Par Pharmaceutical Companies, Inc. Reports Second Quarter 2012 Results

WOODCLIFF LAKE, N.J., Aug. 2, 2012 /PRNewswire/ -- Par Pharmaceutical Companies, Inc. (NYSE: PRX) today reported results for the second quarter ended June 30, 2012.

For the second quarter ended June 30, 2012, the Company reported total revenues of $294.3 million and income from continuing operations of $51.3 million, or $1.38 per diluted share, which includes amortization expenses and certain transaction costs. On an adjusted cash basis (non-GAAP measure), which excludes amortization and transaction costs, income from continuing operations was $60.3 million, or $1.62 per diluted share for the second quarter 2012. (Refer to attached reconciliation table between GAAP and adjusted non-GAAP amounts.)

Second Quarter Highlights

Key Product Sales (Net sales comparisons at the product level are to first quarter 2012.)

• Modafinil: Net sales for modafinal were $57.5 million in the second quarter. Par launched the product on April 6, 2012.
• Metoprolol: For the quarter ended June 30, 2012, net sales of metoprolol succinate were $49.0 million compared to $61.8 million in the first quarter 2012. The decrease was driven by non-recurrence of first quarter customer buying patterns. 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 2012 were $33.5 million compared to $38.0 million in the first quarter 2012. The decrease was driven by non-recurrence of first quarter customer buying patterns. Par Pharmaceutical is the authorized generic for AstraZeneca’s Entocort^® EC.
• Propafenone Hydrochloride ER: Net sales for propafenone hydrochloride ER in the second quarter were $17.9 million compared to $19.1 million in the first quarter 2012. Par Pharmaceutical remained the exclusive supplier of generic Rythmol SR^® throughout the second quarter.
• Sumatriptan: Net sales of sumatriptan succinate were $13.9 million in the second quarter compared to $16.7 million in the prior quarter. The decrease was driven by a reduction in customer orders in anticipation of Par’s exit from the market in the third quarter.
• Bupropion Hydrochloride ER: Net sales of bupropion were $12.0 million in the second quarter 2012. Par recorded $11.4 million of net sales in the first quarter.
• Zolpidem Tartrate: Net sales of zolpidem tartrate of $5.3 million in the second quarter 2012. Par recorded $6.9 million of net sales in the first quarter. The reduction in sales was the result of a small decline in net pricing resulting from customer mix.
• Fentanyl Citrate Lozenges: Net sales for fentanyl for the second quarter were $2.6 million compared to $2.0 million in the first quarter. The increase is due to customer buying patterns.
• Other Generic Products: For the second quarter 2012, net sales from all other generic products were $81.3 million. This compares to first quarter net sales of $95.3 million. The decline was primarily due to the seasonality of the Chlorpheniramine/Hydrocodone product.
• Megace^® ES: Net sales were $14.2 million for the second quarter compared to $12.2 million in the first quarter. The increase was due to non-recurrence of unfavorable first quarter customer buying patterns.
• Nascobal^® B12 Nasal Spray: Net sales were $5.4 million for the second quarter compared to $5.9 million in the first quarter. The decrease was due to the timing of customer orders, despite higher prescription volume.

Revenues and adjusted gross margin for the second quarter 2012 were $294.3 million and $156.0 million, respectively, compared to $271.5 million in net sales and $110.7 million in adjusted gross margin during the prior quarter (Q1 2012). The adjusted gross margin rate on the Company’s consolidated product portfolio was 53.0% versus 40.8% in the first quarter 2012, with this increase driven by the launch of modafinil. (Par is now presenting non-GAAP gross margin on an adjusted basis. See detailed reconciliation table at the end of this press release.)