Warner Chilcott Reports Operating Results for the Quarter ended March 31, 2008 and Updates 2008 Full Yea...( 2008 compared to the prior year quarter...)

Cost of Sales (excluding amortization of intangible assets)

Cost of sales decreased $2.8 million, or 5.6%, in the quarter ended March 31, 2008, compared with the prior year quarter. The quarter ended March 31, 2007 included a $3.6 million expense relating to the write-off of inventories of certain DOVONEX products which were not sold due to a shift in our marketing strategies relating to DOVONEX. Excluding this expense in the quarter ended March 31, 2007, cost of sales increased $0.8 million, or 1.7%, compared to the prior year quarter. Our gross profit margin, as a percentage of total revenue, excluding the expense related to certain DOVONEX products in the quarter ended March 31, 2007, increased to 79.2% in the current year quarter from 78.5% in the prior year quarter. Our gross profit margins, as a percentage of total revenue, fluctuate due to a number of factors, primarily the mix of products sold.

Selling, General and Administrative ("SG&A") Expenses

SG&A expenses for the quarter ended March 31, 2008 were $55.2 million, a decrease of $22.7 million, or 29.1%, from $77.9 million in the prior year quarter. Advertising and promotion expenses for the quarter ended March 31, 2008 decreased $14.1 million, or 44.9%, compared with the prior year quarter primarily due to a $7.3 million decrease in direct-to-consumer advertising and an overall decrease in promotional spending. Selling and distribution expenses for the quarter ended March 31, 2008 increased $1.9 million, or 8.6%, over the prior year quarter primarily due to the expansion of our field sales forces in the first half of 2007 to support the initiation of promotional activities for FEMCON FE. General, administrative and other ("G&A") expenses in the quarter ended March 31, 2008 decreased $10.5 million,
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