EATONTOWN, N.J., Oct. 28 /PRNewswire/ -- Roberts Pharmaceutical
Corporation (Amex: RPC) today reported strong year-to-year improvements in
revenues and profits for the third-quarter and nine-months ended September 30,
1999.
Per share earnings for the third quarter of 1999 were $0.22, a 47%
increase from $0.15 in the comparable quarter of 1998 and surpassing analysts'
expectations according to the First Call(R) consensus estimate of $0.18.
Correspondingly, per share earnings for the first nine months of the year
nearly doubled to $0.61 from $0.33 reported for the similar period of 1998.
Roberts said that revenues in the third quarter of 1999 advanced 23% to
$52.5 million from $42.7 million in third quarter of 1998. In turn, revenues
during the first nine months of this year increased to $147.5 million from
$119.9 million in the comparable nine month period of 1998.
On a year-to-year basis, third quarter 1999 operating income rose 43% to
$13.0 million with net income advancing 55% to $7.3 million from $4.7 million
in the similar quarter of 1998.
Operating income for the nine months ended September 30, 1999 more than
doubled to $35.6 million (24.1% of revenues) from $16.4 million (13.7% of
revenues) in the comparable period of 1998.
Net income for the first nine months of 1999 was reported at
$19.8 million, a 94% increase over the $10.2 million reported for the first
nine months of 1998.
Roberts said overall operations continued to benefit from sales of its
newer, higher margin specialty products, including: Agrylin(R), the only FDA
approved drug for thrombocythemia; ProAmatine(R), the only FDA cleared drug
for orthostatic hypotension; and Pentasa(R), a proprietary treatment for
ulcerative colitis.
Roberts further noted that today's announced financial results do not
include contributions from Fareston(R), a treatment for advanced breast cancer
that Roberts began marketing in the U.S. subsequent to the close of the third
quarter.
On a year-to-year basis, nine-month sales of Agrylin and ProAmatine
advanced 49% and 55%, respectively, and sales of Pentasa, which Roberts
acquired for US marketing in April 1998, increased by 109%. Moreover,
despite the previously noted strong wholesaler buy-in of Agrylin in the second
quarter of the year, third-quarter 1999 sales were well on track with
expectations and, according to recent IMS data, year-to-date (August)
prescriptions of Agrylin were up 59% from the same time period last year.
Collectively, sales of Agrylin, ProAmatine and Pentasa accounted for over
62% of total revenues generated during the first nine months of the year
compared to 44% in the comparable period of 1998.
Reflecting this favorable shift in product mix, gross profit margins
improved by more than five percentage points to 69.1% in the first nine months
of 1999 from 63.8% in the comparable period of 1998.
Additionally, Roberts said that selling, general and administration
expenses, as a percent of revenues, declined nearly five percentage points to
37.1% in the first nine months of 1999 from 42.6% in the comparable period a
year earlier.
Supported by the strengths and efficiencies of its operations, Roberts
said today's reported improvements in profitability were accomplished
concurrently with significant investments in research and development (R&D).
During the first nine months of 1999, the Company's R&D investments rose,
year-over-year, by 31% to $11.7 million.
"Roberts now has a number of development products in or near Phase III
studies," said John T. Spitznagel, Roberts' President and CEO. These include
Dirame(R), a potent analgesic; RL0903, a long-duration LHRH implant for
prostate cancer; and Emitasol(R), a unique intranasal therapeutic for diabetic
gastroparesis and for delayed onset emesis in cancer chemotherapy.
Mr. Spitznagel further noted, "We have also been active in strengthening
our portfolio of marketed products as is evident from the recent acquisition
of the U.S. rights to Fareston." He concluded by saying, "With the addition
of Fareston, Roberts now has four key prescription drugs in the market, each
of which may be characterized as being in the early stages of their growth
cycles."
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 and oncology
with additional interests in urology and neurology/cardiology. 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.
On July 25, 1999, Roberts and Shire Pharmaceuticals Group plc
(LSE: SHP.L; Nasdaq: SHPGY) announced a definitive agreement to merge. The
merger would involve a tax-free exchange of Roberts shares for Shire shares
and is contingent upon, among other conditions, the approvals of Shire and
Roberts shareholders.
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.
ROBERTS PHARMACEUTICAL CORPORATION
FINANCIAL HIGHLIGHTS OF OPERATIONS*
(in millions, except per share data)
(unaudited)
For the nine months For the three months
ended Sep 30, ended Sep 30,
1999 1998 1999 1998
Total Revenues $147.5 $119.9 $52.5 $42.7
Gross profit 102.0 76.6 34.9 27.6
Research & development 11.7 8.9 4.4 2.8
Sales, general, admin. 54.7 51.2 17.4 15.7
Operating income 35.6 16.5 13.1 9.1
Other income (expenses),
net (4.9) (0.4) (1.8) (2.1)
Income before taxes 30.7 16.1 11.3 7.0
Provision for taxes 10.9 5.9 4.0 2.3
Net income $19.8 $10.2 $7.3 $4.7
Net per share income $0.61 $0.33 $0.22 $0.15
Weighted average number
of common shares and
equivalents (000's) 32,283 31,297 32,561 31,778
* Numbers may not add due to rounding
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, 732-676-1200, ext. 3064
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