EATONTOWN, N.J., Nov. 15 /PRNewswire/ -- Roberts Pharmaceutical
Corporation (Nasdaq: RPCX) today reported financial results for the third
quarter and nine months ended September 30, 1996. Revenue and earnings for
these periods reflect the Company's continued transition toward the
commercialization of its proprietary product pipeline. The initial market
introduction of Roberts first FDA cleared product, ProAmatine(TM), occurred
subsequent to the third-quarter 1996 and sales of this new drug are expected
to ramp up over time. Meanwhile, Agrelin(R), Roberts second proprietary drug,
is currently progressing through a labeling review, typically a last step in
the FDA approval process.
Total revenues for the quarter and nine months ended September 30, 1996
were $21.7 million and $65.7 million, respectively, compared to $34.3 million
in the third-quarter 1995 and $80.9 million for the nine months 1995. The
decrease in 1996 revenues reflects, in part, general softness in sales of
older line products the Company had acquired as part of its plan to build a
marketing infrastructure in preparation of new drug approvals. Third quarter
1996 revenues were further impacted by a temporary shift in product supplies
as Roberts implemented a change in its distribution system designed to save
future operating costs.
Based on continuing operations, the Company reported a third-quarter 1996
net loss of $3.1 million or $.16 per share and a nine-month net loss of $9.1
million or $.46 per share. These figures compare with net profits from
continuing operations of $.9 million or $.05 per share in the third-quarter
1995 and $2.5 million or $.13 per share for the first nine months 1995.
Continued expenses in support of the marketing infrastructure, including the
sales force, contributed to the results.
Through the private placement of equity, including 5% convertible
preferred stock, Roberts recently raised over $100 million in net proceeds.
In turn, on September 30, 1996 the Company's position of cash and marketable
securities amounted to $104.2 million compared to $30.0 million at year-end
1995. Additionally, during this nine-month period, total debt was reduced by
66% from $51.0 million to $17.3 million.
Several events, subsequent to the third-quarter 1996, portend significant
strengthening in the Company's long-term fundamentals and growth outlook. In
addition to the market introduction of ProAmatine(TM) and the labeling review
of Agrelin(R), the Company enriched its pipeline potential by licensing
compounds for development as possible breakthrough drugs for large, generally
unsatisfied gastrointestinal markets. Also, in line with its intentions to
focus greater resources on its proprietary new drugs, Roberts divested,
through sale to third parties, two lines of prescription products and the
majority of its over-the-counter brands. Additionally, the Company agreed in
principle to purchase a fully operational, pharmaceutical manufacturing
facility which is expected to eventually result in substantial savings in the
cost of sales. As significant new events occur, Roberts will maintain its
policy of active communications and dialogue with the investment community.
Roberts Pharmaceutical Corporation is an international pharmaceutical
company focusing on the acquisition and development of late-stage drugs.
Roberts currently markets its products in seven countries and has operating
subsidiaries in the U.S., Canada, and the United Kingdom.
This release may contain forward-looking statements which reflect
management's current views of future events and operations. These forward-
looking statements are based on assumptions and external factors, including
assumptions relating to regulatory action and competing products. Any changes
in such assumptions or external factors could produce significantly different
results.
ROBERTS PHARMACEUTICAL CORPORATION
Consolidated Balance Sheets
(in thousands)
(unaudited)
September 30, December 31,
1996 1995
ASSETS:
Current assets:
Cash and marketable securities $104,154 $ 30,006
Accounts receivable, net 19,054 26,918
Inventory 20,063 20,785
Other current assets 17,171 16,061
Total current assets 160,442 93,770
Fixed assets, net 15,340 15,681
Other assets 226,159 230,839
Total assets $401,941 $340,290
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities:
Current installments of
long-term debt $ 6,642 $ 34,809
Accounts payable 11,734 14,737
Dividends payable 475 0
Other current liabilities 26,243 32,236
Total current liabilities 45,094 81,782
Long term debt, excluding current
installments 10,639 16,183
Other liabilities 6,801 6,858
Shareholders' equity 339,407 235,467
Total liabilities and
shareholders' equity $401,941 $340,290
ROBERTS PHARMACEUTICAL CORPORATION
Consolidated Statements Of Operations
(in thousands, except per share data)
(unaudited)
For the nine months For the three months
ended September 30, ended September 30,
1996 1995 1996 1995
Sales and Revenue:
Sales $65,683 $80,824 $21,676 $34,309
Other revenue 36 35 12 12
Total revenue 65,719 80,859 21,688 34,321
Cost of sales 32,739 37,652 10,346 18,379
Gross profit 32,980 43,207 11,342 15,942
Operating expenses:
Research and
development 2,941 5,329 945 1,729
Marketing and
administration 41,555 32,851 13,919 12,362
Total operating
expenses 44,496 38,180 14,864 14,091
Operating (loss)
income (11,516) 5,027 (3,522) 1,851
Interest income 1,180 1,518 374 537
Interest expense (1,597) (2,463) (426) (846)
Other income (expense),
net (11) 41 3 42
Total other income
(expense) (428) (904) (49) (267)
(Loss) income before
income taxes (11,944) 4,123 (3,571) 1,584
(Benefit) provision
for income taxes (2,845) 1,625 (438) 635
(Loss) income from
continuing operations (9,099) 2,498 (3,133) 949
Income (loss) from
discontinued operations 3,969 (13,994) -- (618)
Net (loss) income $ (5,130) $(11,496) $ (3,133) $ 331
Per share of common stock,
primary and fully diluted:
(Loss) income from continuing
operations $ (.46) $ .13 $ (.16) $ .05
Net income (loss) from
discontinued operations .20 (.75) .00 (.03)
Net (loss) income $ (.26) $ (.62) $ (.16) $ .02
Weighted average number of
common shares
outstanding, primary and
fully diluted 19,581,855 18,646,636 19,581,855 18,604,968
SOURCE Roberts Pharmaceutical Corporation
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CONTACT:
Stuart Z. Levine, Ph.D., Director of Investor
Relations of Roberts Pharmaceutical Corporation, 908-389-1182,
ext. 3064
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