Navigation Links
Par Pharmaceutical Reports Second Quarter 2008 Results

Revises 2008 Financial Guidance

New Launches Should Contribute Significantly in Second Half

WOODCLIFF LAKE, N.J., Aug. 7 /PRNewswire-FirstCall/ -- Par Pharmaceutical Companies, Inc. (NYSE: PRX) today announced results for the second quarter ended June 28, 2008.

Second Quarter and Six Month Results

For the second quarter ended June 28, 2008, Par reported total revenues of $112.9 million and a net loss of $20.1 million, or $0.60 per diluted share. This is compared with reported revenues of $167.6 and net income of $2.8 million, or $0.08 per diluted share, for the same period in 2007. For the six months ended June 28, 2008, Par reported total revenues of $267.9 million and a net loss of $17.5 million, or $0.53 per diluted share. This is compared with reported revenues of $401.9 million and net income of $44.3 million, or $1.27 per diluted share, for 2007.

Patrick G. LePore, chairman, president and chief executive officer of Par said, "Contributing to the Company's disappointing financial results in the second quarter was the lack of new product launches, which is the life-line of the U.S. generics industry. However, I am still confident in our strategy and the outlook for the remainder of 2008 and beyond." Mr. LePore continued, "Our third quarter launches of dronabinol and meclizine, potential additional launches later in the year, strong pipeline of first-to-file products, and progress made in building Strativa's portfolio of innovative branded products positions the Company for long term success."

Second Quarter Financial Review

For the second quarter ended June 28, 2008, total revenues decreased 32.6% compared with the same period a year earlier as a result of increased competition on the Company's generic products, decreased net sales of Megace(R) ES, and lower royalty income.

Revenues for the generic products division during the three month period decreased 36.4% to $92.9 million compared with the same period in 2007 due to competitive pressure, including for fluticasone, ranitidine HCl syrup, cabergoline, and a decline in many of the Company's other products due to pricing pressures as well as lower royalties driven from ondansetron ODT. Partially offsetting the decreases were increased sales of metoprolol resulting from the launch of additional strengths in the third quarter of 2007 and various amoxicillin products. Second quarter 2008 revenue for Strativa decreased to $20.0 million from $21.6 million in the prior year due to decreased net sales of Megace(R) ES.

Par's second quarter gross margin was 22.2% of sales, compared with 33.7% in 2007. This decrease is primarily attributed to increased sales of lower margin metoprolol, lower royalty income, lower sales of higher margin products such as propranolol, and a decline in many of the Company's other generic products due to pricing pressures, tempered by higher relative sales of Megace(R) ES. The gross margin rate for Strativa was 79.3% in the second quarter of 2008 compared with 72.5% in the same period in 2007.

Research and development (R&D) expense increased $1.7 million or 11.8% to $16.0 million in the second quarter of 2008, driven primarily by an increase in on-going development costs associated with the expansion of Par's generic portfolio and includes Strativa's research costs related to the development of Zensana(TM) and an initial payment related to the in-licensing agreement with MonoSol Rx.

Second quarter selling, general and administrative (SG&A) expense increased 7.9% to $36.7 million compared with the second quarter of 2007. The increase was driven by legal fees related to ongoing litigation, including Paragraph IV litigation costs. This increase was tempered by the non- recurrence of severance costs incurred in the second quarter of 2007, lower expenses related to the sales and marketing of Megace(R) ES and lower bonus and stock-based compensation.

2008 Financial Guidance

Par has adjusted its previously announced guidance for full-year 2008 earnings per diluted share from continuing operations of $0.65-$0.85 to ($0.06)-$0.38 reflecting the pricing pressure on the Company's generic business experienced in the second quarter, a challenging reimbursement environment for Megace(R) ES and higher legal costs. The Company's projections are based on its results for the first six months of 2008 and the impact of recent new product launches, as well as management's estimates regarding the impact of product competition on existing products and anticipated legal costs. This EPS range excludes anticipated pre-launch spending and milestone payments in support of Strativa's business strategy and includes the estimated impact of three potential new generic product launches (i.e., sumatriptan kits, clonidine, and certain strengths of risperidone ODT) with an expected fully diluted EPS impact of $0.24-$0.39. These estimates are, of course, subject to future developments, not all of which may be anticipated at this time.

Conference Call

Par has scheduled a conference call for Friday, August 8 at 9:00 am ET to discuss results for the second quarter of 2008. Par invites investors and the general public to listen to a webcast of the conference call. Access to the live webcast can be made via the Company's website at The dial-in numbers for the conference call will be 888-713-4213 for domestic callers and 617-213-4865 for international callers. The passcode is 56885024. A replay of the conference call will be available for two weeks approximately one hour after the call. The dial-in numbers for the replay are 888-286-8010 for domestic callers and 617-801-6888 for international callers. When prompted, the passcode is 11977886.

For a copy of Par's Form 10-Q for the second quarter ended June 28, 2008, visit Investors/SEC Filings on the Par web site at

About Par

Par Pharmaceutical Companies, Inc. develops, manufactures and markets generic drugs and innovative branded pharmaceuticals for specialty markets. For press release and other company information, visit

Safe Harbor Statement

Certain statements in this news release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. To the extent any statements made in this news release contain information that is not historical, these statements are essentially forward- looking and, as such, are subject to known and unknown risks, uncertainties and contingencies, many of which are beyond the control of the Company, which could cause actual results and outcomes to differ materially from those expressed herein. Risk factors that might affect such forward-looking statements include those set forth in Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2007, in Item 1A of the Company's subsequent Quarterly Reports on Form 10-Q, in other of the Company's filings with the SEC from time to time, including Current Reports on Form 8-K, and on general industry and economic conditions. Any forward-looking statements included in this news release are made as of the date hereof only, based on information available to the Company as of the date hereof, and, subject to any applicable law to the contrary, the Company assumes no obligation to update any forward-looking statements.



(In Thousands, Except Share Data)


June 28, December 31,

2008 2007


Current assets:

Cash and cash equivalents $177,656 $200,132

Available for sale debt and marketable

equity securities 115,306 85,375

Accounts receivable, net 61,284 64,182

Inventories 51,774 84,887

Prepaid expenses and other current assets 15,684 14,294

Deferred income tax assets 54,868 56,921

Income taxes receivable 21,715 17,516

Total current assets 498,287 523,307

Property, plant and equipment, at cost less

accumulated depreciation and amortization 84,771 82,650

Available for sale debt and marketable

equity securities 5,156 6,690

Investment in joint venture - 6,314

Other investments 2,500 2,500

Intangible assets, net 55,350 36,059

Goodwill 63,729 63,729

Deferred financing costs and other assets 2,085 2,544

Non-current deferred income tax assets, net 59,252 57,730

Total assets $771,130 $781,523


Current liabilities:

Current portion of long-term debt $200,000 $200,000

Accounts payable 27,850 32,200

Payables due to distribution agreement

partners 44,885 36,479

Accrued salaries and employee benefits 8,807 16,596

Accrued expenses and other current liabilities 31,196 27,518

Total current liabilities 312,738 312,793

Long-term debt, less current portion - -

Other long-term liabilities 32,108 30,975

Commitments and contingencies - -

Stockholders' equity

Preferred Stock, par value $0.0001 per share,

authorized 6,000,000 shares; none issued and

outstanding - -

Common Stock, par value $0.01 per share,

authorized 90,000,000 shares; issued

37,187,155 and 36,460,461 shares 372 364

Additional paid-in capital 282,033 274,963

Retained earnings 212,718 230,195

Accumulated other comprehensive loss (1,235) (1,362)

Treasury stock, at cost 2,666,226 and

2,604,977 shares (67,604) (66,405)

Total stockholders' equity 426,284 437,755

Total liabilities and stockholders' equity $771,130 $781,523



(In Thousands, Except Per Share Data)


Three Months Ended Six Months Ended

June 28, June 30, June 28, June 30,

2008 2007 2008 2007


Net product sales $108,289 $160,014 $259,526 $382,603

Other product related

revenues 4,648 7,626 8,339 19,247

Total revenues 112,937 167,640 267,865 401,850

Cost of goods sold 87,829 111,085 193,236 257,606

Gross margin 25,108 56,555 74,629 144,244

Operating expenses:

Research and development 15,955 14,277 33,113 28,316

Selling, general and

administrative 36,690 33,999 68,037 66,556

Settlements, net - - - (578)

Total operating expenses 52,645 48,276 101,150 94,294

Gain on sale of product

rights and other (500) - (2,125) (20,000)

Operating (loss) income (27,037) 8,279 (24,396) 69,950

Other (expense) income, net - (30) - (49)

Equity in loss of joint

venture (310) (80) (330) (228)

Loss on marketable

securities and other

investments, net (433) (6,040) (433) (4,643)

Interest income 2,129 3,901 5,143 6,585

Interest expense (1,667) (1,727) (3,334) (3,445)

(Loss) income from

continuing operations

before provision for

income taxes (27,318) 4,303 (23,350) 68,170

(Benefit) provision for

income taxes (7,523) 1,505 (6,081) 23,858

(Loss) income from

continuing operations (19,795) 2,798 (17,269) 44,312

Discontinued operations:

Gain from discontinued

operations - - 505 -

Provision for income taxes 268 - 713 -

Loss from discontinued

operations 268 - 208 -

Net (loss) income ($20,063) $2,798 ($17,477) $44,312

Basic (loss) earnings

per share of common


(Loss) income from

continuing operations ($0.59) $0.08 ($0.52) $1.28

Loss from discontinued

operations (0.01) - ($0.01) -

Net (loss) income ($0.60) $0.08 ($0.53) $1.28

Diluted (loss) earnings

per share of common stock:

(Loss) income from

continuing operations ($0.59) $0.08 ($0.52) $1.27

Loss from discontinued

operations (0.01) - (0.01) -

Net (loss) income ($0.60) $0.08 ($0.53) $1.27

Weighted average number of

common shares outstanding:

Basic 33,304 34,676 33,262 34,647

Diluted 33,304 34,943 33,262 34,970

SOURCE Par Pharmaceutical Companies, Inc.
Copyright©2008 PR Newswire.
All rights reserved

Related biology technology :

1. Keryx Biopharmaceuticals, Inc. to Hold Conference Call on Second Quarter 2008 Financial Results on Monday, August 11, at 8:30 A.M. EDT
2. Memory Pharmaceuticals to Announce Second Quarter 2008 Results on Wednesday, August 13, 2008
3. Watson Pharmaceuticals Reports Second Quarter 2008 Results
4. XTELL Launches its Commercial Biorepository Services for Research and Pharmaceutical Companies
5. Onyx Pharmaceuticals Reports Second Quarter and Six-Month 2008 Financial Results
6. Arena Pharmaceuticals Announces Second Quarter 2008 Financial Results and Recent and Second Quarter Highlights
7. Marinus Pharmaceuticals Appoints John Krayacich as President and Chief Executive Officer
8. Prometic reaches understanding for commercialisation of several biopharmaceutical products and strategic investment
9. Cadence Pharmaceuticals CEO Theodore Schroeder to Present at Two Investment Conferences During the Month of August 2008
10. Kowa Company, Ltd. Acquires ProEthic Pharmaceuticals, Inc.
11. Lilly Reaffirms Purchase Offer for SGX Pharmaceuticals
Post Your Comments:
(Date:11/27/2015)... PA (PRWEB) , ... November 27, 2015 , ... ... Technical Program that includes over 2,000 technical presentations offered in symposia, oral ... chemistry and applied spectroscopy, covers a wide range of applications such as, but ...
(Date:11/26/2015)... MUMBAI , November 26, 2015 ... --> Accutest Research ... accredited Contract Research Organization (CRO), has ... Chase Cancer Center - Temple Health ... ,     (Photo: ) ...
(Date:11/25/2015)... , November 26, 2015 ... Global Biobanking Market 2016 - 2020 report analyzes ... maintaining integrity and quality in long-term samples, minimizing ... long-term cost-effectiveness. Automation minimizes manual errors such as ... technical efficiency. Further, it plays a vital role ...
(Date:11/25/2015)... -- 2 nouvelles études permettent d , ... entre les souches bactériennes retrouvées dans la plaque ... . Ces recherches  ouvrent une nouvelle voie ... efficace de l,un des problèmes de santé les ...    --> 2 nouvelles études permettent d ...
Breaking Biology Technology:
(Date:10/29/2015)... , Oct. 29, 2015  Rubicon Genomics, Inc., ... U.S. distribution of its DNA library preparation products, ... Rubicon,s new ThruPLEX Plasma-seq kit. ThruPLEX Plasma-seq has ... preparation of NGS libraries for liquid biopsies--the analysis ... and prognostic applications in cancer and other conditions. ...
(Date:10/27/2015)... -- In the present market scenario, security is one ... verticals such as banking, healthcare, defense, electronic gadgets, and ... secure & simplified access control and growing rate of ... bank accounts, misuse of users, , and so on. ... and smartphones are expected to provide potential opportunities for ...
(Date:10/26/2015)... and LAS VEGAS , Oct. ... Labs , an innovator in modern authentication and a ... announced the launch of its latest version of the ... enabling organizations to use standards-based authentication that supports existing ... S3 Authentication Suite is ideal for organizations deploying customer-facing ...
Breaking Biology News(10 mins):