REVENUES. Revenues increased 11% in 1999 to $85,320,000 from $76,855,000
in 1998, which itself represented an 18% increase over 1997 revenues of
$65,335,000. Product sales decreased by 9% in 1999 to $62,332,000 from
$68,246,000 in 1998, following a 27% increase in 1998 from $53,723,000 in 1997.
The increase in product sales in 1998 was primarily driven by increased sales of
OXANDRIN in the United States, which accounted for approximately 87% of the
increase in product sales in 1998. The increase in OXANDRIN sales resulted
primarily from the Company's increased marketing efforts and growing awareness
of the product. However, sales of OXANDRIN decreased $15,586,000, or 38%, in
1999 because Gentiva Health Services, Inc. ("Gentiva"), BTG's distributor for
OXANDRIN in the United States, reduced the amount of OXANDRIN inventory it was
carrying as a result of a slowing of the rate of increase of OXANDRIN
prescriptions. Although sales of OXANDRIN to Gentiva declined in 1999, end-user
sales of OXANDRIN by Gentiva increased by 25% and prescriptions increased by 27%
in 1999 compared to 1998. The decrease in sales to Gentiva was partially offset
by $2,228,000 of sales of OXANDRIN to third parties for distribution overseas,
as well as a $7,287,000, $688,000 and $1,761,000 increase in sales of
DELATESTRYL, human growth hormone and BIOLON, respectively. The increase in
sales of DELATESTRYL, which is also distributed on behalf of the Company by
Gentiva, is primarily the result of the U.S. Food and Drug Administration
stopping production of a competing injectable testosterone product currently
used to treat men with hypogonadism (testosterone deficiency).
40
Sales of OXANDRIN in 1999, 1998 and 1997 were approximately $24,935,000,
$40,521,000 and $27,904,000, respectively, representing 40%, 59% and 52%,
respectively, of the Company's total product sales in those periods. Sales of
OXANDRIN to Gentiva in 1999, 1998 and 1997 were $22,708,000, $40,353,000 and
$27,613,000, respectively, representing 91%, 99% and 99%, respectively, of the
Company's total sales of OXANDRIN. Sales of hGH in 1999, 1998 and 1997 were
approximately $18,004,000, $17,316,000 and $16,745,000, respectively,
representing 29%, 25% and 31%, respectively, of the Company's total product
sales in those periods. Sales of hGH to JCR in 1999, 1998 and 1997 were
approximately $10,507,000, $11,056,000 and $10,095,000, respectively,
representing 17%, 16% and 19%, respectively, of the Company's total product
sales in those periods and 58%, 64% and 60%, respectively, of the Company's
total hGH sales in those periods. Sales of hGH to the Ferring Group, were
approximately $3,619,000, $3,823,000 and $4,520,000 in 1999, 1998 and 1997,
respectively, representing 6%, 6% and 8%, respectively, of the Company's total
product sales in those periods and 20%, 22% and 27%, respectively, of the
Company's total hGH sales in those periods. |
