FORT LEE, N.J., Dec. 13 /PRNewswire-FirstCall/ -- Alpharma Inc. , a global specialty pharmaceutical company, announced today that the company expects earnings per share in 2007 in the range of $1.15 to $1.30. The outlook assumes revenue growth in the company's Pharmaceuticals (formerly "Branded Pharmaceuticals") business in the range of 15% to 20%. The outlook also assumes research and development expenses in the Pharmaceuticals business will increase over 2006 levels by $25 to $30 million, principally for incremental spending related to the company's abuse-deterrent pain product platform, and an increase in selling, general and administrative expenses in the Pharmaceuticals business of $10 to $15 million over 2006 levels for programs and infrastructure needed to support the company's growth programs. The outlook assumes 6% to 8% year-over-year revenue growth in both the company's Animal Health and Active Pharmaceutical Ingredients businesses, with 2007 operating margins in those businesses approximating 2006 levels. In addition, the outlook is based on the assumption that corporate unallocated expenses will be $12 to $14 million lower in 2007, principally as a result of certain 2006 expenses that will not reoccur. The outlook excludes any potential business development transactions and any potential costs associated with changes in the company's defined benefit pension plans.
The company today announced that it had reached agreement with A.L. Industrier ASA ("ALI"), the holder of the company's Class B shares, to repurchase these shares. This repurchase is contingent upon favorable action by the shareholders of ALI at a meeting that is expected to take place in the next few weeks. These shares represent approximately 22% of the company's outstanding shares at September 30, 2006. If this transaction is completed by early January 2007, the company expects that it would be accretive to its 2007 EPS outlook by $0.10 to $0.15. If you would like to receive Alpharma press releases via email please contact: investorrelations@alpharma.com.
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Alpharma Inc. is a global specialty pharmaceutical company with leadership positions in products for humans and animals. Alpharma is presently active in more than 60 countries. Alpharma has a growing branded franchise in the chronic pain market with its morphine-based extended release KADIAN(R) product. In addition, Alpharma is among the world's leading producers of several specialty pharmaceutical-grade bulk antibiotics and is internationally recognized as a leading provider of pharmaceutical products for poultry and livestock.
Statements made in this release include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, including those relating to future financial expectations, involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. The 2007 outlook assumes no material adverse event contemplated by the risk factors described in the Company's SEC filings. Information on other significant potential risks and uncertainties not discussed herein may be found in the Company's filings with the Securities and Exchange Commission including its Form 10-K for the year ended December 31, 2005.
Alpharma Inc.CONTACT: Kathleen Makrakis, VP, Investor Relations for Alpharma Inc.,+1-201-228-5085, kathleen.makrakis@alpharma.com
Web site: http://www.alpharma.com//
