WOODCLIFF LAKE, N.J., Aug. 3, 2011 /PRNewswire/ -- Par Pharmaceutical Companies, Inc. (NYSE: PRX) today reported results for the second quarter ended June 30, 2011.
For the second quarter ended June 30, 2011, the Company reported total revenues of $224.2 million, and income from continuing operations of $9.2 million, or $0.25 per diluted share, which included a one-time charge of $27.7 million related to the Company’s restructuring of its branded division, Strativa Pharmaceuticals. Excluding this item and a one-time tax charge, adjusted income from continuing operations (non-GAAP measure) was $29.0 million. On an adjusted cash basis (non-GAAP measure), which excludes amortization expenses, income from continuing operations was $30.9 million, or $0.84 per diluted share for the second quarter 2011. (Please see attached reconciliation page.) This is compared to reported revenues of $255.5 million and adjusted cash basis income from continuing operations of $25.1 million, or $0.71 per diluted share for the same period in 2010.
For the six months ended June 30, 2011, the Company reported total revenues of $457.1 million and a loss of $99.7 million from continuing operations, or $2.79 per diluted share, as aresult of a $190.6 million pre-tax litigation settlement expense in the first quarter and the aforementioned restructuring and tax charges in the second quarter. On an adjusted cash basis (non-GAAP measure), income from continuing operations was $65.9 million, or $1.80 per diluted share. This compares to reported revenues of $547.4 million and income from continuing operations of $44.5 million, or $1.26 diluted share, for the same period in 2010. On an adjusted cash basis, income from continuing operations for the first six months of 2010 was $51.4 million, or $1.46 per diluted share.
The following is a product level discussion of second quarter 2011 results versus the first quarter 2011:
Key Product Sales
- Metoprolol: For the quarter ended June 30, 2011, net sales of metoprolol succinate were $63.7 million compared to net sales of $63.4 million in the first quarter 2011. 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 second quarter were $16.4 million. Par Pharmaceutical launched the product in the second quarter as the authorized generic for AstraZeneca’s Entocort® EC.
- Sumatriptan: Net sales of sumatriptan succinate were $15.3 million in the second quarter 2011 compared to $16.7 million in the first quarter 2011. Par Pharmaceutical remained the exclusive supplier of generic Imitrex® 4mg and 6mg starter kits and 4mg prefilled cartridges and had one competitor in the 6mg prefilled cartridges throughout the second quarter.
- Propafenone Hydrochloride ER: Net sales for Propafenone Hydrochloride ER in the second quarter were $13.3 million compared to $22.0 million in the first quarter. The decrease was driven by customers’ non-recurrence of first quarter launch quantities. Par Pharmaceutical remained the exclusive supplier of generic Rythmol SR® throughout the second quarter.
- Amlodipine and Benazepril: Net sales for the second quarter 2011 were $12.5 million compared to $18.2 million in the first quarter. The decrease was driven by customers’ non-recurrence of first quarter launch quantities.
- Meclizine: Net sales for the second quarter were $4.6 million compared to $4.9 million in the previous quarter. The decrease was driven by customer buying patterns.
- Other Generic Products: For the second quarter 2011, net sales from all other generic products were $76.7 million. This compares to net sales of $84.5 million in the first quarter 2011. The decrease is due to primarily to the voluntary withdrawal of clonidine in the second quarter and the seasonality of hydrocodone/chlorpheniramine.
- Megace® ES: Net sales were $14.1 million for the second quarter compared to $14.1 million in the first quarter.
- Nascobal® B12 Nasal Spray: Net sales were $6.3 million for the second quarter compared to $3.9 million in the first quarter. The increase was due, in part, to a shortage of a competing vitamin B12 intramuscular injection product.
Revenues and gross margin for the second quarter 2011 were $224.2 million and $99.0 million, respectively, compared to $233.0 million in net sales and $109.7 million in gross margin during the prior quarter (Q1 2011). The gross margin rate on the Company’s consolidated product portfolio decreased to 44.2% versus 47.1% in the first quarter 2011. The decrease was due primarily to the non-recurrence of the first quarter launches of propafenone and amlodipine/benazepril and the second quarter launch of lower margin budesonide.
