SAN DIEGO, Feb. 24 /PRNewswire/ -- Dura Pharmaceuticals, Inc.
(Nasdaq: DURA) today announced that based on recent sales results it will
accelerate its planned investment in its sales force expansion and that it
anticipates lower than expected revenues and earnings for 1998. The Company
plans to begin expanding its sales force immediately from 270 representatives
to over 450 by year-end in order to increase the market penetration of
Ceclor(R) CD (cefaclor extended release tablets), to prepare for the launch of
Albuterol Spiros(TM) and to support the growth of the Company's other promoted
products. Based on an analysis of its current product mix, the Company
estimates that the combined effect of the sales force expansion and revenue
shortfall will reduce earnings by approximately $0.50 per share for 1998.
"The proactive expansion of our sales force at this time clearly serves
the long-term interests of the Company and its shareholders," stated Cam L.
Garner, Dura's Chairman, President and CEO. "Investing now in a significant
sales and marketing effort to support the growth of Ceclor(R) CD and other
promoted products, prior to our expected first Spiros(R) launch, improves the
prospect of future revenue and earnings growth of the Company. In addition,
the expansion is a key strategic initiative to support our planned launch of
Albuterol Spiros(TM), pending FDA approval. This in turn is expected to
position us to more effectively launch successor Spiros products currently in
the development pipeline. Through our relationship with Spiros Development
Corporation II, we believe that we may have access to as many as five new
products within the next four years, all of which should be enhanced by the
increased market penetration that an expanded sales force provides."
"On the acquisition front, we fully expect that our strengthened sales and
marketing capability, coupled with our available cash balance of nearly $400
million, will better position the Company for product acquisitions and will
likely accelerate the financial impact of such acquisitions," noted Garner.
"This expansion initiative represents a transition in the Company's
development. We are confident that Dura's sales and marketing organization
and our Spiros(R) technology platform will be strengthened as a result of our
current investment plan and we remain highly optimistic and committed to the
successful execution of our strategy."
Dura Pharmaceuticals, Inc. is a San Diego based developer and marketer of
prescription pharmaceutical products for the treatment of allergies, asthma,
and related respiratory conditions. Dura has focused on the U.S. respiratory
market because of its size and growth opportunities through two major
strategies: (1) acquiring respiratory prescription pharmaceuticals and/or
businesses developing or marketing such pharmaceuticals targeted at high-
prescribing respiratory physicians, and (2) developing Spiros, a pulmonary
drug delivery system.
Except for the historical and factual information contained herein, the
matters discussed in this press release may contain forward-looking statements
which involve risks and uncertainties, including market conditions,
competitive products and pricing, seasonality, Dura's ability to add
additional people to support activities, the timely development of the
Spiros(TM) system, the timely receipt of FDA approval, if at all, Dura's
limited manufacturing experience, dependency upon third parties and their
successful development efforts and other risks detailed from time to time in
the Company's filings with the SEC. Actual results may differ materially from
those projected. Forward-looking statements represent the Company's judgment
as of the date of this release. Dura disclaims, however, any intent or
obligation to update any forward-looking statements.
SOURCE Dura Pharmaceuticals, Inc.
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CONTACT: Cam Garner, Chairman, President and CEO of Dura Pharmaceuticals, Inc., 619-457-2553
CNOC: http://www.prnewswire.com or fax, 800-758-5804, ext. 197051
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