Actelion announces Full Year 2005 financial results
`
`Total net revenue up 41% to CHF 663.6 million – Tracleer® sales up 41 % to CHF 633.2 million - Op
`Net income of CHF 125.5 million – Rapidly growing PAH market – Expanding R&D pipeline – Ongoin
`investment forecasted for 2006
`
`
`ALLSCHWIL/BASEL, SWITZERLAND – 23 February 2006 – Actelion Ltd (SWX: ATLN) today announced its
`net revenue of CHF 663.6 million (FY 2004: 471.9 m) and operating expenses of CHF 511.3 million (FY 2004: 3
`of CHF 152.3 million (FY 2004: 85.6 m).
`
`
`Net income was CHF 125.5 million (FY 2004: 87.2 m, including a gain from discontinued operations of 9.6 m).
`2005 improved to CHF 5.62 compared to EPS of CHF 3.96 in 2004.
`
`
`On 31 December 2005, the company had a gross cash position of CHF 382.9 million (31 December 2004: 300.
`cash flow from operations of CHF 138.4 million (FY 2004: 91.7 m).
`
`Jean-Paul Clozel, M.D and Chief Executive Officer commented: “In 2005, our educational efforts resulted in a ra
`outstanding Tracleer® sales growth. We are well prepared for future growth, with Tracleer® being the best doc
`experienced marketing and sales team as well as by many label expansion studies. Unforeseen events excluded
`1 billion Swiss Francs in total net revenues by no later than 2009.”
`
`Jean-Paul Clozel concluded: “With a rapidly expanding pipeline, operating profitability, cash generation from op
`1000 worldwide, Actelion has achieved full strategic freedom to pursue multiple options to further accelerate gr
`
`
`Andrew J. Oakley, Chief Financial Officer commented: “With the PAH market continuing to expand, the outstan
`Unforeseen events excluded, I expect Actelion’s 2006 total net revenue to reach between 810 and 840 million
`
`
`Andrew J. Oakley added: “Our operating expenses in 2005 increased to CHF 511.3 million, in line with the over
`term value creation, we will manage our 2006 cost base to result in an expected operating profit of 165 to 180
`of between 655 and 725 million Swiss Francs, we can therefore continue to both invest in our marketed produc
`Accordingly, I expect Actelion will generate the necessary positive cash flow from operations to further strength
`operational and strategic flexibility.”
`
`
`Andrew J. Oakley concluded: “As a reminder, Actelion started to account for its Employee Stock Option Program
`123R as from
`1 July 2005. This will result in a non-cash charge of approximately 30 million Swiss Francs for the FY 2006, com
`
`
`Financial result 2005
`Results FY 2004
`Results FY 2005
`In CHF thousands
`471’880
`663’589
`Net Revenues
`511’299(1)
`386’295
`Operating Expenses
`85’585
`152’290
`Operating Income
`87’219(2)
`125’538
`Net Income
`3.96
`5.62
`Basic EPS in CHF
`3.78
`5.54
`Diluted EPS in CHF
`Cash & cash equivalents
`382’917
`300’336
`(1) includes non-cash charge for employee stock options of CHF 13.6 million
`(2) includes income from discontinued operations of CHF 9.6 million
`The Actelion Ltd consolidated financial statements for FY 2005 can be found on http://www.actelion.com.
`
`
`Outstanding growth of total net revenues
`In 2005, total net revenue increased to CHF 663.6 million (2004: 471.9 m), including Tracleer® sales revenue
`sales revenue of CHF 14.4 million (2004: 6.1 m) and contract revenue of CHF 16.0 million (2004: 16.5 m).
`
`Variance
`191’709
`125’004
`66’705
`38’319
`1.66
`1.76
`82’581
`
`in %
`+41
`+32
`+78
`+44
`+42
`+47
`+27
`
`WATSON LABORATORIES, INC. , IPR2017-01621, Ex. 1062, p. 1 of 11
`
`

`

`On a quarter-to-quarter basis, net revenues increased 3% percent to CHF 186.5 million (Q3 2005: CHF 180.8 m
`
`
`Strong Tracleer® sales
`In 2005, Tracleer® sales were CHF 633.2 million (FY 2004: CHF 449.2 m). On a quarter-to-quarter basis, Tracl
`million (Q3 2005: 172.9 m). This increase may partially be attributed to buying pattern variations similar to tho
`
`
`At the end of December 2005, Tracleer® was available in 36 countries worldwide, including all major pharmace
`Japan, Brazil, Taiwan and several new EU member states, such as the Czech Republic and the Slovak Republic.
`signed a distribution agreement for Tracleer® in Korea with Handok Pharmaceuticals, a Korean public company
`
`
`Regulatory and/or reimbursement reviews are ongoing in many other countries, such as the remaining new EU
`countries.
`
`
`Christian Chavy, President of Business Operations commented: “Tracleer® today is the established brand that
`market. To keep step with its expanding geographical presence and maximize market opportunities for its curre
`increased its marketing and sales organization. We will continue to provide a high level of service to both phys
`based on long-term safety and outcome data, generated by multiple clinical trials and more than four years of
`the undisputed cornerstone of PAH therapy.”
`
`
`Further data demonstrates unique clinical features of Tracleer® (bosentan)
`In mid-July 2005, Actelion reported top-line results of BREATHE-5, the first ever placebo-controlled study cond
`severe form of Congenital Heart Disease (CHD). The results showed that bosentan treatment decreased pulmo
`capacity without a worsening in oxygen saturation. Discussions with regulatory authorities on appropriately lab
`scientific presentation was held at CHEST in Montreal at the beginning of November 2005.
`
`In mid-August 2005, the Journal of the American College of Cardiology (JACC) published a new study that inve
`pulmonary arterial hypertension (PAH) treated with bosentan with or without concomitant prostanoid therapy.
`without concomitant prostanoid therapy, in this study was shown to be efficacious for the treatment of PAH in c
`the safety profile appears similar to that in adult PAH patients.
`
`In early September 2005, Actelion presented two abstracts at the European Society of Cardiology (ESC) confer
`of bosentan in treating PAH. The abstracts included data focusing on PAH associated with chronic thrombo-emb
`data outlining the safety profile of bosentan in PAH related to congenital heart disease (CHD).
`
`In early August 2005, Actelion announced the preliminary result of a double-blind, placebo-controlled, randomi
`bosentan, RAPIDS-2, in systemic sclerosis patients suffering from digital ulceration. Preliminary analyses indica
`occurrence of new digital ulcers during the 6-month treatment period was statistically significant. This result co
`RAPIDS-1. Actelion is currently analyzing data for presentation to regulatory authorities. A first scientific prese
`November 2005.
`
`
`Zavesca® sales continue momentum
`Zavesca® sales contributed CHF 14.4 million (FY 2004: CHF 6.1 m) in 2005. On a quarter-to-quarter basis, Zav
`(Q3 05: CHF 4.0 m). Zavesca® is commercially available in the United States and in most European markets.
`
`
`Operating expenses reflect substantial efforts in both Marketing and R&D
`In 2005, operating expenses were CHF 511.3 million (FY 2004: CHF 386.3 m). In Q4 2005, operating expenses
`quarter, this represents an increase of 20% (Q3 2005: CHF 133.6 m).
`
`In 2005, research and development expenses were CHF 171.5 million (FY 2004: CHF 136.3 m). In Q4 2005 res
`million. Compared to the previous quarter, this represents an increase of 5% (Q3 2005: CHF 48.0 m).
`
`Increased development expenses were mainly driven by the rapid enrollment of patients into the CONSCIOUS-
`
`WATSON LABORATORIES, INC. , IPR2017-01621, Ex. 1062, p. 2 of 11
`
`

`

`vasospasm as consequence of aneurysmal subarachnoid hemorrhage (SAH). In late November 2005, CONSCIO
`clazosentan increased with the publication of the Phase IIa study results in the July 2005 edition of the Journal
`reduce the number and severity of cases of vasospasm following SAH.
`
`In 2005, marketing and advertising expenses were CHF 140.0 million (FY 2004: 101.7 m).
`In Q4 2005 marketing and advertising expenses were CHF 51.4 million, an increase of 61% compared to the p
`substantial increase is mainly due to the congress season, but also due to the high start-up costs associated w
`effort to evaluate the long-term outcome of either the bosentan/sildenafil combination or sildenafil monotherap
`several patient registries and similar programs to collect and share real-life experience with Tracleer® in PAH.
`
`In 2005 selling, general and administrative expenses amounted to CHF 132.1 million (FY 2004: CHF 95.7 m). I
`expenses were CHF 39.4 million, an increase of 13% compared to the previous quarter (Q3 2005: CHF 34.8 m)
`force headcount and related sales-based remuneration.
`
`
`Strong operating profit
`In 2005, a strong increase in sales revenues resulted in an operating profit of CHF 152.3 million (FY 2004: CHF
`spending, Q4 2005 operating profit of CHF 26.2 million was 45 % lower than the previous quarter (Q3 2005: C
`
`
`Non-operating items and cash
`In 2005, the net profit of CHF 125.5 million (FY 2004: CHF 87.2 m) includes interest income of CHF 3.0 million
`charge on the Convertible Bond of CHF 7.8 million, other financial expense of CHF 11.3 million and an income t
`
`In Q4 2005, the net profit was CHF 24.3 million compared to CHF 35.3 million in the previous quarter.
`
`In 2005, Actelion generated net cash flow from operations of CHF 138.4 million (FY 2004: CHF 91.7 m). Cash a
`31 December 2005 were CHF 382.9 million (30 September 2005: CHF 344.0 m).
`
`
`Review of Research and Development programs
`
`(cid:122) The EARLY study, a double-blind, placebo-controlled clinical trial evaluating the safety and efficacy of bo
`enrolling 170 patients worldwide. Study results are expected by year-end 2006.
`
`
`
`
`
`
`
`
`
`(cid:122) The pediatric Phase III study FUTURE-1 is evaluating the safety and bioequivalency of a special pediatric
`expected in Q3 2006, with patients then rolled over in the open-label study FUTURE-2.
`
`(cid:122) The COMPASS program evaluates the safety and efficacy of bosentan in PAH patients in combination wit
`both hemodynamic benefits (COMPASS-1) as well as effects on mortality/ morbidity of the combination
`
`(cid:122) The BENEFIT study, a double-blind, placebo-controlled Phase III trial to evaluate the safety and efficacy
`from chronic thrombo-embolic pulmonary hypertension (CTEPH). CTEPH is caused by blockage of the m
`thrombotic material. Study results are expected in Q2 2007.
`
`(cid:122) The ASSET Program with two trials, ASSET-1 and ASSET-2, has been initiated to evaluate the safety and
`
`WATSON LABORATORIES, INC. , IPR2017-01621, Ex. 1062, p. 3 of 11
`
`

`

`secondary to sickle cell disease. The program also explores the potential of Tracleer® to reduce the freq
`believed to play a central role. Results are expected in Q3 2007.
`
`(cid:122) A placebo-controlled randomized trial is currently enrolling patients to evaluate the safety and efficacy o
`melanoma. An earlier open-label trial in end-stage patients with metastatic melanoma at five centers in
`well tolerated. Results of the new event-driven study are expected in 2007.
`
`(cid:122) Following encouraging findings in the BUILD-1 study evaluating the safety and efficacy of bosentan in id
`currently finalizing the design for a mortality-morbidity driven Phase III study, BUILD-3, for discussions
`
`(cid:122) The MAINTENANCE program, evaluating the long-term safety and efficacy of miglustat (Zavesca®) as m
`replacement therapy (ERT) in adult type 1 Gaucher patients with stable disease, has been initiated in la
`by year-end 2007.
`
`(cid:122) Analyses have been recently completed for three clinical programs, with a total of 100 adult and pediatr
`high-dose miglustat (Zavesca®) in lysosomal storage disorders with predominant neurological manifesta
`Gaucher type 3 (GD3) and Late onset Tay-Sachs (LOTS). In NP-C, encouraging results have been seen
`improvement or stabilization of key features of the disease such as saccadic eye movements, swallowing
`ability of miglustat to work in the brain. After consultation with experts, Actelion has decided that these
`authorities. The NP-C study is continuing as planned for 24 months, as is the GD3 study, where the 12-
`LOTS, the 24-month results in a group of severe, heterogeneous and advanced patients showed no chan
`studies, the safety profile was consistent with earlier observations in patients with type 1 Gaucher disea
`
`(cid:122) CONSCIOUS-1, a multi-center, international, double-blind, randomized, placebo-controlled, parallel grou
`levels of clazosentan in preventing the occurrence of cerebral vasospasm following aneurysmal subarach
`in late November 2005. CONSCIOUS-1 has recruited over 400 patients in 52 centers in 11 countries wo
`should provide the necessary information (dose, number of patients) for a mortality-morbidity-driven Ph
`
`(cid:122) Actelion-1, an undisclosed compound is currently in a Phase IIa program to evaluate its potential in card
`
`(cid:122) The single-dose Phase I study evaluating Actelion’s Orexin Receptor Antagonist was successfully conclud
`with quick absorption and disposition as well as other necessary features required for a sleep agent. The
`insomnia, the primary target indication, is expected to commence enrollment in Q1 2006. First results m
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`WATSON LABORATORIES, INC. , IPR2017-01621, Ex. 1062, p. 4 of 11
`
`

`

`(cid:122) Entry-into-man for the S1P1 agonist is expected in the coming months. S1P1 agonism might have therap
`such as multiple sclerosis or rheumatoid arthritis. Initial Phase I findings are expected by year-end 2006
`
`(cid:122) In 2005, a second milestone in the Global Actelion Merck Renin Inhibitor Alliance project was achieved,
`selected for full preclinical development, which is currently ongoing. Entry into man is planned before m
`
`(cid:122) A broad research program in the field of antibacterials focusing on fighting resistant bacterial pathogens
`
`
`
`
`
`
`
`(cid:122) An additional number of unnamed projects are in various phases of drug discovery. These projects targe
`diseases, infectious diseases and central nervous system disorders.
`
`
`
`
`For documentation purposes – table Q4 2005 vs. Q3 2005
`In CHF thousands
`Results Q4 2005
`Results Q3 2005
`Net Revenues
`186’533
`180’832
`Operating Expenses
`160’317
`133’595*
`Operating Profit
`26’216
`47’237
`Net Profit
`24’286
`35’328
`Basic EPS in CHF
`1.08
`1.58
`Net cash from operations
`48’161
`41’176
`
`
`
`Variance
`5’701
`26’722
`-21’021
`-11’042
`-0.50
`6’985
`
`in %
`+3
`+20
`-45
`-31
`-32
`+17
`
`###
`
`
`
`NOTE TO THE EDITOR:
`Actelion Ltd will hold an Media & Analyst conference today to further comment on its financial performance and
`approved indication, PAH. On the same day, the company will also provide a full update on its major current de
`
`
`Location: Unique Conference Center, Airport Zurich
`Media Conference: 23 February 2005, 09.30 am CET
`Analyst Conference: 23 February 2005, 12.30 pm CET
`
`
`NOTE TO THE SHAREHOLDERS:
`The Annual General Meeting of Shareholders approving the Business Report of the year ending 31 December 2
`
`
`Shareholders holding more than 1 million CHF nominal value of shares (i.e. 400'000 shares at nominal value of
`agenda of the general meeting of shareholders, are invited to send in proposals, if any, for the annual general
`Corporate Secretary, Gewerbestrasse 16, CH-4123 Allschwil, to arrive no later than 3 March 2006. Any proposa
`disregarded.
`
`In order to attend and vote at the Annual General Meeting of Shareholders, shareholders must be registered in
`2006 at the latest.
`Please note that the annual report 2005 will be available in March 2006, both in hard copy as well as on the co
`
`
`WATSON LABORATORIES, INC. , IPR2017-01621, Ex. 1062, p. 5 of 11
`
`

`

`
`
`###
`
`
`Actelion Ltd
`Actelion Ltd is a biopharmaceutical company with its corporate headquarters in Allschwil/Basel, Switzerland. Ac
`endothelin receptor antagonist, has been approved as a therapy for pulmonary arterial hypertension. Actelion m
`key markets worldwide, including the United States (based in South San Francisco), the European Union, Japan
`founded in late 1997, is a leading player in innovative science related to the endothelium – the single layer of c
`stream. Actelion focuses on the discovery, development and marketing of innovative drugs for significant unme
`SWX Swiss Exchange (ticker symbol: ATLN).
`
`
`For further information please contact:
`Actelion Ltd, Gewerbestrasse 16, CH-4123 Allschwil
`
`
`
`Investor Contact
`Roland Haefeli
`+41 61 565 64 58
`
`
`+1 650 624 6936
`
`
`
`Media Contact
`Peter Engel
`+41 61 565 66 28
`
`
`+1 650 624 6996
`http://www.actelion.com
`
`
`
`
`Videocast – Live and replay on demand
`Actelion videocasts its Analyst Conference, taking place on Thursday, 23 February 2006, 12.30 CET /
`06.30 am EST / 11.30 GMT.
`To access the videocast, simply visit the link on our homepage http://www.actelion.com 5-10 minutes before t
`minutes after the conference has ended, the archived investor videocast will be available for replay via our hom
`
`
`
`Conference Call – Live
`Actelion will host a live transmission of the Analyst Conference via conference call on Thursday,
`23 February 2006, 12.30 CET / 06.30 am EST / 11.30 GMT. Please note that questions can not be taken on the
`
`
`
`Dial:
`+41 (0)91 610 56 00
`(Europe and ROW)
`
`+1 (1)866 291 4166
`(U.S.)
`
`+44 207 107 06 11
`(U.K.)
`
`
`
`Actelion’s financial calendar 2006
`Date:
`Event:
`10 April 2006
`Annual General Meeting
`20 April 2006
`Q1 2006 financial results
`20 July 2006
`H1 2006 financial results
`19 October 2006
`9-month 2006 financial results
`
`WATSON LABORATORIES, INC. , IPR2017-01621, Ex. 1062, p. 6 of 11
`
`

`

`ACTELION LTD AND SUBSIDIARIES
`
`CONSOLIDATED US GAAP FINANCIAL STATEMENTS FOR DECEMBER 31, 2005
`
`Content:
`
`CONSOLIDATED STATEMENTS OF OPERATIONS
`CONSOLIDATED BALANCE SHEETS
`CONSOLIDATED STATEMENTS OF CASH FLOWS
`CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
`
`2/20/2006 / 11:17 AM
`
`WATSON LABORATORIES, INC. , IPR2017-01621, Ex. 1062, p. 7 of 11
`
`

`

`ACTELION LTD AND SUBSIDIARIES
`CONSOLIDATED STATEMENTS OF OPERATIONS
`
`(in CHF thousands, except per share amounts)
`
`Net revenue:
` Product sales
` Contract revenue
` Total net revenue
`Operating expenses (1)
` Cost of sales
` Research and development
` Marketing and advertising
` Selling, general and administration
` Amortization of acquired intangible assets
` Write-off of acquired in-process research and development
` Total operating expense
`
`Three Months Ended
`December 31,
`2005
`2004
`
`Twelve Months Ended
`December 31,
`2005
`2004
`
`182,600
`
`
`3,933
`
`186,533
`
`125,859
`
`
`4,504
`
`130,363
`
`647,556
`
`16,033
`
`
`663,589
`
`455,346
`
`16,534
`
`
`471,880
`
`18,585
`
`
`50,235
`
`51,421
`
`39,397
`
`601
`
`78
`
`160,317
`
`12,741
`
`
`38,220
`
`31,810
`
`25,616
`
`280
`
`-
`
`108,667
`
`65,635
`
`
`171,469
`
`140,012
`
`132,087
`2,018
`
`
`78
`
`511,299
`
`45,873
`
`
`136,288
`
`101,710
`95,703
`
`
`1,721
`
`5,000
`
`386,295
`
` Operating income
`
`
`
`26,216
`
`
`
`21,696
`
`
`
`152,290
`
`
`
`85,585
`
`Interest income
`Interest expense
`Amortization of debt discount and issuance costs
`Other financial income (expense), net
` Income from continuing operations before income tax
` expense
`
`1,056
`
`
`(115)
`
`(1,997)
`
`(3,691)
`
`501
`
`
`(29)
`
`(1,915)
`
`2,273
`
`2,989
`
`
`(152)
`
`(7,836)
`
`(11,294)
`
`1,036
`
`
`(405)
`
`(7,448)
`
`3,079
`
`
`
`21,469
`
`
`
`22,526
`
`
`
`135,997
`
`
`
`81,847
`
`Income tax benefit (expense)
`
`
`
`2,817
`
`
`
`543
`
`
`
`(10,459)
`
`
`
`(4,276)
`
` Income from continuing operations
` Income from discontinued operations, net of tax
` and minority interest
`
`
`
`24,286
`
`
`
`23,069
`
`
`
`125,538
`
`
`
`77,571
`
`
`
`-
`
`
`
`-
`
`
`
`-
`
`
`9,648
`
` Net income
`
`
`
`24,286
`
`
`
`23,069
`
`
`
`125,538
`
`
`
`87,219
`
`Basic income per share
` Continuing Operations
` Discontinued Operations
` Net income
`
`
`1.08
`-
`
`1.08
`
`
`
`1.04
`-
`
`1.04
`
`
`5.62
`
`
`-
`
`5.62
`
`
`
`
`
`3.52
`0.44
`3.96
`
`Number of shares (in thousands) used in computation
`
`22,490
`
`22,153
`
`22,329
`
`22,018
`
`Diluted income per share
` Continuing Operations
` Discontinued Operations
` Net income
`
`1.07
`
`
`-
`
`1.07
`
`1.00
`
`
`-
`
`1.00
`
`5.54
`
`
`-
`
`5.54
`
`3.36
`
`
`0.42
`
`3.78
`
`Number of shares and share options (in thousands) used in computation
`
`22,739
`
`23,085
`
`22,662
`
`23,051
`
`(1) Includes stock-based compensation as follows:
`Research and development
`Marketing and advertising
`Selling, general and administrative
`Total stock-based compensation
`
`2,244
`1,837
`2,198
`6,279
`
`182
`192
`123
`497
`
`4,807
`3,726
`5,113
`13,646
`
`1,155
`1,272
`2,081
`4,508
`
`The accompanying notes form an integral part of these consolidated financial statements.
`
`WATSON LABORATORIES, INC. , IPR2017-01621, Ex. 1062, p. 8 of 11
`
`

`

`ACTELION LTD AND SUBSIDIARIES
`CONSOLIDATED BALANCE SHEETS
`
`(in CHF thousands, except share amounts)
`
`December 31,
`2005
`
`December 31,
`2004
`
`Assets
`
`Current assets
`Cash and cash equivalents
`Short term deposits
`Derivative instruments
`Marketable securities
`Trade and other receivables, net
`Inventories
`Other current assets
` Total current assets
`
`Property, plant and equipment, net
`Other assets
`Intangible assets, net
`Goodwill, net
`Deferred tax asset
` Total assets
`
`Liabilities and Shareholders' Equity
`
`Current liabilities
`Trade and other payables
`Accrued expenses
`Deferred revenue, current portion
`Other current liabilities
` Total current liabilities
`Long-term financial debt
`Deferred revenue, less current portion
`Other non-current liabilities
`Deferred tax liability
` Total liabilities
`
`Shareholders' Equity
`Common shares (par value CHF 2.50 per share, authorized
`41,406,640 and 33,406,640 shares; issued 22,545,547
`and 22,209,953 shares in 2005 and 2004, respectively)
`Additional paid-in capital
`Accumulated deficit
`Unearned compensation
`Treasury shares, at cost
`Accumulated other comprehensive income (loss)
` Total Shareholders' Equity
` Total Liabilities and Shareholders' Equity
`
`The accompanying notes form an integral part of these consolidated financial statements.
`
`138,017
`
`
`244,900
`1,303
`
`
`9,820
`
`157,220
`
`26,373
`
`11,799
`
`589,432
`
`50,186
`
`8,131
`
`
`20,852
`
`27,333
`
`16,508
`
`712,442
`
`196,336
`
`
`104,000
`
`2,422
`
`-
`
`109,649
`
`17,903
`
`5,992
`
`436,302
`
`35,221
`
`
`7,014
`
`8,610
`
`27,318
`
`5,256
`
`519,721
`
`67,543
`
`
`86,088
`
`15,209
`6,364
`
`
`175,204
`
`159,266
`
`52,648
`3,337
`
`
`273
`
`390,728
`
`42,821
`
`
`53,438
`
`17,399
`
`33,024
`
`146,682
`
`152,042
`
`60,233
`
`2,678
`
`-
`
`361,635
`
`56,364
`
`
`348,011
`
`(84,469)
`-
`
`
`(467)
`
`2,275
`
`321,714
`
`712,442
`
`55,525
`
`316,844
`
`
`(210,007)
`
`(2,256)
`
`(871)
`
`(1,149)
`
`158,086
`
`519,721
`
`WATSON LABORATORIES, INC. , IPR2017-01621, Ex. 1062, p. 9 of 11
`
`

`

`ACTELION LTD AND SUBSIDIARIES
`CONSOLIDATED STATEMENTS OF CASH FLOWS
`
`(in CHF thousands)
`
`Three Months Ended
`December 31,
`2005
`2004
`
`Twelve Months Ended
`December 31,
`2005
`2004
`
`Cash flow from operating activities
`Net income
`Gain from discontinued operations, net of minority interest
`Income from continuing operations
`
`Adjustments to reconcile net income to net cash provided from operating
`activities:
` Depreciation and amortization
` Stock-based compensation
` Excess tax benefits from share based payment arrangements
` (Gain) / loss on derivative instruments
` (Gain) / loss on marketable securities
` Write-off of acquired in-process research and development
` Amortization of debt discount and expense
`Trade and other receivables
`Inventories
`Other current assets
`Other assets
`Trade and other payables
`Accrued expenses
`Deferred revenue
`Other liabilities
`Net cash flow provided by operating activities
`
`Cash flow from investing activities
`Purchase of short term deposits
`Withdrawal of short term deposits
`Purchase of property, plant and equipment
`Purchase of marketable securities
`Purchase of derivative instruments
`Proceeds from sale of derivative instruments
`Purchase of intangible assets
`Proceeds from sale of subsidiary
`Increase of investment
`Net cash flow used in investing activities
`
`Cash flows from financing activities
`Payments on capital leases
`Repayment of financial debt
`Proceeds from exercise of stock options
`Excess tax benefits from share based payment arrangements
`Net cash flow provided by (used in) financing activities
`
`24,286
`
`-
`
`
`24,286
`
`23,069
`
`-
`
`
`23,069
`
`125,538
`
`-
`
`
`125,538
`
`87,219
`
`
`(9,648)
`
`77,571
`
`3,473
`
`
`6,279
`
`(513)
`
`(1,359)
`
`(154)
`
`78
`
`1,997
`
`6,111
`
`(2,444)
`
`(3,284)
`
`(3,712)
`
`14,959
`
`5,669
`
`(3,802)
`577
`
`
`48,161
`
`(163,700)
`
`
`125,500
`
`(10,238)
`
`163
`
`(1,518)
`
`1,404
`
`(4,156)
`-
`
`
`-
`
`(52,545)
`
`2,724
`
`
`762
`-
`
`
`(1,976)
`-
`
`
`-
`
`1,915
`
`(6,586)
`
`2,403
`
`1,704
`
`(3,173)
`
`12,021
`
`751
`
`(4,505)
`648
`
`
`29,757
`
`(104,000)
`
`
`90,000
`
`(4,873)
`-
`
`
`(6)
`-
`
`
`(1,009)
`-
`
`
`-
`
`(19,888)
`
`12,634
`
`
`14,373
`
`(2,435)
`
`6,845
`-
`
`
`78
`
`7,836
`
`(42,890)
`
`(8,470)
`
`(5,451)
`
`(11,895)
`
`15,517
`
`35,533
`
`(9,775)
`
`942
`
`138,380
`
`(370,400)
`
`
`229,500
`
`(24,756)
`
`(9,837)
`
`(2,951)
`
`2,836
`
`(5,651)
`-
`
`
`(32,494)
`
`(213,753)
`
`9,925
`
`
`4,773
`-
`
`
`143
`-
`
`
`5,000
`
`7,448
`
`(44,970)
`
`3,552
`
`(2,326)
`
`(4,086)
`
`16,032
`
`17,366
`
`2,342
`
`(1,090)
`
`91,680
`
`(229,000)
`
`
`125,000
`
`(24,643)
`-
`
`
`(1,287)
`
`1,311
`
`(6,575)
`
`9,242
`-
`
`
`(125,952)
`
`(42)
`
`-
`
`
`4,112
`
`513
`
`4,583
`
`(5)
`
`
`(1,119)
`
`4,611
`-
`
`
`3,487
`
`(177)
`
`-
`
`
`14,371
`
`2,435
`
`16,629
`
`(146)
`
`
`(41,119)
`
`13,661
`-
`
`
`(27,604)
`
`Net effect of exchange rates on cash and cash equivalents
`
`
`
`513
`
`
`
`(747)
`
`
`
`425
`
`
`
`(558)
`
`Net change in cash and cash equivalents
`
`
`
`712
`
`
`
`12,609
`
`
`
`(58,319)
`
`
`
`(62,434)
`
`Cash and cash equivalents at beginning of period
`Cash and cash equivalents at end of period
`
`Supplemental disclosures of cash flow information
`Cash paid during the year for:
`Interest
`Taxes
`
`The accompanying notes form an integral part of these consolidated financial statements.
`
`137,305
`
`
`138,017
`
`183,727
`
`
`196,336
`
`196,336
`
`
`138,017
`
`258,770
`
`
`196,336
`
`152
`12,645
`
`527
`962
`
`WATSON LABORATORIES, INC. , IPR2017-01621, Ex. 1062, p. 10 of 11
`
`

`

`ACTELION LTD AND SUBSIDIARIES
`CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
`
`(in CHF thousands, except share amounts)
`
` At January 1, 2004
` Comprehensive income net of tax effect:
` Net income
` Other comprehensive result:
` Currency translation adjustment
` Comprehensive income
`
` Exercise of stock options
` Transactions in treasury shares
` Stock-based compensation expense, net
` Issuance of stock options
` Stock options forfeitures and cancellations
`
` At December 31, 2004
` Comprehensive income net of tax effect:
` Net income
` Other comprehensive result:
` Currency translation adjustment
` Unrealized loss on marketable securities
` Comprehensive income
` Change in accounting principle
` Excess tax benefit from share-based payment
` Exercise of stock options
` Transactions in treasury shares
` Stock-based compensation expense, net
` Stock option forfeitures and cancellations
`
`Common Shares
`Shares
`Amount
`
`Additional
`Paid-in-
`Capital
`
`Accumulated
`Deficit
`
`Unearned
`Compensation
`
`Treasury
`Shares
`
`Other
`Comprehensive
`Income (Loss)
`
`Shareholders'
`Equity
`
`
`
`21,737,648
`
`
`
`54,378
`
`
`
`302,817
`
`
`
`(297,226)
`
`
`
`(5,369)
`
`
`
`(1,018)
`
`
`
`845
`
`
`
`54,427
`
`
`
`87,219
`
`458,805
`
`1,950
`
`
`
`
`1,147
`
`12,514
`
`
`118
`
`1,556
`
`372
`
`(533)
`
`
`
`147
`
`2,952
`
`
`(372)
`
`533
`
`
`
`(1,994)
`
`87,219
`
`
`-
`
`(1,994)
`
`85,225
`
`13,661
`
`
`265
`
`4,508
`
`-
`
`-
`
`
`
`22,198,403
`
`
`
`55,525
`
`
`
`316,844
`
`
`
`(210,007)
`
`
`
`(2,256)
`
`
`
`(871)
`
`
`
`(1,149)
`
`
`
`158,086
`
`
`
`125,538
`
`335,594
`
`
`5,353
`
`
`
`839
`
`(1,374)
`
`
`5,922
`
`13,532
`
`323
`
`13,096
`
`(332)
`
`
`
`1,374
`
`550
`
`
`332
`
`
`
`404
`
`3,441
`
`
`(17)
`
`125,538
`
`
`-
`
`3,441
`
`(17)
`
`128,962
`
`-
`
`5,922
`
`14,371
`
`727
`
`13,646
`
`-
`
` At December 31, 2005
`
`
`
`22,539,350
`
`
`
`56,364
`
`
`
`348,011
`
`
`
`(84,469)
`
`
`
`-
`
`
`
`(467)
`
`
`
`2,275
`
`
`
`321,714
`
`The accompanying notes form an integral part of these consolidated financial statements.
`
`WATSON LABORATORIES, INC. , IPR2017-01621, Ex. 1062, p. 11 of 11
`
`