Net income on a non-GAAP basis, excluding the loss on extinguishment of debt and non-cash adjustments related to the repurchase of a portion of our 2028 Notes in March 2012, the difference between income taxes paid and income taxes expensed, and non-cash depreciation, amortization, stock-based compensation and convertible debt interest expense, was $50.1 million, or $0.79 per share, fully diluted, for the three-month period ended June 30, 2012 and $94.8 million or $1.48 per share, fully diluted for the six-month period ended June 30, 2012. We believe these non-GAAP measures might provide investors additional relevant information, in part for purposes of historical comparison. In addition, we use these non-GAAP measures to analyze our performance in more detail and with better historical comparability; however, you should be aware that non-GAAP measures are not superior to, nor a substitute for, the comparable GAAP measures. A reconciliation of our non-GAAP measures to the comparable GAAP measures is provided in the accompanying financial table.
Cash and cash equivalents were $715.9 million as of June 30, 2012.
Adam Derbyshire, Executive Vice President and Chief Financial Officer, stated, “XIFAXAN 550 mg continued to perform well during the second quarter of 2012. During the quarter our XIFAXAN prescription business, comprised of XIFAXAN 200 mg tablets and XIFAXAN 550 mg tablets, demonstrated impressive growth, on a milligram basis, of 22% compared to the second quarter of 2011. APRISO also demonstrated strong prescription year-over-year growth of 27% for the second quarter of 2012 compared to the second quarter of 2011. RELISTOR prescriptions increased 89% year-over-year for the second quarter of 2012 compared to the second quarter of 2011, when our commercial team launched the product.
“We are updating our estimate of 2012 financial guidance. Prior 2012 financial guidance incorporated anticipated costs and revenue associated with the expansion of our sales force and incremental RELISTOR sales that would have been triggered by a July 27, 2012 FDA approval of the expanded indication for RELISTOR subcutaneous injection. Due to the receipt of a Complete Response letter on July 27, 2012, our updated estimate of 2012 financial guidance does not incorporate these anticipated RELISTOR-related costs and revenue. Additionally, our updated estimate of 2012 adjusted net income includes the effect of the March 16, 2012 placement of $690 million of convertible senior notes and adjustments relating to the impact of the following non-cash items: loss on extinguishment of debt, depreciation, amortization, stock-based compensation, convertible debt discount amortization and the difference between income taxes paid and income taxes expensed. Reconciliation to GAAP guidance is in the table following this paragraph. Our estimate of 2012 total Company product revenue remains approximately $735 million, representing 36% growth over 2011 revenue. However, we are increasing our estimate of 2012 adjusted net income to approximately $183 million or $2.86 per share, fully diluted on a non-GAAP basis for the full year ending December 31, 2012.
|(In millions except per share data)||2012||2012||2012|
|GAAP Guidance||Adjustments||As Adjusted|
|Net product revenues||$||735||$||735|
|Costs and Expenses:|
|Cost of products sold||145||145|
|Amortization of product rights and intangible assets||42||(42)||-|
|Research and development||136||(7)||129|
|Selling, general and administrative||258||(22)||236|
|Total costs and expenses||581||(71)||510|
|Income from operations||154||71||225|
|Loss on extinguishment of debt||(14)||14|
|Interest and other income||12||(9)||3|
|Income before income tax||95||113||208|
|Income tax expense||43||(18)||25|
|Income per share, basic||$||0.90||$||2.26||$||3.16|
|Income per share, diluted||$||0.81||$||2.05||$||2.86|
|Shares used in computing net income per share, basic||58||58||58|
|Shares used in computing net income per share, diluted||64||64||64|
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