Global Pharmaceutical Corporation Reports 1997 Second Quarter And Six Month Financial Results.

PHILADELPHIA--(BUSINESS WIRE)--August 19, 1997--Global Pharmaceutical Corporation (Nasdaq:GLPC) today reported financial results for the second quarter and six months ended June 30, 1997.

For the second quarter ended June 30, 1997, Global reported a net loss of $1,397,000, or ($0.33) per share, compared with a net loss of $1,154,000, or ($0.27) per share, in the comparable period of 1996. The increase in the net loss is related primarily to increased payroll costs from the hiring of key personnel necessary to support the Company's infrastructure and initiation of manufacturing activities resulting from the recent FDA facility certification. For the six months ended June 30, 1997, Global reported a net loss of $2,447,000, or ($0.57) per share, compared with a net loss of $1,714,000, or ($0.40) per share, in the comparable period of 1996.

Max L. Mendelsohn, President and Chief Executive Officer, commented, "This is a pivotal time in the development of Global as we are reporting our last quarter without U.S. Food and Drug Administration (FDA) certification of our manufacturing facility. On July 14, we received notification from the FDA indicating the Company's compliance with current good manufacturing practices. This was followed on August 6 with the approval from the U.S. Drug Enforcement Agency (DEA) licensing us to manufacture Classes II through V controlled substance products. We are now able to initiate our business plan of reintroducing Global's portfolio of products, consisting of previously manufactured and marketed ANDA's and NDA's, as well as over-the-counter (OTC) formulations. Tetracycline Hydrochloride 250 mg capsules will be our first launch, which we expect to begin shipping during the third quarter."

"We also recently announced an initial closing of $1.2 million Series A Convertible Preferred Stock, part of a private placement by Global of up to $6 million, as well as $1.1 million long-term, low interest rate loans from Pennsylvania Industrial Development Authority and Philadelphia Industrial Development Corporation. The proceeds from the private placement and the loans will help support the market launch of our initial product pipeline," continued Mr. Mendelsohn. "Everyone at Global has worked extremely diligently with both the FDA and DEA in order to arrive at this juncture. We now are able to set out on our mission of becoming a world class generic pharmaceutical company, something we have sought ever since our initial public offering over a year and a half ago. I look forward to reporting our progress in the coming quarters."

Global Pharmaceutical Corporation is engaged in the manufacture and sale of solid, oral generic prescription and OTC drug products. The Company currently owns 54 previously manufactured and marketed ANDAs and NDAs, more than 100 previously manufactured and marketed prescription and OTC formulations not subject to ANDA approval by FDA, and a recently renovated 115,000 square-foot manufacturing facility.

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995:

To the extent any statements made in this release contain information that is not historical, these statements are essentially forward looking and are subject to risks and uncertainties, including the difficulty of predicting FDA approvals, acceptance and demand for new pharmaceutical products, the impact of competitive products and pricing, new product development and launch, reliance on key strategic alliances, availability of raw materials, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.

                  GLOBAL PHARMACEUTICAL CORPORATION
                    (a development stage company)
                       STATEMENT OF OPERATIONS
           (in thousands, except share and per share data)

                       Three Months Ended         Six Months Ended
                              June 30,              June 30,
                           1997      1996       1997      1996

General and administrative  $1,411  $1,239     $2,610    $2,972

Interest expense                 7       8         20        20

Interest income                (21)    (92)       (63)     (220)

Other income                    ---     (1)      (120)     (158)

Net profit (loss)           $(1,397) $(1,154)  $(2,447)  $(1,714)

Net profit (loss) per share $(0.33)   $(0.27)   $(0.57)   $(0.40)

Weighted average common
    shares outstanding    4,286,871  4,286,871  4,286,871  4,252,877

CONTACT: GLOBAL PHARMACEUTICAL CORPORATION

Max Mendelsohn, 215/289-2220

or

Morgen-Walke Associates

Investor Relations Contact:

Donna Stein/Dan Durkin/Cindy Reid, 212/850-5600

Press Contact: David Sassoon, 212/850-5600