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Medicis Q1: One Day's Generic Competition Cost Company Up to 17% of Solodyn Sales

Medicis revenues declined 23 percent to $100 million in Q1 2009, underlining how dependent the company is on the launch of its competitor to Botox. Net income was just $329,000, down from $20.5 million.

While the company was expecting business to fall off -- it's concentrated in vanity pharma, the type of discretionary spend that people pull back on in a recession -- Medicis' problems were compounded by a (quickly snuffed) one-day generic launch.

Most of the revenue drop was attributed to a single day's sales of unauthorized generic Solodyn, the company's acne product. Medicis' skincare segment lost $13.6 million in sales in the period. Medicis doesn't break out its skincare products by brand, but the total drop was 17 percent.

If you assume that the entire 17 percent was due to Solodyn and add the $13.6 million back into the sales figure, then Medicis' business would still have lost $15.4 million in revenues, or seen a 12 percent dip. So this is a company with overall weakness, not bad luck on the mistaken generic launch front.

The company is in the midts of its Dysport launch, its cheaper competitor to Allergan's Botox. Early results from the launch will be in Q2's numbers.

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