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Last Update: 28-Dec-11 09:51 ET
Medicis Down After Lowering Guidance Late Yesterday
Medicis (MRX $33.01 -0.75) is trading 2% lower after reducing its fourth quarter guidance after the close yesterday.
The company lowered fourth quarter revenue guidance to $170 million to $183 million versus CIQ Estimates of $189.8 million, down from $187 million to $200 million; lowers EPS to $0.51 to $0.57 versus the $0.64 CIQ Estimates, down from $0.63 to $0.69.
The company announced that it has made substantial progress with its previously announced strategy to significantly reduce the Co's exposure to managed care restrictions for SOLODY (minocycline HCl, USP) Extended Release Tablets and the Co's other therapeutic products. This strategy includes, among other things, negotiating new, multi-year contracts to begin in 2012 with targeted managed care organizations and pharmacy benefit managers to profitably achieve total coverage and access for SOLODYN of at least 75% of the insurable lives in the U.S. Medicis has also begun shipping ZYCLARA (imiquimod) Cream 3.75% in the U.S. and a number of its newly acquired products in Canada. Additionally, the Co has purchased ~4.4 mln shares, or ~$150 mln, of its common stock under the previously announced Stock Repurchase Plan.
As a result of successful execution on these initiatives to date, the co has updated its financial guidance for the remainder of 2011. Medicis had previously announced that, if successful in its negotiations with managed care, the co anticipated having to accrue additional sales reserves, not contemplated in its previously announced Q4 2011 revenue guidance, totaling ~$12-$17 mln, and a corresponding impact on the quarter's non-generally accepted accounting principles (non-GAAP, defined below) diluted cash EPS guidance. The financial guidance update provided below reflects a decrease in revenue of ~$17 mln, and a corresponding decrease in diluted cash EPS of $0.17, for the fourth quarter and calendar year-end.
The company lowered fourth quarter revenue guidance to $170 million to $183 million versus CIQ Estimates of $189.8 million, down from $187 million to $200 million; lowers EPS to $0.51 to $0.57 versus the $0.64 CIQ Estimates, down from $0.63 to $0.69.
The company announced that it has made substantial progress with its previously announced strategy to significantly reduce the Co's exposure to managed care restrictions for SOLODY (minocycline HCl, USP) Extended Release Tablets and the Co's other therapeutic products. This strategy includes, among other things, negotiating new, multi-year contracts to begin in 2012 with targeted managed care organizations and pharmacy benefit managers to profitably achieve total coverage and access for SOLODYN of at least 75% of the insurable lives in the U.S. Medicis has also begun shipping ZYCLARA (imiquimod) Cream 3.75% in the U.S. and a number of its newly acquired products in Canada. Additionally, the Co has purchased ~4.4 mln shares, or ~$150 mln, of its common stock under the previously announced Stock Repurchase Plan.
As a result of successful execution on these initiatives to date, the co has updated its financial guidance for the remainder of 2011. Medicis had previously announced that, if successful in its negotiations with managed care, the co anticipated having to accrue additional sales reserves, not contemplated in its previously announced Q4 2011 revenue guidance, totaling ~$12-$17 mln, and a corresponding impact on the quarter's non-generally accepted accounting principles (non-GAAP, defined below) diluted cash EPS guidance. The financial guidance update provided below reflects a decrease in revenue of ~$17 mln, and a corresponding decrease in diluted cash EPS of $0.17, for the fourth quarter and calendar year-end.
