BTGCReports 1999 Earnings Results In Line With Previously Announced Anticipated Earnings
ISELIN, N.J.--(BUSINESS WIRE)--Feb. 11, 2000--Bio-Technology
General Corp. (NASDAQ:BTGC) today announced its earnings and financial
results for 1999. In line with the Company's previously announced
anticipated earnings, EPS for 1999 was $0.26. As also reported
earlier, the Company's earnings for 1999 were impacted by a
significant reduction in Oxandrin(R) inventory by Olsten Health
Services, Inc., the Company's distributor for the product. This
resulted in net income of $13.9 million, or $0.26 per share in 1999,
compared to $17.7 million, or $0.36 per share in 1998. Diluted shares
used in computation were 54.2 million in 1999, vs. 49.8 million the
previous year.
Total revenues grew 11% to $85.3 million in 1999 compared to
$76.9 million in 1998. Revenues from product sales were $62.3 million
in 1999 compared to $68.2 million in 1998, and revenues from contract
fees were $14.8 million compared to $2.7 million. The significant
increase in contract fees relates primarily to the initial $10 million
fee from Teva Pharmaceutical Industries Ltd., with whom BTG entered
into a key strategic alliance in September 1999.
Expenses increased 28% from $52.1 million in 1998 to $66.6
million in 1999. The most significant increases in expenses were
recorded in R&D, G&A, marketing and sales, and commissions and
royalties. These increases relate primarily to: product formulation
activity; legal fees, an increase in salary expenses, and the
write-off of previously capitalized expenses relating to the
development of Androtab-SL(R); promotion of marketed products; and
payments to licensors, respectively. The legal expenses incurred were
in large part due to litigation costs relating to the Company's patent
suit against Genentech, Inc. (NYSE:DNA). On January 18, 2000, a
Federal Court invalidated Genentech's U.S. Patent No. 4,601,980
relating to a method for producing recombinant human growth hormone.
As a result, the preliminary injunction that prohibited the commercial
introduction in the United States of the Company's recombinant human
growth hormone, Bio-Tropin(TM)was vacated.
In commenting on the 1999 results, Sim Fass, Chairman and Chief
Executive Officer of Bio-Technology General Corp., stated: "1999
results essentially reflect the impact of a previously announced
inventory adjustment situation. With Oxandrin prescriptions up by 27%
in 1999 compared to 1998, and end user sales up by 25%, our Oxandrin
business continued to demonstrate robust year to year growth in 1999.
This should positively impact Oxandrin sales to our distributor in
2000 as the absorption of the excess inventory is completed, and the
Company's sales to Olsten start to reflect 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."
Bio-Technology General Corp., a leading biopharmaceutical
company, develops, manufactures and markets genetically engineered and
other products for human health care. BTG'products are marketed in
over 30 countries worldwide. Products sold in the United States are
Oxandrin(R) (oxandrolone, USP), and Delatestryl(R) (testosterone
enanthate), marketed directly by BTG, Mircette(TM)(oral
contraceptive), marketed by Organon, Inc. and BioLon(TM)(hyaluronic
acid), marketed by BTG'licensee, Akorn, Inc. Products sold
internationally are Bio-Tropin(TM)(human growth hormone) and
BioLon(TM)(hyaluronic acid).
All earnings-per-share amounts in the text of this news release
represent diluted earnings per share as defined under Statement of
Financial Accounting Standards No. 128, "Earnings per Share."
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 states 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.
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BIO-TECHNOLOGY GENERAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Year Ended December 31,
1999 1998
Revenues:
Product sales $62,332 $68,246
Contract fees 14,848 2,686
Royalties 1,761 2,160
Other revenues 1,746 798
Interest 4,633 2,965
Total revenues 85,320 76,855
Expenses:
Research and development 21,120 18,450
Cost of product sales 11,224 10,744
General and administrative 14,035 8,504
Marketing and sales 16,583 13,312
Other 3,599 1,096
Total expenses 66,561 52,106
Income before income taxes 18,759 24,749
Income taxes 4,897 7,010
Net income $13,862 $17,739
Earnings per common share:
Basic $ 0.26 $ 0.37
Diluted $ 0.26 $ 0.36
Weighted average number of
common and common equivalent
shares:
Basic 52,348 48,184
Diluted 54,191 49,848 |
