Par Pharmaceutical Companies Inc. (PRX, Financial) filed Quarterly Report for the period ended 2009-03-28.
Par Pharmaceutical Companies Inc. develops manufactures and markets generic pharmaceuticals through its principal subsidiary Par Pharmaceutical Inc. Through its FineTech subsidiary Par also develops and utilizes synthetic chemical processes to design and develop intermediate ingredients used in the production of finished products for the pharmaceutical industry. Par Pharmaceutical Companies Inc. has a market cap of $407.5 million; its shares were traded at around $11.7 with a P/E ratio of 234 and P/S ratio of 0.7.
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Par Pharmaceutical Companies Inc. develops manufactures and markets generic pharmaceuticals through its principal subsidiary Par Pharmaceutical Inc. Through its FineTech subsidiary Par also develops and utilizes synthetic chemical processes to design and develop intermediate ingredients used in the production of finished products for the pharmaceutical industry. Par Pharmaceutical Companies Inc. has a market cap of $407.5 million; its shares were traded at around $11.7 with a P/E ratio of 234 and P/S ratio of 0.7.
Highlight of Business Operations:
In May 2008, the Financial Accounting Standards Board (FASB) issued FASB Staff Position No. APB 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash Upon Conversion (Including Partial Cash Settlement) (FSP APB 14-1). Under the new rules for convertible debt instruments that may be settled entirely or partially in cash upon conversion, an entity should separately account for the liability and equity components of the instrument in a manner that reflects the issuers economic interest cost. Previous guidance provided for accounting of this type of convertible debt instruments entirely as debt. Pars senior subordinated convertible notes are subject to FSP APB 14-1. Upon conversion, Par has agreed to satisfy its conversion obligation in cash in an amount equal to the principal amount of the notes converted. The effect of the new rules for this type of convertible debt instruments is that the equity component would be included in the additional paid-in capital section of stockholders equity on Pars condensed consolidated balance sheet and the value of the equity component would be treated as original issue discount for purposes of accounting for the debt component of the convertible debt instruments. FSP APB 14-1 was effective as of January 1, 2009, with retrospective application required. For instruments subject to the scope of FSP APB 14-1, higher interest expense will result through the accretion of the discounted carrying value of the debt instruments to their face amount over their term. Prior period interest expense will also be higher than previously reported due to retrospective application. Par estimates that its original $200 million aggregate principal amount of 2.875% senior subordinated convertible notes due 2010 had an approximate initial measurement of a $169 million liability component and a $31 million equity component. Annual interest expense will be retroactively adjusted upward between $5.6 million to $7.0 million for the years 2008, 2007, 2006, and 2005.Read the The complete Report
