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Warner Chilcott Reports Operating Results for the Quarter Ended March 31, 2010

May 7, 2010

ARDEE, Ireland, May 7 /PRNewswire-FirstCall/ — Warner Chilcott plc (Nasdaq: WCRX) today announced its results for the quarter ended March 31, 2010. Revenue in the quarter was $761.3 million, an increase of $515.3 million, or 209.5%, over the prior year quarter. The primary drivers of the increase in revenue were the products acquired from The Procter & Gamble Company (“P&G”), primarily ACTONEL, ASACOL and ENABLEX, which together contributed $445.5 million of revenue growth in the quarter ended March 31, 2010, compared to the prior year quarter. For the quarter ended March 31, 2010, revenues contributed by all of the new products acquired from P&G totaled $478.3 million. Also contributing to the increase in revenue was growth in the net sales of LOESTRIN 24 FE, which contributed $26.4 million of revenue growth in the quarter ended March 31, 2010, compared to the prior year quarter. The growth delivered by these products was partially offset by net sales declines in certain other products.

The acquisition of the global branded prescription pharmaceuticals business (“PGP”) of P&G on October 30, 2009 (the “PGP Acquisition”) significantly impacted the Company’s financial position and results of operations in the quarter ended March 31, 2010. The Company reported a GAAP net (loss) of $(17.2) million, or $(0.07) per diluted share, in the quarter ended March 31, 2010, compared with GAAP net income of $43.3 million, or $0.17 per diluted share, in the prior year quarter. Included in cost of sales in the Company’s first quarter results was a $93.7 million expense, net of tax, attributable to a purchase accounting adjustment that increased the opening value of the inventories acquired in the PGP Acquisition. Also included in the results for the quarter ended March 31, 2010 was a $24.6 million gain, net of tax, resulting from the Company’s sale of certain inventories to LEO Pharma A/S (“LEO”) in connection with a transaction completed during the third quarter of 2009 (the “LEO Transaction”). Cash net income (“CNI”) for the quarter ended March 31, 2010 was $154.6 million compared to $97.7 million in the prior year quarter. Excluding the purchase accounting expense included in cost of sales and the gain relating to the sale of certain inventories in connection with the LEO Transaction, adjusted CNI was $223.7 million, or $0.88 per diluted share.

References in this release to “cash net income” or “CNI” mean our net income adjusted for the after-tax effects of two non-cash items: amortization (including impairments, if any) of intangible assets and amortization (including write-offs, if any) of deferred loan costs related to our debt. Reconciliations from our reported results in accordance with US GAAP to CNI, adjusted CNI and adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) for all periods are presented in the tables at the end of this press release.

Revenue

Revenue in the quarter ended March 31, 2010 was $761.3 million, an increase of $515.3 million, or 209.5%, over the prior year quarter. In addition to transactions such as the PGP Acquisition, period over period changes in the net sales of our products are a function of a number of factors including changes in: market demand, gross selling prices, sales-related deductions from gross sales to arrive at net sales and the levels of pipeline inventories of our products held by our direct and indirect customers. We use IMS Health, Inc. estimates of filled prescriptions for our products as a proxy for market demand in the U.S.

Net sales of our oral contraceptive products increased $23.7 million, or 32.3%, in the quarter ended March 31, 2010, compared with the prior year quarter. LOESTRIN 24 FE generated revenues of $78.8 million in the quarter ended March 31, 2010, an increase of 50.4%, compared with $52.4 million in the prior year quarter. The increase in LOESTRIN 24 FE net sales was primarily due to increases in filled prescriptions of 70.8% and higher average selling prices, offset in part by the impact of higher sales-related deductions primarily due to increased utilization of customer loyalty cards and the contraction of pipeline inventories relative to the prior year quarter.

Revenues of ACTONEL were $262.3 million in the quarter ended March 31, 2010. Revenues in North America totaled $153.8 million, including $120.3 million in the United States. Generic competition in Canada began to negatively impact our net sales of ACTONEL in the first quarter of 2010 and we expect generic competition in Western Europe to negatively impact our net sales of ACTONEL beginning in the fourth quarter of 2010. In addition, in the United States, ACTONEL continues to face market share declines due to the impact of managed care initiatives encouraging the use of generic versions of other products.

Net sales of our dermatology products increased $8.6 million, or 7.5%, in the quarter ended March 31, 2010, compared with the prior year quarter. Net sales of DORYX were essentially flat as compared to the prior year quarter as increases in filled prescriptions of 32.1% and higher average selling prices were offset by increases in sales related deductions and a contraction of pipeline inventories relative to the prior year quarter. The increase in sales related deductions compared to the prior year quarter was primarily due to the increased usage of our customer loyalty card for DORYX 150 mg. DOVONEX and TACLONEX revenues recorded during the quarter ended March 31, 2010 totaled $72.7 million, a net increase of $8.1 million as compared to the prior year quarter. As a result of the LEO Transaction and related distribution agreement with LEO, we record revenue and cost of sales at distributor margins for all TACLONEX and DOVONEX products. We will continue to record revenue and cost of sales from the distribution of the products for LEO during 2010 until the termination of the distribution agreement. This will continue to negatively impact our gross margin percentage during the distribution period.

Net sales of ASACOL in the quarter ended March 31, 2010 were $165.0 million. Revenues in North America totaled $152.2 million, including $147.4 million in the United States.

Cost of Sales (excluding Amortization of Intangible Assets)

Cost of sales increased $168.6 million, or 346.0%, in the quarter ended March 31, 2010 compared with the prior year quarter, due to the 196.8% increase in product net sales, the $105.5 million impact of the purchase accounting inventory step-up as a result of the PGP Acquisition that was recognized in cost of sales in the quarter and approximately $73.0 million of costs for DOVONEX and TACLONEX products distributed at nominal distributor margins under the LEO distribution agreement. This increase was offset in part by a $25.1 million gain relating to the sale of certain inventories in connection with the LEO Transaction and the favorable change in product mix as a result of the PGP Acquisition. Our gross margin percentage, as a percentage of total revenue, decreased from 80.2% in the quarter ended March 31, 2009 to 71.4% in the quarter ended March 31, 2010. Excluding the $105.5 million purchase accounting expense included in cost of sales as a result of the PGP Acquisition, the impact of the gain from the LEO Transaction ($25.1 million) and the impact of the costs from the LEO distribution agreement ($73.0 million), our gross profit margin on total revenue, excluding revenues under the LEO distribution agreement ($72.7 million), was 90.7%.

Selling, General and Administrative (“SG&A”) Expenses

SG&A expenses for the quarter ended March 31, 2010 were $320.1 million, an increase of $273.3 million, or 584.4%, from $46.8 million in the prior year quarter. A&P expenses in the quarter ended March 31, 2010 increased $23.3 million, or 303.8%, compared with the prior year quarter, primarily due to advertising and other promotional spending attributable to the acquired PGP products. Selling and distribution expenses for the quarter ended March 31, 2010 increased by $144.9 million, or 633.6%, compared to the prior year quarter. The increase is primarily due to the Sanofi-Aventis U.S. LLC (“Sanofi”) co-promotion expense of $107.1 million under the Actonel Collaboration Agreement between us and Sanofi, increased headcount resulting from the acquisition of the PGP sales forces as well as new expenses related to the acquired PGP products. G&A expenses in the quarter ended March 31, 2010 increased $105.1 million, or 647.6%, compared with the prior year quarter, due in large part to increases in infrastructure costs, compensation expenses and professional and legal fees primarily relating to the PGP Acquisition. Included in G&A expenses in the quarter ended March 31, 2010 were $11.5 million of legal, consulting and other professional fees relating to the PGP Acquisition, expenses payable to P&G under our transition services agreement of $22.8 million and severance costs of $12.5 million.

Research and Development (“R&D”)

Our investment in R&D for the quarter ended March 31, 2010 was $31.1 million, an increase of $7.2 million, or 30.5%, compared with $23.9 million in the prior year quarter. The quarter ended March 31, 2009 included $11.5 million of milestone payments including $9.0 million to Dong-A PharmTech Co. Ltd. (“Dong-A”), upon the achievement of a developmental milestone under our agreement for the development of an orally-administered udenafil product for the treatment of erectile dysfunction and $2.5 million to NexMed, Inc. (“NexMed”) in connection with our acquisition of NexMed’s U.S. rights to its topically applied alprostadil cream. Excluding these milestone payments in 2009, R&D expenses increased $18.7 million. The increase in R&D expenses in the quarter ended March 31, 2010 relative to the prior year quarter was primarily due to costs incurred relating to ongoing clinical studies, the addition of R&D projects from PGP and higher costs associated with an increase in personnel and facilities.

Amortization of intangible assets

Amortization of intangible assets in the quarters ended March 31, 2010 and 2009 was $160.9 million and $57.0 million, respectively. The increase in amortization expense in the quarter ended March 31, 2010 compared to the prior year quarter was due primarily to the amortization of intellectual property assets acquired in the PGP Acquisition which accounted for $120.8 million of the amortization expense in the quarter ended March 31, 2010. We expect amortization expense to significantly increase in 2010 as a result of the PGP Acquisition.

Net Interest Expense

Net interest expense for the quarter ended March 31, 2010 was $72.4 million, an increase of $54.4 million, or 301.8%, from $18.0 million in the prior year quarter. Included in net interest expense in the quarter ended March 31, 2010 was $19.6 million relating to the write-off of debt finance costs associated with the purchase and redemption of the remaining portion of our 8.75% senior subordinated notes due 2015 (the “Notes”) and with the optional prepayment of $400.0 million of indebtedness under our new senior secured credit facilities (the “New Senior Secured Credit Facilities”). Included in net interest expense in the quarter ended March 31, 2009 was $1.3 million relating to the write-off of debt finance costs associated with the optional prepayment of $100.0 million of indebtedness under our prior senior secured credit facilities. Excluding the write-off of debt finance costs, net interest expense increased $36.1 million. The increase in net interest expense in the quarter ended March 31, 2010 was primarily due to an increase in the amount of our outstanding indebtedness under our New Senior Secured Credit Facilities used to fund the PGP Acquisition relative to our total outstanding indebtedness in the prior year quarter.

Net Income, CNI and Adjusted CNI

For the quarter ended March 31, 2010, we reported a net (loss) of $(17.2) million, or $(0.07) per diluted share, CNI was $154.6 million, and adjusted CNI was $223.7 million, or $0.88 per diluted share. Earnings per share figures are based on 252.9 million diluted ordinary shares outstanding. In calculating CNI, we add back the after-tax impact of the amortization (including impairments, if any) of intangible assets and the amortization (including write-offs, if any) of deferred loan costs. These items are tax-effected at the estimated marginal rates attributable to them. In the quarter ended March 31, 2010, the marginal tax rate associated with the amortization of intangible assets was 8.8% and the marginal tax rate for amortization (including write-offs) of deferred loan costs was 9.0%. Adjusted CNI for the quarter ended March 31, 2010 represents CNI as further adjusted to exclude (1) $93.7 million, net of tax, in cost of sales attributable to a purchase accounting adjustment that increased the opening value of the inventories acquired in the PGP Acquisition that was recorded in cost of sales as that inventory was sold and (2) a $24.6 million gain, net of tax, resulting from our sale of certain inventories to LEO.

Liquidity, Balance Sheet and Cash Flows

As of March 31, 2010, our cash and cash equivalents totaled $246.0 million and our total debt outstanding was $2,520.1 million. We generated $245.2 million of cash from operating activities in the quarter ended March 31, 2010, compared with $105.3 million of cash from operating activities in the prior year quarter, an increase of $139.9 million.

Subsequent Events

Sanofi

In April 2010, the Company and Sanofi entered into an amendment to the Actonel Collaboration Agreement. Under the terms of the amendment, the Company took full operational control over the promotion, marketing and R&D decisions for ACTONEL in the United States and Puerto Rico, and assumed responsibility for all associated costs relating to those activities. Prior to the amendment, the Company shared such costs with Sanofi in these territories. The Company remained the principal in transactions with customers in the U.S. and Puerto Rico and continues to invoice all sales in these territories. In return, it was agreed that Sanofi would receive, as part of the global collaboration payments between the parties, collaboration payments from the Company based on an agreed upon percentage of U.S. and Puerto Rico net sales for the remainder of the term of the Actonel Collaboration Agreement, which expires on January 1, 2015.

Dong-A

In April 2010, the Company amended its agreement with Dong-A to add the right to develop, and if approved, market in the U.S. and Canada, Dong-A’s udenafil product for the treatment of lower urinary tract symptoms associated with Benign Prostatic Hyperplasia (“BPH”). This amendment resulted in the Company making an up-front payment to Dong-A of $20.0 million in April 2010, which will be included in R&D expense in the second quarter of 2010. Under the amendment, the Company may make additional payments to Dong-A in an aggregate amount of $25.0 million upon the achievement of contractually-defined milestones in relation to the BPH product. The Company also agreed to pay Dong-A a percentage of net sales of the BPH product in the U.S. and Canada, if any.

2010 Financial Guidance Update

Based on its first quarter results and current outlook for the remainder of 2010, the Company is affirming its full year 2010 financial guidance for revenue, Adjusted CNI and Adjusted CNI per share. Certain categories within the financial guidance are being updated. Of particular note are a 100 basis point increase in the range of expected gross margin on revenue and a 300 basis point increase in the range of expected income taxes as a percentage of earnings before taxes and amortization.

The Company currently anticipates that R&D expenditures will be in the range of $180.0 to $200.0 million, inclusive of the $20.0 million up-front payment to Dong-A described above. Offsetting the additional milestone payment is a $20.0 million reduction of expected internal R&D spend based on our current development plans.

Changes to the Company’s full year 2010 guidance are summarized on the last page which is attached as an exhibit to this release.

Investor Conference Call

The Company is hosting a conference call open to all interested parties, on Friday, May 7, 2010 beginning at 8:00 AM EDT. The number to call within the United States and Canada is (877) 354-4056. Participants outside the United States and Canada should call (678) 809-1043. A replay of the conference call will be available for two weeks following the call and can be accessed by dialing (800) 642-1687 from within the United States and Canada or (706) 645-9291 from outside the United States and Canada. The passcode for the replay ID number is 71757054.

The Company

Warner Chilcott is a leading specialty pharmaceutical company currently focused on the gastroenterology, women’s healthcare, dermatology and urology segments of the North American and Western European pharmaceuticals markets. The Company is a fully integrated company with internal resources dedicated to the development, manufacturing and promotion of its products. WCRX-F

Forward Looking Statements

This press release contains forward-looking statements, including statements concerning our operations, our economic performance and financial condition, and our business plans and growth strategy and product development efforts. These statements constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words “may,” “might,” “will,” “should,” “estimate,” “project,” “plan,” “anticipate,” “expect,” “intend,” “outlook,” “believe” and other similar expressions are intended to identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. These forward-looking statements are based on estimates and assumptions by our management that, although we believe to be reasonable, are inherently uncertain and subject to a number of risks and uncertainties. The following represent some, but not necessarily all, of the factors that could cause actual results to differ from historical results or those anticipated or predicted by our forward-looking statements: our substantial indebtedness; competitive factors in the industry in which we operate (including the approval and introduction of generic or branded products that compete with our products); our ability to protect our intellectual property; a delay in qualifying our manufacturing facilities that produce our products or production or regulatory problems with either third party manufacturers upon whom we may rely for some of our products or our own manufacturing facilities; pricing pressures from reimbursement policies of private managed care organizations and other third party payors, government sponsored health systems, the continued consolidation of the distribution network through which we sell our products, including wholesale drug distributors and the growth of large retail drug store chains; the loss of key senior management or scientific staff; adverse outcomes in our outstanding litigation or an increase in the number of litigation matters to which we are subject; government regulation, including domestic and foreign health care reform, affecting the development, manufacture, marketing and sale of pharmaceutical products, including our ability and the ability of companies with whom we do business to obtain necessary regulatory approvals; our ability to manage the growth of our business by successfully identifying, developing, acquiring or licensing new products at favorable prices and marketing such new products; our ability to obtain regulatory approval and customer acceptance of new products, and continued customer acceptance of our existing products; changes in tax laws or interpretations that could increase our consolidated tax liabilities; our ability to realize the anticipated opportunities from the PGP Acquisition; the other risks identified in our periodic filings including our Annual Report on Form 10-K for the year ended December 31, 2009, and from time-to-time in our public filings, financial statements and other investor communications.

We caution you that the foregoing list of important factors is not exclusive. In addition, in light of these risks and uncertainties, the matters referred to in our forward-looking statements may not occur. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as may be required by law.

Reconciliations to GAAP Net Income

CNI

To supplement its condensed consolidated financial statements presented in accordance with US GAAP, the Company provides a summary to show the computation of CNI and Adjusted CNI. CNI is defined as the Company’s GAAP net income adjusted for the after-tax effects of two non-cash items: amortization (including impairments, if any) of intangible assets and amortization (including write-offs, if any) of deferred loan costs related to the Company’s debt. Adjusted CNI represents CNI as further adjusted to exclude one-time impacts from the LEO Transaction and the PGP Acquisition. The Company believes that the presentation of CNI and Adjusted CNI provides useful information to both management and investors concerning the approximate impact of the above items. The Company also believes that considering the effect of these items allows management and investors to better compare the Company’s financial performance from period-to-period, and to better compare the Company’s financial performance with that of its competitors. The presentation of this additional information is not meant to be considered in isolation of, or as a substitute for, results prepared in accordance with US GAAP.

Adjusted EBITDA

To supplement its condensed consolidated financial statements presented in accordance with US GAAP, the Company provides a summary to show the computation of adjusted EBITDA taking into account certain charges that were taken during the quarters ended March 31, 2010 and 2009. The computation of adjusted EBITDA is based on the definition of EBITDA contained in the Company’s New Senior Secured Credit Facilities.


    Company Contact:     Rochelle Fuhrmann
                         Investor Relations
                         973-442-3281
                         rfuhrmann@wcrx.com

                   WARNER CHILCOTT PUBLIC LIMITED COMPANY
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
          (In thousands of U.S. dollars, except per share amounts)
                                (Unaudited)

                                                          Quarter Ended
                                                          -------------

                                                    Mar-31-10    Mar-31-09
                                                    ---------    ---------

    REVENUE:
            Product net sales                        $709,456      $239,024
            Other revenue                              51,846         6,965
                                                         ----           ---

                Total revenue                         761,302       245,989

    COSTS & EXPENSES:
            Cost of sales (excludes amortization of
             intangible assets)                       217,436        48,750
            Selling, general and administrative       320,057        46,766
            Research and development                   31,148        23,872
            Amortization of intangible assets         160,912        56,993
            Interest (income)                             (43)          (65)
            Interest expense                           72,441        18,082
                                                         ----          ----

    (LOSS) / INCOME BEFORE TAXES                      (40,649)       51,591
            (Benefit) /provision for income taxes     (23,406)        8,255
                                                      -------           ---

    NET (LOSS) / INCOME                              $(17,243)      $43,336
                                                     ========       =======

    (Loss) / Earnings per share:
    Basic                                              $(0.07)        $0.17
                                                       ======         =====

    Diluted                                            $(0.07)        $0.17
                                                       ======         =====

    RECONCILIATIONS:
    Net (loss) / income - GAAP                       $(17,243)      $43,336
        + Amortization of intangible assets, net of
         tax                                          146,778        52,218
        + Amortization of deferred loan costs, net
         of tax                                        25,028         2,156
                                                       ------         -----

                CASH NET INCOME                      $154,563       $97,710
                                                     ========       =======

    Non-recurring, one-time charges included
     above (net of tax):

        + Write-off of fair value step-up on
         acquired inventories                          93,743             -
        + Gain recognized on sales of certain LEO
         inventories                                  (24,609)            -
                                                      -------           ---

                    ADJUSTED CASH NET INCOME         $223,697       $97,710
                                                     ========       =======

                 WARNER CHILCOTT PUBLIC LIMITED COMPANY
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                     (In thousands of U.S. dollars)
                              (Unaudited)

                                                      As of           As of
                                                      -----           -----
                                                   March 31,      December 31,
                                                       2010            2009
                                                   ---------      ------------

    ASSETS
        Current assets:
            Cash & cash equivalents                  $246,000         $539,006
            Accounts receivable, net                  306,361          339,753
            Inventories                               157,922          236,203
            Prepaid expenses & other current
             assets                                   177,403          229,309
                                                      -------          -------

                Total current assets                  887,686        1,344,271
                                                         ----           ------

        Other assets:
            Property, plant and equipment, net        184,275          177,825
            Intangible assets, net                  3,102,080        3,302,386
            Goodwill                                1,093,332        1,060,644
            Other non-current assets                  118,037          146,115
                                                         ----             ----

    TOTAL ASSETS                                   $5,385,410       $6,031,241
                                                   ==========       ==========

    LIABILITIES
        Current liabilities:
            Accounts payable                         $179,439         $168,477
            Accrued expenses & other current
             liabilities                              676,044          719,180
            Current portion of long-term debt         140,490          208,960
                                                         ----             ----

                Total current liabilities             995,973        1,096,617
                                                         ----           ------

        Other liabilities:
            Long-term debt, excluding current
             portion                                2,379,635        2,830,500
            Other non-current liabilities             143,113          215,031
                                                         ----             ----

                Total liabilities                   3,518,721        4,142,148
                                                       ------           ------

    SHAREHOLDERS' EQUITY                            1,866,689        1,889,093
                                                       ------           ------

    TOTAL LIABILITIES & SHAREHOLDERS'
     EQUITY                                        $5,385,410       $6,031,241
                                                   ==========       ==========

                    WARNER CHILCOTT PUBLIC LIMITED COMPANY
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
                        (In thousands of U.S. dollars)
                                  (Unaudited)

                                                       Quarter Ended
                                                       -------------

                                                 Mar-31-10    Mar-31-09
                                                 ---------    ---------

    CASH FLOWS FROM OPERATING ACTIVITIES:
    Net (loss) / income                           $(17,243)      $43,336
    Adjustments to reconcile net (loss) /
     income to net cash provided by
     operating activities:
        Depreciation                                 7,491         3,026
        Amortization of intangible assets          160,912        56,993
        Write-off of fair value step-up on
         acquired inventories                      105,504             -
        Amortization of debt finance costs          27,512         2,566
        Stock-based compensation expense             4,683         2,632
    Changes in assets and liabilities:
        Decrease in accounts receivable, prepaid
         and other assets                           74,817         3,882
        (Increase) in inventories                  (29,988)       (3,702)
        Increase /(decrease) in accounts
         payable, accrued expenses & other
         liabilities                                22,541        (1,517)
        (Decrease) in income taxes and other,
         net                                      (110,984)       (1,857)
                                                  --------        ------

    Net cash provided by operating
     activities                                   $245,245      $105,359
                                                  --------      --------

    CASH FLOWS FROM INVESTING ACTIVITIES:
        Purchase of intangible assets               (2,900)       (2,900)
        Capital expenditures                       (15,462)       (6,548)

    Net cash (used in) investing activities       $(18,362)      $(9,448)
                                                  --------       -------

    CASH FLOWS FROM FINANCING ACTIVITIES:
        Redemption of the Notes                    (89,460)            -
        Term repayments under New Senior Secured
         Credit Facilities                        (429,875)            -
        Term repayments under Prior Senior
         Secured Credit Facilities                       -      (101,494)
        Other                                        1,768           (15)
                                                       ---           ---

    Net cash (used in) financing activities      $(517,567)    $(101,509)
                                                 ---------     ---------

    Effect of exchange rates on cash and
     cash equivalents                               (2,322)            -

        Net (decrease) in cash and cash
         equivalents                             $(293,006)      $(5,598)
        Cash and cash equivalents, beginning of
         period                                    539,006        35,906
                                                   -------        ------

        Cash and cash equivalents, end of period  $246,000       $30,308
                                                  --------       -------

                      WARNER CHILCOTT PUBLIC LIMITED COMPANY
             Reconciliation of Net (Loss) / Income to Adjusted EBITDA
                          (In thousands of U.S. dollars)
                                   (Unaudited)

                                                        Quarter Ended
                                                        -------------

                                                  Mar-31-10    Mar-31-09
                                                  ---------    ---------

    RECONCILIATION TO ADJUSTED EBITDA:
    Net (loss) / income - GAAP                      $(17,243)     $43,336

        + Interest expense, as defined                72,441       18,017
        + (Benefit) /provision for income
         taxes                                       (23,406)       8,255
        + Non-cash stock-based compensation
         expense                                       4,683        2,632
        + Depreciation                                 7,491        3,026
        + Amortization of intangible assets          160,912       56,993
        + R&D milestone expense                            -       11,500
        + Write-off of fair value step-up
         on acquired inventories                     105,504            -
        + PGP Acquisition costs                       11,506            -
        + Severance costs                             12,530            -
                                                        ----            -

            Adjusted EBITDA of WC plc, as defined   $334,418     $143,759
                                                    ========     ========

        + Expenses of WC plc and other                 6,093        2,373
                                                         ---          ---

            Adjusted EBITDA of Warner Chilcott
             Holdings Company III, Limited, as
             defined                                $340,511     $146,132
                                                    ========     ========
    Note: Warner Chilcott Holdings Company III, Limited and certain of
    its subsidiaries are parties to our New Senior Secured Credit
    Facilities. Warner Chilcott plc is not a party to these agreements.
    Certain expenses included in Warner Chilcott plc's consolidated
    operating results are not deducted in arriving at Adjusted EBITDA
    for Warner Chilcott Holdings Company III, Ltd and its subsidiaries.

             WARNER CHILCOTT PUBLIC LIMITED COMPANY
                       REVENUE BY PRODUCT
                  (In millions of U.S. dollars)
                           (Unaudited)

                                           Quarter Ended March 31,
                                           -----------------------

                                                2010          2009
                                                ----          ----

    Women's Healthcare:
    Oral Contraceptives
        LOESTRIN 24 FE                         $78.8         $52.4
        FEMCON FE                               10.6          12.9
        Other Oral Contraceptives                7.4           7.8
                                                 ---           ---

            Total Oral Contraceptives          $96.8         $73.1
                                               -----         -----

    Hormone Therapy
        ESTRACE Cream                          $29.8         $23.2
        FEMHRT                                   9.3          12.7
        Other Hormone Therapy                    7.4           6.3
                                                 ---           ---

            Total Hormone Therapy              $46.5         $42.2
                                               -----         -----

    ACTONEL *                                 $262.3            $-
    Other women's healthcare
     products                                   10.7           4.1
                                                ----           ---

            Total Women's Healthcare          $416.3        $119.4
                                              ------        ------

    Dermatology:
        DORYX                                  $50.9         $50.4
        TACLONEX                                34.9          36.6
        DOVONEX                                 37.8          28.0
                                                ----          ----

            Total Dermatology                 $123.6        $115.0
                                              ------        ------

    Gastroenterology:
        ASACOL                                $165.0            $-

    Urology:
        ENABLEX *                               18.2             -

    Other:
        Other products net sales                26.0           0.9
        Contract manufacturing product
         sales                                   5.1           3.7
        Other revenue                            7.1           7.0
                                                 ---           ---

    Total Revenue                             $761.3        $246.0
                                              ======        ======
    * Includes "other revenue" as classified in our condensed
    consolidated statement of operations.

           WARNER CHILCOTT PUBLIC LIMITED COMPANY
                  SUMMARY OF SG&A EXPENSES
                (In millions of U.S. dollars)
                         (Unaudited)

                                       Quarter Ended
                                       -------------

                                Mar-31-10       Mar-31-09
                                ---------       ---------

    Advertising & promotion           $31.0            $7.7
    Selling & distribution            167.8            22.9
    General, administrative
     & other                          121.3            16.2
                                      -----            ----

        Total SG&A                   $320.1           $46.8
                                     ======           =====

                    Warner Chilcott PUBLIC Limited COMPANY
                       2010 Full Year Financial Guidance
            (In millions of U.S. dollars, except per share amounts)

                                    Original Guidance Revised Guidance
                                    ----------------- ----------------
                                       January 2010     May 2010 (1)
                                       ------------     ------------

    Adjusted Total Revenue (2)       $2,900 to $2,950  $2,900 to $2,950

    Adjusted Gross Margin as a % of
     Adjusted Total Revenue (3)            88% to 89%       89% to 90%

    Total SG&A Expenses (4)          $1,200 to $1,250  $1,200 to $1,250

    Total R&D Expenses (5)               $180 to $200      $180 to $200

    Total Income Tax Provision (6)     9%-10% of EBTA   12%-13% of EBTA

    Adjusted Net Income (7)              $190 to $215      $180 to $205

    Adjusted CNI (8)                     $842 to $867      $842 to $867

    Adjusted CNI per share (8) (9)     $3.30 to $3.40    $3.30 to $3.40

    (1) The 2010 revised guidance assumes that Roxane (a division of
    Boehringher Ingelheim Corporation) will not launch a generic Asacol
    400 mg product at risk in 2010, accounts for the amendment to the
    Actonel Collaboration Agreement in April 2010 and does not account
    for the impact of any future acquisitions or new partnership or in-
    licensing transactions subsequent to the date hereof. In addition
    and as noted below, the 2010 revised guidance excludes the LEO
    arrangement. As a result of this arrangement, until the distribution
    agreement is terminated, the Company will continue to record revenue
    and cost of sales related to the LEO products and will recognize a
    portion of the gain relating to certain inventories of such products
    as they are sold in 2010.
    (2) Adjusted total revenue excludes the impact of the Company's
    distribution arrangement with LEO.
    (3) Adjusted gross margin percentage excludes the amortization and
    impairments of intangible assets, the impact of the Company's
    distribution arrangement with LEO and the purchase accounting impact
    of the step-up of certain PGP inventories acquired in the PGP
    Acquisition which is included in cost of sales as the inventory is
    sold.
    (4) Total SG&A expense does not include any amount that may be
    payable in connection with the potential settlement of our
    outstanding litigation.
    (5) The 2010 revised guidance includes an up-front payment to Dong-
    A of $20.0 million in connection with the BPH product in April 2010.
    (6) The total 2010 tax provision is estimated as a percentage of
    adjusted earnings before taxes and book amortization (EBTA).
    (7) A reconciliation of 2010 expected GAAP net income to expected
    adjusted net income excludes the impact of the LEO distribution
    arrangement and the step-up of certain PGP inventories.
    (8) A reconciliation of 2010 expected adjusted net income to expected
    adjusted cash net income adds back the expected after tax impact of
    the amortization of intangibles ($593 million) and the after tax
    impact of deferred financing fees ($69 million).
    (9) Expected adjusted cash net income per share is based on 255
    million fully diluted ordinary shares.

SOURCE Warner Chilcott


Source: newswire