Medicis Pharmaceutical Corp. said Friday that its fourth-quarter profit fell 39 percent as its payments to its partners grew and it recorded a charge reflecting the drop in value of its LipoSonix business.
Medicis reported net income of $23.9 million, or 37 cents per share, from $38.9 million, or 60 cents per share, a year earlier. Excluding one-time items like $13.9 million in payments to its research and development partners -- up from $7.8 million a year earlier -- and the $9.8 million LipoSonix write-down, Medicis said it earned 60 cents per share.
Revenue rose 2 percent, to $182.1 million from $179 million.
Analysts expected a adjusted earnings of 60 cents per share and $185 million in revenue, according to FactSet.
The company said it plans to explore strategic alternatives for the LipoSonix business and may sell it. The LipoSonix system uses ultrasound to break up fat deposits in the stomach. It's on the market in Canada and Europe. Medicis said it hired Deutsche Bank to help it explore its options for LipoSonix.
Sales of the company's acne products Solodyn and Ziana fell 10 percent to $118.9 million. Medicis said revenue decreased because of greater return reserves for newly approved strengths of its drug Solodyn. It also decided to stop promoting its Plexion cleanser and cleaning cloths, and plans to discontinue its Triaz cleansers, pads and foaming cloths.
Non-acne product revenue grew 34 percent to $50.2 million on greater sales of its wrinkle remover Dysport and its wrinkle filler Restylane. Revenue from other non-dermatology products rose to $13 million from $10.1 million.
Medicis, which is based in Scottsdale, Ariz., said its profit grew 62 percent in 2010. The company earned $123.3 million, or $1.89 per share, compared with $76 million, or $1.21 per share, in 2009. Revenue grew 22 percent, to $700 million from $571.9 million.
In 2011, the company expects to earn $2.40 to $2.60 per share and see $730 million to $770 million in revenue. Analysts are forecasting a profit of $2.55 per share and $796.1 million in revenue on average.
Medicis expects a profit of 45 cents to 50 cents per share and $160 million to $170 million in revenue in the first quarter, 61 to 66 cents per share in profit and $185 million to $195 million in revenue in the second quarter, net income of 63 to 68 cents per share and revenue of $190 million to $200 million in the third quarter, and a profit of 71 to 76 cents per share and $195 million to $205 million in revenue in the fourth quarter.
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