Gross profit for the nine months ended December 31, 2007 was $874.4 million and gross margins were 40.1%. The decrease in gross margins is due primarily to the effects of purchase accounting items of approximately $148.9 million. Excluding such items, gross margins were 47.0% compared to 54.1% for the nine months ended December 31, 2006.
The loss from operations for the nine months ended December 31, 2007 was $988.3 million as a result of the purchase accounting items discussed above and the one-time charge to write-off acquired in-process research and development. Excluding these amounts, earnings from operations would have been $429.7 million for the nine month period, a decrease of $5.7 million from the prior year.
R&D expense for the nine months ended December 31, 2007, excluding that incurred by newly acquired entities, was $74.9 million compared to $66.8 million in the same prior year period, an increase of $8.1 million or 12%.
SG&A expense, also excluding amounts contributed by new entities, increased by $95.1 million or 62% to $247.9 million compared to $152.8 million in the comparable prior year period. The majority of this increase was realized by Corporate and Other, and is the result of costs, such as professional and consulting fees, associated with the integration of Merck Generics, as well as higher payroll and related costs principally attributable to the build-up of additional corporate infrastructure as a direct result of the Merck Generics acquisition.
Interest expense for the nine months ended December 31, 2007 totaled $179.4 million compared to $31.3 million for the nine months ended December 31, 2006. The increase is due to the additional debt incurred to finance the acquisition of Merck Generics.
Other income (expense), net was income of $86.6 million for the nine
months ended December 31, 2007, compared to income of $39.8 million in the
same prior year period. The most si
|SOURCE Mylan Inc.|
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