Ofer Vakhnin

Perrigo posts quarterly loss on Omega write-down

Two weeks after CEO Joseph Papa quit and the company downgraded its earnings outlook for the year, drugmaker Perrigo reported Thursday that its first-quarter loss widened sharply from a year ago.

The company said it lost $133.1 million, or 93 cents a share, compared to a loss of $94.9 million, or 67 cents per share, a year earlier, after it took a $467 million write-down on its acquisition last year of Omega Pharmaceutical. Excluding the charges, earnings came to $1.75 a share, less than the average estimate of analysts surveyed by Zacks Investment Research, of $1.83 per share.

Perrigo posted revenue of $1.38 billion in the quarter, up 32% from a year ago and beating forecasts of $1.35 billion. Newly appointed CEO John Hendrickson said he continued to see “a bright future” for Perrigo. “During my 27-year tenure, we have experienced numerous highs and lows, but the strength of our consolidated business model has always prevailed,” he said. Perrigo shares were down 2.8% at $90.12 late morning local time in New York. (Yoram Gabison)

Alvarion due to be sold by court to SuperCom

Nimrod Glickman

Bankrupt Alvarion is due to change hands again, for the second time in three years, this time being acquired by Nasdaq-traded SuperCom, TheMarker has learned.

A court supervising Alvarion is expected to approve the recommendation of its trustee to approve the sale on Sunday after SuperCom emerged as the only bidder in an auction last week.

SuperCom, a maker of biometric and other identification technologies, will pay $2 million for Alvarion and retain 80% of the company’s staff, which now numbers around 25 after big layoffs in the past year.

Once regarded as one of the most promising Israel high-tech companies, Alvarion had a market capitalization of $1 billion and more than 1,000 employees at its peak in 2007. But its WiMax-based technology lost out to the competing LTE platform and by 2013 it turned to the courts for protection from creditors. SuperCom shares were 0.4% lower at $3.48 late morning local time in New York. (Eran Azran)

Chiasma to appeal FDA rejection of its Mycapssa drug for acromegaly

Chiasma, the U.S.-Israeli drug development company, reported a sharply wider loss for the first quarter and said it would appeal a U.S. decision to rejects a key drug it has developed.

Last month the U.S. Food and Drug Administration rejected Chiasma’s Mycapssa. The drug is an experimental treatment for acromegaly, a growth disorder that can result in serious illness and premature death.

“We plan to submit a meeting request within the next week, and, if granted, we expect this meeting to take place in the second quarter,” CEO Mark Leuchtenberger said, adding that the company was still moving ahead with phase III trials in the United States, Europe and elsewhere to get European approval.

Chiasma said its net loss attributable to common stockholders was $17.2 million, or 71 cents a share, widening from $4.3 million, or about 59 cents, a year earlier. Cash fell to $134.3 million at the end of March, from $148.8 million three months earlier. Chaisma shares were down 8.7% to $2.66 late morning local time in New York. (TheMarker)