FORT LAUDERDALE, Fla., Feb. 17 /PRNewswire/ -- Andrx Corporation (Nasdaq: ADRX)
today announced its results for the fourth quarter and year ended December 31, 1997. Andrx
reported a net loss of $1,108,000 or $0.07 per share for the 1997 fourth quarter as compared to a
net loss of $1,125,000 or $0.08 per share for the 1996 fourth quarter. Andrx also reported a net loss
of $7,636,000 or $0.54 per share for the year ended December 31, 1997 as compared to a net loss
of $4,028,000 or $0.33 per share for the year ended December 31, 1996. During 1997, the
Company increased its efforts in the development of brand and generic controlled-release products.
This increase in costs was partially offset by the Company's fourth quarter launch of its first
manufactured product, a bioequivalent version of Dilacor XR(TM). The weighted average shares of
common stock outstanding were 14.8 million for the 1997 fourth quarter as compared to 13.4 million
for the 1996 fourth quarter and were 14.2 million for the year ended December 31, 1997 as
compared to 12.1 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.
In addition, Andrx announced that ANCIRC Pharmaceuticals, its 50/50 joint venture with Watson
Pharmaceuticals, Inc. (NYSE: WPI), recently submitted an Abbreviated New Drug Application
(ANDA) for a bioequivalent version of a controlled-release product. This submission represents the
second ANDA filed by ANCIRC within the past year.
For the fourth quarter of 1997, net sales from distributed products were $40,443,000, an increase of
57.8% or $14,819,000, as compared to $25,624,000 for the fourth quarter of 1996. The increase in
net sales from distributed products for the fourth quarter reflects the Company's greater penetration
of the generic market. Gross profit on the net sales from distributed products was $6,315,000 for the
fourth quarter of 1997, an increase of 50.4% as compared to $4,199,000 for the prior year period.
Gross profit on the net sales from distributed products as a percentage of net sales was 15.6% in the
fourth quarter of 1997, a decrease from 16.4% in the prior year period primarily due to continuing
competition and pricing pressures within the generic pharmaceutical industry. The Company expects
that such competition and pricing pressures may reduce the Company's gross profit percentage in
future periods.
On October 10, 1997, immediately following approval by the FDA, the Company launched its first
manufactured product, a bioequivalent version of Dilacor XR(TM), which generated net sales of
$3,324,000 in the fourth quarter.
Selling, general and administrative expenses were $5,642,000 for the 1997 fourth quarter, an
increase of $1,797,000 or 46.7%, as compared to $3,845,000 for the 1996 fourth quarter. As a
percentage of total revenues, selling, general and administrative expenses decreased to 12.9% for the
quarter ended December 31, 1997, as compared to 15.0% for the quarter ended December 31,
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 net sales from distributed products, and
includes costs related to the sale of the Company's first manufactured product.
Research and development expenses were $3,008,000 in the 1997 fourth quarter as compared to
$1,156,000 in the 1996 fourth quarter. The increase in research and development expenses of
$1,852,000 or 160.2% reflects the continued progress of the Company's ANDA development
activities and the expansion of development activities for the Company's New Drug Application
(NDA) program.
In the fourth quarter of 1997, the Company incurred $894,000 of excess manufacturing expenses
related to the Company's commercial-scale manufacturing operations. In future periods, as the
Company increases its production of salable products, these costs will be absorbed as a component
of the cost of inventory.
The Company's share of equity in losses of ANCIRC was $421,000 in the 1997 fourth quarter as
compared to $627,000 in the 1996 fourth quarter.
The Company incurred expenses in the 1997 fourth quarter of $473,000 related to the development
of its internet based application for healthcare providers.
Alan P. Cohen, Chairman and Chief Executive Officer of Andrx, stated, "The launch of our first
manufactured product in the fourth quarter of 1997 represents another step in the maturing of Andrx
into an integrated pharmaceutical company with a controlled-release brand and generic pipeline,
manufacturing capabilities and a distribution channel. Our previously announced agreement with
Hoechst Marion Roussel furthers that evolution by providing risk-free assurance that our
bioequivalent formulation of Cardizem(R) CD can ultimately be marketed. As far as we have
progressed in this relatively short period of time, it represents only a few steps in the process. Going
forward, we are excited by the progress of our controlled- release product pipeline, validating our
nearly threefold increase in R&D spending this past year, and look to additional accomplishments in
1998 and future years. We are also encouraged by the many opportunities presented by our
CyBear(TM) healthcare communications product, which we recently announced." |
