Medicis reports profit as sales pick up and charges decrease; company raises 2009 forecasts
Associated Press
11/04/09 3:30 PM PST
SCOTTSDALE, ARIZ. — Medicis Pharmaceutical Corp. posted a third-quarter profit on Wednesday, as sales of its skin products surged, and a research and development charge came off the books.
Medicis said it earned $21.1 million, or 33 cents per share. A year ago, the company lost $14.7 million, or 26 cents per share, partly due to a $30.5 million charge to acquire ongoing research after it invested in biotech drugmaker Revance Therapeutics.
Revenue jumped 32 percent, to $151.8 million from $115.4 million, due to stronger sales of its acne drug Solodyn and launch of its wrinkle remover Dysport.
Excluding one-time items it said its profit came to 50 cents per share in the most recent quarter.
Analysts, who typically exclude items, expected a profit of 42 cents per share and $153.2 million in revenue, according to Thomson Reuters.
Medicis said acne product revenue rose 61 percent to $106.8 million, and revenue from other skin products rose 4 percent to $35.5 million. Non-dermatology revenue fell 37 percent to $9.5 million.
The company raised its profit and revenue forecasts for the full year, calling for a profit of $1.56 to $1.60 per share. Three months ago, Medicis said it expected a profit of $1.42 to $1.57 per share. It raised its revenue outlook to a range of $561 million to $567 million, from $556 million to $574 million.
Analysts expect a profit of $1.56 per share and $565.3 million in revenue.
In the fourth quarter, Medicis said its spending will increase significantly as it conducts tests of the Liposonix system, which is designed to break up fat deposits in the stomach with ultrasound. Selling, general, and administrative costs will climb due to the launch of Dysport, the company added.
In total the company expects a profit of 58 cents per share to 62 cents per share, with $168 million to $174 million for the fourth quarter. Analysts expect 60 cents per share and revenue of $170.9 million.
In aftermarket trading, Medicis shares were unchanged at $21.73.
