The drugmaker reported disappointing first-quarter profit on weak US sales and slashed its 2008 forecast, pushing its stock down 23 percent to their lowest levels since 2004. Oral contraceptive sales fell short, and results were hurt by surprising competition and pricing pressure on a new generic of an osteoporosis drug. Sales of its Plan B emergency contraceptive were also lower than expected.

Barr reduced its 2008 outlook less than three months after issuing a forecast that also disappointed the market, Reuters notes. “It’s hard to imagine how they could get this so wrong in so many areas of their business in only the first quarter,” Morningstar analyst Brian Laegeler tells Reuters. “I think there’s a little bit of credibility lacking right now in the financial guidance.”

In a statement, Barr ceo Bruce Downey says that results “did not meet our expectations,” but he expects “results will improve in the second half of the year and demonstrate the value of expanding our operations and markets outside the United States.”

In cutting its outlook, Barr cited lower-than-expected U.S. generic revenue due to the timing of drug launches, lower gross profit margins due to a shift in product mix, and higher investments in research and development, on top of the problems hurting the first-quarter performance.

Excluding special items, Barr earned 57 cents per share in the first quarter, far short of analysts’ average forecast of 78 cents, according to Reuters Estimates. Net income rose to $23 million, or 21 cents per share, from $11.6 million, or 11 cents per share, a year earlier.

Revenue rose 2 percent to $608 million, and generic sales were $469 million in the quarter, down slightly from $471 million a year earlier, Reuters notes. US generic sales fell 15 percent to $261 million. Sales of generic oral contraceptives, Barr’s biggest single generic category, fell nearly 18 percent to $93 million, reflecting lower volume in several products due to lower market share, Barr said.

Sales of Barr’s brand-name products rose 8 percent to $96 million. Higher sales of its Seasonique oral contraceptive helped offset generic competition for its Seasonale contraceptive. Plan B sales were weaker than expected because wholesalers boosted their inventory at the end of 2007 in anticipation of a price increase, Barr said.

Generic drug sales abroad rose 27 percent to $208 million, helped by the weak dollar and strong performances in Germany, Russia and Poland. For the full year, Barr cut its earnings pe share forecast to a range of $2.75 to $3.05, down from a February forecast of $3.05 to $3.35.

Source: Reuters

The drugmaker’s share are off nearly 24 percent so far today after it lower guidance and first-quarter results disappointed. Barr, which sells various generics, as well as women’s contraceptives, had profits of $23 million, or 21 cents per share, up from $11.6 million in the first quarter of 2007. Revenues were up 1.8 percent to $608 million.

Analysts surveyed by Thomson Financial had expected earnings per share of 78 cents on revenues of $684.1 million.

“While our results for the first quarter did not meet our expectations, we believe that these results will improve in the second half of the year and demonstrate the value of expanding our operations and markets outside the U.S.,” said Bruce L. Downey, Barr’s chairman and chief executive.

Sales of the company’s generics were down 0.4% to $469.0 million due to a decrease in sales of generic oral contraceptives, Barr’s biggest single generic category, falling to $93.0 million from $113.0 million, reflecting lower volume in several products due to lower market share, the company said. Generic sales outside of the U.S. increased 26.8% to $208.0 million. The increase was largely due to currency exchange.

The sale of Barr’s contraceptive products increased 7.9% to $96.0 million due to a jump in sales of Seasonique, a seasonal birth control pill, and Plan B, the over-the-counter morning after pill.