EATONTOWN, N.J., Sept. 18 /PRNewswire/ -- Roberts Pharmaceutical
Corporation (Amex: RPC) today indicated that, as a result of several recent
developments, the Company expects to report a net loss approximating $0.07 to
$0.11 per share for the third quarter ending September 30, 1997. In addition
to the one-time, pre tax charge of $1.8 million associated with the settlement
of a shareholder class action lawsuit announced on July 31, new factors
accounting for the revised outlook include: higher than expected legal
expenses associated with the settlement; a decision to increase marketing
expenditures in response to a specific product opportunity; delayed sales of
certain products due to back orders with third-party manufacturers; and slower
than expected wholesaler pull-through of ProAmatine(R) and Agrylin(TM).
"The Company has reported an operating profit for three consecutive
quarters," said John T. Spitznagel, Chief Executive Officer of Roberts.
"Given the non-recurring nature of a significant portion of the factors
impacting the third quarter, we certainly expect to resume profitability in
the fourth quarter of the year."
In the third quarter, legal expenses, primarily consisting of attorneys
fees incurred in connection with reaching a final settlement of the class
action lawsuit, were higher than anticipated. This brings the total impact of
the settlement to approximately $2.3 million before taxes, representing the
single most significant contribution to the anticipated third quarter loss.
In order to take advantage of an unusual opportunity to gain market share
and increase sales of its over-the-counter (OTC) laxatives Colace and
PeriColace, Roberts launched a media campaign for these products in September.
This was in response to an FDA proposed ban on OTC laxatives containing
phenolphthalein and the withdrawal from the marketplace of a major competitive
brand which contained this active ingredient. "Colace and PeriColace do not
contain phenolphthalein," said Spitznagel. "As a result of this media
campaign, third quarter marketing expenses are higher than previously
anticipated; however, we think this represents a significant opportunity for
Roberts given the recent dynamic change in the laxative marketplace and the
positive response we have received for Colace and PeriColace from previous
promotions." The Company has also begun packaging these products in its new
Oakville facility, which should help satisfy anticipated demand.
Demand for several of Roberts' other products has been running ahead of
expectations. However, when coupled with the inability of third-party
manufacturers to respond quickly to this higher demand, a back order situation
has occurred for certain brands, resulting in lower-than-expected
third-quarter sales.
Prescription rates for ProAmatine and Agrylin have been accelerating since
their introduction, and wholesaler restocking has been increasing, albeit at a
slower rate than earlier anticipated. "We believe this is primarily a timing
issue which, in the case of Agrylin, may be exacerbated by some remaining
supply of product that had been provided free of charge under the
compassionate use protocol in effect prior to FDA marketing clearance," said
Spitznagel.
Roberts Pharmaceutical Corporation, with operating subsidiaries in the
United States, Canada, and the United Kingdom, focuses on new health care
solutions through the acquisition and development of specialty
pharmaceuticals. The Company's first pipeline product, ProAmatine, was
recently launched in the U.S. as the first FDA cleared drug to treat
orthostatic hypotension. Agrylin, Roberts second pipeline product, has since
been launched in the U.S. as the first drug cleared to treat essential
thrombocythemia and is currently under review for approval in Canada and the
European Union.
This and past press releases of Roberts Pharmaceutical Corporation are
available through PR Newswire's Company News On-Call fax service at
1-800-758-5804, extension 760975 and on the internet at
http://www.prnewswire.com and http://www.robertspharm.com
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.
SOURCE Roberts Pharmaceutical Corporation
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CONTACT: Stuart Z. Levine, Ph.D., Director of Investor Relations of Roberts Pharmaceuticals, 732-389-1182, ext. 3064
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