EATONTOWN, N.J., June 23 /PRNewswire/ -- Roberts Pharmaceutical
Corporation (Amex: RPC) today announced that, in keeping with its strategies
to maximize profitability and enhance shareholder value, it has purchased all
rights from Bristol-Myers Squibb, including intellectual properties, to
Agrylin(R), a product currently marketed by Roberts as the only FDA approved
drug for thrombocythemia.
Roberts said that the transaction ends all of its royalty obligations on
Agrylin sales. The Company also noted that the transaction involves a
one-time cash payment approximating one times estimated 1999 Agrylin sales and
that it expects to save a substantially greater sum of money by eliminating
the future stream of royalty payments.
Moreover, Roberts said the transaction benefits its P&L, because Argylin's
gross profit margin will now increase by well over ten percentage points
which, net of amortization and interest income effects, is expected to be
additive to earnings.
"We expect the transaction to have a favorable impact on current year
earnings and look for this P&L benefit to grow significantly, over time, as
Agrylin sales ramp up," said John T. Spitznagel, Roberts' President and CEO.
Mr. Spitznagel further noted that "Given the anticipated improvement in
Agrylin's profitability, this transaction also strengthens our already
positive cash-flow capabilities. All things being equal, our cash flow is
strong enough to recoup the cost of the Agrylin purchase within approximately
the next eighteen months."
Roberts developed Agrylin and first launched the drug in the U.S. in April
1997. Since that time, approvals have been granted in Canada and Israel; the
Company entered into an agreement for future distribution of the product in
Korea; the FDA allowed a broadening in the drug's indication; and the Company
obtained a patent to 2017 for a new, more cost-effective manufacturing
process. Additionally, Roberts said it plans to pursue approvals in Europe
and Japan while also noting that Agrylin is currently sold in Europe on a
named-patient basis.
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. The Company
also pursues 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 press release by Roberts Pharmaceutical Corporation contains
forward-looking statements regarding the Company's purchase of all rights to
Agrylin(R). These and all forward-looking statements made by Roberts 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 the Company's filings with the
Securities and Exchange Commission. All forward-looking statements in this
release 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.
SOURCE Roberts Pharmaceutical Corporation
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Related links:
http://www.robertspharm.com
CONTACT:
Stuart Z. Levine, Ph.D., V.P. Corporate
Communications of Roberts Pharmaceutical Corporation,
732-676-1200, ext. 3064
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