(RTTNews) -  Wednesday, specialty pharmaceutical company Medicis Pharmaceutical Corp. (MRX: News ) reported a swing to third-quarter profit as revenues surged 31.5% on higher sales of Solodyn and the launch of Dysport. The company also provided guidance for the fourth quarter and fiscal 2009.

The Scottsdale, Arizona-based company reported net income of $21.1 million or $0.33 per share for the third quarter, compared to net loss of $14.7 million or $0.26 per share a year ago.

On a non-GAAP basis, net income increased to $32.1 million or $0.50 per share from $16.1 million or $0.26 per share in the prior-year quarter. Non-GAAP net income excludes charges totaling $11.0 million, consisting of a $17.0 million pre-tax charge for upfront and milestone research and development payments to Medicis partners and an income tax benefit of $6.0 million related to these transactions.

On average, 18 analysts polled by Thomson Reuters estimated earnings of $0.42 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the third quarter increased 31.5% to $151.8 million from $115.4 million for the third quarter of 2008, primarily due to the strength of Solodyn and the launch of Dysport during the quarter. Analysts estimated earnings revenues of $153.20 million for the quarter.

Segment wise, revenue from acne products, which includes Plexion, Solodyn, Triaz, and Ziana, increased 61.1% to $106.8 million, primarily due to increased sales of Solodyn and Triaz. Revenue from non-acne products, which include Dysport, Loprox, Perlane, Restylane, and Vanos, rose 4.2% to $35.5 million on increased sales of Restylane and the launch of Dysport in the quarter. Revenue from other non-dermatological products plunged 36.9% to $9.5 million.

Gross profit margin for the quarter increased to 91.1% from 90.6% on increased sales of the higher-margin product Solodyn.
The company had an operating income of $31.82 million, compared to an operating loss of $11.72 million for the quarter.

Selling, general and administrative expense for the quarter remained relatively flat at $71.9 million compared to $71.6 million for the third quarter of 2008.

R&D expense for the quarter declined to $27.4 million from $37.6 million last year.

For the nine-month period, net income increased to $37.07 million or $0.60 per share from $18.88 million or $0.33 per share in the year-earlier period. Revenue for the period increased to $392.88 million from $381.78 million in the prior-year period.

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