Last week, drug developer King Pharmaceuticals
In the first quarter, revenue was up 7% year over year, adjusted net income was up 11% to $118 million, and earnings per share were $0.44. Of course, earnings aren't so nice if cash flow isn't attached to it, but King brought in $108 million in operating cash flow as well.
Investors should expect more product acquisitions in the coming years, since King is sitting on over $800 million in cash and investments and this has been the company's fondest way of acquiring new product candidates. On a recent conference call, King's management said that they were looking at more compounds than they even had time for. With its top product Altace potentially facing generic competition by 2009, I'd expect an acquisition sooner rather than later.
King's future also lies with its acquired pipeline products, like the abuse-resistant pain drug, Remoxy, which it is expecting to file a new drug application for in 2008. However, the pivotal phase 3 study seems to be enrolling slower than expected (probably because of pain sufferers not wanting to risk being part of the placebo arm of the study).
If Remoxy and the other drugs King is developing don't come to market next year, King's top line is going to be in for some major pain. ZymoGenetics'
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