Business Wire - King Pharmaceuticals Reports Third-Quarter 2006 Financial Results
BRISTOL, Tenn. — King Pharmaceuticals, Inc. (NYSE:KG) announced today that total revenues were $492 million during the third quarter ended September 30, 2006, compared to $518 million in the third quarter of 2005. Including special items, net earnings equaled $90 million and diluted earnings per share equaled $0.37 during the third quarter ended September 30, 2006, compared to net income of $122 million and diluted earnings per share of $0.50 in the same period of the prior year. Excluding special items, net earnings equaled $106 million and diluted earnings per share equaled $0.44 during the third quarter ended September 30, 2006, compared to net earnings of $125 million and diluted earnings per share of $0.52 in the third quarter of 2005.
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For the nine-month period ended September 30, 2006, total revenues were $1.48 billion compared to $1.35 billion for the nine-month period ended September 30, 2005. Including special items, net income equaled $252 million and diluted earnings per share equaled $1.04 during the nine-month period ended September 30, 2006, compared to net income of $212 million and diluted earnings per share of $0.88 during the same period of the prior year. Excluding special items, net earnings equaled $324 million and diluted earnings per share equaled $1.33 for the nine-month period ended September 30, 2006, compared to net earnings of $308 million and diluted earnings per share of $1.27 in the same period of 2005.
Brian A. Markison, President and Chief Executive Officer of King, stated, “We are pleased with our continued solid financial performance and our accomplishments during the third quarter. Importantly, we strengthened our portfolio with the launch of Glumetza[TM], a new generation metformin product for patients with Type II diabetes, and our agreement to acquire the rights to Avinza([R]), a true once-a-day morphine product.”
Mr. Markison emphasized, “Glumetza[TM] is an excellent complement to our cardiovascular/metabolics franchise and Avinza([R]) significantly strengthens our growing pain portfolio, positioning us to become a leader in pain management. We expect to close the Avinza([R]) acquisition on or about December 31, 2006. In the interim, our sales force is promoting the product pursuant to a separate copromotion agreement which terminates in January 2007.”
Mr. Markison added, “We are continuing to focus on business development opportunities in our key therapeutic areas to further improve our development pipeline, which includes four products in Phase III and two products in Phase II. Additionally, we expect T-62, our investigational drug for the treatment of neuropathic pain, to enter Phase II in the first half of 2007. As our pipeline continues to build momentum, we expect to report results from several key clinical programs next year.”
Net revenue from branded pharmaceuticals totaled $433 million for the third quarter of 2006, a 5% decrease from $455 million during the third quarter of 2005. This difference was primarily due to previously disclosed changes in reserve estimates and increases in wholesale inventory levels of the Company’s products in the third quarter of 2005 that each positively benefited net revenues during that quarter.
Altace([R]) (ramipril) net sales totaled $159 million during the third quarter of 2006 compared to $174 million during the third quarter of 2005.
Net sales of Skelaxin([R]) (metaxalone) totaled $106 million during the third quarter of 2006 compared to $116 million during the same period of the prior year.
Thrombin-JMI([R]) (thrombin, topical, bovine, USP) net sales totaled $70 million during the third quarter of 2006 compared to $54 million during the third quarter of 2005. Net sales of this product during the third quarter of 2006 benefited from an increase in wholesale inventory levels which remain within a normalized range.
Net sales of Sonata([R]) (zaleplon) totaled $19 million during the third quarter of 2006 compared to $20 million during the third quarter of the prior year.
Levoxyl([R]) (levothyroxine sodium tablets, USP) net sales totaled $25 million during the third quarter ended September 30, 2006 compared to $36 million during the third quarter of 2005.
King’s Meridian Medical Technologies business contributed revenue totaling $37 million during the third quarter of 2006 compared to $38 million during the same period of the prior year.
Royalty revenues, derived primarily from Adenoscan([R]) (adenosine), totaled $19 million during the third quarter ended September 30, 2006, compared to $22 million during the third quarter of 2005. During the third quarter ended September 30, 2006, net revenue from contract manufacturing equaled $3 million.
As of September 30, 2006, the Company’s cash and cash equivalents and investments in debt securities totaled approximately $918 million. During the third quarter of 2006, the Company generated cash flow from operations of approximately $127 million. King expects to use cash to consummate its planned acquisition of Avinza([R]). Additionally, King plans to utilize its cash position to fuel its business development initiatives and aggressively invest in the further development of products in its pipeline. Accordingly, the Company continues to believe that its total investment in research and development for the full year of 2006 could exceed $150 million.
