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Medicis reports $88.5 million loss
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Scottsdale-based Medicis Pharmaceutical Corp. posted an $88.5 million loss on revenue of $75.2 million for the three months that ended March 31.
The company said a $91 million payment to French drug company Ipsen for the rights to market Botox-like neurotoxin Reloxin, taxes on a $90 million break-up fee collected from would-be merger partner Inamed and other special charges swept the company into the red.
Besides the uncharacteristic slip into red ink, the local drug company saw a $20 million decrease in revenue compared with first quarter 2005.
Medicis chairman Jonah Shacknai chalked that up to an expected reduction in contract revenue and the rise of generic alternatives for Medicis core products Dynacin and Loprox.
Medicis also revealed Tuesday that it is being investigated by the government for alleged false claims in marketing Loprox to pediatricians while the company still had a pediatric sales force. Medicis sold its pediatric business in 2004.
On the other side of the legal bench, the company lost a judgment against two pharmaceutical companies that Medicis claims infringed on patents used in the production of Plexion, another core product.
Shacknai said Medicis would “vigorously pursue” that issue through additional legal avenues.
But in a conference call with investors Tuesday, Shacknai touted the company’s otherwise positive performance and outlook.
Included in Medicis’ good news is the FDA approval Monday of Solodyn, a new treatment for moderate to severe acne.
“We feel terrific about this product,” Shacknai said. “We couldn’t be more excited about Solodyn’s prospects. It’s an extraordinary opportunity for the company.”
Shipments to pharmacies will begin in June, and the company plans a major launch in July, he said.
And he said Medicis is still in negotiations with Ipsen about gaining the worldwide rights for Reloxin.
The $91 million Medicis forked over for Reloxin gave it rights only to market the product in the United States, Canada and Japan — none of which has yet approved the substance.
Also on its summer agenda, Medicis plans to launch a “direct-to-consumer initiative” for star performer Restylane, which fills up facial wrinkles. Shacknai would not say what that initiative will be.
Rival Allergan’s Botox has been successful on the Tupperware-like house party circuit.
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