Aceto reports loss, but shares rise as lenders waive covenants
Port Washington-based drugmaker Aceto Corp. reports quarterly earnings this week. Credit: Barry Sloan
Shares of Aceto Corp. rose Friday morning after the drugmaker and distributor reported a third quarter net loss, but said its lenders had granted it waivers on financial agreements.
Stock in the Port Washington company rose 9.2 percent to close Friday at $2.61.
Still, shares have fallen about 80 percent in the past 12 months.
Much of that decline followed revelations by the company in April of plans to sell itself or some of its divisions amid falling product prices.
In April the company also was subpoenaed in connection with a federal investigation of price fixing by generic drugmakers.
In the quarter ended March 31, Aceto posted a net loss of $196.6 million, or $5.57 per share, compared to net income of $5.6 million, or 16 cents per share, in the previous year’s quarter.
Quarterly net sales fell 2.2 percent to $186 million from $190.1 million in the year-ago period.
The company “secured a waiver on our financial covenants for the third quarter and we are continuing to work collaboratively with our lenders on developing long-term solutions to strengthen our balance sheet,” chief executive William C. Kennally III said in a statement.
As of June 2017, Aceto had 286 employees, according to a government filing.
Ken Schachter covers corporate news, including technology and aerospace, and other business topics for Newsday. He has also worked at The Miami Herald and The Jerusalem Post.
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