Andrx Corporation Announces Third Quarter And Nine Month Results
FORT LAUDERDALE, Fla., Oct. 23 /PRNewswire/ -- Andrx Corporation (Nasdaq:ADRX) today announced its results for
the three and nine months ended September 30, 1997. Andrx reported a net loss of $2,864,800 or $0.19 per share for the
1997 third quarter as compared to a net loss of $1,018,100 or $0.08 per share for the 1996 third quarter. Andrx also reported
a net loss of $6,528,400 or $0.47 per share for the nine months ended September 30, 1997 as compared to a net loss of
$2,903,000 or $0.25 per share for the nine months ended September 30, 1996. The increase in the net loss for the 1997
periods as compared to the 1996 periods primarily results from the continuing expansion of the Company's pharmaceutical
operations in research and development and manufacturing. The weighted average shares of common stock outstanding were
14.7 million for the 1997 third quarter as compared to 13.3 million for the 1996 third quarter and were 14.0 million for the nine
months ended September 30, 1997 as compared to 11.7 million for the comparable 1996 period. The increase in the weighted
average shares of common stock outstanding for the 1997 periods as compared to the comparable 1996 periods resulted from
the June 1997 sale of a total of 880,000 shares of common stock in private placement transactions, as well as the exercise of
warrants and options.
For the third quarter of 1997, revenue from the distribution of pharmaceutical products, which to date has represented
substantially all of Andrx's revenues, increased by 82.6% or $19,252,500 to $42,573,100 as compared to $23,320,600 for the
third quarter of 1996. Third quarter distribution revenues reflect the Company's greater penetration of the pharmaceutical
distribution market and Andrx's participation in the distribution of generic Zantac (ranitidine), which became available in August
of 1997. Excluding the revenue from ranitidine, distribution revenue in the third quarter of 1997 increased at a rate consistent
with the Company's historic growth rate and exceeded analysts' estimates. Gross profit on the distribution of pharmaceutical
products was $6,071,000 for the third quarter of 1997, an increase of 58.0% as compared to $3,843,500 for the prior year
period. Gross profit on the distribution of pharmaceutical products as a percentage of distribution revenues was 14.3% in the
third quarter of 1997, a decrease from 16.5% in the prior year period primarily due to continuing competition and pricing
pressures within the generic pharmaceutical industry.
Selling, general and administrative expenses were $5,308,000 for the 1997 third quarter, an increase of $1,815,000 or 52.0%,
as compared to $3,493,000 for the 1996 third quarter. As a percentage of total revenues, selling, general and administrative
expenses decreased to 12.3% for the quarter ended September 30, 1997, as compared to 14.8% for the quarter ended
September 30, 1996. The increase in selling, general and administrative expenses was primarily due to an increase in the selling
activities necessary to support the increase in distribution revenues, but also includes costs related to the establishment of an
infrastructure for the sale of the Company's first product, a bioequivalent version of Dilacor XR(TM), which was launched on
October 10, 1997, immediately following its approval by the U.S. Food and Drug Administration (FDA).
Research and development expenses were $3,031,000 in the 1997 third quarter as compared to $1,174,500 in the 1996 third
quarter. The increase in research and development expenses of $1,856,500 or 158.1% reflects the expansion of development
activities for the Company's Abbreviated New Drug Application (ANDA) and New Drug Application (NDA) programs.
In the third quarter of 1997, the Company incurred $521,600 of manufacturing overhead related to the Company's
commercial-scale manufacturing operations in preparation for the launch of its bioequivalent version of Dilacor XR(TM).
The Company's share of equity in losses of ANCIRC Pharmaceuticals, a 50/50 joint venture with Watson Pharmaceuticals, Inc.
(NYSE:WPI), was $497,600 in the 1997 third quarter as compared to $352,800 in the 1996 third quarter.
Alan P. Cohen, Chairman and Chief Executive Officer of Andrx, stated, ''These are exciting times at Andrx. We launched our
first product, a bioequivalent version of Dilacor XR(TM), immediately following its approval by the FDA. We also received
tentative FDA approval of the ANDA for our product that is bioequivalent to Cardizem(R)CD and are working with a Bayer
affiliate to develop an OTC product using one of our drug delivery technologies. In addition, our ANDA and NDA drug
development programs continue to make significant progress and we are evaluating interesting new business and scientific
opportunities.''
Andrx is engaged in the formulation and commercialization of oral controlled-release pharmaceuticals utilizing its proprietary drug
delivery technologies, either directly or through collaborative arrangements. In its ANDA program, the Company is developing
generic versions of selected high sales volume controlled-release brand name pharmaceuticals. In its NDA program, the
Company is developing its own brand name formulations of certain existing drugs that it believes may be improved by the
application of the Company's drug delivery technologies. The Company also markets and distributes pharmaceutical products
manufactured by third parties.
Forward-looking statements (statements which are not historical facts) in this release are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements
involve risks and uncertainties, including those risks and uncertainties detailed in the Company's filings with the Securities and
Exchange Commission.
ANDRX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
Revenues
Distribution
revenues, net $42,573,100 $23,320,600 $105,793,900 $61,097,000
Research and
development
services
to joint venture 398,900 274,400 1,089,800 1,829,300
Licensing revenues 87,500 --- 87,500 ---
Total revenues 43,059,500 23,595,000 106,971,200 62,926,300
Cost of revenues
Distribution 36,502,100 19,477,100 90,048,500 50,975,300
Research and
development services
to joint venture 398,900 274,400 1,089,800 1,829,300
Total cost of
revenues 36,901,000 19,751,500 91,138,300 52,804,600
Gross profit 6,158,500 3,843,500 15,832,900 10,121,700
Operating expenses
Selling, general
and administrative 5,308,000 3,493,000 14,061,900 9,333,000
Research and
development 3,031,000 1,174,500 6,760,800 2,499,400
Manufacturing
overhead 521,600 --- 993,900 ---
Equity in losses
of joint venture 497,600 352,800 1,261,000 1,384,000
Total operating
expenses 9,358,200 5,020,300 23,077,600 13,216,400
Loss from
operations (3,199,700) (1,176,800) (7,244,700) (3,094,700)
Interest income, net 334,900 158,700 716,300 191,700
Net loss $(2,864,800) $(1,018,100) $(6,528,400) $(2,903,000)
Net loss per share $(0.19) $(0.08) $(0.47) $(0.25)
Weighted average
shares of common
stock outstanding 14,736,300 13,297,000 14,006,200 11,734,000
CONDENSED CONSOLIDATED
BALANCE SHEETS
(UNAUDITED)
September 30, December 31,
1997 1996
ASSETS
Cash, cash equivalents and
investments available for sale $31,066,000 $30,319,500
Accounts receivable-net, inventory
and other current assets 47,320,600 26,517,500
Total current assets 78,386,600 56,837,000
Property and equipment -
net and other assets 15,081,600 9,799,300
Total assets $93,468,200 $66,636,300
LIABILITIES AND
SHAREHOLDERS' EQUITY
Total current liabilities $32,348,800 $23,874,700
Total shareholders' equity 61,119,400 42,761,600
Total liabilities and
shareholders' equity $93,468,200 $66,636,300
SOURCE Andrx Corporation |
