King Pharmaceuticals says 2005 revenue up 36% to $1.77 billion

By Angela McDaniels

Seattle, Feb. 28 - King Pharmaceuticals Inc.'s total revenue increased 36% to a record $1.77 billion for the year ended Dec. 31 from $1.30 billion for 2004, according to a company news release.

"King achieved many significant milestones in 2005, as we refocused all aspects of our business and made tremendous progress toward resolving our previously existing challenges," president and chief executive officer Brian A. Markison said in the release.

GAAP-reported net income for the year increased to $117.8 million, or $0.49 per share, from a net loss of $160.3 million, or $0.66 per share, during the prior year. Non-GAAP net earnings increased to $400.5 million, or $1.66 per share, from net earnings of $157.6 million, or $0.65 per share, in 2004. For the fourth quarter ended Dec. 31, total revenue increased 24% to $423.3 million from $342.6 million in the fourth quarter of 2004, according to the release.

GAAP-reported earnings fell to a net loss of $94.6 million, or $0.39 per share, during the fourth quarter of 2005 from net earnings of $14.7 million, or $0.06 per share, in the same period of the prior year. Non-GAAP net earnings for the quarter increased to $92.3 million, or $0.38 per share, from net earnings of $33.8 million, or $0.14 per share, in the fourth quarter of 2004.

The company attributed about $30 million of the net loss for the fourth quarter to an adverse affect on net sales due to changes in wholesaler buying patterns.

The data upon which King based its original third-quarter 2005 estimates of wholesale inventory levels was incorrect due to reporting errors made by two of its major wholesale customers, the company said, and inventory levels of Skelaxin (metaxalone) and Altace (ramipril) were therefore slightly higher than one month of estimated end-user demand as of the end of the third quarter.

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

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