Question-and-Answer Session
Operator
(Operator instructions) Let’s begin with Corey Davis with Natixis.
Corey Davis – Natixis
Thanks very much. Really just one question. That is in terms of your guidance for Q4, the reduction from your previous guidance in terms of revenue, is that coming from roll-forward effect of the restatements from continued inventory work done on SOLODYN, or RESTYLANE weakness, or a little bit of all of the above?
Mark Prygocki
I think it’s a combination of the last two, Corey. This is Mark Prygocki. I think – in that guidance, I think we were conservative in the ongoing trend, what's going on with the economy, as well as being cautious in what happens in the SOLODYN franchise. And as you may recall, it was very difficult first to give guidance in this regard because of all the uncertainties that we’ve mentioned in the press release. So we did our best to give the most conservative guidance we believe at a point in time where there is a lot of moving pieces. So –
Corey Davis – Natixis
Sure. And yet if I’m seeing the numbers correctly, you’re still keeping your EPS guidance. So, the expense savings relative to where you were before, is that going to come from any one particular item?
Mark Prygocki
I think again it’s across the board. Our managers have done a very good job in going back really in cutting non-core, non-strategic expenses in order to achieve objectives that were appropriate for this given year.
Corey Davis – Natixis
And so would you anticipate that some of that might impinge upon what you had budgeted for launch plans for RELOXIN?
Mark Prygocki
No. I think we would consider that a core asset that we will spend as necessary in order to achieve the market share we expect.
Corey Davis – Natixis
Last question. I know that it’s impossible to predict a lot of these things, but assuming you don’t see a devastating impact on SOLODYN, would you expect just directionally ’09 to be an up, flat, or down year?
Jonah Shacknai
I think we’d see it as being an up year. Assuming that the approval of RELOXIN occurs as planned, I think we have fair assumptions that would be very pleasing to shareholders of the market penetration for RELOXIN. SOLODYN continues to grow in part because of the extraordinary recognition it has as a safe and effective agent for the treatment of moderate to severe acne, in part of because of programs we’ve put in place to help consumers to get the drug at the pharmacy on a very reasonable basis, and the facility that that provides dermatologists in prescribing the product. And I think we’re hoping for some stabilization in the dermal filler category. We continue to have a lot of price competition in that category. No doubt this has effect. And nevertheless, we are trying to promote the product directly to consumers creating value for consumers with variation promotional strategies. You’re aware during this quarter that we have had a – up to $100 rebate program for consumers. That’s been very well received. The money goes directly to them. We believe that there were thousands of procedures that occurred because of that program in the United States this quarter. So the things we’re doing are responsive to the economic conditions, but obviously we’re just a little grain of sand in the world economy and we are subject to the vicissitudes of trends as much as or more than any other company. So we do our best. We’re trying to be very micro-focused in our marketing with programs region-by-region, state-by-state, understanding that there are challenges in the local economies as well as the national economy. So we’re doing our best in all respects to stabilize the aesthetic franchise.
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