EATONTOWN, N.J. April 29 /PRNewswire/ -- Roberts Pharmaceutical
Corporation (Amex: RPC) today reported strong year-to-year improvements in
first-quarter 1998 revenues, operating profits, and net earnings.
For the three-month period ended March 31, 1998, revenues advanced 25% to
$32.8 million from $26.3 million in the comparable 1997 period. First-quarter
1998 gross profits were $20.2 million, up 37% from $14.7 million a year ago,
representing an improvement in the gross profit margin to 61.6% from 55.9%.
As part of the Company's commitment to pursue opportunities represented by
its development pipeline, total R&D expenditures in the first-quarter of 1998
increased to $2.7 million from $1.8 million in the comparable period of 1997.
Despite this higher R&D investment, Roberts reported a first-quarter 1998
operating income of $2.5 million compared with $0.4 million in the
first-quarter of 1997, reflecting continued improvements in operating
efficiencies. Net income for the quarter ended March 31, 1998 increased
133% to $2.1 million from $0.9 million in the comparable period of 1997. Per
share earnings amounted to $0.07 in the first-quarter of 1998, exceeding the
First Call estimate of $0.05 and substantially ahead of $0.02 reported for the
first-quarter of 1997.
The strengths in first-quarter 1998 revenues and profit margins included
contributions from the Company's new, high-margin products ProAmatine(R) and
Agrylin(TM), which together accounted for approximately 21% of the quarterly
sales. Collectively, first-quarter 1998 sales of these products increased by
nearly 50% over the first-quarter of 1997 even with the year-ago period having
benefited from a strong buy-in of Agrylin as wholesalers built initial
inventories of the drug following its U.S. launch in March, 1997.
As of March 31, 1998, the Company's position of cash and marketable
securities amounted to $82.4 million. At that time, total long-term debt,
including current installments, stood at $14.4 million, down from
$18.4 million at year-end 1997. Total shareholders' equity on March 31, 1998
was $323.7 million, up from $317.3 million at year-end 1997.
Roberts said that first-quarter 1998 results did not include any
contributions from Pentasa(R), a patented treatment for ulcerative colitis.
Subsequent to the quarter's end, Roberts acquired exclusive U.S. rights to
market Pentasa from Hoechst Marion Roussel. Roberts anticipates first
12-month sales of Pentasa to exceed $40 million and the Company expects a
strengthening in its cash flow sufficient to be accretive to 1998 earnings
while also supporting a substantial investment in research and development.
Also subsequent to the first quarter, Roberts announced the purchase of a
distribution center and the sale of VRG International, the Company's contract
research business. With the distribution center becoming operational in May
1998, Roberts anticipates annualized cost savings between $0.5 million to
$1 million. Although VRG had been previously discontinued for financial
reporting purposes, the sale of this operation will provide the Company with
additional cash while also completing Roberts' plans to divest non-strategic
businesses and focus all its resources exclusively on pharmaceutical
operations.
"We are very pleased with the strength of our first-quarter results and
are optimistic about our annual growth going forward," said John T.
Spitznagel, Roberts' President and CEO. "We are emerging as a fully
integrated, more highly focused pharmaceutical company. Our forward looking
optimism is based on these developments and on our current portfolio of
products and, importantly, is exclusive of any new opportunities that may
arise from our development pipeline, pending regulatory approvals or possible
future product acquisitions."
With regard to future opportunities, Roberts has accelerated the
development of Dirame(R), a novel Phase III opioid drug addressing a
potentially large analgesic market for the treatment of moderate to severe
pain. The Company anticipates submitting a New Drug Application for Dirame in
1999. Additionally Agrylin, which is approved in the U.S. and Canada for
treating essential thrombocythemia (ET), is progressing through the FDA for a
new indication, polycythemia vera. The Company is also in discussions with
European authorities regarding a request for additional studies which had not
been required in obtaining U.S. or Canadian approvals of Agrylin for ET.
Meanwhile, Agrylin is now available in several European countries on a named
patient basis.
"While we are optimistic about Roberts' growth prospects over the
foreseeable future, we are dedicated to positioning the Company for
sustainable long-term growth through the development of our pipeline and when
appropriate, the acquisition of high-potential marketed products consistent
with our strengths and capabilities," said Mr. Spitznagel.
Roberts Pharmaceutical Corporation, with operating subsidiaries in the
United States, Canada and the United Kingdom, focuses on licensing, acquiring,
developing and commercializing innovative pharmaceuticals.
This and past press releases of Roberts Pharmaceutical Corporation are
available through PR Newswire's Company News On-Call fax service at
1-800-758-5804, extension 760975 and on the internet at
http://www.prnewswire.com and 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,
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.
ROBERTS PHARMACEUTICAL CORPORATION
FINANCIAL HIGHLIGHTS
(in millions, except per share data)
(unaudited)
Income statement items
For the three months
ended March 31,
1998 1997
Total Revenues $32.8 $26.3
Gross profit 20.2 14.7
Operating expenses 17.7 14.3
Operating income (loss) 2.5 0.4
Other income (expenses), net 0.9 0.9
Income (loss) before taxes 3.4 1.3
Provision (benefit) for taxes 1.3 0.4
Net income (loss) $2.1 $0.9
Per share net income (loss)
Basic $0.07 $0.03
Diluted $0.07 $0.02
Weighted average number of
common shares
and equivalents (000's) 30,205 27,421
Balance sheet items as of
March 31, 1998 December 31, 1997
Cash and marketable
securities $ 82.4 $ 82.8
Long-term debt 14.4 18.4
Total shareholders' equity 323.7 317.3
SOURCE Roberts Pharmaceutical Corporation
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Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 760975
CONTACT:
Janet Browning of Roberts Pharmaceutical,
732-389-1182, ext. 3077
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