Warner Chilcott Ltd. (WCRX, Financial) filed Quarterly Report for the period ended 2009-03-31.
WARNER CHILCOTT is a leading specialty pharmaceutical company focused on developing manufacturing and marketing and selling branded prescription pharmaceutical products in women?s healthcare and dermatology in the United States. They have established strong franchises in these two areas through their precision marketing techniques and specialty sales forces of approximately four representatives.They believe that their proven product development capabilities coupled with their ability to execute acquisitions and in-licensing transactions and develop partnerships Warner Chilcott Ltd. has a market cap of $2.86 billion; its shares were traded at around $11.37 with a P/E ratio of 7.84 and P/S ratio of 3.05.
Net sales of our dermatology products increased $9.8 million, or 9.3%, in the quarter ended March 31, 2009 as compared to the prior year quarter. Net sales of DORYX increased $15.3 million, or 43.4%, in the quarter ended March 31, 2009, compared to the prior year quarter, primarily due to a 22.6% increase in filled prescriptions, as well as higher average selling prices. The increase in filled prescriptions, primarily relating to DORYX 150 mg, was due to increased promotional efforts behind DORYX 150 mg, including our recently launched customer loyalty card program. Net sales of TACLONEX decreased $0.3 million, or 0.8%, to $36.6 million in the quarter ended March 31, 2009, compared to $36.9 million in the prior year quarter. As filled prescriptions on a per-gram basis were essentially flat compared to the prior year quarter, the decrease in net sales was primarily the result of higher sales-related deductions during the quarter ended March 31, 2009 and a contraction in pipeline inventories relative to the prior year period. This decrease was partially offset by higher average selling prices compared to the prior year quarter. Net sales of DOVONEX decreased $5.2 million, or 15.6%, in the quarter ended March 31, 2009 compared to the prior year quarter. The decline in DOVONEX net sales in the quarter ended March 31, 2009 was due primarily to decreases in filled prescriptions of 24.6% and increases in sales-related deductions during the 2009 quarter, which were partially offset by higher average selling prices and an expansion of pipeline inventories relative to the prior year period. The decline in filled prescriptions was due primarily to customers switching to other therapies, as well as, the introduction of generic versions of DOVONEX Solution into the market in the second quarter of 2008, including our authorized generic product. We expect DOVONEX net sales to continue to decline due to competition from other therapies and generic competition, specifically related to DOVONEX Solution.
Our investment in R&D for the quarter ended March 31, 2009 was $23.9 million, an increase of $11.7 million, or 96.0%, compared with the prior year quarter. Included in the quarter ended March 31, 2009 was a $9.0 million payment to Dong-A upon the achievement of a developmental milestone under our existing agreement for an orally-administered udenafil product for the treatment of ED. Also included in the quarter ended March 31, 2009 was a $2.5 million payment to NexMed in connection with our acquisition of the rights to its topically applied alprostadil cream for the treatment of ED. Excluding the $11.5 million of payments to Dong-A and NexMed during the quarter ended March 31, 2009, R&D expenditures were essentially flat compared to the prior year quarter.
Net interest expense for the quarter ended March 31, 2009 was $18.0 million, a decrease of $6.0 million, or 25.0%, from $24.0 million in the prior year quarter. Included in net interest expense in the quarter ended March 31, 2009 was $1.3 million relating to the write-off of deferred loan costs associated with the optional prepayment of $100.0 million of indebtedness under our senior secured credit facility. We did not make any optional prepayments of debt during the quarter ended March 31, 2008. The decrease in net interest expense in the quarter ended March 31, 2009 was primarily the result of cumulative reductions in outstanding debt during 2008 which reduced the average debt balance outstanding from $1,200.2 million in the quarter ended March 31, 2008 to $962.6 million in the quarter ended March 31, 2009. The cumulative reduction in the average debt level is the result of optional prepayments and purchases made using cash flows from operations and cash on hand, net of investing activities.
At March 31, 2009, our cash on hand was $30.3 million, as compared to $35.9 million at December 31, 2008. As of March 31, 2009 our debt, net of cash on hand, was $830.7 million and consisted of $481.0 million of outstanding borrowings under our senior secured credit facility and $380.0 million aggregate principal amount of our outstanding 8.75% Senior Subordinated Notes due 2015 (Notes).
On January 18, 2005, Warner Chilcott Holdings Company III, Limited (Holdings III) and its subsidiaries, Warner Chilcott Corporation (WCC) and Warner Chilcott Company, LLC (WCCL), entered into a $1,790.0 million senior secured credit facility with Credit Suisse as administrative agent and lender, and other lenders. The senior secured credit facility consisted of $1,640.0 million of term loans (including $240.0 million of delayed-draw term loans) and a $150.0 million revolving credit facility, of which $30.0 million and $15.0 million are available for letters of credit and swing line loans, respectively, to WCC and WCCL. The senior secured credit facility also contemplates up to three uncommitted tranches of term loans up to an aggregate of $250.0 million. However, the lenders are not committed to provide these additional tranches. Holdings III, WCC and WCCL are each borrowers and cross-guarantors under the senior secured credit facility. In addition, Holdings IIIs significant subsidiaries are guarantors, including WC Luxco S.Ã r.l. and WC Pharmaceuticals I Limited which became guarantors on May 5, 2009, shortly after their formation in April 2009. The term loan and delayed-draw term loan facilities mature on January 18, 2012, with scheduled quarterly repayments of principal totaling $4.9 million annually beginning in the second quarter of 2008. The revolving credit facility matures January 18, 2011. As of March 31, 2009, there were no borrowings outstanding under the $150.0 million revolving credit facility.
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WARNER CHILCOTT is a leading specialty pharmaceutical company focused on developing manufacturing and marketing and selling branded prescription pharmaceutical products in women?s healthcare and dermatology in the United States. They have established strong franchises in these two areas through their precision marketing techniques and specialty sales forces of approximately four representatives.They believe that their proven product development capabilities coupled with their ability to execute acquisitions and in-licensing transactions and develop partnerships Warner Chilcott Ltd. has a market cap of $2.86 billion; its shares were traded at around $11.37 with a P/E ratio of 7.84 and P/S ratio of 3.05.
Highlight of Business Operations:
Net sales of our oral contraceptive products increased $8.0 million, or 12.5%, in the quarter ended March 31, 2009, compared with the prior year quarter. LOESTRIN 24 FE generated revenues of $52.4 million in the quarter ended March 31, 2009, an increase of 11.7%, compared with $46.9 million in the prior year quarter. The increase in LOESTRIN 24 FE net sales was primarily due to an increase in filled prescriptions of 8.1% in the quarter ended March 31, 2009 and higher average selling prices compared to the prior year quarter, offset in part by the impact of higher sales-related deductions. FEMCON FE generated revenues of $12.9 million in the quarter ended March 31, 2009, compared to $10.8 million in the prior year quarter. The increase in FEMCON FE net sales in the quarter ended March 31, 2009 was primarily due to an increase in filled prescriptions of 15.8% and higher average selling prices compared to the prior year quarter.Net sales of our dermatology products increased $9.8 million, or 9.3%, in the quarter ended March 31, 2009 as compared to the prior year quarter. Net sales of DORYX increased $15.3 million, or 43.4%, in the quarter ended March 31, 2009, compared to the prior year quarter, primarily due to a 22.6% increase in filled prescriptions, as well as higher average selling prices. The increase in filled prescriptions, primarily relating to DORYX 150 mg, was due to increased promotional efforts behind DORYX 150 mg, including our recently launched customer loyalty card program. Net sales of TACLONEX decreased $0.3 million, or 0.8%, to $36.6 million in the quarter ended March 31, 2009, compared to $36.9 million in the prior year quarter. As filled prescriptions on a per-gram basis were essentially flat compared to the prior year quarter, the decrease in net sales was primarily the result of higher sales-related deductions during the quarter ended March 31, 2009 and a contraction in pipeline inventories relative to the prior year period. This decrease was partially offset by higher average selling prices compared to the prior year quarter. Net sales of DOVONEX decreased $5.2 million, or 15.6%, in the quarter ended March 31, 2009 compared to the prior year quarter. The decline in DOVONEX net sales in the quarter ended March 31, 2009 was due primarily to decreases in filled prescriptions of 24.6% and increases in sales-related deductions during the 2009 quarter, which were partially offset by higher average selling prices and an expansion of pipeline inventories relative to the prior year period. The decline in filled prescriptions was due primarily to customers switching to other therapies, as well as, the introduction of generic versions of DOVONEX Solution into the market in the second quarter of 2008, including our authorized generic product. We expect DOVONEX net sales to continue to decline due to competition from other therapies and generic competition, specifically related to DOVONEX Solution.
Our investment in R&D for the quarter ended March 31, 2009 was $23.9 million, an increase of $11.7 million, or 96.0%, compared with the prior year quarter. Included in the quarter ended March 31, 2009 was a $9.0 million payment to Dong-A upon the achievement of a developmental milestone under our existing agreement for an orally-administered udenafil product for the treatment of ED. Also included in the quarter ended March 31, 2009 was a $2.5 million payment to NexMed in connection with our acquisition of the rights to its topically applied alprostadil cream for the treatment of ED. Excluding the $11.5 million of payments to Dong-A and NexMed during the quarter ended March 31, 2009, R&D expenditures were essentially flat compared to the prior year quarter.
Net interest expense for the quarter ended March 31, 2009 was $18.0 million, a decrease of $6.0 million, or 25.0%, from $24.0 million in the prior year quarter. Included in net interest expense in the quarter ended March 31, 2009 was $1.3 million relating to the write-off of deferred loan costs associated with the optional prepayment of $100.0 million of indebtedness under our senior secured credit facility. We did not make any optional prepayments of debt during the quarter ended March 31, 2008. The decrease in net interest expense in the quarter ended March 31, 2009 was primarily the result of cumulative reductions in outstanding debt during 2008 which reduced the average debt balance outstanding from $1,200.2 million in the quarter ended March 31, 2008 to $962.6 million in the quarter ended March 31, 2009. The cumulative reduction in the average debt level is the result of optional prepayments and purchases made using cash flows from operations and cash on hand, net of investing activities.
At March 31, 2009, our cash on hand was $30.3 million, as compared to $35.9 million at December 31, 2008. As of March 31, 2009 our debt, net of cash on hand, was $830.7 million and consisted of $481.0 million of outstanding borrowings under our senior secured credit facility and $380.0 million aggregate principal amount of our outstanding 8.75% Senior Subordinated Notes due 2015 (Notes).
On January 18, 2005, Warner Chilcott Holdings Company III, Limited (Holdings III) and its subsidiaries, Warner Chilcott Corporation (WCC) and Warner Chilcott Company, LLC (WCCL), entered into a $1,790.0 million senior secured credit facility with Credit Suisse as administrative agent and lender, and other lenders. The senior secured credit facility consisted of $1,640.0 million of term loans (including $240.0 million of delayed-draw term loans) and a $150.0 million revolving credit facility, of which $30.0 million and $15.0 million are available for letters of credit and swing line loans, respectively, to WCC and WCCL. The senior secured credit facility also contemplates up to three uncommitted tranches of term loans up to an aggregate of $250.0 million. However, the lenders are not committed to provide these additional tranches. Holdings III, WCC and WCCL are each borrowers and cross-guarantors under the senior secured credit facility. In addition, Holdings IIIs significant subsidiaries are guarantors, including WC Luxco S.Ã r.l. and WC Pharmaceuticals I Limited which became guarantors on May 5, 2009, shortly after their formation in April 2009. The term loan and delayed-draw term loan facilities mature on January 18, 2012, with scheduled quarterly repayments of principal totaling $4.9 million annually beginning in the second quarter of 2008. The revolving credit facility matures January 18, 2011. As of March 31, 2009, there were no borrowings outstanding under the $150.0 million revolving credit facility.
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