Earnings Call Excerpt
OSI Pharmaceuticals Inc. (OSI)
Q4 2007 Earnings Call
February 21, 2008 5:00 pm ET
Executives
Kathy Galante - Head of IR and PR
Colin Goddard - CEO
Michael Atieh - CFO
Gabe Leung - President of Oncology
Analysts
Geoff Meacham - JPMorgan
Katherine Kim - Banc of America
Steve Harr - Morgan Stanley
Eric Ende - Merrill Lynch
Maged Shenouda - UBS
Jessica Li - Goldman Sachs
Mike King - Rodman & Renshaw
George Farmer - Wachovia Capital Markets
Presentation
Operator
Good day everyone and welcome to today's OSI Pharmaceuticals Fourth Quarter Year End 2007 Financial Results. Just as a reminder, today's call is being recorded. A telephone replay will be available from 7:00 p.m. central time today through midnight on March 6 by dialing 888-203-1112 or 719-457-0820 with an access code of 9608247.
At this time I would like to turn the call over to Ms Kathy Galante, Head of IR and PR. Please go ahead ma'am.
Kathy Galante
Good afternoon and welcome to our year end call. Joining me today I have Colin Goddard, our Chief Executive Officer; Mike Atieh, our Chief Financial Officer; and Gabe Leung, President of our Oncology Business.
We will begin with Mike, who will provide you with a summary of the financial results and guidance for 2008, after which Colin will come back and discuss corporate developments in our oncology and diabetes-obesity program.
Before we begin, I would like to remind you that we would be making forward-looking statements relating to financial results and clinical and regulatory developments on the call today. These statements cover many events that are outside of OSI's control and are subject to various risks that could cause the results to differ materially from those expressed in any forward-looking statement. I refer you to our SEC filings for a detailed description of the risk factors affecting our business.
Now, over to Mike.
Mike Atieh
Thank you Kathy and good afternoon. This afternoon, we reported fourth quarter EPS of $0.29 per share from continuing operations versus $0.15 a share from a year ago. For the full year 2007, our net income from continuing operations totaled $103 million or $1.70 per share. For your information, the per share impact of equity-based compensation included in these results was $0.06 per share in Q4 and $0.25 per share for the full year of 2007.
Sales of Tarceva reported by our partners Genentech and Roche for the fourth quarter and full year on a worldwide basis were $250 million and $886 million respectively with the US representing $112 million and $417 million respectively. Annual worldwide sales in 2007 represent a year-on-year growth of 36%, despite the fact that US sales were negatively impacted by $22 million in return for reserve adjustments in Q2 and Q3. Total Tarceva related revenue reached $74 million for Q4 and $268 million for the full year 2007, with the full year amount growing 29% versus 2006, largely driven the growth in royalties related to sales of Tarceva outside of the United States.
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