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Drug developer focused on respiratory diseases reports 75% increase in sales
(Science Letter Via Thomson Dialog NewsEdge)
Adams Respiratory Therapeutics, Inc., (ARxT) announced financial results for the fiscal second quarter ended Dec. 31, 2005.
Commenting on the second quarter results, Michael J. Valentino noted, "I am certainly very pleased with our solid quarterly performance, mainly driven by the early strength of the cough/cold season, strong consumer demand and further market penetration of our Mucinex franchise. During the quarter, we carried a significant product backorder and it was not until mid-December when finished product made from our second guaifenesin supplier, Delta Synthetic Co., Ltd., could be shipped to customers."
Valentino added, "Despite the fact that our shipments trailed consumption, in the U.S. retail market for OTC cough, cold, allergy and sinus products, the dollar market share for the Mucinex franchise has nearly doubled to 6.1% for the 52-week period ended Jan. 22, according to data from Information Resources, Inc.
"For the most recent 4-week period, Mucinex franchise dollar market share has reached an all-time high of 8.2%. We expect to continue to be able to grow our market share position, on a year-over-year basis, as awareness levels continue to develop and production output increases over time for our products."
Net sales for the quarter were $63.2 million, an increase of 75% from $36.1 million in the second quarter of fiscal 2005. The company ended its fiscal 2006 second quarter with open orders for products of approximately $20 million.
The significant growth in net sales was due to the continued market penetration of the Mucinex franchise of guaifenesin-based extended-release bilayer tablet products. Market penetration was driven by a new consumer advertising campaign that began in October 2005, as well as the launch of Mucinex D for the treatment of nasal congestion and sinus pressure.
Pretax income nearly quadrupled to $17.4 million in the fiscal 2006 second quarter from $4.6 million in the prior-year period. Income per diluted share in the second quarter was $0.29, versus a loss of ($10.00) in the prior-year period. The fiscal 2005 second quarter included the accretion of preferred stock, which was converted into common stock upon the company's initial public offering in July 2005.
The company plans a 25% increase in advertising expenditures during fiscal 2006. The new Mrs. Mucus campaign will continue throughout the 2006 cough/cold season and a separate campaign for Mucinex D will commence in late February, in advance of the 2006 spring allergy season.
The company has committed up to $9.0 million during fiscal 2006 for investigational phase II activities and milestone payments related to the U.S. development of erdosteine.
The company is now planning for a U.S. launch of its maximum-strength extended-release bilayer tablet (1200 mg guaifenesin) product under the Humibid brand name in March and expects to launch two other maximum-strength combination formulations in the first half of fiscal 2007.
The company plans to enter the $300-plus million pediatric segment in the first half of fiscal 2007 with a new line of immediate release guaifenesin products under the Mucinex brand name.
This article was prepared by Science Letter editors from staff and other reports. Copyright 2006, Science Letter via NewsRx.com.
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