IVAX Reports Results For Second Quarter 2005; Revenues Up 24% To $577.3 Million; Net Income $45.6 Million; EPS $0.17.MIAMI Miami, cities, United States Miami (mīăm`ē, –ə). 1 City (1990 pop. 358,548), seat of Dade co., SE Fla., on Biscayne Bay at the mouth of the Miami River; inc. 1896. -- IVAX Corporation IVAX Corporation was a United States public corporation focused on manufacturing and distributing generic pharmaceutical products. Ivax was acquired by the Israeli company Teva Pharmaceutical Industries in January 2006. External links
See: American Stock Exchange :IVX) (LSE LSE - Language Sensitive Editor :IVX.L) (WSE WSE Web Services Enhancements (Microsoft) WSE Warsaw Stock Exchange (Warsaw, Poland) WSE Symposium on Web Site Evolution (IEEE International Symposum) :IVX) reported second quarter 2005 net revenues of $577.3 million, a 24% increase over net revenues of $464.0 million in the second quarter 2004. Net income in the second quarter 2005 was $45.6 million. Earnings per share was $0.17 for the second quarter 2005. Net income in the second quarter 2004 was $48.1 million and earnings per share $0.18. Neil Flanzraich, vice chairman and president of IVAX Corporation, said, "These results were consistent with our expectations for the quarter and above our expectations for the first half of the year. Our income before income taxes for the second quarter of this year was $65.1 million compared to $58.2 million in the second quarter of 2004. Our net income for this quarter was impacted by a significantly higher income tax rate of approximately 30% as compared to a 17% tax rate for the comparable quarter in 2004. "We expect our second half of 2005 to be significantly stronger and confirm our earnings guidance of $0.76 - $0.86 per share. We believe our earnings for the full year will be in the middle to upper end of this range. We also confirm our 2006 guidance of $1.35 - $1.55 per share. Not included in this guidance is profit from our sale of our generic version of Zocor(R), which we expect to launch in the middle of 2006. We continue to believe that we should be granted a six month period of exclusivity for our generic version of Zocor, which would provide very considerable upside Upside The potential dollar amount by which the market or a stock could rise. Notes: This is basically an educated guess on how high a stock could go in the near future. See also: Bull, Downside to our guidance. Of course, our guidance for 2005 and 2006 must be qualified by any impact of our recently (July 25, 2005) announced agreement with Teva Pharmaceuticals Industries Ltd (Nasdaq:TEVA) providing for the acquisition of IVAX IVAX Industrial Vax (Dec Computer) by Teva. We are currently preparing the proxy material to be filed with the SEC in order to obtain shareholder approval for this agreement. "IVAX achieved substantial revenue growth in all its major business regions in the second quarter of 2005 over the same period last year. North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. revenues increased 14% from $228.3 million to $261.0 million. European revenues increased 15% from $171.6 million to $197.0 million and Latin American revenues increased 29% from $76.0 million to $98.4 million. "Our U.S. generics business was the major contributor to the 14% North American growth during the second quarter. We had 6 generic product approvals and launches, one tentative tentative, adj not final or definite, such as an experimental or clinical finding that has not been validated. approval and we became the authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: distributor of generic equivalents of two important products, OMJ OMJ Oh My Jonas (Jonas Brothers band fansite) OMJ Open Museum Journal (Australia) OMJ Osler Medical Journal OMJ Oh My Jesus OMJ Oh My Josh OMJ O Major Reformado OMJ Old Man Jenkins Pharmaceuticals, Inc.'s Ultracet(R) and Purdue Pharma's OxyContin Ox·y·con·tin A trademark for the drug oxycodone. oxycodone hydrochloride ETH-Oxydose, OxyContin, OxyFast, Oxy-IR, Oxynorm (UK), Roxicodone, Supeudol (CA) Pharmacologic class: Opioid agonist (R). We expect a significant number of additional generic approvals during the remainder of the year and on July 29, 2005 we announced that we are the authorized distributor of the generic equivalent of Purdue Pharma's MS Contin MS Contin® is a time-released formulation of morphine, usually taken every twelve hours for chronic pain. It is the brand name for morphine sulfate marketed by Purdue Pharma. (R) Tablets. "IVAX' branded respiratory product, albuterol sulfate albuterol sulfate (salbutamol sulfate) AccuNeb, Asmol (CA), Gen-Salbutamol (CA), Novo-Salmol (CA), Proventil HFA, Ventolin HFA, Vospire-ER Pharmacologic class: Sympathomimetic (beta2-adrenergic agonist) HFA HFA Harvard Film Archive (Harvard University) HFA Harry Fox Agency, Inc. HFA Housing Finance Agency (District of Columbia government) HFA Hyogo Framework for Action HFA High-Functioning Autism (CFC-free) in a standard metered dose inhaler inhaler /in·hal·er/ (in-hal´er) 1. an apparatus for administering vapor or volatilized medications by inhalation. 2. ventilator (2). in·hal·er n. , launched in the fourth quarter of 2004, is presently vying vy·ing v. Present participle of vie. vying vie for the number one market share position among HFA albuterol albuterol /al·bu·ter·ol/ (al-bu´ter-ol) a ß agonist used as the base or sulfate salt as a bronchodilator. al·bu·ter·ol n. products. We believe that our breath actuated ac·tu·ate tr.v. ac·tu·at·ed, ac·tu·at·ing, ac·tu·ates 1. To put into motion or action; activate: electrical relays that actuate the elevator's movements. 2. inhaler product, when approved, will permit us to obtain a more significant part of the large albuterol inhaler market. "Our animal health business has recently been expanded with the May 11, 2005 completion of our acquisition of Phoenix Scientific, Inc., the largest generic veterinary pharmaceutical company in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . We expect our veterinary subsidiary formed from this merger, IVX Animal Health, Inc., to be a significant contributor. "IVAX' European revenues 15% growth came from the continued success of many of our Central and Eastern European operations, contributions from our Polish pharmaceutical company, Polfa Kutno, acquired in the fourth quarter 2004, continued growth of QVAR sales and IVAX' first-to-market launch of Nasofan, the generic equivalent of Flonase(R), in the United Kingdom, where it has established a 44% market share. "Our Latin American revenues grew 29%. This is the ninth consecutive quarter IVAX' Latin American operations have achieved year-over-year, quarterly revenue growth. Our units in Venezuela, Chile, Argentina and Peru and our recently acquired (second quarter 2004) Peruvian pharmacy pharmacy, art of compounding and dispensing drugs and medication. The term is also applied to an establishment used for such purposes. Until modern times medication was prepared and dispensed by the physician himself. In the 18th cent. chain, BTL BTL Between the Lines BTL Battle BTL Bottle BTL Buy To Let BTL Below The Line (advertising) BTL Biomass-to-Liquids BTL Bubba the Love Sponge BTL Between the Lions (PBS children's TV show) , made significant contributions to that growth. "During the second quarter 2005, IVAX spent 25% more on marketing and sales and 7% more on general and administrative expenses than the second quarter 2004. These expense increases were primarily related to recently acquired businesses: Medco and BTL in the second quarter 2004, Polfa Kutno in the fourth quarter 2004 and Phoenix Scientific on May 11, 2005. R&D expenditures in the second quarter 2005 were 7% lower than in the second quarter 2004." IVAX will conduct a conference call at 10:30 A.M. Eastern Time (Miami) to discuss the second quarter, as well as other topics. Interested parties can access the conference call by dialing 1-800-288-8975 from anywhere in the U.S. or by dialing 612-332-0932 from non-U.S. locations. The conference call will also be webcast. To access and register for the webcast, go to IVAX' website at http://www.ivax.com at least fifteen minutes before the 10:30 A.M. conference call and click on the webcast link on IVAX' home page. Replays of the conference call will be available starting at approximately 2:00 P.M. on August 1st and will continue through August 8th. To listen to the replay of the conference call, dial 800-475-6701 in the U.S. and internationally dial 320-365-3844, then enter the ID #791336. Replays of the webcast via IVAX' website will also be available. IVAX Corporation, headquartered in Miami, Florida “Miami” redirects here. For the Native American tribe, see Miami tribe. Miami is a major city in southeastern Florida, in the United States. It is the county seat of Miami-Dade County. Miami is a gamma world city with an estimated population of 404,048. , discovers, develops, manufactures, and markets branded and brand equivalent (generic) pharmaceuticals and veterinary products in the U.S. and internationally. Copies of this and other news releases may be obtained free of charge from IVAX' website at www.ivax.com. Except for the historical matters contained herein, statements in this press release are forward-looking and are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Investors are cautioned that forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , including, among others, statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc goals, plans, expectations, estimates and projections regarding the company's financial position, results of operations, market position and business strategy involve risks and uncertainties that cannot be predicted or quantified and, consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others, the risks that there are uncertainties and matters beyond the control of management, as well as a variety of assumptions and estimates with respect to financial data, which if they do not occur, or prove to be incorrect, could affect IVAX' earnings expectations and IVAX may not, therefore, meet its guidance that the results for the year 2005 will be in a range of $0.76 to $0.86 per share, that the results will be at the middle or upper end of the range, that the results for the year 2006 will be in a range of $1.35 to $1.55 per share, or that we may not launch a generic equivalent of Zocor(R) in the middle of 2006 or that such launch would provide considerable upside to 2006 earnings; that earnings may not be significantly stronger during the second half of 2005 ; that IVAX may not increase the number of products in its generic portfolio; that IVAX may not receive approval of its pending ANDAs, or that if approved, the products will not be successfully commercialized; that IVAX may not receive a six-month exclusivity period for its generic equivalent of Zocor(R), and even if it does, may not be alone on the market during any such period; the impact of competitive products and pricing, including the impact of "authorized generics"; the difficulty of predicting the timing of U.S. Food and Drug Administration, or FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. , European Medicines Association and other regulatory authority Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities approvals; the impact of FDA's or other administrative or judicial agency's decisions on exclusivity periods; competitors' ability to extend exclusivity periods past initial patent terms; that growth in any of the geographic areas in which IVAX operates may be less than anticipated; the difficulty of predicting the timeliness or outcome of product development efforts and the filing of regulatory applications; potential liability for sales of generic products prior to completion of appellate Relating to appeals; reviews by superior courts of decisions of inferior courts or administrative agencies and other proceedings. litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , including that relating to Neurontin(R); the impact of pharmaceutical industry regulation and pending legislation that could affect the pharmaceutical industry; the regulatory environment and changes in the health policies and structure of various countries; that IVAX may not receive final approval for HFA albuterol in its breath operated inhaler or that its launch will be delayed; that albuterol HFA in a breath operated inhaler may not obtain a significant part of the albuterol inhaler market; that market acceptance and demand for IVAX' respiratory products may not be as anticipated; that the acquisition of Phoenix Scientific may not provide the synergies or benefits anticipated; that IVX Animal Health may not contribute to IVAX revenues as anticipated; that the change of control of the Company or regulatory issues arising from the proposed merger of the Company and Teva Pharmaceutical Industries Teva Pharmaceutical Industries Ltd. (Hebrew: טבע תעשיות פרמצבטיות בע"מ), NASDAQ: TEVA is an international pharmaceutical company headquartered in Limited could affect the Company's relationships and/or agreements with third parties, including distributors, manufacturers, suppliers and customers; whether and when the proposed merger will be consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. and the terms of any conditions imposed in connection with such closing; and diversion A turning aside or altering of the natural course or route of a thing. The term is chiefly applied to the unauthorized change or alteration of a water course to the prejudice of a lower riparian, or to the unauthorized use of funds. of management time on merger-related issues. In addition to the risk factors set forth above, IVAX' forward looking statements may also be adversely affected by general market factors; product availability; federal and state regulations and legislation, including changes in accounting regulations; the regulatory process for new products and indications; manufacturing issues that may arise; trade buying patterns; exchange rate fluctuations; patent positions and the timing and outcome of legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. ; changing market conditions; the availability and cost of raw materials and other third party products; the impact of competitive products and pricing; and other risks and uncertainties based on economic, competitive, governmental, technological and other factors. For further details and discussion of these and other risks and uncertainties, see IVAX' Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and other filings with the Securities and Exchange Commission. IVAX undertakes no obligation to publicly update any forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" or to reflect the occurrence of unanticipated events. Zocor(R) is a registered trademark of Merck & Co., Inc. OxyContin(R) and MS Contin(R) are registered trademarks of Purdue Pharma Purdue Pharma L.P., is privately-held pharmaceutical company founded by physicians. It is located in Stamford, Connecticut. Purdue is best known for painkillers, but they have also branched into other areas such as oncology and nutraceuticals. L.P. Ultracet(R) is a registered trademark of Ortho-McNeil Pharmaceuticals Ortho-McNeil Pharmaceutical, inc. is a pharmaceutical manufacturer based in Raritan, New Jersey, and a subsidiary of Johnson & Johnson. The company was formed from the merger of Ortho Pharmaceutical and McNeil Pharmaceutical in 1993. , Inc. Flonase(R) is a registered trademark of GlaxoSmithKline Corporation. Neurontin(R) is a registered trademark of Warner-Lambert Company, a unit Pfizer Inc.
IVAX Corporation and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Six Months
Period Ended June 30, 2005 2004 2005 2004
---------------------- ----------------------
(In thousands, except per
share data)
Net revenues $577,293 $463,962 $1,068,884 $889,153
Cost of sales (excludes
amortization, which is
presented below) 340,544 239,408 629,373 465,193
---------------------- ----------------------
Gross profit 236,749 224,554 439,511 423,960
---------------------- ----------------------
Operating expenses:
Selling 83,049 66,496 158,371 127,867
General and
administrative 46,512 43,599 83,398 80,105
Research and
development 35,887 38,662 69,608 71,012
Amortization of
intangible assets 7,083 5,432 13,829 10,937
Restructuring costs
(reversal) 1,591 (36) 3,139 597
---------------------- ----------------------
Total operating
expenses 174,122 154,153 328,345 290,518
---------------------- ----------------------
Operating income 62,627 70,401 111,166 133,442
Total other income
(expense), net 2,522 (12,179) (1,078) (22,494)
---------------------- ----------------------
Income before income
taxes and minority
interest 65,149 58,222 110,088 110,948
Provision for income
taxes 19,363 10,071 30,712 20,452
---------------------- ----------------------
Income before minority
interest 45,786 48,151 79,376 90,496
Minority interest (225) (53) (269) (57)
---------------------- ----------------------
Net income $45,561 $48,098 $79,107 $90,439
====================== ======================
Earnings per common
share:
Basic $0.17 $0.19 $0.30 $0.37
====================== ======================
Diluted $0.17 $0.18 $0.29 $0.35
====================== ======================
Weighted average number
of common shares
outstanding:
Basic 266,009 247,835 263,564 247,089
====================== ======================
Diluted 270,744 268,726 272,955 262,988
====================== ======================
IVAX Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
June 30, December 31,
2005 2004
--------------------------------
(In thousands) (Unaudited)
Assets
-----------------------
Cash & cash equivalents $241,170 $391,988
Marketable Securities,
short term 197,441 6,058
Other current assets 1,212,524 1,123,597
Property, plant and
equipment, net 608,037 604,647
Other assets 1,419,760 1,085,729
--------------------------------
Total assets $3,678,932 $3,212,019
================================
Liabilities and
Shareholders' Equity
-----------------------
Current portion of long-
term debt $35,660 $60,145
Other current liabilities 545,382 518,276
Long-term debt 1,394,312 1,057,843
Other long-term
liabilities 97,493 72,855
Minority interest 12,839 12,571
Shareholders' equity 1,593,246 1,490,329
--------------------------------
Total liabilities and
shareholders' equity $3,678,932 $3,212,019
================================
IVAX Corporation and Subsidiaries
Reportable Segment Data
(Unaudited)
Period Ended June 30, Three Months Six Months
(In thousands) 2005 2004 2005 2004
---------------------- ----------------------
North America
External sales $259,946 $225,347 $486,580 $392,728
Intersegment sales 437 2,382 1,013 4,477
Other revenues 635 602 1,313 1,092
---------------------- ----------------------
Net revenues -
North America 261,018 228,331 488,906 398,297
---------------------- ----------------------
Europe
External sales 165,587 132,374 321,060 273,733
Intersegment sales 16,452 25,596 35,931 44,230
Other revenues 14,955 13,589 20,368 42,049
---------------------- ----------------------
Net revenues -
Europe 196,994 171,559 377,359 360,012
---------------------- ----------------------
Latin America
External sales 97,998 75,626 184,931 149,062
Other revenues 410 388 672 794
---------------------- ----------------------
Net revenues -
Latin America 98,408 76,014 185,603 149,856
---------------------- ----------------------
Corporate & other
External sales 35,015 13,825 48,577 25,214
Intersegment sales (16,889) (27,978) (36,944) (48,707)
Other revenues 2,747 2,211 5,383 4,481
---------------------- ----------------------
Net revenues -
Corporate & other 20,873 (11,942) 17,016 (19,012)
---------------------- ----------------------
---------------------- ----------------------
Consolidated net revenues $577,293 $463,962 $1,068,884 $889,153
====================== ======================
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