Question-and-Answer Session
Operator
Thank you. (Operator Instructions) Our first question comes from the line of Gregg Gilbert of Banc of America Merrill Lynch. Your line is open.
Gregg Gilbert - BAS-ML
Thanks, good morning. First of all Peter, what's the biggest change in guidance? Is it lower SG&A and R&D on a go forward basis, now that you've lived with the acquired assets?
Peter Blott
Thank you Greg. No I think its more an all rounded appreciation of the things that we've changed are starting to see effects and the confidence we have that those are going to continue throughout the year. I don't think its just on one line, the improvement in the SG&A or that R&D line. But also the confidence that we've got in the growth of the base business top line as well. I mean, Mike do you want to say anything more?
Gregg Gilbert - BAS-ML
What sales item does the cost of services, Peter, of 64% apply to?
Peter Blott
So we now -- following the acquisition of Dow right to the end of 2008, we've got services revenue within our P&L. And we've also got cost of services. So the effective margin is just that difference between those two. So just the cost of services goes with the services revenue.
Gregg Gilbert - BAS-ML
And what you're calling now service and alliance revenue, is that one and the same?
Peter Blott
No, we...
Gregg Gilbert - BAS-ML
Or you add something else into that line?
Peter Blott
No, I think if you look at the press table one; you'll see that service revenue broken out separately from alliance revenue and it is the cost of services goes with the service revenue.
Gregg Gilbert - BAS-ML
Okay. And one more and I'll get back in line. The Retigabine paying (ph) date, what's the latest timing there and how will you disclose that? Thanks.
J. Michael Pearson
It's going to be in the summer and we will we'll reach agreement with Glaxo at the next joint steering committee meeting in terms of how we intent to release it.
Operator
Thank you and our next question comes from the line of Gary Nachman of Leerink Swann. Your line is open.
Gary Nachman - Leerink Swann LLC
Hi good morning, first question how is the swine flu affecting your business in Mexico if at all, and when you guys talk about new products contributing in 2009 for both Latin America and Europe, how big of a contribution could that be just in order of magnitude?
- To read the full transcript on Seeking Alpha, click here »
