Alpharma second-quarter earnings up, revenues rise 16% for the period

By Lisa Kerner

Charlotte, N.C., July 31 - Alpharma Inc. said its second-quarter 2006 diluted earnings per share from continuing operations were $0.32, up from diluted earnings per share of $0.12 in the second quarter of 2005. Earnings per share including discontinued operations related to Alpharma's divested generics business, were $0.30 in the second quarter, compared to $0.38 a year ago.

Second-quarter 2006 revenues increased 16% to $159.2 million from $137.63 million in the prior year period.

Alpharma reported operating income of $23.3 million in the second quarter of 2006. Excluding one-time charges, operating income for the quarter was $29.7 million, up from $22.6 million in the second-quarter 2005.

Diluted earnings per share for the six-month period ended June 30 of $0.93 were up from $0.55 per share for the year ago period.

Revenues for the six-months ended June 30 were up at $318.17 million, from $261.73 million in the year ago period.

Alpharma had operating income for the first half of the year of $50.28 million, up from $40.58 million for the six-month period ended June 30, 2005.

The company generated free cash flow of $14 million in the second quarter and at June 30 had cash and cash equivalents of $383 million.

"The company's operations performed solidly in the second quarter, with continued significant year over year growth in our branded pharmaceuticals business," president and chief executive officer Dean Mitchell said in a company news release.

"Our ongoing phase 2 clinical trial for our abuse-deterrent Kadian product is on track to conclude late in the third quarter of 2006, and we are targeting commencement of phase 3 activity in the fourth quarter of this year."

Alpharma reaffirmed its previous guidance of full-year 2006 earnings per share in the range of $1.25 to $1.35.

Alpharma is a specialty pharmaceutical company based in Fort Lee, N.J.

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