King Pharmaceuticals (NYSE: KG), a vertically integrated pharmaceutical company engaged in the basic research and development, manufacture of branded prescription pharmaceutical products, is scheduled to announce financial results for the first quarter ended March 31, 2009 (Q1-2009) prior to the market opening on Monday (May 11).
The company is expected to receive benefits from the new in-licensing product arrangements; and the acquisition of novel branded prescription pharmaceutical products particularly in neuroscience and hospital areas.
Basic introduction about the company’s core business and flagship products
The company primarily offers branded prescription pharmaceuticals products and animal health related products. The pharmaceutical products are provided in the areas including neurosciences (including Skelaxin, Avinza, Flector Patch); hospital (Thrombin-JMI), and legacy products (Altace, Levoxyl, Cytomel and Bicillin). The company generates about 85% of its overall revenues from branded prescription pharmaceutical products.
The company is also a leading player in the development, manufacture and marketing of pharmaceutical products for food producing animals. The animal health related products include antibiotic products (Albac, Aureomycin, Aureomycin and Chlormax); anticoccidial products (Bio-Cox and Cygro, Bovatec and Avatec, Rofenaid), Antibacterial Products (3-Nitro and Histostat). The meridian auto-injector segment manufactures and markets pharmaceutical products delivered using an auto-injector. The company also receives royalty revenues on adenosine-based product, Adenoscan ((a sterile, intravenous solution used in cardiac stress testing).
Registered modest financial performance for the fourth quarter and full year 2008
For the fourth quarter ended December 31, 2008, the total revenues of King Pharmaceuticals reached to $348 million, a decline of 34.7% from $533 million in the fourth quarter of 2007. Similarly, for the fiscal year ended December 31, 2008, the company’s revenue stood at $1.57 billion compared to $2.14 billion for 2007, registering a decline of 34.8%. The decline in sales was primarily due to a decrease in gross sales of Altace, and the Meridian Auto-Injector business. During December 2007 a competitor entered the market with a generic substitute for Altace and additional generic competitors entered the market in June 2008.
For the fourth quarter 2009, the net loss of the company stood at $548 million (a diluted loss per share of $2.25), compared to net earnings of $43 million (or $0.18 per diluted earnings per share) in the same period of the prior year.
