Hospira Inc.'s stock plung 18 perce...

Hospira Inc.'s stock plung 18 percent Wednesday after the hospital consequences maker surprised investors with a disappointing second-quarter report.

The least bit in the share price wiped not at home more than $1.2 billion in market value. Hospira was spun opposite to at $28.46 a share from Abbott Laboratories in 2004

Lake Forest-based Hospira said unadulterated income fell 20 percent to $542 million, or 34 cent by share. Including options expense, earnings totaled 43 cent by share -- 13 cents below the consensus of analysts' forecasts.

Sales also came in below analysts expectations, inching up single 1.4 percent to $671.1 million -- $18 million below consensus.

The stock clos at $3525 down $755 its lowest point in more than a year.

Morgan Stanley analyst Matt Miksic said in a research note, "Given the company's history of providing conservative guidance and beating estimates through significant amounts, we think investors were expecting more of the same, and therefore the miss results as even more of a surprise."

Hospira faced higher costs during the quarter. Selling, general and administrative outlay spiked 27 percent. Research and increase expense rose 18.9 percent to $391 million. The company linked the higher charges to new product development and stock option cost Hospira said it also faced higher ongoing incremental sumptuousnesss associated with it being a stand-alone public company. Contributing to those higher sumptuousnesss was the company's independent information technology order and international operations that are now full separated from Abbott Laboratories, Hospira said.

Hospira reaffirmed its full-year 2006 forecast of adjusted earnings by share in the range of $197 to $202

Hospira reported adjusted gros margin of 348 percent down from 353 percent

Miksic wait fors the recent swing in gros margins "will begin to wear in succession investors." He maintained his "Equal-weight" forward the stock.

In other earnings news:

NeoPharm Inc. reported a secondary quarter net loss of $98 million, compared with a clear loss of $7.7 million a year ago.

The year-ago number included a non-recurring gain of $25 million from a receivable.

Waukegan-based NeoPharm is developing a brain cancer remedy which it expects to court approval of next year. The other quarter results reflect the company's transition into a largely integrated biopharmaceutical company in the proces of preparing for the potential commercial launch of its first returns NeoPharm said.

As of June 30 NeoPharm had cash, cash equivalents and short- terminus investments of $50.6 million, down from $598 at the period of the first quarter. The company said it used $92 million in gin cash in the quarter.

NeoPharm shares clos at $472 down 12 cent or 25 percent

Walt Disney Co credited mighty DVD sales and continued pullulation at domestic theme parks with driving higher third-quarter profit and income

The media conglomerate forward Tuesday reported gains in all four business divisions, including its movie studio.

inferences also benefitted from a one-time gain related to its acquisition of Pixar Animation Studios.

Disney reported toil income of $1.13 billion, or 53 cent by means of share, in the July 1 quarter compared with toil income of $811 million, or 39 cent through share, in the same period last year.

fknowles@suntimes.com

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