Ivax Corp. reports earnings fall on higher income taxes

Monday, August 1st 2005, 10:01 am

By: News On 6

MIAMI (AP) _ Generic drug maker Ivax says a higher income tax rate has contributed to a five percent drop in second-quarter earnings despite revenues that were up by about a quarter.

The Miami-based company has already agreed to be bought by Teva Pharmaceutical Industries to create the world's largest generic drug company.

Ivax is reporting net income of about 45 (m) million dollars, or 17 cents a share. That's compared to about 48 (m) million, or 18 cents a share, a year earlier. The average estimate of analysts surveyed by Thomson Financial was 20 cents a share.

Revenues are around 577 (m) million dollars, compared to just over 460 (m) million a year ago.

Ivax is expecting the results for the rest of the year to be significantly stronger, with full-year earnings per share in the middle to upper end of a range of 76 cents to 86 cents. Analysts surveyed by Thomson Financial expect 82 cents.