Highlighted by Strong THROMBIN-JMI([R]) Performance
BRISTOL, Tenn. — King Pharmaceuticals, Inc. (NYSE:KG) announced today that total revenues were $432 million during the first quarter ended March 31, 2008, compared to $516 million in the first quarter of 2007. This decrease was primarily due to the market entry of the first generic substitute for ALTACE([R]) (ramipril) in December 2007. Reported net earnings equaled $88 million and diluted earnings per share equaled $0.36 during the first quarter of 2008, compared to net earnings of $116 million and diluted earnings per share of $0.48 in the first quarter of the prior year. Excluding special items, net earnings equaled $90 million and diluted earnings per share equaled $0.37 during the first quarter ended March 31, 2008, compared to net earnings of $118 million and diluted earnings per share of $0.48 in the first quarter of 2007.
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Brian A. Markison, Chairman, President and Chief Executive Officer of King, stated, “We are focused on the continued successful execution of our strategy for long-term growth, which includes the submission of three important New Drug Applications (NDAs) with the U.S. Food and Drug Administration (FDA) by the end of this year. Once approved, these new products have the potential to provide additional significant value for our shareholders.”
The three NDAs King plans to submit are REMOXY([TM])(long-acting oral oxycodone), ACUROX([TM]) (short-acting oral oxycodone HCl, niacin, and other functional inactive ingredients), and CORVUE[TM] (binodenoson, a pharmacologic stress imaging agent for injection). Importantly, the REMOXY([TM]) NDA remains on schedule for submission by the end of June 2008.
As of March 31, 2008, the Company’s cash and cash equivalents totaled approximately $827 million. During the first quarter of 2008, the Company generated cash flow from operations of approximately $100 million. Additionally, the fair value of King’s investments in debt securities equaled approximately $589 million as of the end of the first quarter of 2008.
Joseph Squicciarino, King’s Chief Financial Officer, emphasized, “We have taken the necessary steps to realize an expected SG&A cost savings of $75 to $90 million this year. Accordingly, we are on track to meet our annual cash flow from operations goal of $400 to $450 million for 2008.”
Commenting on the net sales performance of the Company’s marketed products, Steve Andrzejewski, Chief Commercial Officer of King, said, “We are particularly pleased with the continued strong performance of THROMBIN-JMI([R]), especially considering the market entry of multiple new competitors since October 2007.”
Net revenue from branded pharmaceuticals totaled $369 million for the first quarter of 2008, compared to $449 million during the first quarter of 2007.
Net sales of SKELAXIN([R]) (metaxalone) totaled $116 million during the first quarter of 2008, compared to $112 million during the same period of the prior year.
THROMBIN-JMI([R]) (thrombin, topical, bovine, USP) net sales totaled $67 million during the first quarter of 2008, compared to $64 million during the first quarter of 2007.
Net sales of AVINZA([R]) (morphine sulfate extended release) totaled $32 million during the first quarter of 2008, compared to $9 million during the first quarter of 2007. This increase is primarily due to the fact that the Company did not acquire AVINZA([R]) until February 26, 2007 and is not due to an increase in demand.
LEVOXYL([R]) (levothyroxine sodium tablets, USP) net sales totaled $16 million during the first quarter ended March 31, 2008, compared to $22 million during the first quarter of 2007. This decrease was primarily due to a reduction in the level of inventory held by the Company’s wholesale customers during the most recent quarter from that which existed on December 31, 2007.
ALTACE([R]) net sales totaled $80 million during the first quarter of 2008, compared to $157 million during the first quarter of 2007.
King’s Meridian Auto-Injector business contributed revenue of $43 million during each of the first quarters of 2008 and 2007.
Royalty revenues, derived primarily from ADENOSCAN([R]) (adenosine), totaled $19 million during the first quarter ended March 31, 2008.
About REMOXY[TM]
REMOXY[TM], an investigational drug, is an innovative formulation of extended-release, long-acting oxycodone, a strong opioid painkiller for the treatment of moderate to severe chronic pain. It is designed to resist common methods of abuse that are reported with respect to other long-acting opioids. REMOXY[TM] is a proposed brand name that is subject to FDA approval.
About ACUROX[TM] Tablets
ACUROX[TM] Tablets, an investigational drug, is an orally administered immediate-release tablet containing oxycodone HCl as an active analgesic ingredient, niacin as an active ingredient in subtherapeutic amounts, and a proprietary composition of functional inactive ingredients. ACUROX[TM] Tablets are intended to relieve moderate to severe pain while resisting or deterring common methods of prescription drug abuse, including intravenous injection of dissolved tablets, nasal snorting of crushed tablets and intentional swallowing of excessive numbers of tablets. ACUROX[TM] is a proposed brand name subject to FDA approval.