Exhibit 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE | CONTACTS: | Watson Pharmaceuticals, Inc. |
| | Patty Eisenhaur |
| | Director, Investor Relations |
| | (951) 493-5611 |
WATSON PHARMACEUTICALS REPORTS
SECOND QUARTER 2007 RESULTS
– Company Reports Total Net Revenue of $603 Million –
– GAAP EPS of $0.33 and Adjusted EPS of $0.34 –
CORONA, CA – August 2, 2007 – Watson Pharmaceuticals, Inc. (NYSE: WPI), a leading specialty pharmaceutical company, today reported revenue and earnings for its second quarter ended June 30, 2007.
Net revenue for the second quarter 2007 was $603.0 million and net income was $36.4 million, or $0.33 per diluted share. Excluding special items as detailed in the reconciliation table below, adjusted net income for the second quarter was $37.9 million, or $0.34 per diluted share.
Excluding special items as detailed in the EBITDA reconciliation table below, adjusted EBITDA for the second quarter 2007 was $136.6 million.
Cash flow from operations was $111.0 million for the second quarter and $199.2 million for the first six months of 2007, respectively. During the second quarter, the Company made $100 million in debt prepayments. Cash and marketable securities were $85.4 million as of June 30, 2007.
“I am pleased with the solid financial performance we reported this quarter,” began Allen Chao, Ph.D., Watson’s Chairman and Chief Executive Officer. “We continue to make good progress on the strategic initiatives we have in place to expand the pipeline, enhance operating efficiencies and reduce our overall cost structure. The groundwork that was laid several years ago is yielding results and will ensure our long-term growth and success.”
“Our generic pipeline is one of the strongest in the industry, and our brand business is poised for growth, with two promising urology products completing late stage development this year. As we move into the second half of the fiscal year and into 2008, we remain excited about the many opportunities in front of us,” concluded Dr. Chao.
For the six months ended June 30, 2007, net revenue increased 39 percent to $1,274.6 million, as compared to $917.6 million for the first six months of 2006. Net income for the first six months of 2007 was $68.0 million, or $0.62 per diluted share, as compared to net income of $9.6 million, or $0.09 per diluted share, for the same period of 2006. On an adjusted basis, as detailed in the attached reconciliation table, net income for the first six months of 2007 was $75.2 million, or $0.68 per diluted share, as compared to adjusted net income of $49.2 million, or $0.45 per diluted share, for the same period of 2006.
Second Quarter and Six Month Business Segment Results
Generic Segment Information
| | Three Months Ended
June 30, | | Six Months Ended
June 30, | |
(Unaudited; $ in thousands) | | 2007 | | 2006 | | 2007 | | 2006 | |
Generic segment contribution | | | | | | | | | |
Product sales | | $ | 327,446 | | $ | 419,441 | | $ | 738,921 | | $ | 740,856 | |
Other revenue | | 18,195 | | 990 | | 31,345 | | 1,665 | |
Net revenue | | 345,641 | | 420,431 | | 770,266 | | 742,521 | |
Cost of sales | | 210,342 | | 306,564 | | 482,965 | | 523,948 | |
Gross profit | | 135,299 | | 113,867 | | 287,301 | | 218,573 | |
Gross margin | | 39.1 | % | 27.1 | % | 37.3 | % | 29.4 | % |
| | | | | | | | | |
Research and development | | 23,968 | | 18,124 | | 50,481 | | 38,619 | |
Selling and marketing | | 13,197 | | 13,526 | | 27,746 | | 26,464 | |
Segment contribution | | $ | 98,134 | | $ | 82,217 | | $ | 209,074 | | $ | 153,490 | |
Segment margin | | 28.4 | % | 19.6 | % | 27.1 | % | 20.7 | % |
Generic segment net revenue for the second quarter of 2007 decreased 18 percent or $74.8 million to $345.6 million, compared to $420.4 million in the prior year period.
Generic product sales for the second quarter of 2007 decreased $92.0 million to $327.4 million, primarily due to the loss of revenue from oxycodone HCl controlled-release tablets, following the termination of a distribution agreement, and lower sales of pravastatin sodium tablets. This was offset in part by the addition of product revenue resulting from the Company’s recently acquired Florida operations. Sales of generic oral contraceptives increased $12.8 million to $91.4 million.
Other revenue increased $17.2 million to $18.2 million, due primarily to the addition of commission revenue related to fentanyl citrate and the addition of royalties from GlaxoSmithKline’s sales of Wellbutrin XL® 150 mg.
Gross margin for the Generic segment increased from 27.1 percent in the second quarter 2006 to 39.1 percent in the second quarter 2007 due to the increase in other revenue and lower sales of authorized generics.
Watson currently has over 70 ANDAs on file, including 15 products that have received tentative approval.
Brand Segment Information
| | Three Months Ended
June 30, | | Six Months Ended
June 30, | |
(Unaudited; $ in thousands) | | 2007 | | 2006 | | 2007 | | 2006 | |
Brand Segment Contribution | | | | | | | | | |
Product sales | | $ | 96,924 | | $ | 88,051 | | $ | 187,562 | | $ | 171,288 | |
Other revenue | | 13,809 | | 1,874 | | 24,711 | | 3,780 | |
Net revenue | | 110,733 | | 89,925 | | 212,273 | | 175,068 | |
Cost of sales | | 26,795 | | 24,296 | | 52,010 | | 41,666 | |
Gross profit | | 83,938 | | 65,629 | | 160,263 | | 133,402 | |
Gross margin | | 75.8 | % | 73.0 | % | 75.5 | % | 76.2 | % |
| | | | | | | | | |
Research and development | | 11,535 | | 13,001 | | 22,830 | | 22,343 | |
Selling and marketing | | 26,373 | | 29,765 | | 52,784 | | 58,740 | |
Segment contribution | | $ | 46,030 | | $ | 22,863 | | $ | 84,649 | | $ | 52,319 | |
Segment margin | | 41.6 | % | 25.4 | % | 39.9 | % | 29.9 | % |
Brand segment net revenue for the second quarter of 2007 increased 23 percent, or $20.8 million to $110.7 million, compared to $89.9 million in the prior year period due to increases in both Brand product sales and other revenue.
Brand product sales for the second quarter of 2007 increased 10 percent or $8.9 million to $96.9 million, primarily due to increased sales of Androderm® and Oxytrol®. Other revenue increased $11.9 million to $13.8 million, due to the addition of revenue related to the promotion of AndroGel® and other product revenue resulting from the Andrx acquisition.
Gross margin for the Brand segment increased from 73.0 percent in the second quarter 2006 to 75.8 percent in the second quarter 2007 due primarily to the increase in other revenue.
In Watson’s brand product pipeline, the Company has completed the long term safety study of its Phase 3 silodosin program, a product for benign prostatic hyperplasia, and anticipates completion of its Phase 3 studies on a new gel formulation of oxybutynin for overactive bladder in the third quarter 2007. New drug applications are expected to be submitted for both products in the first half of 2008.
Distribution Segment Information
| | Three
Months Ended | | Six
Months Ended | |
(Unaudited; $ in thousands) | | June 30, 2007 | | June 30, 2007 | |
Distribution segment contribution | | | | | |
Product sales | | $ | 146,631 | | $ | 292,071 | |
Other revenue | | — | | — | |
Net revenue | | 146,631 | | 292,071 | |
Cost of sales | | 123,301 | | 250,183 | |
Gross profit | | 23,330 | | 41,888 | |
Gross margin | | 15.9 | % | 14.3 | % |
| | | | | |
Research and development | | — | | — | |
Selling and marketing | | 12,327 | | 26,530 | |
Total operating expenses | | 12,327 | | 26,530 | |
Segment contribution | | $ | 11,003 | | $ | 15,358 | |
Segment margin | | 7.5 | % | 5.3 | % |
Distribution segment net revenue for the second quarter of 2007 was $146.6 million, up slightly from $145.4 million reported in the first quarter 2007.
Gross margin for the Distribution segment improved from 12.8 percent in the first quarter 2007 to 15.9 percent in the second quarter 2007. Cost of sales for the first quarter 2007 included $2.5 million in Andrx acquisition-related inventory charges.
Other Operating Expenses
Consolidated general and administrative expenses for the second quarter of 2007 increased $17.8 million to $45.3 million, compared to $27.5 million in the prior year period, primarily due to the Andrx acquisition.
2007 Financial Outlook
Watson’s forecasts are based on the Company’s actual results for the first six months of 2007, and management’s current belief about prescription trends, pricing levels, inventory levels and the anticipated timing of future product launches. The current forecast excludes approximately $11 million ($6.8 million net of tax, or $0.06 per diluted share) of costs associated with the Andrx acquisition and other non-operating gains and losses.
Watson estimates total net revenue for the full year of 2007 at approximately $2.5 billion.
Net Revenue Estimates by Segment
For the Twelve Months Ended December 31, 2007 |
| | |
| | (in millions) |
Generic Segment | | Approximately $1.5 Billion |
Brand Segment | | $400 - $420 Million |
Distribution | | $575 - $615 Million |
Research and development investment for 2007 is expected to be approximately 6 percent of total revenue, due primarily to an increase in clinical study costs associated with Watson’s product pipeline.
Selling, general and administrative expenses for 2007 are expected to be approximately 16.5 percent of total revenue.
Adjusted earnings per diluted share for 2007 is expected to be between $1.25 and $1.30. Excluding special items as detailed in the EBITDA reconciliation table below, adjusted EBITDA is expected to be between $527 and $547 million.
Webcast and Conference Call Details
Watson will host a conference call and webcast today at 8:30 a.m. Eastern Daylight Time to discuss 2007 second quarter results, projections for the remainder of 2007 and recent corporate developments. The dial-in number to access the call is (877) 251-7980, or from international locations, (706) 643-1573. A taped replay of the call will be available by calling (800) 642-1687 with access pass code 6242338. The replay may be accessed from international locations by dialing (706) 645-9291 and using the same pass code. This replay will remain in effect until midnight Pacific Daylight Time, Friday, August 10, 2007. To access the live webcast, go to Watson’s Investor Relations Web site at http://ir.watson.com.
About Watson Pharmaceuticals, Inc.
Watson Pharmaceuticals, Inc., headquartered in Corona, California, is a leading specialty pharmaceutical company that develops, manufactures, markets, sells and distributes brand and generic pharmaceutical products. Watson pursues a growth strategy combining internal product development, strategic alliances and collaborations and synergistic acquisitions of products and businesses.
For press release and other company information, visit Watson Pharmaceuticals’ Web site at http://www.watson.com.
Forward-Looking Statement
Statements contained in this press release that refer to Watson’s estimated or anticipated future results or other non-historical facts are forward-looking statements that reflect Watson’s current perspective of existing trends and information as of the date of this release. For instance, any statements in this press release concerning prospects related to Watson’s strategic initiatives, product introductions and anticipated financial performance are forward-looking statements. It is important to note that Watson’s goals and expectations are not predictions of actual performance. Watson’s performance, at times, will differ from its goals and expectations. Actual results may differ materially from Watson’s current expectations depending upon a number of factors affecting Watson’s business. These factors include, among others, the inherent uncertainty associated with financial projections; the impact of competitive products and pricing; successful integration of strategic transactions, including the Company’s March 16, 2006 acquisition of Sekhsaria Chemicals, Ltd. and its November 3, 2006 acquisition of Andrx Corporation; the ability to timely resolve with FDA the pending Official Action Indicated status of the Davie, Florida manufacturing facility; the ability to timely and cost effectively integrate Watson and Andrx’s operations; the ability to recognize the anticipated synergies and benefits of strategic transactions, including the Andrx Acquisition; variability of revenue mix between the Company’s Brand and Generic business units; periodic dependence on a small number of products for a material source of net revenue or income; variability of trade buying patterns; changes in generally accepted accounting principles; risks that the carrying values of assets may be negatively impacted by future events and circumstances; timely and successful consummation and implementation of strategic initiatives; the timing and success of product launches; the difficulty of predicting the timing or outcome of product development efforts and FDA or other regulatory agency approvals or actions; the uncertainty associated with the identification and successful consummation of external business development transactions; market acceptance of and continued demand for Watson’s products; costs and efforts to defend or enforce intellectual property rights; difficulties or delays in manufacturing; the availability and pricing of third party sourced products and materials; successful compliance with FDA and other governmental regulations applicable to Watson’s and its third party manufacturers’ facilities, products and/or businesses; uncertainties related to the timing and outcome of litigation and other claims; changes in the laws and regulations, including Medicare and Medicaid, affecting among other things, pricing and reimbursement of pharmaceutical products; and such other risks and uncertainties detailed in Watson’s periodic public filings with the Securities and Exchange Commission, including but not limited to Watson’s Annual Report on Form 10-K for the year ended December 31, 2006. Except as expressly required by law, Watson disclaims any intent or obligation to update these forward-looking statements.
Wellbutrin XL® is a registered trademark of GlaxoSmithKline.
AndroGel® is a registered trademark of Solvay Pharmaceuticals, Inc.
The following table presents Watson’s results of operations for the three and six months ended June 30, 2007 and 2006:
Table 1
Watson Pharmaceuticals, Inc.
Condensed Consolidated Statements of Operations
(Unaudited; in thousands, except per share amounts)
| | Three Months Ended
June 30, | | Six Months Ended
June 30, | |
| | 2007 | | 2006 | | 2007 | | 2006 | |
| | | | Restated* | | | | Restated* | |
| | | | | | | | | |
Net revenues | | $ | 603,005 | | $ | 510,356 | | $ | 1,274,610 | | $ | 917,589 | |
Cost of sales (excludes amortization, presented below) | | 360,438 | | 330,860 | | 785,158 | | 565,614 | |
Gross profit | | 242,567 | | 179,496 | | 489,452 | | 351,975 | |
| | | | | | | | | |
Operating expenses: | | | | | | | | | |
Research and development | | 35,503 | | 31,125 | | 73,311 | | 60,962 | |
Selling, general and administrative | | 97,158 | | 70,774 | | 200,376 | | 137,524 | |
Amortization | | 44,159 | | 41,101 | | 88,092 | | 82,201 | |
Loss on asset impairment | | — | | 66,981 | | — | | 66,981 | |
Total operating expenses | | 176,820 | | 209,981 | | 361,779 | | 347,668 | |
Operating income (loss) | | 65,747 | | (30,485 | ) | 127,673 | | 4,307 | |
| | | | | | | | | |
Other (expense) income: | | | | | | | | | |
Early extinguishment of debt | | (1,681 | ) | 195 | | (4,410 | ) | (525 | ) |
Interest income | | 1,803 | | 6,913 | | 4,732 | | 13,165 | |
Interest expense | | (11,475 | ) | (3,322 | ) | (25,351 | ) | (6,623 | ) |
Other income | | 3,034 | | 1,561 | | 6,437 | | 5,076 | |
Total other (expense) income, net | | (8,319 | ) | 5,347 | | (18,592 | ) | 11,093 | |
| | | | | | | | | |
Income (loss) before income taxes | | 57,428 | | (25,138 | ) | 109,081 | | 15,400 | |
Provision (benefit) for income taxes | | 21,019 | | (9,527 | ) | 41,060 | | 5,837 | |
Net income (loss) | | $ | 36,409 | | $ | (15,611 | ) | $ | 68,021 | | $ | 9,563 | |
| | | | | | | | | |
Diluted earnings (loss) per share | | $ | 0.33 | | $ | (0.15 | ) | $ | 0.62 | | $ | 0.09 | |
| | | | | | | | | |
Diluted weighted average shares outstanding | | 117,080 | | 101,666 | | 116,909 | | 102,125 | |
*Net income (loss) for 2006 has been restated for earnings on equity method investments to account for our investment in common shares of Andrx prior to the Andrx Acquisition using the equity method of accounting in accordance with Accounting Principles Board (“APB”) Opinion No. 18,“The Equity Method of Accounting for Investments in Common Stock” (“APB 18”).
The following table presents Watson’s Condensed Consolidated Balance Sheets as of June 30, 2007 and December 31, 2006:
Table 2
Watson Pharmaceuticals, Inc.
Condensed Consolidated Balance Sheets
(Unaudited; in thousands)
| | June 30, | | December 31, | |
| | 2007 | | 2006 | |
| | | | | |
Assets | | | | | |
Cash and cash equivalents | | $ | 74,852 | | $ | 154,171 | |
Marketable securities | | 10,513 | | 6,649 | |
Accounts receivable, net | | 301,602 | | 384,692 | |
Inventories | | 553,869 | | 517,236 | |
Other current assets | | 153,734 | | 198,928 | |
Property and equipment, net | | 694,440 | | 697,415 | |
Investments and other assets | | 133,366 | | 131,725 | |
Product rights and other intangibles, net | | 691,560 | | 779,284 | |
Goodwill | | 875,443 | | 890,477 | |
Total Assets | | $ | 3,489,379 | | $ | 3,760,577 | |
| | | | | |
Liabilities & Stockholders’ Equity | | | | | |
Current liabilities | | $ | 459,846 | | $ | 689,929 | |
Long-term debt | | 974,276 | | 1,124,145 | |
Deferred income taxes and other liabilities | | 290,361 | | 266,115 | |
Stockholders’ equity | | 1,764,896 | | 1,680,388 | |
Total liabilities and stockholders’ equity | | $ | 3,489,379 | | $ | 3,760,577 | |
The following table presents Watson’s Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2007 and 2006:
Table 3
Watson Pharmaceuticals, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited; in thousands)
| | Six Months Ended | |
| | June 30, | |
| | 2007 | | 2006 | |
| | | | Restated* | |
Cash Flows from Operating Activities: | | | | | |
Net income | | $ | 68,021 | | $ | 9,563 | |
Reconciliation to net cash provided by operating activities: | | | | | |
Depreciation and amortization | | 125,613 | | 106,770 | |
Non-cash impairment charges | | — | | 66,981 | |
Deferred income tax benefit | | (20,188 | ) | (61,887 | ) |
Provision for inventory reserve | | 26,946 | | 10,701 | |
Restricted stock and stock option compensation | | 6,910 | | 6,653 | |
Other adjustments to reconcile net income to net cash provided | | 2,034 | | (6,223 | ) |
Changes in assets and liabilities: | | | | | |
Accounts receivable, net | | 86,090 | | (13,618 | ) |
Inventories | | (67,980 | ) | (38,542 | ) |
Accounts payable and accrued expense | | (76,366 | ) | 84,425 | |
Income taxes payable | | 18,058 | | 35,106 | |
Prepaids and other changes to assets and liabilities | | 30,104 | | (3,704 | ) |
Total adjustments | | 131,221 | | 186,662 | |
Net cash provided by operating activities | | 199,242 | | 196,225 | |
Cash Flows from Investing Activities: | | | | | |
Additions to property, equipment and product rights | | (35,833 | ) | (18,481 | ) |
Acquisition of business, net of cash acquired | | — | | (29,664 | ) |
Other | | (2,019 | ) | (3,604 | ) |
Net cash used in investing activities | | (37,852 | ) | (51,749 | ) |
Cash Flows from Financing Activities: | | | | | |
Payments on term loan and long-term debt | | (251,881 | ) | (18,799 | ) |
Proceeds from stock plans | | 11,172 | | 7,283 | |
Net cash used in financing activities | | (240,709 | ) | (11,516 | ) |
Net (decrease) increase in cash and cash equivalents | | (79,319 | ) | 132,960 | |
Cash and cash equivalents at beginning of period | | 154,171 | | 467,451 | |
Cash and cash equivalents at end of period | | $ | 74,852 | | $ | 600,411 | |
*Net income for 2006 has been restated for earnings on equity method investments to account for our investment in common shares of Andrx prior to the Andrx Acquisition using the equity method of accounting in accordance with APB 18.
The following table presents a reconciliation of reported net income and earnings per diluted share to adjusted net income and earnings per share for the three and six months ended June 30, 2007 and 2006:
Table 4
Watson Pharmaceuticals, Inc.
Reconciliation Table
(Unaudited; in thousands except per share amounts)
| | Three Months Ended June 30, | | Six Months Ended June 30, | |
| | 2007 | | 2006 | | 2007 | | 2006 | |
| | | | Restated* | | | | Restated* | |
GAAP to adjusted net income calculation | | | | | | | | | |
| | | | | | | | | |
Reported GAAP net income (loss) | | $ | 36,409 | | $ | (15,611 | ) | $ | 68,021 | | $ | 9,563 | |
Adjusted for: | | | | | | | | | |
Acquisition charges | | 2,217 | | (12 | ) | 9,578 | | 81 | |
Gain on sale of securities | | (683 | ) | — | | (2,472 | ) | (3,695 | ) |
Loss on asset impairment | | — | | 66,981 | | — | | 66,981 | |
Early extinguishment of debt | | 1,681 | | (195 | ) | 4,410 | | 525 | |
Legal settlement | | (842 | ) | — | | 158 | | — | |
Income taxes | | (869 | ) | (25,307 | ) | (4,478 | ) | (24,229 | ) |
Adjusted net income | | 37,913 | | 25,856 | | 75,217 | | 49,226 | |
Add: Interest expense on CODES, net of tax | | 2,058 | | 1,784 | | 4,001 | | 3,459 | |
Adjusted net income, adjusted for interest on CODES | | $ | 39,971 | | $ | 27,640 | | $ | 79,218 | | $ | 52,685 | |
| | | | | | | | | |
Diluted earnings per share - GAAP | | | | | | | | | |
| | | | | | | | | |
Diluted earnings per share - GAAP | | $ | 0.33 | | $ | (0.15 | ) | $ | 0.62 | | $ | 0.09 | |
| | | | | | | | | |
Basic weighted average common shares outstanding | | 102,093 | | 101,666 | | 102,178 | | 101,742 | |
Effect of dilutive securities: | | | | | | | | | |
Conversion of CODES | | 14,357 | | — | | 14,357 | | — | |
Dilutive stock options | | 630 | | — | | 374 | | 383 | |
Diluted weighted average common shares outstanding | | 117,080 | | 101,666 | | 116,909 | | 102,125 | |
| | | | | | | | | |
Diluted earnings per share - Adjusted | | | | | | | | | |
| | | | | | | | | |
Diluted earnings per share - Adjusted | | $ | 0.34 | | $ | 0.24 | | $ | 0.68 | | $ | 0.45 | |
| | | | | | | | | |
Basic weighted average common shares outstanding | | 102,093 | | 101,666 | | 102,178 | | 101,742 | |
Effect of dilutive securities: | | | | | | | | | |
Conversion of CODES | | 14,357 | | 14,357 | | 14,357 | | 14,357 | |
Dilutive stock options | | 630 | | 181 | | 374 | | 383 | |
Diluted weighted average common shares outstanding | | 117,080 | | 116,204 | | 116,909 | | 116,482 | |
* Net income (loss) for 2006 has been restated for earnings on equity method investments to account for our investment in common shares of Andrx prior to the Andrx Acquisition using the equity method of accounting in accordance with APB 18.
The following table presents a reconciliation of reported net income for the three and six months ended June 30, 2007 and 2006 to adjusted EBITDA:
Table 5
Watson Pharmaceuticals, Inc.
Adjusted EBITDA Reconciliation Table
(Unaudited; in millions)
| | Three Months Ended June 30, | | Six Months Ended June 30, | |
| | 2007 | | 2006 | | 2007 | | 2006 | |
| | | | Restated* | | | | Restated* | |
| | | | | | | | | |
GAAP net income (loss) | | $ | 36.4 | | $ | (15.6 | ) | $ | 68.0 | | $ | 9.6 | |
Plus: | | | | | | | | | |
Interest expense | | 11.5 | | 3.3 | | 25.4 | | 6.6 | |
Interest income | | (1.8 | ) | (6.9 | ) | (4.7 | ) | (13.2 | ) |
Provision (benefit) for income taxes | | 21.0 | | (9.5 | ) | 41.0 | | 5.9 | |
Depreciation | | 19.5 | | 12.4 | | 37.5 | | 24.5 | |
Amortization | | 44.1 | | 41.1 | | 88.1 | | 82.2 | |
EBITDA | | 130.7 | | 24.8 | | 255.3 | | 115.6 | |
Adjusted for: | | | | | | | | | |
Non-cash impairment charges | | — | | 67.0 | | — | | 67.0 | |
Share-based compensation | | 3.5 | | 3.8 | | 6.9 | | 6.7 | |
Acquisition related charges | | 2.2 | | — | | 9.6 | | 0.1 | |
Litigation charge | | (0.8 | ) | — | | 0.2 | | — | |
Early extinguishment of debt | | 1.7 | | (0.2 | ) | 4.4 | | 0.5 | |
Gain on sales of securities | | (0.7 | ) | — | | (2.5 | ) | (3.7 | ) |
Adjusted EBITDA | | $ | 136.6 | | $ | 95.4 | | $ | 273.9 | | $ | 186.2 | |
*Net income (loss) for 2006 has been restated for earnings on equity method investments to account for our investment in common shares of Andrx prior to the Andrx Acquisition using the equity method of accounting in accordance with APB 18.
