Medicis Sees Q4 Revenue of $170-183M vs $189.7M Est
Medicis (NYSE: MRX) today announced that it has made substantial progress with its previously announced strategy to significantly reduce the Company's exposure to managed care restrictions for SOLODYN® (minocycline HCl, USP) Extended Release Tablets and the Company'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 Company has purchased approximately 4.4 million shares, or approximately $150 million, of its common stock under the previously announced Stock Repurchase Plan. As a result of successful execution on these initiatives to date, the Company has updated its financial guidance for the remainder of 2011.
Medicis had previously announced that, if successful in its negotiations with managed care, the Company anticipated having to accrue additional sales reserves, not contemplated in its previously announced fourth quarter 2011 revenue guidance, totaling approximately $12-$17 million, and a corresponding impact on the quarter's non-generally accepted accounting principles diluted cash earnings per share (EPS, defined below) guidance. The financial guidance update provided below reflects a decrease in revenue of approximately $17 million, and a corresponding decrease in diluted cash EPS of $0.17, for the fourth quarter and calendar year-end.
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