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Medicis reports quarterly profit up but revenue down
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Scottsdale-based dermatology giant Medicis reported Wednesday that revenue for the three months ending Dec. 31 was $80.7 million, down from $92.3 million for the same period a year earlier.
But Medicis’ quarterly profit was up significantly — $37.3 million or 56 cents per share, compared with $20.2 million or 31 cents per share a year earlier.
In a conference call with analysts Wednesday, Medicis CEO Jonah Shacknai explained the company’s financial results, but he would not divulge any new details about the company’s coveted catch — Botox-like neurotoxin Reloxin.
On Monday, Medicis announced it bagged rights to market Reloxin in the United States, Canada and Japan, pending a merger of industry rivals Allergan and Inamed. Inamed has rights to market Reloxin, which is still in clinical trials in the United States, but will relinquish those to complete its merger with Allergan.
Part of Medicis’ slip in quarterly revenue was caused by new generic competition for two of the company’s top products — longtime industry leaders Dynacin and Loprox, Shacknai said.
But net income was boosted by a net gain of $59.8 million from a failed attempt to acquire Inamed.
That is Inamed’s $90 million breakup fee less Medicis expenses incurred in preparing for the merger.
A write-down of assets for Dynacin capsules and special charges paid out for achievement of milestones in a purchased Dow development project hurt profits.
While Dynacin, especially, suffered from the competition, Medicis’ star product Restylane, a facial wrinkle filler, continued its meteoric rise in popularity, Shacknai said.
That patent doesn’t expire until 2015, he said.
Medicis also issued guidance for the year Wednesday, estimating total 2006 revenue of $344 million, or $1.10 earnings per share.
Shacknai said the estimates are conservative.
The guidance reflects a new pipeline product expected to launch in June, Shacknai said.
The company may release other products before year end as well, he said.
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