will restate results back to 1998 after the SEC advised it to change its accounting for a stock-sale and distribution agreement. The restatement relates to a March 1998 agreement with Merck KgaA in which it sold the German firm 10.4 million shares and entered a product distribution pact. The SEC said the deal should have been booked as a single transaction instead of two separate ones. The company plans to value the distribution agreement at $29 million and record it as a balance sheet asset that it will amortize over 15 to 20 years, retroactive to 1998. In addition, Pharmaceutical Resources raised its third-quarter revenue and earnings to reflect reduction of an accrual for anticipated inventory price reductions.
Earnings Reports & Outlooks
swung to a profit in the fourth quarter on growth in rental revenue. The company reported net income of $74.7 million, or $1.35 a share, compared with a year-earlier net loss of $455.5 million, or $9.85 a share. Hollywood posted fourth-quarter adjusted net income of $17.8 million, or 32 cents a share, beating the analyst estimate by 3 cents. The company said its results benefited mainly from the reversal of accruals for planned store closures and the recognition of deferred tax assets.
Mergers, Acquisitions & Joint Ventures
agreed to acquire
for cash and stock worth $553.7 million. Cytyc will pay $76.9 million in cash and issue about 23 million common shares. The deal is expected to dilute Cytyc's 2002 earnings by 4 cents to 5 cents a share, and add to earnings in 2003 and beyond. The company expects to take a charge of up to $65 million, primarily to write off research and development.
said it will offer to buy the outstanding shares of
for $23 each, or $345 million cash. Travelocity, which is already about 70%-owned by Sabre, said it formed a special committee of its board to weigh the offer.
SG Cowen said physicians have told it that
Zenepax hasn't shown results to indicate that it can maintain remission in psoriasis patients. The brokerage reduced its revenue estimates for the company by $9.8 million this year and $95.7 million in 2003. SG Cowen also pushed out revenue related to Xolair to account for development delays.
NII Holdings plans to record restructuring charges of $1 billion to $2 billion as a result of its cash preservation initiatives and proposed debt restructuring. NII is in discussions with its various creditors regarding the restructuring its debt, which could include a sale of assets or reorganization under Chapter 11. NII Holdings is a wholly-owned indirect subsidiary of Nextel whose debt obligations are non-recourse to Nextel.
initiated a multicenter trial of its lead antisense drug Genasense in combination with Rituxan for patients with non-Hodgkin's lymphoma. The trial will also examine Genasense with standard chemotherapy in patients with a highly aggressive form of NHL known as mantle cell lymphoma.
said its president and chief executive Thomas Miller resigned from the firm on Feb. 15. The company said in a statement that Executive Chairman Bernard Gordon will act as CEO until a successor to Miller is named. The company didn't explain why Miller left.