N E W S R E L E A S E
(KING PHARMACEUTICALS LOGO)
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FOR IMMEDIATE RELEASE
KING PHARMACEUTICALS REPORTS SOLID REVENUE GROWTH FOR
THIRD QUARTER 2001 OF 39% TO $230.1 MILLION AND
DILUTED EARNINGS PER SHARE GROWTH OF 33% TO $0.28,
EXCLUDING SPECIAL CHARGES
BRISTOL, TENNESSEE, October 29, 2001 - King Pharmaceuticals, Inc. (NYSE:KG)
announced today that net earnings equaled $64.8 million for the third quarter
ending September 30, 2001, an increase of 38% over the third quarter of last
year, excluding special charges. For the nine months ending September 30, 2001,
net earnings equaled $166.4 million, an increase of 52% over the same period of
2000, excluding special charges.
Diluted earnings per share was $0.28 for the third quarter of 2001, up 33% from
$0.21 for the third quarter of 2000, excluding special charges. Diluted earnings
per share increased 44% to $0.72 for the nine months ending September 30, 2001,
compared to $0.50 for the same period of 2000, excluding special charges. All
earnings per share data reflects the Company's four for three stock split
distributed on July 19, 2001.
King recorded special charges totaling $5.3 million during the third quarter
ending September 30, 2001. Specifically, King recorded merger and restructuring
costs of $3.3 million related to the further integration of Jones Pharma
Incorporated ("Jones"). King merged with Jones in August 2000 in a tax-free
pooling of interests transaction. Other special charges incurred during the
third quarter 2001 relate to the write-off of obsolete Levoxyl(R) (levothyroxine
sodium tablets, USP) inventory. The U.S. Food and Drug Administration ("FDA")
approved the new drug application ("NDA") for a new formulation of Levoxyl on
May 25, 2001. Pursuant to FDA guidance, King may distribute only the FDA
approved new formulation of Levoxyl(R) after August 14, 2001.
During the third quarter of 2000, King recorded special charges totaling $96.2
million. Specifically, King recorded merger and restructuring costs related to
King's merger with Jones, restructuring and nonrecurring charges related to the
Company's decision to discontinue Fluogen(R) (Influenza Virus Vaccine,
Trivalent, Types A and B) and the Company's decision to discontinue development
of Pallacor(TM), and an extraordinary charge related to the write-off of
financing costs resulting from the repayment of debt. Additionally, during the
six months ending June 30, 2000, King recorded extraordinary charges related to
the write-off of financing costs resulting from the repayment of debt under
King's senior credit facility, and merger and restructuring costs related to
King's merger with Medco Research, Inc., since renamed King Pharmaceuticals
Research and Development, Inc., in a tax-free pooling of interests transaction.
Including special charges, net earnings and diluted earnings per share during
the third quarter of 2001 totaled $61.5 million and $0.27, respectively.
Likewise, including special charges, net earnings totaled $162.5 million and
diluted earnings per share equaled $0.70 during the first nine months of 2001.
Revenues totaled $230.1 million for the third quarter ending September 30, 2001,
a 39% increase over the third quarter of 2000, and $617.9 million for the nine
months ending September 30, 2001, a 39% increase over the same period of the
prior year.
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The increase in third quarter revenues and net earnings is attributable
primarily to the sales growth of a variety of the Company's branded
pharmaceutical products, including, in particular, Altace(R) (ramipril) and
Levoxyl(R). King's branded pharmaceutical products are marketed primarily by its
wholly owned subsidiary, Monarch Pharmaceuticals, Inc.
Net revenue from branded pharmaceuticals, including royalty income, totaled
$223.1 million for the third quarter of 2001, a 46% increase over the third
quarter of 2000. For the third quarter ending September 30, 2001, revenue from
contract manufacturing equaled $6.3 million, while remaining revenue, comprised
primarily of generic sales, totaled $702 thousand.
Altace(R) net sales grew to $76.2 million in the third quarter of 2001,
exceeding our projected range, a 51% increase over the third quarter of 2000.
Altace(R) new prescriptions totaled approximately 628,000 and total
prescriptions equaled approximately 1,849,000 during the third quarter of 2001,
increases of 65.3% and 65.1% respectively, over the third quarter of 2000,
according to IMS America monthly prescription data.
Levoxyl(R) net sales grew to $27.1 million in the third quarter of 2001, a 65%
increase over the third quarter of 2000.
Net sales of Thrombin-JMI(R) totaled $16.6 million in the third quarter of 2001,
a 39% increase from $11.9 million in the third quarter of the prior year.
Lorabid(R) (loracarbef) net sales totaled $6.1 million in the third quarter of
2001.
Royalty revenues from Adenoscan(R) (adenosine) and Adenocard(R) (adenosine)
totaled $11.6 million in the third quarter of 2001, a 26% increase from $9.2
million in the third quarter of the prior year.