Barr Reports Second Quarter 2008 GAAP Earnings of $0.52 Per Share; Adjusted Earnings of $0.64 Per Share
For the six months ended June 30, 2008, net earnings were $80 million, or$0.73 per share, compared to $57 million, or $0.52 per share, in the prioryear period. Revenues for the first six months of 2008 totaled $1.4 billion,compared to $1.2 billion for the same period last year. Adjusted earnings pershare were $1.22 for the six months ended June 30, 2008, compared to adjustedearnings per share of $1.52 in the prior year period.
"Our second quarter results reflect higher generic product sales, drivenby the June launch of our generic Yasmin(R) product under the tradenameOcella(TM), as well as higher sales for our proprietary products business,"said Bruce L. Downey, Barr's Chairman and CEO. "Substitution rates on Ocellahave started off strong and, as a result, we expect to record strong salesgrowth in this product in the second half of 2008 while we remain the onlygeneric available on the U.S. market. Our SEASONIQUE(R) extended-cycle oralcontraceptive and the PARAGARD(R) IUC were the principal drivers in higherproprietary product sales year-over-year."
"The strength of our generic and proprietary product portfolios, ourcommercial strength in important global markets, and our focus on deliveringsound results are among the benefits that make the proposed acquisition ofBarr by Teva, announced on July 18th, so attractive. Management is committedto continuing to deliver strong performance as the acquisition processprogresses, to ensure that at the close of the transaction, the capabilitiesof Barr will significantly complement Teva's existing business," Downeycontinued.
Generic Product Sales
The Company's generic product sales were $557 million for the secondquarter of 2008, compared to $484 million in the prior year period. For thefirst six months of 2008, generic product sales were $1.0 billion, compared to$956 million for the prior year period. A discussion of the Company's genericproduct sales for the second quarter of 2008 compared to the prior year periodis presented below.
Proprietary Product Sales
The Company's proprietary product sales were $118 million for the secondquarter of 2008, compared to $102 million in the prior year period. For thefirst six months of 2008, proprietary product sales were $214 million,compared to $191 million in the prior year period. The increase in proprietarysales for the quarter and the six month period was primarily attributable toincreased sales of several products, including SEASONIQUE(R) extended-cycleoral contraceptive and the PARAGARD(R) IUC.
Alliance and Development Revenue
During the second quarter of 2008, the Company reported alliance anddevelopment revenue of $93 million, up from $36 million in the prior yearperiod. For the first six months of 2008, alliance and development revenue was$125 million, compared to $61 million in the prior year period. The increasein the quarter and the six month period is primarily related to the $53million payment made by Allergan to Barr in May 2008 related to Allergan'sbuy-out of all future financial obligations related to the Sanctura(R) productthat PLIVA divested in 2005 to Esprit Pharma, which has since been acquired byAllergan.
Other revenue primarily includes revenue from the Company's non-coreope
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