Medicis (MRX) Announces Completion of Graceway Pharmaceuticals Acquisition, Offers Q4, FY11 Guidance
Tweet
Share
E-mailGet Alerts MRX Hot Sheet
Price: $72.99 +4.89%
Financial Fact:
Research And Development Expense: 12.26M
Today's EPS Names:
BTTX, VAXX, ELYS, More
Financial Fact:
Research And Development Expense: 12.26M
Today's EPS Names:
BTTX, VAXX, ELYS, More
Join SI Premium – FREE
Medicis (NYSE: MRX) today announced that it has completed its acquisition of substantially all of the assets of Graceway Pharmaceuticals, LLC, following approval by Graceway's board of directors, clearance under the Hart-Scott-Rodino Act and final approval by the U.S. bankruptcy court overseeing Graceway's Chapter 11 case and the Canadian court overseeing the receivership of Graceway's Canadian subsidiary.
Under the terms of the transaction, Medicis paid to Graceway a purchase price of $455 million for Graceway's commercial pharmaceutical product portfolio, which includes prescription products in the dermatology, respiratory and women's health specialties, and certain other assets. Included in the purchase is a strong R&D pipeline.
Additionally, Medicis has the opportunity to launch two recently approved line extensions for the Zyclara™ franchise, which has several applied-for patents currently under accelerated examination in the United States and related patent protection in Canada already obtained.
The Company will allocate the $455 million lump-sum payment to the acquired Graceway assets and liabilities, including, but not limited to, intangible assets and in-process R&D. Medicis is in the process of completing a valuation to determine the amounts to be assigned to the acquired assets, including intangible assets and their related amortization periods, and the amount of in-process R&D.
As a result of this transaction, the Company will be providing non-generally accepted accounting principles diluted earnings per share and non-GAAP diluted cash EPS guidance. Revenue for the Q4 is expected to be $187-$200 million, inline with the consensus of $189.39 million. Earnings for the quarter is estimated to be non-GAAP $0.63-$0.69, inline with the consensus of $0.64. For the Full Year 2011, management sees revenues totaling $728-$741 million, inline with the consensus of $734.21 million. Earning for the Full Year 2011 is estimated to be $2.33-$2.39, inline with the consensus of $2.35.
Under the terms of the transaction, Medicis paid to Graceway a purchase price of $455 million for Graceway's commercial pharmaceutical product portfolio, which includes prescription products in the dermatology, respiratory and women's health specialties, and certain other assets. Included in the purchase is a strong R&D pipeline.
Additionally, Medicis has the opportunity to launch two recently approved line extensions for the Zyclara™ franchise, which has several applied-for patents currently under accelerated examination in the United States and related patent protection in Canada already obtained.
The Company will allocate the $455 million lump-sum payment to the acquired Graceway assets and liabilities, including, but not limited to, intangible assets and in-process R&D. Medicis is in the process of completing a valuation to determine the amounts to be assigned to the acquired assets, including intangible assets and their related amortization periods, and the amount of in-process R&D.
As a result of this transaction, the Company will be providing non-generally accepted accounting principles diluted earnings per share and non-GAAP diluted cash EPS guidance. Revenue for the Q4 is expected to be $187-$200 million, inline with the consensus of $189.39 million. Earnings for the quarter is estimated to be non-GAAP $0.63-$0.69, inline with the consensus of $0.64. For the Full Year 2011, management sees revenues totaling $728-$741 million, inline with the consensus of $734.21 million. Earning for the Full Year 2011 is estimated to be $2.33-$2.39, inline with the consensus of $2.35.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Walmart (WMT) PT Lowered to $130 at UBS on Investment Narrative's Competing Dynamics
- LivePerson extends special meeting deadline for SoundHound AI merger vote
- RenovoRx regains Nasdaq minimum bid price compliance
Create E-mail Alert Related Categories
Guidance, Mergers and AcquisitionsRelated Entities
Bankruptcy, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
