Barr Reports Third Quarter 2007 GAAP Earnings of $0.36 Per Share; Adjusted Earnings of $0.75 Per Share
For the nine months ended September 30, 2007, net earnings were $95.8million, or $0.88 per share, compared to $211.1 million, or $1.95 per share,in the prior year period. Revenues for the first nine months of 2007 totaled$1.8 billion, compared to $1.0 billion for the same period last year. Adjustedearnings per share were $2.37 for the nine months ended September 30, 2007,compared to adjusted earnings per share of $2.64 in the prior year period.
"Strong performances by our U.S. generic and proprietary businesses drovea sound third quarter," said Bruce L. Downey, Barr's Chairman and ChiefExecutive Officer. "We delivered $77 million in revenue growth in U.S. genericsales, fueled by the inclusion of PLIVA's product line and sales of FentanylCitrate, and $21 million in proprietary revenue growth primarily from sales ofour Plan B(R) emergency contraceptive and Adderall(R) IR product. Outside ofthe U.S., our European and rest of world, or "ROW" markets, contributed $158million in sales in the third quarter. Another highlight of the quarter was a$20 million increase in our investment in new product development for bothU.S. and European markets."
Generic Product Sales
Sales of the Company's generic products were $434 million for the thirdquarter of 2007, compared to $198 million in the prior year period. For thefirst nine months of 2007, generic product sales increased to $1.4 billion,compared to $620 million for the prior year period. A discussion of theCompany's generic product sales for the third quarter of 2007 compared to theprior year period is presented below.
U.S. Generic Sales
Sales of U.S. generic products totaled $275 million for the third quarterof 2007, compared to $198 million in the prior year period. The increase insales is primarily related to the inclusion of sales from PLIVA's U.S. productline, including Azithromycin. These products are now being sold under the Barrlabel. The increase also reflects strong sales of Fentanyl Citrate, a genericversion of ACTIQ(R) that we launched in late September 2006.
Sales of generic oral contraceptives, the Company's largest singlecategory of generic products, were $112 million for the third quarter of 2007,compared to $121 million in the prior year period. The $9 million decline isprimarily related to decreased sales of Jolessa(TM), which the Companylaunched in September 2006.
Europe and Rest of the World ("ROW") Generic Sales
Sales of generic products in Europe and the ROW through our PLIVAsubsidiary were $158 million in the third quarter of 2007. Revenues wereprimarily driven by sales of PLIVA products in the key markets of Germany,Croatia, Poland and Russia. Prior to the Company's acquisition of PLIVA inOctober 2006, Barr did not have any product sales in Europe or the ROW.
Proprietary Product Sales
The Company's proprietary product sales were $125 million for the thirdquarter of 2007, compared to $103 million in the prior year period. For thefirst nine months of 2007, proprietary product sales were $316 million,compared to $294 million in the prior year period. For the third quarter andthe nine months, the increase in proprietary sales was primarily attributableto higher sales
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