OSI Pharmaceuticals Updates Preliminary Revenue & Re-affirms Adjusted Earnings Growth Rate Guidance for 2010
December 22 2009 - 6:30AM
Business Wire
OSI Pharmaceuticals, Inc. (NASDAQ: OSIP) today provided an
update to the preliminary revenue and adjusted earnings per share
growth rate guidance provided to investors at the Company’s recent
analyst R&D day meeting on December 3, 2009. The Company now
believes that the 2010 overall revenue percentage growth rate will
be in the mid-teens and re-affirms that adjusted earnings per share
will grow at 10% or more.
“We believe it is important for us to provide investors with
some preliminary quantification of the relatively limited potential
financial impact of last week’s surprising ODAC meeting,” stated
Colin Goddard, Chief Executive Officer of OSI Pharmaceuticals.
“Even assuming a scenario where we are unable to secure any label
expansion from the ongoing sNDA application for Tarceva based on
the SATURN study, we believe the business will continue to exhibit
solid growth in 2010 with an overall revenue growth rate in the
mid-teens (percentage wise) – broadly in-line with the ranges
communicated to investors at our recent research analyst meeting in
early December.”
The Company also provided investors with an update on the
re-purchase of a portion of its outstanding convertible debt bonds.
As of December 22, 2009, the Company had purchased $39.5 million
face value of the 2023 convertible bonds for $37.6 million and
$40.0 million face value of the 2038 convertible bonds for $37.4
million. The aggregate amount of the Company’s outstanding 2038
Notes, 2023 Notes and 2025 Notes at face value is now equal to
$335.5 million. The Company may, from time-to-time, continue to
selectively re-purchase convertible debt bonds and common stock
throughout 2010.
About OSI
Pharmaceuticals
OSI Pharmaceuticals is committed to "shaping medicine and
changing lives" by discovering, developing and commercializing
high-quality, novel and differentiated targeted medicines designed
to extend life and improve the quality of life for patients with
cancer and diabetes/obesity. For additional information about OSI,
please visit http://www.osip.com.
This news release contains forward-looking statements. These
statements are subject to known and unknown risks and uncertainties
that may cause actual future experience and results to differ
materially from the statements made. Factors that might cause such
a difference include, among others, OSI's and its collaborators'
abilities to effectively market and sell Tarceva and to expand the
approved indications for Tarceva, OSI’s ability to protect its
intellectual property rights, safety concerns regarding Tarceva,
competition to Tarceva and OSI’s drug candidates from other
biotechnology and pharmaceutical companies, the completion of
clinical trials, the effects of FDA and other governmental
regulation, including pricing controls, OSI's ability to
successfully develop and commercialize drug candidates, and other
factors described in OSI Pharmaceuticals' filings with the
Securities and Exchange Commission.
This news release also contains adjusted
earnings per share, which is a non-GAAP financial measure. OSI
provides non-GAAP financial measures to adjust for, among other
things, the impact of (i) equity based compensation expense, (ii)
imputed interest expense related to the application of Accounting
Standards Codification Subtopic 470-20, which provides guidance for
bifurcation of the conversion feature from the debt component of
convertible debt instruments that may be settled in cash upon
conversion, (iii) amortization of acquired intangible assets, (iv)
non-cash tax expense to adjust OSI’s effective tax rate of
approximately 39% to reflect its actual cash tax rate of
approximately 3%, (v) acquired in-process research and development
and (vi) restructuring and other costs related to consolidation of
the Company’s operations on to a single campus. Items for which
adjustment is made are either non-cash, non-recurring or not
otherwise considered to be core to OSI’s business. Management uses
non-GAAP financial measures internally to evaluate the performance
of the business, including the allocation of resources as well as
the planning and forecasting of future periods and believes that
these results are useful to others in analyzing the core operating
performance and trends of OSI for the periods presented. Non-GAAP
financial measures are not prepared in accordance with GAAP and
therefore are not necessarily comparable to the financial results
of other companies. Non-GAAP measures should be considered as a
supplement to, not a substitute for, or superior to, corresponding
financial measures calculated in accordance with GAAP.
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