St. David’s, Bermuda–(HISPANIC
PR WIRE – PR NEWSWIRE)–January 28, 2008–Warner Chilcott Limited (Nasdaq:
WCRX) announced today a view of anticipated full year 2008 results.
Total revenues for 2008
are expected to be in the range of $935 to $945 million, with the growth primarily
being driven by LOESTRIN 24 FE, DORYX, FEMCON FE, and TACLONEX. Gross
profit margin, as a percentage of total revenues, is anticipated to be in the
range of 80% to 81% in 2008.
Total selling, general and
administrative (SG&A) expenses in 2008 are anticipated to be in the range
of $228 to $237 million, which reflects the previously disclosed reduction of
advertising and promotional spend due to a reduction in DTC advertising in 2008
as compared to 2007. For a detailed view of the components of SG&A
please refer to the summary at the end of this press release.
Total R&D spend in 2008
is anticipated to be in the range of $57 to $60 million. Included in this
amount is internal R&D expense of $54 to $57 million and anticipated potential
milestone payments to third parties of $3 million.
Based on the 2008 view,
GAAP net income is expected to be in the range of $118 to $128 million.
Cash net income in 2008 is anticipated to be $315 to $325 million. Using
251.0 million Class A shares, the Company expects cash net income per share
to be in the range of $1.25 to $1.30 for the full year 2008.
References in this press
release to “cash net income” mean the Company’s net income adjusted
for the after-tax effects of two non-cash items: amortization of intangible
assets and amortization (or write-off) of deferred loan costs related to the
Company’s debt. Reconciliations from the Company’s anticipated US GAAP
results to cash net income expected results are presented in the footnotes at
the end of this press release.
For a full view of the Company’s
2008 financial guidance please refer to the summary at the end of this press
Conference Call and Audio
Warner Chilcott will be
hosting a conference call and audio webcast on January 28, 2008 at 8:30 a.m.
to discuss the 2008 Financial Guidance for all interested parties. You
may access the conference call by dialing (877) 874-1586 within the US and Canada,
and (719) 325-4808 if you are outside the US and Canada. In addition,
a live audio webcast of the call will be available at Warner Chilcott’s Investor
Relations website at http://ir.wcrx.com/events.cfm.
A replay of the conference
call will be available for two weeks and can be accessed by dialing (888) 203-1112
from within the US or Canada and (719) 457-0820 if you are located outside the
US or Canada. The pass code for the replay is 4419703. An
archived version of the webcast will be available for two weeks on the Company’s
website at the same address noted above.
Warner Chilcott is a specialty
pharmaceutical company focused on developing, manufacturing, marketing and selling
branded prescription pharmaceutical products in women’s healthcare and dermatology
in the United States. WCRX-F
Forward Looking Statements
This press release contains
forward-looking statements, including statements concerning the Company’s operations,
economic performance and financial condition, and business plans and growth
strategy and product development efforts. These statements constitute forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. The words “may,”
“might,” “will,” “should,” “estimate,”
“project,” “plan,” “anticipate,” “expect,”
intend,” “outlook,” “believe” and other similar expressions
are intended to identify forward- looking statements. Readers are cautioned
not to place undue reliance on these forward-looking statements, which speak
only as of their dates. These forward-looking statements are based on estimates
and assumptions by our management that, although we believe to be reasonable,
are inherently uncertain and subject to a number of risks and uncertainties.
The following represent
some, but not necessarily all, of the factors that could cause actual results
to differ from historical results or those anticipated or predicted by our forward-looking
statements: our substantial indebtedness; competitive factors in the industry
in which we operate; our ability to protect our intellectual property; a delay
in qualifying our manufacturing facility to produce our products or production
or regulatory problems with either third party manufacturers upon whom we may
rely for some of our products or our own manufacturing facility; pricing pressures
from reimbursement policies of private managed care organizations and other
third party payors, government sponsored health systems, the continued consolidation
of the distribution network through which we sell our products, including wholesale
drug distributors and the growth of large retail drug store chains; the loss
of key senior management or scientific staff; an increase in litigation, including
product liability claims and patent litigation; government regulation affecting
the development, manufacture, marketing and sale of pharmaceutical products,
including our ability and the ability of companies with whom we do business
to obtain necessary regulatory approvals; our ability to manage the growth of
our business by successfully identifying, developing, acquiring or licensing
and marketing new products, obtain regulatory approval and customer acceptance
of those products, and continued customer acceptance of our existing products;
the other risks identified in our Annual Report on Form 10-K for the year ended
December 31, 2006; and other risks detailed from time-to-time in our public
filings, financial statements and other investor communications.
We caution you that the
foregoing list of important factors is not exclusive. In addition, in light
of these risks and uncertainties, the matters referred to in our forward-looking
statements may not occur. We undertake no obligation to publicly update or revise
any forward-looking statement as a result of new information, future events
or otherwise, except as may be required by law.
Warner Chilcott Limited
2008 Full Year Financial Guidance
(U.S. dollars in millions, except per share information)
$935 to $945
as a % of Revenue
80% to 81%
& Distribution $93
$62 to $65
$73 to $76
Total SG&A Expenses(2)
$228 to $237
$57 to $60(3)
7.5% to 8% of EBTA(4)
$118 to $128
$315 to $325(5)
$1.25 to $1.30(5,6)
(1) Our 2008 guidance assumes
generic competition for DOVONEX solution in 1Q08 and SARAFEM in 2Q08.
Our 2008 guidance does not account for the impact of any future new licensing
(2) Total SG&A expense
does not include any amount that may be payable in connection with the potential
settlement of our outstanding legal actions.
(3) Total 2008 R&D consists
of internal R&D anticipated to be in the range of $54 to $57 million as
well as $3 million of anticipated milestone payments.
(4) The total 2008 tax provision
is estimated to be 7.5% – 8% of earnings
before taxes and book amortization.
(5) A reconciliation of
2008 expected GAAP net income to expected cash net income adds back the expected
after tax impact of amortization of intangibles ($189M) and the expected after
tax impact of deferred financing fees ($8M).
(6) Cash net income per
share is based on 251.0 million fully diluted Class A shares.
SOURCE Warner Chilcott