Earnings before interest, taxes, depreciation and amortization (EBITDA) for the first quarter of 2008 totaled $153 million, compared to $158 million in the prior year period. Please see the EBITDA reconciliation table at the end of this press release.
Sanctura(R) Payment from Allergan, Inc.
On May 5, 2008, the Company entered into an agreement with a subsidiary of Allergan, Inc. related to Allergan's Sanctura(R) product that PLIVA divested in 2005 to Esprit Pharma, which has since been acquired by Allergan. Under the terms of this agreement, Allergan paid Barr $53 million, extinguishing any future payment obligations related to Sanctura(R). Barr will record the $53 million in the Company's second quarter 2008 earnings.
Revised 2008 Financial Outlook
The Company is revising its adjusted earnings per fully diluted share guidance for 2008 to be in the range of approximately $2.75 - $3.05, down from the $3.05 -$3.35 range that the Company provided in February 2008. The decrease in the range is the result of several factors, including the Company's results for the first quarter of 2008, which were lower than it expected, lower than anticipated U.S. generic revenues due to timing of new product launches, lower than anticipated Plan B revenues, lower gross profit margins due to a shift in product mix, and increased investment in R&D. The impact of these factors will not be fully offset by contributions from the Company's expected launch of generic Yasmin (drospirenone and ethinyl estradiol) in mid-2008. The Company's adjusted earnings guidance excludes the $53 million one-time payment from Allergan related to the Sanctura product.
Based on the factors listed above, the Company expects total revenues
for 2008 to be in the range of $2.7 - $2.8 billion, including total product
sales in the range of $2.5 - $2.6 billion. Revenue and product sales
|SOURCE Barr Pharmaceuticals, Inc.|
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