EX-99.1 2 a37176exv99w1.htm EXHIBIT 99.1 Exhibit 99.1
 

Exhibit 99.1
The following unaudited pro forma condensed consolidated statements of operations for the years ended December 31, 2006 and 2005 and unaudited pro forma condensed consolidated balance sheet as of September 30, 2007 give effect to the sale of Infergen, which was consummated on January 14, 2008. The pro forma condensed consolidated financial information should be read in conjunction with the Company’s historical financial statements and related notes thereto contained in its combined Annual Report on Form 10-K for the year ended December 31, 2006 and its Quarterly Report on Form 10-Q for the quarter ended September 30, 2007.
The results of operations for Infergen were classified as discontinued operations in the unaudited consolidated financial statements and notes in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2007, in accordance with Statement of Financial Accounting Standards No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets.” Accordingly, there are no pro forma adjustments to continuing operations necessary to reflect the Company’s sale of Infergen for the nine-month period ended September 30, 2007, and thus the Company has not presented the September 30, 2007 statements of operations herein.
The Company acquired the rights to Infergen on December 30, 2005. Accordingly, there are no pro forma adjustments to continuing operations required for the results of operations for the year ended December 31, 2004. The only pro forma adjustment to continuing operations for the year ended December 31, 2005 is to remove the acquired in-process research and development charge of $47,200,000 recorded in 2005.
The unaudited pro forma condensed consolidated balance sheet contained herein contains estimates based on presently available information and certain assumptions that the Company believes are reasonable. The actual amounts could differ from these estimates. The unaudited pro forma condensed consolidated balance sheet is presented for illustrative purposes only and is not necessarily indicative of the financial position that would have been achieved by the Company had the sale of Infergen been completed as of the dates indicated, or of the financial position that may be obtained by the Company in the future. In addition, the unaudited pro forma condensed consolidated balance sheet does not reflect changes that may occur as a result of activities subsequent to the disposition described above.

 


 

Pro Forma Condensed Statement of Operations
                                                 
    Year Ended December 31,     Year Ended December 31,  
(in thousands)   2006     2006     2006     2005     2005     2005  
    (as reported)     (adjustments)     (as adjusted)     (as reported)     (adjustments)     (as adjusted)  
Revenues:
                                               
Product sales
  $ 825,996     $ (42,716 )(1)   $ 783,280     $ 732,240     $     $ 732,240  
Ribavirin royalties
    81,242             81,242       91,646             91,646  
 
                                   
Total revenues
    907,238       (42,716 )     864,522       823,886             823,886  
 
                                   
Costs and expenses:
                                               
Cost of goods sold (excluding amortization)
    256,980       (18,838 )(1)     238,142       222,358             222,358  
Selling expenses
    264,834       (20,077 )(1)     244,757       232,316             232,316  
General and administrative expenses
    117,172       (1,315 )(1)     115,857       108,252             108,252  
Research and development costs
    109,618       (4,176 )(1)     105,442       114,100             114,100  
Acquired in-process research and development
                      173,599       (47,200 )(1)     126,399  
Gain on litigation settlements
    (51,550 )           (51,550 )                  
Restructuring charges and asset impairment
    138,181             138,181       1,253             1,253  
Amortization expense
    71,876       (6,600 )(1)     65,276       68,832             68,832  
 
                                   
Total costs and expenses
    907,111       (51,006 )     856,105       920,710       (47,200 )     873,510  
 
                                   
Income (loss) from operations
    127       8,290       8,417       (96,824 )     47,200       (49,624 )
Other income (loss), net, including translation and exchange
    1,152             1,152       (6,358 )           (6,358 )
Interest income
    12,610             12,610       13,169             13,169  
Interest expense
    (43,726 )           (43,726 )     (40,326 )           (40,326 )
 
                                   
Income (loss) from continuing operations before income taxes and minority interest
    (29,837 )     8,290       (21,547 )     (130,339 )     47,200       (83,139 )
Provision (benefit) for income taxes
    34,219       45       34,264       55,151             55,151  
Minority interest, net
    3             3       287             287  
 
                                   
Income (loss) from continuing operations
  $ (64,059 )   $ 8,245     $ (55,814 )   $ (185,777 )   $ 47,200     $ (138,577 )
 
                                   
Basic and diluted income (loss) per share:
                                               
Loss from continuing operations
  $ (0.69 )   $ 0.09     $ (0.60 )   $ (2.03 )   $ 0.52     $ (1.51 )
 
                                   
Shares used in per share computations
    93,251               93,251       91,696               91,696  
 
                                   
 
(1)   To eliminate the operations directly related to the Infergen product rights.

 


 

Pro Forma Condensed Balance Sheet
(in thousands)
                         
    September 30,             September 30,  
    2007           2007  
    (unaudited)     (adjustments)     (adjusted)  
                    (unaudited)  
ASSETS
                       
Current Assets:
                       
Cash and cash equivalents
  $ 354,996     $ 70,800 (3)   $ 425,796  
Accounts receivable, net
    200,742       17,900 (3)     218,642  
Inventories, net
    117,105             117,105  
Assets held for sale and assets of discontinued operations
    65,395       (65,395 )(2)      
Other current assets
    43,590             43,590  
 
                 
Total current assets
    781,828       23,305       805,133  
Property, plant and equipment, net
    110,591             110,591  
Other non-current assets
    603,992             603,992  
 
                 
Total non-current assets
    714,583             714,583  
 
                 
 
  $ 1,496,411     $ 23,305     $ 1,519,716  
 
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY
                       
Current Liabilities:
                       
Trade payables
  $ 39,476           $ 39,476  
Accrued liabilities
    142,009       12,600 (2)     154,609  
Other current liabilities
    15,646             15,646  
 
                 
Total current liabilities
    197,131       12,600       209,731  
Long-term debt, less current portion
    780,318             780,318  
Other non-current liabilities
    83,101             83,101  
 
                 
Total non-current liabilities
    863,419             863,419  
 
                 
Total liabilities
    1,060,550       12,600       1,073,150  
 
                 
Stockholders’ Equity:
                       
Accumulated deficit
    (837,029 )     10,705 (4)     (826,324 )
Other stockholders equity
    1,272,890             1,272,890  
 
                 
Total stockholders’ equity
    435,861       10,705       446,566  
 
                 
 
  $ 1,496,411     $ 23,305     $ 1,519,716  
 
                 
 
 
(2)   To eliminate the assets of the Infergen product rights that have been sold and to record certain liabilities related to this transaction.
 
(3)   To reflect the receipt of cash proceeds of $70.8 million at closing and $17.9 million, representing notes receivable proceeds of $20.5 million less $2.6 million for imputed interest and potential off-set amounts.
 
(4)   To reflect net gain on sale as if sale was closed on pro forma balance sheet date.