Attached files
file | filename |
---|---|
8-K - FORM 8-K - Actavis, Inc. | c11295e8vk.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE |
||||
CONTACTS: | Investors: | |||
Patty Eisenhaur | ||||
Watson Pharmaceuticals, Inc. | ||||
(973) 355-8141 | ||||
Media: | ||||
Charlie Mayr | ||||
Watson Pharmaceuticals, Inc. | ||||
(973) 355-8483 |
WATSON PRESENTS OUTLOOK FOR CONTINUED LONG TERM GROWTH
- 2011 Revenue Forecasted to be $4.2 Billion; Adjusted Cash EPS of $3.85 to $4.15 and Adjusted EBITDA of $925 Million to $1.0 Billion - |
New York, NY, January 21, 2010 During an investor meeting held today in New York, NY, Watson
Pharmaceuticals, Inc. (NYSE: WPI) provided an update on its Global businesses, including a detailed
overview of its commercial operations and pipeline developments within its Global Generics and
Global Brands businesses, and an update of achievements within its Global Operations. In
conjunction with the meeting, the Company provided its preliminary 2011 financial and long term
growth forecasts.
Watson management predicted continued growth in its Global Generics and Global Brand businesses,
with 2011 revenues expected to reach approximately $4.2 billion, and adjusted cash earnings per
share of between $3.85 and $4.15 for 2011.
2010 was an extremely successful year within our global integrated pharmaceutical company, said
Paul Bisaro, Watsons President and CEO. Total net revenues increased more than 25 percent,
adjusted cash earnings per share increased approximately 12 percent, and cash flow from operations
was in excess of $570 million. We also reduced debt by over $450 million.
In addition to delivering continued strong results, we fully integrated our commercial generic
operations in key global markets and further expanded into high growth
emerging markets. We successfully expanded our Global Generics and Global Brands product pipelines
and initiated our first biologic development project. We recorded significant accomplishments in
maximizing the value of our Active Pharmaceutical Ingredient (API) and clinical research
capabilities. We also continued to integrate and align our global supply chain to reduce costs,
improve inventory, and ensure our ability to respond to changing market conditions.
During 2011, we are poised to further capitalize on our position in extended-release and oral
contraceptive products, and we are ready to capitalize on the launches of our high-value generic
Concerta®
and Atorvastatin opportunities in May and November, respectively. We remain in a strong
position to deliver sustainable adjusted EBITDA and adjusted cash earnings per share growth in 2011
and beyond by leveraging our strengths as an integrated global pharmaceutical company.
Global Generics Business Poised for Continued Growth
We continue to focus on expanding our generic product portfolios and commercial presence
across the globe, emphasizing growth in current key markets and expanding into high growth
emerging markets where increases in generic utilization are anticipated, said Sigurdur
Olafsson, Executive Vice President, Global Generics. With a number of high value, new
product launch opportunities in our U.S. Generics business in 2011, as well as increased new
product launches in France, Canada, the UK and other key countries, we are focused on
achieving double digit growth in our Global Generics business and on strengthening our
position to be in a top 5 position in key markets longer term.
During 2010, Watson filed 34 Abbreviated New Drug Applications (ANDAs) with the U.S. Food and
Drug Administration (FDA), and a total of 146 applications globally. Watson currently has more
than 120 ANDAs on file in the U.S., with 29 potential first-to-file or shared exclusivity
products.
2010 Global Generics revenue is expected to be $2.35 billion and the Company forecasts 2011 Global
Generics segment revenue of between $2.8 and $3.0 billion.
Global Brands Expands Position in Womens Health; Initial Biologics Project Underway
Growth in existing key brand products, the 2010 launch of three new products, and milestone
developments in the global brand pipeline were among the highlights noted by Fred Wilkinson,
Executive Vice President, Global Brands, during the Companys Investor Day presentation. We
saw continued growth in our RAPAFLO® treatment for benign prostatic hyperplasia (BPH),
GELNIQUE® treatment for overactive bladder (OAB), and ANDRODERM® and AndroGel® testosterone
replacement therapies, said Wilkinson. We expanded our Womens Health franchise with the
approval of ella®, our emergency contraceptive, the acquisition of Crinone® for the treatment
of infertility, and the end-of-year approval of our novel oral contraceptive. We also added a
new product for the treatment of uterine fibroids to our development pipeline, and licensed
and began development of our first biologic product.
The most exciting milestone achieved during 2010 was the completion of the Phase III PREGNANT
study of Prochieve® for the prevention of preterm birth, Wilkinson noted. Preterm birth
represents a significant unmet medical need, and the clinical study data demonstrates a
significant reduction in preterm birth at multiple time frames. Results also indicated an
improvement in infant outcomes. We are preparing for the publication of the full clinical
trials in the first quarter of 2011, and anticipate filing our New Drug Application (NDA) in
the second quarter of 2011. It is our goal to establish Prochieve® as the recommended
treatment of choice for pregnant women with a short cervix.
We enter 2011 with an expanding womens health portfolio, a strong pipeline of products in the
U.S., and we are implementing a strategy to expand our business into Canada, Latin America and
Europe.
2010 Global Brands revenue is expected to be $400 million, and the Company expects 2011 Global
Brands segment revenues of between $470 and $490 million, reflecting continued growth of its
current promoted products, as well as the launch of new brand products into the U.S. market during
the year.
Global Operations
Robert Stewart, Watsons Executive Vice President, Global Operations told analysts,
In 2010 we made tremendous strides in further consolidating our manufacturing network, expanding
capacity at key sites, maximizing our API and clinical research capabilities, and optimizing our
global R&D footprint. We also realized ongoing efficiencies from our Global Operational Excellence
Initiative, achieving superior customer service levels while simultaneously reducing inventory and
achieving a reduction in our cost of goods.
Among our goals for 2011 and beyond, our Global Operations team will focus on expanding our
manufacturing capacity at key sites (including Salt Lake City, Utah; Goa, India, and Malta),
increasing the number of products we manufacture internally while simultaneously seeking to lower
external costs, increasing the speed and globalizing our new product launch capabilities, in
addition to maximizing all assets across the company, including our API capabilities.
2010 Anda distribution revenue is expected to be approximately $830 million, and the Company
expects 2011 distribution revenue of $820 to $840 million.
2011 Financial Outlook
Watson estimates total net revenue for 2011 will be approximately $4.2 billion.
| Total Global Generics segment revenue of between $2.8 and $3.0 billion. | ||
| Total Global Brands segment revenue of between $470 and $490 million. | ||
| Total Anda Distribution segment revenue of between $820 and $840 million. |
Adjusted cash earnings for 2011 is expected to be between $3.85 and $4.15 per diluted share and
adjusted EBITDA is expected to be between $925 million and $1.0 billion.
2012-2013 Financial Outlook
Watson estimates 2012 adjusted cash earnings per share to increase 20 to 25 percent year-over-year,
and in 2013, the Company estimates adjusted cash earnings per share to increase 15 to 20 percent
year-over-year.
Watsons January 21, 2011 Investor Day meeting is being webcast live, and can be accessed by
logging onto http://www.watson.com or the following link:
http://www.videonewswire.com/event.asp?id=75026. A replay of the webcast will also be available
on Watsons web site.
About Watson Pharmaceuticals, Inc.
Watson Pharmaceuticals, Inc. is a leading global specialty pharmaceutical company. The Company is
engaged in the development and distribution of generic pharmaceuticals and specialized branded
pharmaceutical products focused on urology and womens health. Watson has operations in many of the
worlds established and growing international markets.
In the U.S., the Watson brand portfolio includes RAPAFLO®, GELNIQUE®, Oxytrol®, TRELSTAR®, ella®,
Crinone® and INFeD®. In addition, Watson markets the following brands under co-promotion
agreements: AndroGel® with Abbott Laboratories, and Femring®, with Warner Chilcott plc. The Watson
brand pipeline portfolio includes a number of products, including Prochieve®, under development
with Columbia Laboratories for prevention of pre-term birth in women with a short cervix,
recombinant follicle stimulating hormone (rFSH) in development with Itero Biopharmaceuticals for
female infertility, Esmya® under development with Gedeon Richter for the treatment of uterine
fibroids, and two novel new contraceptives.
For press release and other company information, visit Watson Pharmaceuticals Web site at
http://www.watson.com.
All other trademarks are property of their respective owners.
Forward-Looking Statement
Any statement contained in this press release that refers to Watsons estimated or anticipated
future results, product development efforts, regulatory strategies, strategic initiatives, product
launches, prospects for regulatory approval of its products or other non-historical facts are
forward-looking statements that reflect Watsons current analysis of existing trends and
information. Watson disclaims any intent or obligation to update these forward-looking statements.
Any statements in this press release that refer to Watsons financial results for 2010 are
preliminary and reflect our expected financial results as of the date of this presentation, and are
subject to change. Watson disclaims any intent or obligation to update these statements. Actual
results may differ materially from current expectations depending upon a number of factors
affecting Watsons business or estimates. These factors include, among others, the inherent
uncertainty associated with financial estimates; the possibility that the financial estimates will
change after further review by Watsons management or outside independent accountants or due to the
discovery of additional or revised information or subsequent events; the difficulty of predicting
the timing or outcome of product development efforts and FDA or other regulatory agency approvals
or actions; market acceptance of and continued demand for Watsons products; the impact of
competitive products and pricing; variability of revenue mix between the Companys Brand, Generic
and Distribution business units; periodic dependence on a small number of products for a material
source of net revenue or income; variability of trade buying patterns; changes in generally
accepted accounting principles; risks that the carrying values of assets may be negatively impacted
by future events and circumstances; timely and successful implementation of strategic initiatives;
fluctuations in foreign currency exchange rates; the availability and pricing of third party
sourced products and materials; successful compliance with governmental regulations; uncertainties
related to the timing and outcome of litigation; changes in laws and regulations, including
Medicare and Medicaid and similar laws in foreign countries affecting, among other things, pricing
and reimbursement of pharmaceutical products; and such other risks and uncertainties detailed in
Watsons Annual Report on Form 10-K for the year ending December 31, 2009, Watsons Form 10-Q for
the quarter ending September 30, 2010 and other company filings with the Securities and Exchange
Commission.
Trademarks in this press release are the property of their respective registered owners.
The following table presents a reconciliation of forecasted net income for the twelve months ending
December 31, 2011 to adjusted net income and adjusted earnings per diluted share:
Forecast for Twelve Months | ||||||||
Ending December 31, 2011 | ||||||||
Low | High | |||||||
GAAP to Adjusted cash net income calculation |
||||||||
GAAP net income |
$ | 278 | $ | 316 | ||||
Adjusted for: |
||||||||
Amortization |
200 | 200 | ||||||
Acquisition and licensing charges |
64 | 64 | ||||||
Global supply chain initiative |
10 | 10 | ||||||
Legal settlements |
| | ||||||
Loss on asset sales/impairment |
| | ||||||
Gain on security sales |
| | ||||||
Income taxes |
(69 | ) | (69 | ) | ||||
Adjusted cash net income |
$ | 483 | $ | 521 | ||||
Diluted earnings per share |
||||||||
Diluted earnings per share GAAP |
$ | 2.21 | $ | 2.52 | ||||
Diluted earnings per share Cash |
$ | 3.85 | $ | 4.15 | ||||
Diluted weighted average common shares outstanding |
125.6 | 125.6 | ||||||
The reconciliation table is based in part on managements estimate of adjusted cash net income for
the year ending December 31, 2011. Watson expects certain known GAAP charges for 2011, as presented
in the schedule above. Other GAAP charges that may be excluded from adjusted cash net income are
possible, but their amounts are dependent on numerous factors that we currently cannot ascertain
with sufficient certainty or are presently unknown. These GAAP charges, such as potential asset
impairment charges, are dependent upon future events and valuations that have not yet been
performed.
The following table presents a reconciliation of forecasted net income for the twelve months ending
December 31, 2011 to adjusted EBITDA:
Forecast for Twelve Months | ||||||||
Ending December 31, 2011 | ||||||||
Low | High | |||||||
GAAP net income |
$ | 278 | $ | 316 | ||||
Plus: |
||||||||
Interest expense |
89 | 89 | ||||||
Interest income |
(2 | ) | (2 | ) | ||||
Provision for income taxes |
206 | 237 | ||||||
Depreciation (includes accelerated depreciation) |
103 | 103 | ||||||
Amortization |
200 | 200 | ||||||
EBITDA |
874 | 943 | ||||||
Adjusted for: |
||||||||
Loss on asset sales/impairment |
| | ||||||
Share-based compensation |
23 | 26 | ||||||
Global supply chain initiative |
4 | 7 | ||||||
Acquisition and licensing charges |
24 | 24 | ||||||
Legal settlements |
| | ||||||
Gain on security sales/impairment |
| | ||||||
Adjusted EBITDA |
$ | 925.0 | $ | 1,000.0 | ||||
The reconciliation table is based in part on managements estimate of adjusted EBITDA for the year
ending December 31, 2011. Watson expects certain known GAAP charges for 2011, as presented in the
schedule above. Other GAAP charges that may be excluded from estimated EBITDA are possible, but
their amounts are dependent on numerous factors that we currently cannot ascertain with sufficient
certainty or are presently unknown. These GAAP charges, such as potential asset impairment charges,
are dependent upon future events and valuations that have not yet been performed.