Nov. 6, 2009 (PR Newswire) -- WOODCLIFF LAKE, N.J., Nov. 6 /PRNewswire-FirstCall/ -- Par Pharmaceutical Companies, Inc. (NYSE: PRX) today reported results for the third quarter ended October 3, 2009.

For the third quarter ended October 3, 2009, Par reported total revenues of $294.8 million and net income of $26.3 million, or $0.76 per diluted share. This is compared to reported revenues of $149.0 million and net income of $0.5 million, or $0.01 per diluted share for the same period in 2008, which included several one-time items.

For the nine months ended October 3, 2009, total revenue was $902.8 million with net income of $66.2 million, or $1.95 per diluted share. This is compared to total revenues of $416.8 million and a net loss of $19.3 million, or $0.57 per diluted share in the same period of 2008.

Third Quarter Highlights

Key Product Sales (Net sales comparisons at the product level are to second quarter 2009, which had 13 weeks of sales versus 14 weeks of sales in the third quarter 2009.)

    --  Metoprolol:  For the quarter ended October 3, 2009, net sales of
metoprolol succinate were $161.1 million, a decrease of 47% from the
second quarter 2009.  The decrease was driven by a decline in volume and
price due to competition on the 25mg and 50mg strengths, as well as
inventory adjustments that benefited the second quarter.  Par remained
the exclusive supplier of the 100mg and 200mg strengths metoprolol
succinate through the third quarter.  Par is the authorized generic for
all strengths of AstraZeneca's Toprol(®) XL.

    --  Clonidine:  Net sales for the third quarter were $20.4 million.   Par
launched the generic version of Catapres TTS(®) in August and was the
only generic supplier of the product during the quarter.

    --  Sumatriptan: Net sales of sumatriptan succinate were $16.7 million in
the third quarter, a decrease of 24% from the prior quarter due to the
release of backorders during the second quarter.  Par remained the
exclusive supplier of generic Imitrex(®) 4mg and 6mg starter kits and
4mg prefilled cartridges and had one competitor in the 6mg prefilled
cartridges throughout the third quarter.

    --  Meclizine: Net sales for the three months ended October 3, 2009 were
$10.7 million compared to $8.9 million in the second quarter of 2009.
The increase was due primarily to the additional week of sales in the
quarter.  Par was the exclusive supplier of meclizine through the first
nine months of 2009.

    --  Dronabinol: Net sales for the third quarter 2009 were $6.6 million
compared to $5.5 million in the second quarter.  The increase was due
primarily to the additional week of sales in the quarter.

    --  Other generic products:  For the third quarter 2009, net sales from all
other generic products were $54.0 million compared to $39.6 million in
the second quarter. The increase primarily reflects an increase in
volume of certain products such as tramadol APAP, risperidone ODT,
calcitonin, and doxycycline, as well as the launch of nateglinide in
September 2009.

    --  Megace(®) ES:  Net sales were $19.1 million for the three months ended
October 3, 2009 compared to $17.1 million in the second quarter.  The
increase in net sales was due to an increase in price and volume.

    --  Nascobal(®) B12 Nasal Spray:  Net sales were $3.8 million for the three
months ended October 3, 2009, compared to $2.2 million in the second
quarter.  The increase is due to a full quarter of promotional activity
following the re-launch of the product in June 2009 resulting in an
increase in prescription volume and market share.

Total net revenues for the three months ended October 3, 2009, were $294.8 million, up $145.8 million, or nearly 98%, from the year ago period, principally driven by limited competition in metoprolol succinate, sumatriptan succinate, meclizine, and dronabinol, as well as the launches of nateglinide and clonidine in the third quarter 2009.

Gross margin for the third quarter 2009 was $92.1 million, or 31.3% of total revenue, an increase of $40.7 million from the comparable period in 2008. Total generic gross margin in the third quarter 2009 was $72.9 million, or 27.1% of total generic revenue, compared to $35.9 million, or 27.8% of total generic revenue in the third quarter 2008. This increase is due primarily to higher sales of metoprolol coupled with the launches of sumatriptan, dronabinol, and clonidine, partially offset by lower sales of fluticasone and amoxicillin. The top five products, which include metoprolol, clonidine, sumatriptan, meclizine, and dronabinol, contributed $46.3 million of gross margin, or 21.5% of such generic revenue. Gross margin of all other generic products was approximately $26.6 million, or 49.3% of other generic revenue. This compares to $15.2 million, or 23.2% of other generic revenue, in the third quarter of 2008. The increase in gross margin percentage was due to new product launches, increased volume of certain existing products, as well as the trimming of the generic product line as part of the resizing of Par's generic division in the fourth quarter of 2008. Strativa's gross margin of $19.2 million, or 75.7% of total Strativa revenue, increased compared to the second quarter of 2008 due to higher sales of Megace(®) ES and Nascobal(®).

Research and development (R&D) expenses decreased 53% to $6.5 million in the third quarter of 2009 compared to the third quarter 2008 due primarily to the resizing of the generic division, which included a headcount reduction and lower development and biostudy costs.

Selling, general and administrative (SG&A) expenses for the third quarter 2009 increased to $45.3 million compared to $30.7 million in the third quarter 2008. This increase primarily reflects on-going expenditures supporting Strativa sales and marketing, driven primarily by an increase in the field force and other activities related to the re-launch of Nascobal B12 Nasal Spray, as well as accruals of higher bonus compensation expenses related to significantly better year-to-date financial performance through the first nine months of 2009.

Cash and cash equivalents and marketable securities aggregate balance as of October 3, 2009, was $210.5 million and includes significant one-time cash outflows related to the purchase of Nascobal B12 Nasal Spray (approximately $55 million), the first nine months repurchase of $63.5 million face value of Par's convertible debt at a discount and, as previously reported in the first quarter, the settlement of litigation with Pentech (approximately $66 million).

On October 14, 2009 Par announced a "Modified Dutch Auction" tender offer for up to $65 million of its outstanding 2.875% Senior Subordinated Convertible Notes due September 30, 2010, at a price not greater than $990.00 nor less than $982.50 per $1,000 principal amount.