Excluding the newly acquired entities, R&D expense increased by $8.8 million or 26% to $42.4 million primarily as a result of increased Abbreviated New Drug Application (ANDA) submissions and payments made under product development agreements. SG&A expense for the three months ended Sept. 30, 2008, also excluding newly acquired entities, increased by $25.6 million or 26% to $122.6 million. The majority of this increase was realized by Corporate and Other, and is the result of costs associated with the integration of the former Merck Generics business, as well as higher payroll and related costs principally attributable to the build-up of additional corporate infrastructure as a direct result of the acquisition.
Interest expense for the current quarter totaled $87.6 million compared to $23.1 million for the three months ended Sept. 30, 2007. The increase is due to the additional debt incurred to finance the acquisition of the former Merck Generics business.
Other income, net, was $5.8 million for the three months ended Sept. 30, 2008, compared to $166.8 million in the same prior year period. The comparable quarter for 2007 included a $142.5 million non-cash mark to market unrealized gain on a deal-contingent foreign currency option contract that was entered into for the then pending acquisition of the former Merck Generics business. Excluding this unrealized gain, the decrease in other income, net, in the current year is due primarily to lower interest and dividend income as a result of lower cash and available for sale securities.
EBITDA for the quarter ended Sept. 30, 2008, which is defined as net
income (loss) (excluding minority interest a
|SOURCE Mylan Inc.|
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