King Pharmaceuticals third-quarter revenues decrease, branded sales fall

By Lisa Kerner

Charlotte, N.C., Nov. 9 - King Pharmaceuticals, Inc. third-quarter 2006 total revenues fell to $492 million from $518 million in the third quarter of 2005.

Net revenue from branded pharmaceuticals fell 5% in the quarter to $433 million from $455 million during same period in 2005.

Net earnings, including special items, were $90 million, and diluted earnings per share equaled $0.37 during the third quarter, compared with net income of $122 million and diluted earnings per share of $0.50 for the prior-year period.

For the nine-month period ended Sept. 30, King reported total revenues of $1.48 billion, an increase from the $1.35 billion reported for the prior-year nine-month period.

Including special items, net income for the nine months rose to $252 million and diluted earnings per share to $1.04, from net income of $212 million and diluted earnings per share of $0.88 during the same period of 2005.

"We are continuing to focus on business development opportunities in our key therapeutic areas to further improve our development pipeline, which includes four products in phase 3 and two products in phase 2," president and chief executive officer Brian A. Markison said in a news release.

"Additionally, we expect T-62, our investigational drug for the treatment of neuropathic pain, to enter phase 2 in the first half of 2007. As our pipeline continues to build momentum, we expect to report results from several key clinical programs next year."

As of Sept. 30, King's cash and cash equivalents and investments in debt securities totaled approximately $918 million. During the third quarter of 2006, the company generated cash flow from operations of about $127 million.

Total investment in research and development for the full year of 2006 could exceed $150 million, the company said.

King is a vertically integrated branded pharmaceutical company based in Bristol, Tenn.

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