Roberts Among Top Performing Pharmaceutical Firms in Revenues Per Employee
Company Optimistic About Long-term Growth Outlook
EATONTOWN, N.J., April 28 /PRNewswire/ -- Roberts Pharmaceutical
Corporation (Amex: RPC) today reported first quarter 1999 per share earnings
of $0.16 compared to First Call(R) estimates of $0.14 to $0.15 and
representing a 129% increase from the $0.07 reported for the first quarter of
1998.
Net income for the first quarter ended March 31, 1999 was reported at $5.0
million, an increase of 138% from $2.1 million reported for the comparable
period a year earlier.
Roberts said the improvement in quarterly profitability was driven by a
number of factors, including strong growth in revenues which advanced 35.7% to
$44.5 million in the first quarter of 1999 compared to $32.8 million in the
first quarter of 1998.
The increase in quarterly revenues reflected strong year-to-year growth in
sales of the Company's proprietary drugs with ProAmatineO sales advancing more
than 95% and AgrylinO sales increasing by about 41%. Sales of PentasaO, which
was acquired in April of last year, contributed about $15 million to first
quarter 1999 revenues.
Roberts said that first quarter 1999 profitability also benefited from
further improvements in gross profit margins and from the Company's continued
emphasis on operating efficiencies.
Gross profit margins increased to 65.6% in the first quarter of 1999 from
61.6% in the first quarter of 1998, reflecting a shift in product mix to
higher margin drugs. Additionally, overall operating income increased 272% to
$9.3 million in the first quarter of 1999 from $2.5 million in comparable
quarter a year earlier.
Correspondingly, operating margins improved sharply to 20.9% in the three
months ended March 31, 1999 from 7.6% in the comparable period of 1998.
Cash, cash equivalents and marketable securities amounted to $72.8 million
on March 31, 1999 compared to $75.3 million at year-end 1998.
Separately, Roberts noted that an analysis of publicly reported data
indicates the Company has achieved a leading position, among pharmaceutical
companies, in productivity and efficiency as measured by revenues generated
per employee.
Roberts said that over the past two years, revenues increased by 79% to a
record $175.4 million in 1998. Correspondingly, revenues per employee
increased 72% to approximately $399,000 in 1998. This exceeded, by nearly
50%, an average $270,000 in 1998 revenues per employee estimated for a group
of 18 pharmaceutical companies, including several major multi-nationals as
well peer companies.
Moreover, within this group of 18 companies, Roberts' 1998 ratio of
revenues-to-employee was surpassed by only one, well-recognized, multi-
billion-dollar firm that, in addition to pharmaceutical product sales, derived
a large percentage of its total revenues by providing services as a pharmacy
benefit manager (PBM). "Excluding that company's PBM contributions, Roberts
actually held the top position in revenues per employee," noted John T.
Spitznagel, Roberts' President and CEO.
"We are very pleased with the strength of our first quarter results and
proud of our achievement as a top performing pharmaceutical firm in revenues
per employee," said Mr. Spitznagel. He continued by saying, "In our last
Annual Report to shareholders, I said my motto is to 'Sell more and spend
less' and it looks like everyone at Roberts has worked diligently towards that
end."
Mr. Spitznagel further noted "We are also highly optimistic about our
longer term outlook, particularly in light of the recently completed Phase III
dental pain study of DirameO, a potent, synthetic, opioid analgesic. Although
we need to complete the osteoarthritis pain model studies, the data from the
dental pain study were very encouraging. In that study, Dirame's efficacy at
50mg proved to be statistically significant in comparison with both placebo
and 100mg tramadol, an approved and market leading opioid analgesic."
Roberts Pharmaceutical Corporation, with operating subsidiaries in the
United States, Canada and the United Kingdom, focuses on value-added specialty
pharmaceuticals in the therapeutic categories of gastroenterology, urology,
oncology/hematology, and cardiology/neurology. Roberts actively pursues its
strategy of Search & Develop to identify and acquire novel post-discovery drug
candidates to advance through late-stage clinical development while also
pursuing opportunities to acquire and enhance the potential of commercially
available specialty medicines.
This and past press releases of Roberts Pharmaceutical Corporation are
available through the Internet at the Roberts' home page at
http://www.robertspharm.com.
This release contains forward looking statements which are based on
assumptions and external factors, including assumptions relating to, but not
limited to regulatory action, product pricing, competitive market conditions,
unaudited financial data, new product development and other risks or
uncertainties detailed from time to time in Roberts filings with the
Securities and Exchange Commission. These forward-looking statements
represent the Company's judgment as of the date of this release and any
changes in the assumptions or external factors could produce significantly
different results. With regard to new drugs in the development pipeline, the
timing and satisfactory completion of clinical trials, the establishment of
safety and efficacy, and the successful filing of New Drug Applications and
approval of those Applications by regulatory authorities are always subject to
risks and cannot be guaranteed.
Roberts Pharmaceutical Corporation Financial Highlights of Operations
(In Millions, Except Per Share Data)
(Unaudited)
iNe>
For the three months ended
March 31,
iNe>
1999 1998
Total Revenues $ 44.5 $ 32.8
Gross profit 29.2 20.2
Other operating expenses 19.9 17.7
Operating income 9.3 2.5
Other income (expenses), net (1.6) 0.9
Income before taxes 7.7 3.4
Provision for taxes 2.7 1.3
Net income $ 5.0 $ 2.1
Net per share income $ 0.16 $ 0.07
Weighted average number
of common shares and
equivalents (000's) 32,143 29,573
SOURCE Roberts Pharmaceutical Corporation
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Related links:
http://www.robertspharm.com
CONTACT:
Stuart Levine, Vice President, Corporate
Communications, for Roberts Pharmaceutical Corporation,
732-676-1200, ext. 3064
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