Release of First Quarter 2005 Financial Results Scheduled for May 9, 2005
BRISTOL, Tenn., May 3 /PRNewswire-FirstCall/ -- King Pharmaceuticals, Inc.
(NYSE: KG) announced today that as of March 31, 2005 the Company has completed
wholesale inventory reductions for its major branded pharmaceutical products.
The estimated wholesale inventory levels for the Company's key products as of
the end of the first quarter of 2005 are shown in the table below:
Months of Estimated Months of Estimated
Product Wholesale Inventory Wholesale Inventory
as of as of
December 31, 2004 March 31, 2005
Altace(R) (ramipril) 1.7 0.9
Skelaxin(R) (metaxalone) 1.1 0.9
Sonata(R) (zaleplon) 1.7 1.3
Levoxyl(R) (levothyroxine sodium
tablets, USP) 1.8 1.0
Thrombin-JMI(R) (thrombin, topical,
bovine, USP) 1.2 1.2
James R. Lattanzi, King's Chief Financial Officer, stated, "The completion
of wholesale inventory reductions of our key products represents an important
milestone for King. With our wholesale inventory management issues now
resolved, we look forward to providing more transparent and predictable
financial results going forward."
With respect to first-quarter 2005 financial results, the Company noted
that the aggressive work-down of wholesale inventories is expected to result
in a decrease in King's reserves for returns and rebates and a corresponding
increase in net sales. The Company also expects net sales during the first
quarter of 2005 to benefit from higher than anticipated demand for Thrombin-
JMI(R). Additionally, King indicated that its research and development and
selling, general and administrative expenses during the first quarter of 2005
are expected to be less than 25% of the Company's projected total for these
expense categories for the year ending December 31, 2005. The Company's
previously announced full year estimates for these expenses are unchanged. As
a result of these developments, King estimates that diluted earnings per share
for the first quarter of 2005 will be approximately $0.14 higher than the
Company's previous guidance.
The Company plans to announce financial results for the first quarter
ending March 31, 2005, prior to the market open on Monday, May 9, 2005.
Conference call information will be provided when available via a subsequent
press release.
About King Pharmaceuticals
King, headquartered in Bristol, Tennessee, is a vertically integrated
branded pharmaceutical company. King, an S&P 500 Index company, seeks to
capitalize on opportunities in the pharmaceutical industry through the
development, including through in-licensing arrangements and acquisitions, of
novel branded prescription pharmaceutical products in attractive markets and
the strategic acquisition of branded products that can benefit from focused
promotion and marketing and product life-cycle management.
About Forward-looking Statements
This release contains forward-looking statements which reflect
management's current views of future events and operations, including, but not
limited to, statements pertaining to the Company's ability to provide more
transparent and predictable financial results going forward now that King has
completed wholesale inventory reductions of its products; statements
pertaining to the Company's anticipated financial results for the first
quarter of 2005; and statements pertaining to the Company's anticipated
release of financial results for the first quarter of 2005. These forward-
looking statements involve certain significant risks and uncertainties, and
actual results may differ materially from the forward-looking statements.
Some important factors which may cause actual results to differ materially
from the forward-looking statements include: dependence on the extent to which
King's Inventory Management Agreements facilitate effective management of
wholesale channel inventories of the Company's products and the accuracy of
information provided to the Company pursuant to such agreements and by other
third parties; dependence on the accuracy of King's estimated financial
results for the first quarter of 2005; and dependence on the Company's ability
to release its financial results for the first quarter of 2005 as currently
planned. Other important factors that may cause actual results to differ
materially from the forward-looking statements are discussed in the "Risk
Factors" section and other sections of King's Form 10-K for the year ending
December 31, 2004, which is on file with the SEC. King does not undertake to
publicly update or revise any of its forward-looking statements even if
experience or future changes show that the indicated results or events will
not be realized.
SOURCE King Pharmaceuticals, Inc.
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Related links:
http://www.kingpharm.com
Company News On-Call:
http://www.prnewswire.com/comp/120319.html
CONTACT:
James E. Green, Executive Vice President,
Corporate Affairs, +1-423-989-8125, or David E. Robinson, Senior
Director, Corporate Affairs, +1-423-989-7045, both of King
Pharmaceuticals, Inc.
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