Scottsdale-based Medicis wrapped up another winning quarter led by sales of the company’s acne medication Dynacin and wrinkle filler Restylane.
Medicis raked in nearly $89 million for the quarter that ended Sept. 30. That’s 40 percent more than the revenue reported for the same period in 2003.
Earnings were only $1 million, or 2 cents per share, because the company bought U.S. distribution rights for another product, SubQ, in July. Medicis reported a $19.4 million special charge, plus taxes on the transaction, for the first installment of the SubQ deal.
SubQ, like Restylane, is a nonanimal-based collagen substitute used in other countries. It has not yet earned Food and Drug Administration approval for U.S. distribution. Restylane, which earned FDA approval in January, propelled Medicis sales 31 percent in its first quarter of U.S. availability.
Without the special charge, Medicis would have earned income of $21.2 million or 32 cents per share for the quarter, Medicis CEO Jonah Shacknai said Tuesday. That’s 3 cents higher than the company’s previous guidance for the quarter.
Shacknai also raised earnings guidance for the current quarter by 2 cents to 37 cents, and for the fiscal year, which ends June 30, to $1.51, up 9 cents.
"We are pleased with our financial results and extremely excited about our business," Shacknai told investors and Wall Street analysts.
Dynacin prescriptions rose 20 percent in the quarter, he said. And even after the first rush to try Restylane subsides, Shacknai said he expects the product to continue to attract new customers and win back previous ones for additional treatments.
Restylane injections last longer than collagen, so treatments are not needed as often.
Shacknai said there are other uses for Restylane that "are still not explored." Medicis also has 11 products under development, Shacknai said.
Business: Pharmaceutical maker and marketer
Quarterly earnings: Revenue of $88.8 million with net income of $1 million, or 2 cents per share. (Note: Absent special charge earnings of $21.2 million or 32 cents per share.)
Last year: Revenue of $63.3 million with net income of $10.3 million, or 18 cents per share