Growth of DORYX, LOESTRIN 24 FE and ESTRACE CREAM drives solid
earnings growth ARDEE, Ireland, Aug. 7 /PRNewswire-Firstcall/ --
Warner Chilcott Limited (NASDAQ:WCRX) today announced its results
for the quarter ended June 30, 2009. Revenue in the quarter ended
June 30, 2009 increased 7.1% to $250.8 million over the prior year
quarter. The primary drivers of the increase in revenue were the
net sales of DORYX, LOESTRIN 24 FE and ESTRACE Cream which were
partially offset by net sales declines of other products, primarily
ESTROSTEP FE, SARAFEM and FEMHRT. The Company reported net income
of $56.0 million ($0.22 per diluted share) in the quarter ended
June 30, 2009, compared with net income of $33.6 million ($0.13 per
diluted share) in the prior year quarter, an increase of 66.9%.
Cash net income ("CNI") in the quarter ended June 30, 2009 rose to
$109.2 million ($0.44 per diluted share), an increase of 29.6% over
the prior year quarter. References in this release to "cash net
income" or "CNI" mean the Company's net income adjusted for the
after-tax effects of two non-cash items: amortization (including
impairments, if any) of intangible assets and amortization
(including write-offs, if any) of deferred loan costs related to
the Company's debt. Reconciliations from the Company's reported
results in accordance with US GAAP to CNI and adjusted earnings
before interest, taxes, depreciation and amortization ("EBITDA")
for all periods are presented in the tables at the end of this
press release. Revenue Revenue in the quarter ended June 30, 2009
was $250.8 million, an increase of $16.6 million, or 7.1%, over the
prior year quarter. The primary drivers of the increase in revenue
were the net sales of DORYX, LOESTRIN 24 FE and ESTRACE Cream,
which together contributed $28.0 million of revenue growth for the
quarter ended June 30, 2009. The growth delivered by these products
was partially offset by net sales declines in certain other
products, primarily ESTROSTEP FE, SARAFEM and FEMHRT. Period over
period changes in the net sales of our products are a function of a
number of factors including changes in: market demand, gross
selling prices, sales-related deductions from gross sales to arrive
at net sales and the levels of pipeline inventories of our products
held by our direct and indirect customers. The Company uses IMS
Health, Inc. estimates of filled prescriptions for our products as
a proxy for market demand. Net sales of our oral contraceptive
products increased $4.2 million, or 5.6%, in the quarter ended June
30, 2009, compared with the prior year quarter. LOESTRIN 24 FE
generated revenues of $58.0 million in the quarter ended June 30,
2009, an increase of 15.5% compared with $50.2 million in the prior
year quarter. The increase in LOESTRIN 24 FE net sales over the
prior year quarter was primarily due to higher average selling
prices and an increase in filled prescriptions of 10.3%, offset in
part by the impact of higher sales-related deductions and a
contraction of pipeline inventories relative to the prior year
period. FEMCON FE generated revenues of $12.4 million in the
quarter ended June 30, 2009, an increase of $1.7 million, or 14.7%,
versus the prior year quarter. The increase in FEMCON FE net sales
was primarily due to higher average selling prices and an increase
in filled prescriptions of 6.3% in the quarter ended June 30, 2009,
offset in part by a contraction of pipeline inventories relative to
the prior year quarter. Net sales of our dermatology products
increased $11.3 million, or 10.9%, in the quarter ended June 30,
2009, compared to the prior year quarter. Net sales of DORYX
increased $13.2 million, or 41.6%, in the quarter ended June 30,
2009, compared to the prior year quarter, primarily due to a 41.6%
increase in filled prescriptions and an expansion of pipeline
inventories compared to the prior year period, which were offset,
in part, by higher sales-related deductions. The increase in filled
prescriptions primarily relates to DORYX 150 mg, which we launched
in the third quarter of 2008 and to which we have dedicated
significant promotional efforts, including our recently launched
customer loyalty card program. DORYX 150 mg accounted for 76% of
new DORYX prescriptions and 72% of total DORYX prescriptions in the
quarter ended June 30, 2009. Increased utilization of the customer
loyalty card for DORYX 150 mg drove the increase in sales-related
deductions in the quarter. Net sales of TACLONEX decreased $2.3
million, or 5.9%, to $36.5 million in the quarter ended June 30,
2009, compared to $38.8 million in the prior year quarter. The
decrease in TACLONEX net sales is primarily due to a 5.7% decrease
in filled prescriptions, as well as higher sales-related
deductions, offset in part, by the impact of higher average sales
prices. Net sales of DOVONEX increased by $0.4 million, or 1.4%, in
the quarter ended June 30, 2009, compared with the prior year
quarter. The increase in net sales of DOVONEX was due to higher
average sales prices and a reduction in sales-related deductions,
which more than offset a 24.6% decline in filled prescriptions as
compared to the prior year quarter. Net sales of our hormone
therapy products increased $3.9 million, or 9.1%, in the quarter
ended June 30, 2009, compared with the prior year quarter. Net
sales of ESTRACE Cream increased $7.0 million, or 33.1%, in the
quarter ended June 30, 2009, compared to the prior year quarter due
to increased demand and higher average selling prices. We began
promotional efforts for ESTRACE Cream in early 2009 resulting in an
increase in filled prescriptions of 21.2% in the quarter ended June
30, 2009 compared with the prior year quarter. Net sales of FEMHRT
decreased $3.3 million, or 19.9%, in the quarter ended June 30,
2009 compared to the prior year quarter due to a decrease in filled
prescriptions of 12.0% and a contraction of pipeline inventories
relative to the prior year quarter, which were offset, in part, by
higher average selling prices compared to the prior year quarter.
Cost of Sales (excluding amortization of intangible assets) Cost of
sales decreased $4.1 million, or 7.9%, in the quarter ended June
30, 2009, compared with the prior year quarter. Our gross profit
margin as a percentage of total revenue increased to 81.3% in the
quarter ended June 30, 2009 as compared to 78.2% in the prior year
quarter, primarily due to a favorable mix of products sold as
compared to the prior year quarter, offset in part, by increases in
manufacturing costs. Selling, General and Administrative
("SG&A") Expenses SG&A expenses for the quarter ended June
30, 2009 were $53.0 million, an increase of $5.9 million, or 12.6%,
from $47.1 million in the prior year quarter. Advertising and
Promotion ("A&P") expenses for the quarter ended June 30, 2009
increased $0.2 million, or 1.7%, compared with the prior year
quarter, due primarily to increased sampling activities. Selling
and distribution expenses for the quarter ended June 30, 2009
decreased $2.7 million, or 11.7%, compared to the prior year
quarter primarily due to a reduction in the size of our field sales
forces, offset, in part by, promotion expenses related to FEMRING.
General, Administrative and Other ("G&A") expenses increased
$8.4 million, or 61.1%, in the quarter ended June 30, 2009, as
compared with the prior year quarter. The increase is due in large
part to increases in professional and legal fees primarily in
connection with our proposed redomicile to Ireland and, to a lesser
extent, to increases in compensation expenses, including non-cash
stock-based compensation, and other costs. Research and Development
("R&D") Our investment in R&D for the quarter ended June
30, 2009 was $11.9 million, a decrease of $0.6 million, or 4.8%,
compared with the prior year quarter. Our internal R&D
expenditures fluctuate based on the nature and timing of our
on-going R&D programs. We expect our internal R&D spend in
the second half of 2009 to increase over the first six months of
2009. Net Interest Expense Net interest expense for the quarter
ended June 30, 2009 was $15.2 million, a decrease of $9.4 million,
or 38.2%, from $24.6 million in the prior year quarter. Included in
net interest expense in the quarter ended June 30, 2008 was a $1.1
million expense relating to the write-off of deferred loan costs
associated with the optional prepayment of $70.0 million of
indebtedness under our senior secured credit facility. The Company
did not make any optional prepayments of debt during the quarter
ended June 30, 2009. The decrease in net interest expense in the
2009 period was primarily the result of cumulative reductions in
outstanding debt during 2008 and the first half of 2009 which
reduced the average debt balance outstanding from $1,198.2 million
in the quarter ended June 30, 2008 to $861.1 million in the quarter
ended June 30, 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. Net Income and Cash Net Income For the quarter ended
June 30, 2009, reported net income was $56.0 million, or $0.22 per
share, and CNI was $109.2 million, or $0.44 per share, based on
250.7 million diluted Class A common shares outstanding. In
calculating CNI, we add back the after-tax impact of the
amortization (including impairments, if any) of intangible assets
and the amortization (including write-offs, if any) of deferred
loan costs. These items are tax-effected at the estimated marginal
rates attributable to them. In the quarter ended June 30, 2009, the
marginal tax rate associated with the amortization of intangible
assets was 8.4% and the marginal tax rate for amortization
(including write-offs) of deferred loan costs was 19.9%. Liquidity,
Balance Sheet and Cash Flows As of June 30, 2009, our cash and cash
equivalents totaled $138.2 million and our total debt outstanding
was $859.8 million. There were no borrowings outstanding under the
revolving portion of our senior secured credit facility. We
generated $124.5 million of cash from operating activities in the
quarter ended June 30, 2009, compared with $122.8 million in the
prior year quarter, an increase of $1.7 million. Recent Events The
Company recently announced that at a special court-ordered meeting
of shareholders held on August 5, 2009 (the "Special Meeting"), its
shareholders approved a scheme of arrangement between the Company
and such shareholders. Assuming receipt of the required approval of
the Supreme Court of Bermuda at a hearing to be held on August 14,
2009, and the satisfaction of certain other conditions, the
transaction will result in Warner Chilcott plc, a newly formed
public holding company, organized in, and a tax resident of,
Ireland becoming the ultimate public holding company of the Warner
Chilcott group. The Company expects that the transaction will be
completed on or about August 20, 2009. Following completion of the
transaction, shares of Warner Chilcott plc will begin trading on
the NASDAQ Global Market under the symbol "WCRX," the same symbol
under which the Company's shares currently trade. Warner Chilcott
also announced that at the Special Meeting its shareholders
approved the creation of distributable reserves of Warner Chilcott
plc, subject to the approval of the High Court of Ireland following
the completion of the transaction. 2009 Financial Guidance Update
Based on the year-to-date results and current outlook for the
remainder of 2009, the Company is affirming its full year 2009
revenue guidance. For 2009, the Company continues to anticipate
revenue to be in the range of $1,015 to $1,025 million. Based on
the current and forecasted mix of products sold, the Company is
raising its guidance on gross margin as a percentage of total
revenue to a range of 80% to 81%. This reflects of the Company's
current expectation that a favorable product mix will continue to
benefit its overall margins. The Company is updating its expected
ranges for certain operating expense items for the full year 2009.
Total anticipated SG&A expenses continue to be in the range of
$203 to $212 million, as expected reductions in A&P expenses
should offset expected increases in G&A expenses. More
specifically, A&P expenses are expected to be in the range of
$38 to $41 million which reflects our current expectations of
promotional spending by our sales forces. G&A expenses are
expected to be in the range of $81 to $84 million, which reflects
an increase to previously estimated professional and legal fees.
R&D spend is now expected to be in the range of $72 to $75
million rather than $77 to $80 million. The decrease is reflective
of reduced estimates of ongoing R&D study expenses primarily
due to changes to the expected timing of expenditures. Based on the
above revisions, the Company is now anticipating CNI per share to
be $0.05 per share higher than previously forecasted. The Company
anticipates CNI per share to in the range of $1.60 to $1.65. The
Company's full year 2009 revised guidance is summarized on the last
exhibit to this release. Investor Conference Call The Company is
hosting a conference call open to all interested parties, on
Friday, August 7, 2009 beginning at 8:00 AM EDT. The number to call
within the United States and Canada is (888) 208-1812. Participants
outside the United States and Canada should call (719) 325-2339. A
replay of the conference call will be available for two weeks
following the call and can be accessed by dialing (888) 203-1112
from within the United States and Canada or (719) 457-0820 from
outside the United States and Canada. The replay ID number is
6093247. The Company Warner Chilcott is a leading specialty
pharmaceutical company currently focused on the women's healthcare
and dermatology segments of the U.S. pharmaceuticals market. The
Company is a fully integrated company with internal resources
dedicated to the development, manufacturing and promotion of its
products. WCRX-F Forward Looking Statements This press release
contains forward-looking statements, including statements
concerning our operations, our economic performance and financial
condition, and our business plans and growth strategy and product
development efforts. These statements constitute forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934. The
words "may," "might," "will," "should," "estimate," "project,"
"plan," "anticipate," "expect," "intend," "outlook," "believe" and
other similar expressions are intended to identify forward-looking
statements. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of their
dates. These forward-looking statements are based on estimates and
assumptions by our management that, although we believe to be
reasonable, are inherently uncertain and subject to a number of
risks and uncertainties. The following represent some, but not
necessarily all, of the factors that could cause actual results to
differ from historical results or those anticipated or predicted by
our forward-looking statements: our substantial indebtedness;
competitive factors in the industry in which we operate (including
the approval and introduction of generic or branded products that
compete with our products); our ability to protect our intellectual
property; a delay in qualifying our manufacturing facility to
produce our products or production or regulatory problems with
either third party manufacturers upon whom we may rely for some of
our products or our own manufacturing facilities; pricing pressures
from reimbursement policies of private managed care organizations
and other third party payors, government sponsored health systems,
the continued consolidation of the distribution network through
which we sell our products, including wholesale drug distributors
and the growth of large retail drug store chains; the loss of key
senior management or scientific staff; adverse outcomes in our
outstanding litigation or an increase in the number of litigation
matters to which we are subject; government regulation affecting
the development, manufacture, marketing and sale of pharmaceutical
products, including our ability and the ability of companies with
whom we do business to obtain necessary regulatory approvals; our
ability to manage the growth of our business by successfully
identifying, developing, acquiring or licensing new products at
favorable prices and marketing such new products; our ability to
obtain regulatory approval and customer acceptance of new products,
and continued customer acceptance of our existing products; changes
in tax laws or interpretations that could increase our consolidated
tax liabilities; the other risks identified in our Annual Report on
Form 10-K for the year ended December 31, 2008, as amended; and
other risks detailed from time-to-time in our public filings,
financial statements and other investor communications. We caution
you that the foregoing list of important factors is not exclusive.
In addition, in light of these risks and uncertainties, the matters
referred to in our forward-looking statements may not occur. We
undertake no obligation to publicly update or revise any
forward-looking statement as a result of new information, future
events or otherwise, except as may be required by law.
Reconciliations to GAAP Net Income CNI To supplement its condensed
consolidated financial statements presented in accordance with US
GAAP, the Company provides a summary to show the computation of
CNI. CNI is defined as the Company's GAAP net income adjusted for
the after-tax effects of two non-cash items: amortization
(including impairments, if any) of intangible assets and
amortization (including write-offs, if any) of deferred loan costs
related to the Company's debt. The Company believes that the
presentation of CNI provides useful information to both management
and investors concerning the approximate impact of the above items.
The Company also believes that considering the effect of these
items allows management and investors to better compare the
Company's financial performance from period-to-period, and to
better compare the Company's financial performance with that of its
competitors. The presentation of this additional information is not
meant to be considered in isolation of, or as a substitute for,
results prepared in accordance with US GAAP. Adjusted EBITDA To
supplement its condensed consolidated financial statements
presented in accordance with US GAAP, the Company is providing a
summary to show the computation of adjusted EBITDA taking into
account certain charges that were taken during the quarters and six
months ended June 30, 2009 and 2008. The computation of adjusted
EBITDA is based on the definition of EBITDA contained in the
indenture governing the Company's Senior Subordinated Notes due
2015. WARNER CHILCOTT LIMITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (In thousands of U.S. dollars, except per share amounts)
(Unaudited) Quarter Ended Six Months Ended June-30-09 June-30-08
June-30-09 June-30-08 REVENUE: Product net sales $245,565 $229,636
$484,589 $453,336 Other revenue 5,251 4,580 12,216 10,363 Total
revenue 250,816 234,216 496,805 463,699 COSTS & EXPENSES: Cost
of sales (excludes amortization) 46,962 51,012 95,712 98,782
Selling, general and administrative 53,022 47,097 99,788 102,324
Research and development 11,945 12,546 35,817 24,726 Amortization
of intangible assets 56,992 53,137 113,985 105,750 Interest expense
(net) 15,201 24,591 33,218 48,609 INCOME BEFORE TAXES 66,694 45,833
118,285 83,508 Provision for income taxes 10,671 12,265 18,926
16,282 NET INCOME $56,023 $33,568 $99,359 $67,226 Earnings per
share: Class A - Basic $0.22 $0.13 $0.40 $0.27 Class A - Diluted
$0.22 $0.13 $0.40 $0.27 RECONCILIATIONS: Net income - GAAP $56,023
$33,568 $99,359 $67,226 + Amortization of intangible assets, net of
tax 52,217 48,358 104,435 96,264 + Amortization and write-offs of
deferred loan costs, net of tax 965 2,349 3,121 3,651 Cash net
income $109,205 $84,275 $206,915 $167,141 WARNER CHILCOTT LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands of U.S.
dollars) (Unaudited) As of As of June 30, 2009 December 31, 2008
ASSETS Current assets: Cash & cash equivalents $138,190 $35,906
Accounts receivable, net 98,428 93,015 Inventories 61,728 57,776
Prepaid expenses & other current assets 86,498 69,813 Total
current assets 384,844 256,510 Other assets: Property, plant and
equipment, net 77,725 60,908 Intangible assets, net 885,613 993,798
Goodwill 1,250,324 1,250,324 Other non-current assets 17,603 21,351
TOTAL ASSETS $2,616,109 $2,582,891 LIABILITIES Current liabilities:
Accounts payable $26,140 $15,014 Accrued expenses & other
current liabilities 165,415 151,753 Current portion of long-term
debt 4,935 5,977 Total current liabilities 196,490 172,744 Other
liabilities: Long-term debt, excluding current portion 854,895
956,580 Other non-current liabilities 103,830 103,647 Total
liabilities 1,155,215 1,232,971 SHAREHOLDERS' EQUITY 1,460,894
1,349,920 TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $2,616,109
$2,582,891 WARNER CHILCOTT LIMITED CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (in thousands of U.S. dollars) (Unaudited)
Quarter Ended Six Months Ended June-30-09 June-30-08 June-30-09
June-30-08 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $56,023
$33,568 $99,359 $67,226 Adjustments to reconcile net income to net
cash provided by operating activities: Depreciation 3,400 3,124
6,426 6,049 Amortization of intangible assets 56,992 53,137 113,985
105,750 Amortization and write-offs of deferred loan costs 1,205
2,676 3,771 4,235 Stock-based compensation expense 3,330 2,195
5,962 4,005 Changes in assets and liabilities: (Increase) /
decrease in accounts receivable, prepaid and other assets (19,913)
4,303 (16,031) (4,311) (Increase) / decrease in inventories (250)
458 (3,952) (6,248) Increase / (decrease) in accounts payable,
accrued & other liabilities 24,954 13,020 23,437 (812)
(Decrease) / increase in income taxes and other, net (1,226) 10,335
(3,083) (55,760) Net cash provided by operating activities $124,515
$122,816 $229,874 $120,134 CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of intangible assets (2,900) (42,900) (5,800) (45,800)
Capital expenditures (12,485) (3,068) (19,033) (10,013) Net cash
(used in) investing activities $(15,385) $(45,968) $(24,833)
$(55,813) CASH FLOWS FROM FINANCING ACTIVITIES: Repayments under
bank term credit facility (1,233) (72,071) (102,727) (74,142) Other
(15) 194 (30) 255 Net cash (used in) financing activities $(1,248)
$(71,877) $(102,757) $(73,887) Net increase / (decrease) in cash
and cash equivalents $107,882 $4,971 $102,284 $(9,566) Cash and
cash equivalents, beginning of period 30,308 16,239 35,906 30,776
Cash and cash equivalents, end of period $138,190 $21,210 $138,190
$21,210 WARNER CHILCOTT LIMITED Reconciliation of Net Income to
Adjusted EBITDA (In thousands of U.S. dollars) (Unaudited) Quarter
Ended Six Months Ended June-30-09 June-30-08 June-30-09 June-30-08
RECONCILIATION TO ADJUSTED EBITDA: Net income - GAAP $56,023
$33,568 $99,359 $67,226 + Interest expense, net 15,201 24,591
33,218 48,609 + Provision for income taxes 10,671 12,265 18,926
16,282 + Non-cash stock-based compensation expense 3,330 2,195
5,962 4,005 + Depreciation 3,400 3,124 6,426 6,049 + Amortization
of intangible assets 56,992 53,137 113,985 105,750 + R&D
milestone payments - - 11,500 - Adjusted EBITDA of WCL, as defined
$145,617 $128,880 $289,376 $247,921 + Expenses of WCL and other
7,481 969 9,854 2,770 Adjusted EBITDA of Warner Chilcott Holdings
Company III, Ltd., as defined $153,098 $129,849 $299,230 $250,691
Note: Warner Chilcott Holdings Company III, Limited and certain of
its subsidiaries are parties to our credit agreement and the
indenture governing our Senior Subordinated Notes due 2015. Warner
Chilcott Limited is not a party to these agreements. Certain
expenses included in Warner Chilcott Limited's consolidated
operating results are not deducted in arriving at Adjusted EBITDA
for Warner Chilcott Holdings Company III, Ltd and its subsidiaries.
WARNER CHILCOTT LIMITED REVENUE BY PRODUCT (In millions of U.S.
dollars) (Unaudited) Quarter Ended Six Months Ended June-30-09
June-30-08 June-30-09 June-30-08 Oral Contraception ("OC") LOESTRIN
24 FE $58.0 $50.2 $110.4 $97.1 FEMCON FE 12.4 10.7 25.3 21.5
ESTROSTEP FE * 2.9 6.4 8.0 11.0 OVCON * 2.2 4.0 4.9 6.8 Total OC
75.5 71.3 148.6 136.4 Hormone therapy ("HT") ESTRACE Cream 28.2
21.2 51.4 40.4 FEMHRT 13.1 16.4 25.8 32.4 FEMRING 3.6 3.4 7.4 6.9
Other HT 2.5 2.5 5.0 5.4 Total HT 47.4 43.5 89.6 85.1 Dermatology
DORYX 44.9 31.7 95.3 66.8 TACLONEX 36.5 38.8 73.1 75.8 DOVONEX *
33.9 33.5 61.9 66.6 Total Dermatology 115.3 104.0 230.3 209.2 PMDD
SARAFEM 4.4 7.8 8.5 12.2 Other product sales Other 0.5 (1.1) 1.4
(0.9) Contract manufacturing 2.5 4.1 6.2 11.3 Total product net
sales 245.6 229.6 484.6 453.3 Other revenue Other non-product
Revenue 5.2 4.6 12.2 10.4 Total revenue $250.8 $234.2 $496.8 $463.7
* Includes revenue from related authorized generic product sales
from the date of their respective launch. WARNER CHILCOTT LIMITED
SUMMARY OF SG&A EXPENSES (In millions of U.S. dollars)
(Unaudited) Quarter Ended June-30-09 June-30-08 Advertising &
promotion $10.5 $10.3 Selling & distribution 20.3 23.0 General,
administrative & other 22.2 13.8 Total SG&A $53.0 $47.1 Six
Months Ended June-30-09 June-30-08 Advertising & promotion
$18.2 $27.5 Selling & distribution 43.2 46.6 General,
administrative & other 38.4 28.2 Total SG&A $99.8 $102.3
WARNER CHILCOTT LIMITED 2009 Full Year Financial Guidance (U.S.
dollars in millions, except per share amounts) Prior Guidance
Revised Guidance May 2009 August 2009 Total Revenue (1) $1,015 to
$1,025 $1,015 to $1,025 Gross margin as a % of total revenue 79% to
80% 80% to 81% SG&A Expenses: A&P $41 to $44 $38 to $41
Selling & Distribution $84 to $87 $84 to $87 G&A $78 to $81
$81 to $84 Total SG&A Expenses (2) $203 to $212 $203 to $212
Total R&D (3) $77 to $80 $72 to $75 GAAP Net Income (4) $174 to
$186 $186 to $199 CNI (5) $390 to $402 $402 to $415 CNI per share
(5) (6) $1.55 to $1.60 $1.60 to $1.65 (1) Our 2009 guidance does
not account for the impact of any future new licensing agreements.
(2) Total SG&A expenses do not include any amount that may be
payable in connection with the potential settlement of our
outstanding legal actions. (3) Total 2009 R&D expense consists
of internal R&D anticipated to be in the range of $57.5 to
$60.5 million. Included in total 2009 R&D expense are $11.5
million of milestone payments expensed during the six months ended
June 30, 2009, as well as $3.0 million of anticipated future
milestone payments. (4) The effective GAAP tax rate for 2009 is
expected to be in the mid-to- high teens. (5) A reconciliation of
2009 GAAP net income to CNI adds back the expected after tax impact
of amortization of intangibles ($209M) and the expected after tax
impact of the amortization and write-offs of deferred loan costs
($7M). (6) CNI per share is based on 251.4 million fully diluted
Class A shares. DATASOURCE: Warner Chilcott Limited CONTACT:
Rochelle Fuhrmann, Investor Relations of Warner Chilcott Limited,
+1-973-442-3281, or Web Site: http://www.wcrx.com/
Copyright