Glitch in Medicis-Valeant Deal - Analyst Blog
12 Noviembre 2012 - 11:03AM
Zacks
Medicis Pharmaceutical Corp.’s (MRX) posted
third quarter 2012 earnings of 48 cents, below the Zacks Consensus
Estimate of 51 cents. Earnings declined 21.3% from the
prior-year quarter.
Quarterly revenues at Medicis decreased 2.4% to $180.2 million,
missing the Zacks Consensus Estimate of $190 million, primarily due
to the weak performance of the acne and acne-related dermatological
products segment.
On September 2, 2012, Valeant Pharmaceuticals
International, Inc. (VRX) entered into an agreement with
Medicis to acquire the latter for $44.00 per share in cash. The
deal is estimated to be worth approximately $2.6 billion.
We note that the transaction was approved by the Boards of
Directors of both Valeant and Medicis and is expected to be
completed in the first half of 2013. On December 7, 2012, a special
meeting will be held for Medicis’ shareholders. The stockholders
will vote on the acquisition proposal.
Quarterly Highlights
Medicis’ acne and acne-related dermatological product sales
decreased 28.5% year over year to $85.1 million. The decrease was
attributable to wholesale customers stocking their inventory levels
due to the previously announced alternate fulfillment initiatives
by the company.
Non-acne product sales came in at $80.8 million, up 45.1%,
primarily due to increased Dysport, Perlane and Vanos sales and the
inclusion of Zyclara and Aldara revenues (both acquired in December
2011).
Revenues from other non-dermatological products shot up 44.4%
during the quarter to $14.3 million, driven by the inclusion of
revenues from products added to the company’s portfolio post the
Graceway acquisition in December 2011.
Gross margin for the reported quarter contracted to 89.1% from
90.7% in the year-ago quarter. Research and development (R&D)
expenses were down 57.1% to $12.3 million. Inclusion of a payment
of $20.0 million related to a product development agreement with
Lupin Limited boosted R&D in the third quarter of 2011.
Selling, general and administrative (SG&A) expenses came in at
$111.5 million, an increase of 19.6% from the year-ago quarter,
primarily driven by a rise in personnel costs and professional
fees.
Other Details
Earlier this month, Q-Med AB filed a lawsuit against Medicis
alleging that the latter has breached the agreement between the two
companies. Q-Med granted Medicis exclusive US and Canadian rights
to market certain dermal filler products, including Restylane and
Perlane. Q-Med is seeking a preliminary injunction to prevent the
Medicis–Valeant deal.
MEDICIS PHARM-A (MRX): Free Stock Analysis Report
VALEANT PHARMA (VRX): Free Stock Analysis Report
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