Tuesday, February 01, 2005


King info, including Altace price increases

Don't expect Hilly boy to fight for lower costs of prescription drugs when he is in so deep in the Gregory family wallet.

Check out how Altace drug price increases helped King make plenty more in 2002.

The following information is extracted from the King Pharmaceuticals, Inc. SEC 10-K yearly reports that are available online from both the U.S. Securties and Exchange Commission (EDGAR search) and the King Pharmaceuticals, Inc. (Investors) web site.

King Pharmaceuticals, Inc. 2002 10-K p.58 Altace price increases

Net sales of Altace(R), an ACE inhibitor, grew to $450.0 million for the year ended December 31, 2002, a 58% increase from $284.7 million during the prior year. Altace(R) new prescriptions totaled approximately 3.5 million and total prescriptions equaled approximately 10.6 million during 2002, increases of 41% and 50%, respectively, over the prior year according to IMS America monthly prescription data. Monthly total prescriptions of Altace(R) exceeded one million for the first time during December 2002 according to IMS America data. Contributing also to the continued sales growth of Altace(R) is the sustained shift to 10mg Altace(R), the same dose used in the landmark HOPE trial. Specifically, total prescriptions for 10mg Altace(R) during 2002 increased approximately 71% over the prior year, in comparison to an increase of 36% for the other strengths of Altace combined, according to NDC Health monthly prescription data.

* Additionally, price increases contributed to the continued sales growth of Altace(R) during 2002.
King Pharmaceuticals, Inc. 2001 10-K Gross Profit, p. 18

Total gross profit increased $135.7 million or 137.9% to $235.1 million in 1999 from $98.4 million in 1998. The increase was primarily due to increased gross profit from branded pharmaceutical products, offset by a decrease in contract manufacturing gross profit contribution.

The gross profit from branded pharmaceutical products increased $139.9 million or 148.0% to $234.3 million from $94.5 million. This increase was primarily due to increases in gross profit from the Altace product line acquired in December 1998, and the Lorabid product acquired in August 1999.
King Pharmaceuticals, Inc. 2001 10-K RISKS RELATED TO OUR BUSINESS, p.17


Altace(R) accounted for approximately 32.6% and Levoxyl(R) accounted for approximately 12.1% of our net sales for the year ended December 31, 2001, and Altace(R), Levoxyl(R), Thrombin-JMI(R), Lorabid(R), and royalty revenues collectively accounted for approximately 61.9% of our net sales during the same period. We believe that sales of these products will continue to constitute a significant portion of our total revenues for the foreseeable future.
Accordingly, any factor adversely affecting sales of any of these products or products for which we receive royalty payments could have a material adverse effect on our business, financial condition, results of operations and cash flows.

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