MRX MRX
Q2 2011 Earnings Call Transcript

Operator: Corey Davis, Jefferies.

Corey Davis - Jefferies: I just want to ask about your earnings guidance for Q3. It’s kind of unusual to see Medicis with $0.19 swing. So, can you describe in maybe a little bit more detail what happens at the bottom-end of that range and what happens at the top-end of that range?

Mark A. Prygocki, Sr. - President: Sure, Corey. What we put it in there was really based on the sales and the predictability of the reserves during the quarter. So what we put in there was we believe an achievable goal with the new SOLODYN strategy trying to understand exactly what impact that will have on both the retailers and the wholesalers. As Jonah mentioned in the opening remarks, we’re hopeful that both ours and generic inventory in the channel will be depleted and that we'll have the ability to have several months hopefully without prescriptions being generated. That's our assumption. We’re not sure exactly if that's going to happen. We’ll monitor it very closely. So we put a margin of error in our top-line that will hopefully account for that if the switchover to the newer strength is greater than we anticipate. There may be some opportunity on the top side and if we see improvement in the ASP, due to some of our programs, there may be some room to hit that higher end of the guidance. So, we had to put a wider band on it this time and that just really falls down into the EPS guidance.

Corey Davis - Jefferies: Second question probably for Jonah. In your prepared remarks in the beginning, I think I heard you say, something to effect that there are perhaps a couple of near-term on market opportunities in business development, and I can’t think of the last time although there’s probably one that I’m forgetting that where you bought a drug that's already on the market and presumably something like that would be accretive. So would that if I am correct -- would that represent kind of a change in your BD tactics over time or is that just taking advantage of certain opportunity that or isn't?

Jonah Shacknai - Chairman and CEO: In fact we have done this before on several occasions, the one, because you've been following us almost for the entirety for your career, the one that you may remember most was a brand called LOPROX which we purchased from what was then (indiscernible) it's later become part of a much larger conglomerate. We took that product, it was really languishing, it was probably the number seventh or eighth product in the market when we bought it with diminishing sales within two years, it was the number one product in the market added very significantly to our revenues and earnings and became a very important product in the, the leading product in the topical antifungal, it hit lots of things; our willingness to evaluate products is really predicated on the same things we would look at in an R&D or near market product and that is are we proud of the product. Will it perform exactly as physicians and patients would expect because we never ever want to put our sales reps in a position where they have to hold their nose and apologize for products, so we want things that are cutting edge and innovative and where we may see value that perhaps someone else didn't see, where we see a story that perhaps has never been discovered out of the league and never appropriately disseminated to physicians and patients, so we have a willingness to do this. Historically, we have not seen quite the same value in products that have been traded perhaps other companies have. So I think if you were to look at our business development activity, you see that we have looked at many things, but our assessment of value has often been less than what these products actually have traded for other parties. So, nothing new in this strategy and obviously we're hopeful that this is rate match and fit for us as we go forward.