ISELIN, N.J.--(BUSINESS WIRE)--Dec. 29, 1999--Bio-Technology
General Corp. (NASDAQ:BTGC.O) today commented that it anticipates full
year 1999 revenues of approximately $84 million compared to $77
million in 1998. Despite the growth in revenues, earnings for the year
are expected to be between $0.08 and $0.11 lower than the 1998 EPS of
$0.36. The Company's revenue growth and EPS were adversely impacted by
the previously announced reduction of Oxandrin(R) inventory, amounting
to more than $15 million, by the Company's distributor for the
product, Olsten Health Services, Inc. Additional contract revenues
from new strategic alliances anticipated to be concluded by the end of
the fourth quarter were expected to cover much of the Oxandrin
inventory-related shortfall. While not yet concluded, the Company is
continuing to pursue these new relationships.
In commenting on the anticipated results, Sim Fass, Chairman and
CEO of Bio-Technology General Corp., stated: "The 1999 results
essentially reflect the impact of what we believe to be a temporary
inventory adjustment situation. With Oxandrin prescriptions up by 28%
in the first eleven months of 1999 compared to the first eleven months
of 1998, and end user sales for the full year 1999 expected to be up
by 24%, our Oxandrin business continues to demonstrate robust growth.
This should translate into a significant increase in Oxandrin sales to
our distributor in 2000 as both the absorption of the excess inventory
is completed, and sales to Olsten fully reflect the growing end user
sales. Moreover, we anticipate further development of the commercial
potential for Oxandrin, to be accomplished by an increase in the size
of the Company's sales force and expansion of sales activity into the
wound care sector."
Dr. Fass added: "Several new key strategic alliances, some of
which were expected to generate contract revenues in the fourth
quarter of 1999, are in the process of advanced negotiations. We look
forward to their consummation in 2000, and we remain very confident
that 2000 will be a record year for BTG in terms of revenues, product
sales, and earnings. We have every expectation that, with the
inventory reduction completed and the current growth rate of our
product sales, we will be able to deliver on our commitment of
accelerated growth in 2000."
Bio-Technology General Corp., a leading biopharmaceutical
company, develops, manufactures and markets genetically engineered and
other products for human health care. The Company's products are
marketed in over thirty countries worldwide.
Statements in this news release concerning the Company's business
outlook or future economic performance, anticipated profitability,
revenues, expenses or other financial items; and statements concerning
assumptions made or expectations as to any future events, conditions,
performance or other matters, are "forward-looking statements" as that
term is defined under the Federal Securities Laws. Forward-looking
statements are subject to risks, uncertainties and other factors which
could cause actual results to differ materially from those stated in
such statements. Such risks, uncertainties and factors include, but
are not limited to, changes and delays in product development plans
and schedules, customer acceptance of new products, changes in pricing
or other actions by competitors, patents owned by the Company and its
competitors, and general economic conditions, as well as other risks
detailed in the Company's filings with the Securities and Exchange
Commission. |
