The Murray Hill, N.J.-based medical device company reported higher-than-expected sales on strong performances from its oncology and surgical divisions, but swung from black to red ink in Q2. Bard posted losses of $161.6 million, or $2.03 per share, on sales of $759.9 million during the 3 months ended June 30, with top-line growth of 2.3%.
Adjusted to exclude the legal charges and other 1-time items, earnings per share reached $1.42, 4¢ ahead of expectations on Wall Street but 20¢ less than reported for the same period in 2012.
CFO Christopher Holland said the listed litigation charges are Bard’s best guess at its total liability for the Avaulta pelvic mesh lawsuits, both existing and pending
"There’s certainly not a way for us to say with absolute certainty that this is the final number," Holland told analysts during a conference call. "These products were all manufactured outside the U.S., and so to the extent there’s a cash – ultimately a cash outlay, we’ll be able to utilize our [outside-the-U.S.] cash balance."
"These adjusted results exceeded the guidance we provided for the quarter. Our investment plan is proceeding as planned, and our teams are executing on the opportunities in front of us," CEO Timothy Ring added.
BCR shares were trading at $112.04 apiece as of about 3:05 p.m. today, down 1.2%.
On July 10, a Avaulta personal injury suit ended in a mistrial after a witness blurted comments about Bard’s marketing while on the stand. The judge had banned any reference to the decision to pull the vaginal mesh off the market, leading Bard’s lawyers to ask for a mistrial. A new jury trial is slated for later this month.