RESEARCH TRIANGLE PARK, N.C., July 29 /PRNewswire-FirstCall/ -- Talecris Biotherapeutics Holdings Corp. (“Talecris”) (Nasdaq:TLCR - News) today announced its financial results for the three and six months ended June 30, 2010 and filed its 2010 Form 10-Q with the U.S. Securities and Exchange Commission (SEC).
Second quarter 2010 net revenue increased by $27.3 million or 7.3% to $402.8 million from $375.6 million in the second quarter of 2009. Higher revenues from Talecris’ principal products Gamunex®, Immune Globulin Intravenous (Human), 10% Caprylate/Chromatography Purified (IGIV) and Prolastin® Alpha-1 Proteinase Inhibitor (Human) (A1PI) as well as albumin and Koate® DVI Factor VIII (Human) in the second quarter of 2010 were partially offset by lower sales of hyperimmunes and contract manufacturing compared to the second quarter of 2009. Second quarter 2010 gross margin was 44.6% compared to 40.4% in the second quarter of 2009. Second quarter 2010 income from operations was $87.7 million versus $70.5 million for the second quarter of 2009, a 24.4% increase. Net income was $47.6 million for the second quarter of 2010, a decrease of $35.6 million compared to net income of $83.3 million for the second quarter of 2009. Diluted earnings per share were $0.37 in the second quarter of 2010, including an after-tax charge of $5.2 million ($0.04 per diluted share) for costs associated with Talecris’ definitive merger agreement with Grifols S.A. and Grifols, Inc. (Grifols), compared to diluted earnings per share of $0.89 (pro forma diluted EPS of $0.68) for the second quarter of 2009. Talecris’ second quarter 2009 results included the after-tax income from the CSL merger termination fee of $48.8 million ($0.52 per diluted share), which was partially offset by an after-tax charge of $2.1 million ($0.02 per diluted share) for CSL merger-related expenses.
On a non-GAAP basis excluding merger-related items in both periods, Talecris’ net income was $52.8 million for the second quarter of 2010, an increase of 44.3% compared to $36.6 million for the second quarter of 2009. On the same basis, diluted earnings per share for the 2010 second quarter were $0.41, an increase of 41.4% from $0.29 for the second quarter of 2009. Additional information regarding the computation of non-GAAP financial measures is included in Exhibit B.
For the first six months of 2010, Talecris’ net revenue increased by $36.4 million or 4.9% to $783.8 million compared to $747.4 million for the prior year driven by the same sales factors cited above. The first six months 2010 gross margin was 43.8% compared to 42.0% in the first six months of 2009, an increase of 180 basis points. Net income for the first six months of 2010 was $93.0 million, a decrease of $23.7 million compared to net income of $116.7 million for the first six months of 2009. Diluted EPS for the first half of 2010 was $0.73 compared to $1.24 (pro forma diluted EPS of $0.96) for the first six months of 2009. Talecris’ first six months 2010 results included an after-tax charge of $5.2 million ($0.04 per diluted share) for costs associated with the Grifols acquisition. The first six months 2009 diluted EPS included the $48.8 million after-tax benefit of the CSL merger termination fee ($0.52 per diluted share) which was partially offset by an after-tax charge of $7.8 million ($0.08 per diluted share) for CSL merger-related expenses.
On a non-GAAP basis excluding merger-related items in both periods, Talecris’ net income was $98.1 million for the first six months of 2010, a 29.4% increase compared to $75.8 million for the first six months of 2009. On the same basis, diluted EPS was $0.77 for the first six months of 2010 compared to $0.61 for the first six months of 2009, a 26.2% increase. Additional information regarding the computation of non-GAAP financial measures is included in Exhibit B.
“During the quarter, we announced the next step in our company’s transformation - our proposed combination with Grifols to create a world-leading provider of plasma protein therapies,” said Lawrence D. Stern, Talecris’ chairman and chief executive officer. “The combined company will have a more diversified and balanced product portfolio, a global footprint to provide more life saving and life enhancing therapies to the patients we serve and an innovative R&D pipeline that will provide continued value to our shareholders well into the future.”
Mr. Stern continued, “For the second quarter, our performance was driven primarily by the solid demand for both Gamunex and Prolastin in the U.S. market. Despite our results, we believe U.S. and international volumes for the IGIV industry grew below our long term view of 6-8%. We expect that the combination of lower IGIV demand growth rate, Canadian Blood Services’ multi-source strategy and increased global competitive pressures will result in the deceleration of Gamunex growth. These factors combined with lower demand for intermediate products that support the production of albumin and Factor VIII may curb our near term growth rate.”
