BTGC tanks on earnings report, though report is decent!
Wednesday July 14, 9:29 am Eastern Time
Company Press Release
Bio-Technology General Announces Second Quarter 1999 Earnings Results -- Second Quarter Earnings of $0.10 vs. $0.09 -- Six Month Earnings of $0.17 vs. $0.16 --
ISELIN, N.J.--(BUSINESS WIRE)--July 14, 1999--Bio-Technology General Corp. (NASDAQ:BTGC - news) today announced earnings for the quarter and six months ended June 30, 1999. Net income for the second quarter was $5.1 million, or $0.10 per share, on revenues of $22.9 million, compared to net income of $4.5 million, or $0.09 per share, on revenues of $18.6 million in the comparable quarter of 1998. For the first six months of 1999, the Company's net income was $9.1 million, or $0.17 per share, on revenues of $43.1 million, compared to net income of $7.9 million, or $0.16 per share, on revenues of $36.1 million in the comparable 1998 period. Revenues and net income in the three months ended June 30, 1999 increased 23% and 12%, respectively, over the comparable 1998 period. For the six-month period ended June 30, 1999, the respective revenue and net income increases were 19% and 15%.
Product sales for the quarter and six months ended June 30, 1999 increased 15% and 8%, to $19.4 million and $35.2 million, compared to $16.9 million and $32.7 million, respectively, in the comparable 1998 periods.
Expenses for the quarter and six months were $15.7 million and $30.1 million, compared to $12.1 million and $24.7 million, respectively, in 1998. Increases in expenses were recorded in the three and six months ended June 30, 1999 with respect to cost of product sales, G&A, and marketing and sales, and in the second quarter of 1999, with respect to research and development activities.
Commenting on the results, Sim Fass, Chairman and Chief Executive Officer stated: ''We are pleased with the growth in total revenues, product sales, and net income for the first half of 1999, despite the previously announced reduction in purchases of Oxandrin(r) by BTG's distributor, Olsten Health Services, Inc. The ongoing reduction of inventory at Olsten will continue to impact BTG's Oxandrin sales to Olsten for the remainder of the year, resulting in lower Oxandrin sales to our national distributor than in 1998. At the same time, the Company has continued to note appreciable increases in the number of prescriptions being written for Oxandrin, suggesting growth in demand for the product. Prescriptions for Oxandrin in the first five months of 1999 increased 14% over the immediately preceding five months, and 26% over the first five months of 1998.''
Dr. Fass added: ''In addition to maintaining a healthy growth dynamic with Oxandrin prescriptions, we are making substantive headway with the development of our product pipeline. As recently announced, BTG's licensee, DRAXIMAGE Inc., the DRAXIS Health Inc. radiopharmaceutical subsidiary, reported Phase II clinical trial results of Fibrimage(r), a recombinant thrombus imaging agent, which should enter Phase III efficacy studies during this quarter. Also, earlier this week, we announced a positive trend with our recombinant superoxide dismutase, OxSODrol(tm), in reducing the incidence of asthma and neurodevelopmental deficits in premature infants, which we will now examine further in our clinical program. Our focus is clearly directed at maximizing our current commercial opportunities, while advancing our products through development to market.''
Bio-Technology General Corp., a leading biopharmaceutical company, develops, manufactures and markets genetically engineered and other products for human health care. BTG's products are marketed in over thirty countries worldwide.
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 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.
TABLE TO FOLLOW
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands except per share data)
Three Months Ended Six Months Ended
June 30 June 30
---------------- -----------------
1999 1998 1999 1998
_________________________________________________________________
Revenues:
Product sales $19,381 $16,923 $35,248 $32,659
Contract fees 1,727 740 4,633 1,744
Other 1,772 983 3,227 1,683
Total
revenues 22,880 18,646 43,108 36,086
Expenses:
Research
and
development 4,359 3,717 8,977 8,973
Cost of
product
sales 3,868 2,488 6,122 5,006
General and
administrative 3,231 2,329 5,895 4,381
Marketing
and sales 3,765 3,303 8,324 5,950
Other 453 236 777 383
Total expenses 15,676 12,073 30,095 24,693
Income before
income taxes 7,204 6,573 13,013 11,393
Income taxes 2,104 2,030 3,907 3,485
Net income $ 5,100 $ 4,543 $ 9,106 $ 7,908
Earnings
per common
share:
Basic $ 0.10 $ 0.09 $ 0.18 $ 0.17
Diluted $ 0.10 $ 0.09 $ 0.17 $ 0.16
Weighted
average
number of
shares
outstanding:
Basic 52,086 48,292 52,014 47,810
Diluted 53,358 50,514 53,217 50,893
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Contact:
WOLFE AXELROD ASSOCIATES
Investor Relations
Don Weinberger
212/370-4500
or
BIO-TECHNOLOGY GENERAL CORP.
Leah Berkovits
732/632-8800 |
