Medicis reports revenue down

Scottsdale-based Medicis Pharmaceutical Corp. posted revenue of $85 million for the quarter that ended June 30, down 15 percent from a year earlier.

Earnings, while also less than in the same quarter last year, at least were back in black ink at $22.1 million.

In the previous quarter, Medicis slipped uncharacteristically into the red because of a big payment for future product Reloxin, a tax bite on a fee paid by a former suitor and a slowdown in sales of key product Loprox.

Medicis shares rose upward 1.3 percent to $27.17 Wednesday, continuing a climb back from a three-year low near $23 that was sparked by early FDA approval of rival Allergan’s Juvederm, an alternative to Medicis star product Restylane.

Medicis also raised it guidance for the rest of the year and 2007. And CEO Jonah Shacknai announced plans for a major move to new, expanded headquarters in early 2008.

Medicis new home — in the Salt River Pima-Maricopa Indian Community — will provide 150,000 square feet of space initially, with the right to lease a second equal-sized building, Shacknai said. The company’s current headquarters is about 75,000 square feet.

Medicis is already on a hiring binge, looking for at least 60 new sales representatives before year’s end in preparation for a new launch and the ramping up of promotions for Restylane, Shacknai said. The anticipated new launch is Perlane, a premium version of Restylane that Shacknai said could capture 30 percent to 35 percent of the injectable wrinkle-filler market without stealing much share from Restylane.

With Allergan’s plans to launch Juvederm by years end, keeping and building market share will be key for Medicis.

The Scottsdale firm is clearly convinced it will prevail in the race to fix faces.

CFO Mark Prygocki said Medicis third quarter revenue should remain as previously predicted at $88 million, but fourth quarter revenue is estimated at $101 million, up from the company’s previous guidance of $96 million. Earnings per share for the two final quarters of the year are expected to add up to 56 cents.

The sudden boost in expected revenue is based on approval of Perlane during the fourth quarter, Prygocki said, and continued surging sales of new acne treatment Solodyn.

Shacknai touted the successful release of Solodyn during the recent quarter. He said that in its first week, Solodyn generated 2,645 new prescriptions. The product should spur significant sales in the future, possibly stealing shares from the company’s own core product Dynacin, Shacknai said. Dynacin recently got generic competition,

For 2007, Medicis’ revenue is expected to top $400 million, Prygocki said, and earnings per share are pegged at $1.30 to $1.40.

In other planned developments for Medicis revealed Wednesday, Shacknai said he hopes to sell off the marketing and pipeline of a small product line for urea disorders.

Medicis

HEADQUARTERS: Scottsdale BUSINESS: Pharmaceutical maker and marketer

QUARTERLY REVENUE:

$85 million LAST YEAR: $100.5 million QUARTERLY EARNINGS:

$22.1 million, 32 cents per share LAST YEAR: Earnings of $29.5 million, 43 cents per share