WOODCLIFF LAKE, N.J., Feb. 28, 2012 /PRNewswire/ -- Par Pharmaceutical Companies, Inc. (NYSE: PRX) today reported results for the fourth quarter and full year ended December 31, 2011, which includes approximately six weeks of Anchen Pharmaceuticals’ operating results following the completion of the acquisition.
For the fourth quarter ended December 31, 2011, the Company reported total revenues of $253.6 million and income from continuing operations of $31.3 million, or $0.85 per diluted share, which includes approximately $14 million of favorable tax benefits. On an adjusted cash basis (non-GAAP measure), which excludes amortization expenses, other transaction-related costs and certain tax items, income from continuing operations was $28.9 million, or $0.78 per diluted share for the fourth quarter 2011.
For the full year ended December 31, 2011, total revenue was $926.1 million with a loss from continuing operations of $46.3 million, or $1.29 per diluted share, as a result of a first quarter pre-tax litigation charge of $190.6 million as well as a second quarter restructuring charge of $27.0 million. On an adjusted cash basis (non-GAAP measure), which excludes amortization expenses and certain items as detailed in the attached reconciliation, income from continuing operations was $121.7 million, or $3.32 per diluted share. On an adjusted cash basis, income from continuing operations for the full year 2010 was $105.0 million, or $2.95 per diluted share.
Fourth Quarter Highlights
Key Product Sales (Net sales comparisons at the product level are to third quarter 2011)
- Metoprolol: For the quarter ended December 31, 2011, net sales of metoprolol succinate were $56.4 million compared to $67.5 million in the third quarter 2011. The decrease was driven by a decline in volume and price due to competition on all strengths. Net sales for the full year 2011 were $251.0 million. Par Pharmaceutical, the Company’s generic drug division, is the authorized generic for all strengths of AstraZeneca’s Toprol XL®.
- Budesonide EC: Net sales for budesonide EC in the fourth quarter were $33.1 million compared to $20.6 million in the third quarter. The increase was driven by customer buying patterns following the late second quarter launch of the product. Net sales for 2011 were $70.0 million. Par Pharmaceutical is the authorized generic for AstraZeneca’s Entocort® EC.
- Propafenone Hydrochloride ER: Net sales for propafenone hydrochloride ER in the fourth quarter were $16.4 million compared to $18.1 million in the third quarter. The decrease was driven by customer buying patterns. Net sales for the full year 2011 were $69.8 million. Par Pharmaceutical remained the exclusive supplier of generic Rythmol SR® throughout the fourth quarter.
- Sumatriptan: Net sales of sumatriptan succinate were $15.3 million in the fourth quarter compared to $16.8 million in the prior quarter. The decrease is driven by a decline in price and volume due to competition. Net sales for the full year 2011 were $64.1 million.
- Buproprion Hydrochloride ER: Par recorded net sales for buproprion of $6.1 million in the last six weeks of the fourth quarter following the completion of the Anchen acquisition.
- Zolpidem Tartrate: Par recorded net sales for zolpidem tartrate of $5.3 million in the last six weeks of the fourth quarter following the completion of the Anchen acquisition.
- Olanzapine ODT: Net sales for olanzapine orally disintegrating tablets were $3.2 million in the fourth quarter. Par Pharmaceutical launched all strengths of olanzapine orally disintegrating tablets, the generic version of Lilly’s Zyprexa Zydis® in October.
- Fentanyl Citrate Lozenges: Net sales for fentanyl for the fourth quarter were $2.6 million. Par Pharmaceutical acquired the ANDA from Teva in connection with Teva’s acquisition of Cephalon and began shipping all strengths to the trade in October.
- Other Generic Products: For the fourth quarter 2011, net sales from all other generic products were $88.5 million. This compares to third quarter net sales of $72.5 million. The increase is due to the seasonality of chlorpheniramine/hydrocodone, as well as the addition of Anchen products to Other Generic Products.
- Megace® ES: Net sales were $15.8 million for the fourth quarter compared to $14.2 million in the third quarter. The increase was due to customer buying patterns. Net sales for the full year were $58.2 million.
- Nascobal® B12 Nasal Spray: Net sales were $6.6 million for the three months ended December 31, 2011 compared to $4.7 million in the third quarter. The increase was due to an increase in prescription demand. Net sales for the full year were $21.4 million.
Revenues and adjusted gross margin for the fourth quarter 2011 were $253.6 million and $103.8 million, respectively, compared to $215.4 million in net sales and $87.2 million in adjusted gross margin during the prior quarter (Q3 2011). The adjusted gross margin rate on the Company’s consolidated product portfolio increased slightly to 40.9% versus 40.5% in the third quarter 2011. (Par is now presenting non-GAAP gross margin on an adjusted basis. See detailed reconciliation table at the end of this press release.)
