February, 1997

     Dear Shareholder:

     In late 1996, Roberts realized a major milestone.  PROAMATINE (R) became
     the first of two products to emerge from our pipeline of specialty
     pharmaceuticals.  Moreover, because of several events that occurred in
     1996 and early 1997, Roberts is today a much stronger company,
     fundamentally and financially.  The Company is generally better
     positioned then ever before with regard to its future growth and
     profitability, important factors underlying the value of your investment
     in Roberts.  The events to which I refer are collectively viewed as a
     turning point in our strategic plans to achieve and sustain long-term
     growth.  They are:

     --   FDA marketing clearance in 4Q96 of our first pipeline product
     PROAMATINE for the treatment of orthostatic hypotension (a low blood
     pressure condition).    PROAMATINE is the first cardiovascular drug to be
     approved using the "accelerated approval" procedure.  It is also the
     first drug to be approved to treat orthostatic hypotension.   The product
     was launched late in the final quarter of 1996 and was greeted by
     prescribing physicians warmly.  It is a product which has improved the
     quality of life of thousands of patients and we are very proud to have
     pioneered this form of therapy.

     --   AGRYLIN (TM)  is the second new product to emerge from our pipeline.
     It has been declared approvable by FDA and is the first drug indicated
     for the treatment of thrombocythemia (elevated platelet counts).    We
     expect final clearance for marketing shortly and product launch could
     occur as early as next month.  This platelet reducing agent lowers the
     risk of life threatening consequences of thromboembolic (blood clotting)
     events such as heart attack and stroke.  AGRYLIN is a unique product and
     a life saving drug.  Our market research suggests that prescribing
     physicians are eager to use this product to treat seriously ill patients.

     --   In order to lower our manufacturing costs, we have decided to
     acquire a modern, state-of-the-art pharmaceutical production plant.  With
     this facility, we plan to manufacture many of our drug products that are
     currently produced for us by contractors at substantial cost.  The plant,
     which was acquired from Searle, is located in Oakville, Ontario and is
     both FDA and HPB approved.  With this acquisition comes a trained work
     force. The plant is fully operational and should be on-line for Roberts
     at midyear.  We expect the Oakville plant to play an important role in
     our Company's operations because it will supply a substantial portion of
     our Canadian, U.S., and European requirements.  We  will also consolidate
     our Mississauga, Ontario office into Oakville, further reducing total
     operating costs.

     --   To focus greater resources on commercializing our proprietary
     pipeline drugs, during 1996 we have rationalized and will continue to
     rationalize our product lines by divesting non-strategic products and
     businesses.  These divestitures have already begun to favorably impact
     our inventory levels which declined during 4Q96.   Also, as a result of
     steps taken in 1996, we expect to realize future income statement
     benefits by saving over $1.0 million annually in amortization of
     intangibles.

     --   Our Management team was strengthened by the addition of certain key
     executives during 1996.  John T. Spitznagel joined the Company as
     Executive Vice President for Worldwide Sales and Marketing.  Under John's
     direction, our product line is being commercialized broadly, sales
     territories have been realigned, and our new products, PROAMATINE and
     AGRYLIN, are being launched.  John has also made personnel additions
     which strengthen our commercial punch.  Likewise, our new Chief Financial
     Officer, Peter M. Rogalin, has made important contributions to our
     Company's structure. Under Peter's direction, we have streamlined our
     accounting and cash management systems and secured important new equity
     financing.  Peter has refined our budgeting process and also refined our
     reporting systems worldwide.

     --   Last year, we completed private placements of common stock and 5%
     convertible preferred stock resulting in gross proceeds to the Company of
     $115 MM.  These new funds will be used for capital improvements in
     manufacturing, advancing products through development into the
     marketplace, and for the acquisition of new pipeline compounds with the
     potential of supporting our growth into the next millennium.
     Additionally, we have greatly strengthened our balance sheet.  On
     December 31, 1996, the Company's cash and marketable securities were $95
     million compared to $30.0 million at year-end 1995. Additionally, during
     that twelve month period, total debt was reduced by 67% from $51.0
     million to $17.0 million.

     --   Our R&D pipeline has recently been bolstered through the acquisition
     of four new gastrointestinal compounds from Eli Lilly and Company.  We
     have secured worldwide rights for three of these compounds and North
     American rights to the fourth.  A major European pharmaceutical
     corporation has been granted the rights for the rest of the world for the
     fourth compound.  Roberts has had several meetings with the European
     licensee and hopes to co-develop the product with them to lower overall
     development costs.  Three of the products in development are intended to
     treat functional bowel disease (irritable bowel syndrome), a common
     disorder representing a fairly large market potential for which no drugs
     are currently approved.  In addition, you may expect us to make additions
     to our pipeline in another therapeutic category in the near future.  We
     have been structuring our pipeline to provide us with prospects for new
     product launches throughout the remainder of this decade and into the
     next.

     Given all these positive developments, we believe our common stock is
     significantly undervalued at current prices.  We are not happy about this
     and our management has decided to actively pursue a public relations
     initiative designed to enhance investor awareness of our Company.   For
     example, your management recently presented at the Health Care
     Conferences sponsored by the investment firms of Robertson Stephens and
     Hambrecht and Quist.  Also, research coverage has been resumed at Merrill
     Lynch and we hope to soon have other analysts initiate coverage.  We are
     currently arranging and will continue a policy of group presentations and
     one-on-one meetings with Wall Street professionals across the country.
     These activities, in addition to our dedication to long-term growth,
     represent our commitment to enhancing shareholder value.  While there can
     be no guarantee management's efforts will be completely successful,
     please be assured that we are doing everything we can for our
     shareholders.

     Very sincerely yours,

     Robert A. Vukovich, Ph.D .
     Chairman of the Board of Directors,
     President and Chief Executive Officer

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