WILMINGTON, N.C., Dec. 12 /PRNewswire-FirstCall/ -- aaiPharma Inc.
(Nasdaq: AAII), today announced its financial guidance for 2004. The Company
believes that the financial guidance presented today reflects its overall
strategy of combining therapeutically-relevant product acquisitions with its
scientific expertise to drive long-term growth. At the time of this
disclosure, the Company believes that it is well-positioned to achieve its
financial guidance for 2004.
Based upon the Company's current business performance and the overall
outlook for 2004, aaiPharma expects net revenue for 2004 to be in the range of
$340 million to $355 million and earnings to be in the range of $1.45 to $1.52
per diluted share. Pharmaceutical products, product development and
development services revenues for 2004 are expected to be within the following
ranges:
2004 Ranges (millions)
Pharmaceutical Products $234 to $245
Product Development $18 to $20
Development Services $88 to $90
Total Revenues $340 to $355
2004 financial guidance reflects an expected continued ramp-up in
performance for the newly introduced Darvocet A500(TM). Since its launch on
October 6, 2003, scripts have trended as expected, there has been no
degradation in Darvocet-N(R) 100 script volume and the C-IV class of pain
products has grown overall.
aaiPharma recently completed the acquisition of four C-II pain products:
Oramorph(R) SR, Roxicodone(R), Roxanol(TM) and Duraclon(R). The launch and
marketing promotion of these products are planned to begin in the first
quarter of 2004. The Company has risk-adjusted its 2004 expectations for
these products by factoring in the potential impact of additional generic
competition for Roxicodone(R), along with the potential benefit from enhanced
promotion in Oramorph(R) SR. Inclusive of this anticipated generic entry,
2004 revenues for this portfolio are expected to be in the range of $40
million to $45 million.
In addition to the potential for generic competition for Roxicodone(R),
the Company's 2004 financial guidance assumes that a generic formulation of
its Brethine(R) injectable product will enter the market in the second half of
the year.
aaiPharma anticipates 2004 gross margins as a percentage of revenues to
increase modestly over those expected in 2003. Research and development
spending is forecasted to increase and to be in the range of $25 million to
$27 million. During 2004, selling, general and administrative expenses are
projected to increase over 2003 levels and to be in the range of 28% to 30% of
revenues as the Company continues to focus its promotional efforts on its
growing portfolio of pain products. For the full year of 2004, the Company's
tax rate is expected to be in the range of 36% to 37%.
Note to Analysts/Investors
In conjunction with this release, aaiPharma will host a conference call
for financial analysts today at 8:30 a.m. ET to discuss this news release. A
simultaneous web cast of the conference call will be available at
http://www.aaipharma.com for all interested parties. An on-demand replay of the web
cast will be available shortly after the conclusion of the call until 5:00
p.m. ET on December 19, 2003.
About aaiPharma
aaiPharma Inc. is a science-based specialty pharmaceutical company with
more than 24 years of drug development experience. Focusing on targeted
therapeutic areas, the Company markets a growing portfolio of established
branded products and applies innovative technologies to increase the
commercial potential of these products. At the same time, aaiPharma's
research and development organization is developing a pipeline of products to
position the Company for near-term and long-term growth in its targeted
therapeutic areas. In addition to developing and marketing its own line of
proprietary pharmaceutical products, aaiPharma continues to be a leader in
providing contract pharmaceutical development services through its AAI
Development Services division. For more information on the Company, please
visit us on the web at http://www.aaipharma.com.
Forward Looking Statements
Information in this press release contains certain "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933
and Section 21E of the Securities and Exchange Act of 1934, including
statements pertaining to the Company's future plans, expectations or
anticipations with respect to the Company's overall strategy; product
acquisitions; guidance as to future sales of products and services, revenues,
earnings per share and promotion opportunities; overall outlook; product
launches and line extensions; anticipated generic competition; gross margins;
research and development spending; sales, general and administrative expenses;
tax rates; and growth in product and pipeline portfolios. The "forward-
looking statements" herein involve risks and uncertainties that could cause
actual results to differ materially, including, without limitation, risks and
uncertainties pertaining aaiPharma's ability to timely and successfully
develop, improve, obtain timely regulatory approval for, and profitably sell
pharmaceutical products (including the above-listed products) and services; to
obtain, use, enforce, defend and license valid and commercially valuable
patents; and to obtain and enforce existing and future contracts with major
pharmaceutical companies for significant royalties and other consideration.
Additional factors that may cause the actual results to differ materially are
discussed in aaiPharma's recent filings with the Securities and Exchange
Commission, including, but not limited to, its Annual Report on Form 10-K
filed on March 28, 2003, including its exhibits; its Forms 10-Q filed on May
15, 2003, August 14, 2003 (including its Exhibit 99.1) and November 14, 2003,
its Form 8-Ks; and its other periodic filings.
Darvocet A500(TM) and Roxanol(TM) are trademarks, and Roxicodone(R),
Oramorph(R) SR, Brethine(R), and Darvocet-N(R) are registered trademarks,
owned by aaiPharma Inc. or its subsidiaries. Duraclon(R) is a registered
trademark of Fujisawa USA, Inc., licensed to aaiPharma Inc.
SOURCE aaiPharma Inc.
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Related links:
http://www.aaipharma.com
CONTACT:
Media, Andrea L. Johnston, Vice President,
Corporate Communications, +1-910-254-7340, or Investors, James B.
Sloan, Jr., Senior Vice President, Corporate Finance,
+1-910-254-7690, both of aaiPharma Inc.
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