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BELMAC TERMINATES ACQUISITION DISCUSSIONS WITH TWO EUROPEAN DRUG COMPANIES AND REPORTS RESULTS FOR QUARTER ENDED DEC. 31, 1992

 TAMPA, Fla., Feb. 12 /PRNewswire/ -- Belmac Corporation (AMEX: BLM) announced today it has terminated negotiations for the purchase of two European pharmaceutical companies. At the same time, the company reported its unaudited financial figures for the quarter ended Dec. 31, 1992, which reflect revenues of approximately $5 million and a net loss of approximately $12.8 million, which includes the previously announced non-recurring charges of approximately $7.2 million.
 Michael M. Harshbarger, president and chief operating officer, said Belmac's restructured operations in France, and issues raised during Belmac's due diligence review of the proposed acquisition, rendered the acquisitions of these companies less attractive. "For the benefit of all parties involved, we felt it was in our best interest to terminate these negotiations and move forward," Harshbarger said.
 Although Belmac had announced the signing of agreements for proposed acquisition of the two companies in Europe (Rosa-Phytopharma and Biotekfarma) subject to continuing due diligence, Harshbarger described the acquisitions as "not probable" at the annual shareholders' meeting on Feb. 5, 1993. "We have disengaged formal discussions on an amicable basis with both Rosa-Phytopharma and Biotekfarma for a number of reasons. However, we do not want to rule out a future alliance or transaction under different terms and conditions."
 Belmac expects to report revenues of approximately $5 million and a net loss of approximately $12.8 million, or $1.05 per share, for the three months ended Dec. 31, 1992, compared to reported revenues of $3,027,000 and a net loss of $1,937,000, or $.22 cents per share, for the same period in the prior year. The increase in sales and net loss between the two periods relates to sales and related losses generated by Biolid in France (launched March, 1992) and sales and related losses generated by the company's Spanish subsidiary, Laboratorios Belmac, which the company acquired in February, 1992. In addition, the increased loss reflects the previously reported non-recurring charges which approximate $7.2 million. The quarter ended Dec. 31, 1992 also reflects a full period of marketing the product Amodex, compared to an abbreviated marketing period in the same period of the prior year, due to its acquisition by the company in December, 1991. As previously reported, the company sold its rights to Amodex in January, 1993.
 The company reported revenues of $4,775,000 and a net loss of $3,378,000 or $.31 per share for the three months ended Sept. 30, 1992. The increase in sales for the quarter ended Dec. 31, 1992 over the prior quarter is primarily attributable to the seasonality of the company's anti-infective products, partially offset by lower sales by the company's Chimos subsidiary due to timing and variability associated with large contract deliveries to institutions.
 The significant increase in the estimated net loss for the three months ended Dec. 31, 1992 as compared to the three months ended Sept. 30, 1992 is primarily attributable to the previously announced non-recurring charges which approximate $7.2 million. The increased loss further reflects the additional costs associated with the accelerating expansion of a direct sales force in France, expanding the direct sales force in Spain, and introducing a product in Spain, as well as expenses related to legal, accounting and consulting services in the United States. The company determined in December, 1992 to implement its marketing strategy for France in a more cost effective manner by retaining an experienced outside marketing firm in place of its existing direct French sales force. Costs related to this restructuring have been included in the non-recurring charges.
 The preliminary financial information has been prepared by the company without audit. Audited financial results for the period ended Dec. 31, 1992, will be reported on Form 10-K to be filed on or before March 31, 1993. The company is still reviewing year-end results from its foreign subsidiaries. Final reported revenues and net loss may vary from the numbers estimated above.
 Belmac Corporation is an international pharmaceutical company based in Tampa, Fla.
 -0- 2/12/93
 /CONTACT: Michael D. Price of Belmac Corporation, 813-286-4401; or Harry Costello of Hill and Knowlton, 813-221-0030, for Belmac Corporation/
 (BLM)


CO: Belmac Corporation ST: Florida IN: MTC SU: ERN

JB-SS -- FL001 -- 6066 02/12/93 09:43 EST
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Date:Feb 12, 1993
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