IVAX' Strong Growth of Sales and Earnings Continues in Third Quarter; 3Q2001 Diluted EPS Up 99% To $.30 Per Share; 3Q2001 Net Revenue Up 76% To $322 Million.Business Editors & Health/Medical Writers MIAMI--(BUSINESS WIRE)--Oct. 25, 2001 IVAX Corporation IVAX Corporation was a United States public corporation focused on manufacturing and distributing generic pharmaceutical products. Ivax was acquired by the Israeli company Teva Pharmaceutical Industries in January 2006. External links
See: American Stock Exchange :IVX) (LSE LSE - Language Sensitive Editor :IVX.L) today reported net income for the third quarter of 2001 of $61.5 million, or $.30 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, an increase of 99% over the $30.9 million, or $.15 per diluted share, reported in the third quarter of 2000. For the nine months ended September September: see month. 30, 2001, net income rose by 133% to $189.5 million, or $.91 per diluted share, versus net income of $81.3 million, or $.40 per diluted share, for the same period a year earlier. Net revenue for the third quarter increased by 76% to $322 million compared to net revenue of $182.6 million in the third quarter of last year. Net revenue for the first nine months of 2001 increased by 60% to $883.7 million compared to net revenue of $550.7 million in the prior year. These revenue gains resulted from strong worldwide sales of the company's brand and brand equivalent (generic) pharmaceutical products, contributions from acquisitions made over the past year, higher respiratory products sales in the U.S. and abroad, and sales of brand equivalent paclitaxel paclitaxel /pac·li·tax·el/ (pak?li-tak´sel) an antineoplastic that promotes and stabilizes polymerization of microtubules, isolated from the Pacific yew tree (Taxus brevifolia); . "I am pleased to report these increases for the third quarter of 2001, which mark our 15th consecutive quarter of significant year-over-year earnings growth. These improvements underscore The underscore character (_) is often used to make file, field and variable names more readable when blank spaces are not allowed. For example, NOVEL_1A.DOC, FIRST_NAME and Start_Routine. (character) underscore - _, ASCII 95. our strategy for diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. of earnings sources. Sales of existing brand and brand equivalent products, new product introductions, strategic acquisitions, licensing arrangements of our innovative products, prudent investment decisions and a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. tax structure all contributed to our growth over the years and we expect each of these activities to contribute even more in the future," said Phillip Phillip is a variant of the name Philip. It may refer to: Given name:
Neil Flanzraich, vice-chairman and president of IVAX Corporation said, "We anticipate that 2001 will be another successful year for IVAX with our net revenue expected to reach approximately $1.2 billion. In the third quarter, we experienced sales growth in our brand and brand equivalent respiratory products in the U.S. and overseas, as well as sales growth in our core U.S. brand equivalent products. Acquisitions also contributed to our sales growth in the quarter. Net revenues increased 98.2% in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , 16.6% in Europe and 304.7% in Latin America, after adjusting for a negative currency impact of approximately 3.6%. Our gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. for the third quarter of 2001 improved to 53.3% of net revenues compared to 48.3% in the same quarter a year earlier. This resulted primarily from sales of higher margin products. The substantial growth in our third quarter net income was achieved even as total operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. increased by 71%. This increase includes operating expenses from recently acquired companies and a 55% increase in research and development spending, which we estimate will reach approximately $100 million for this year. Our net income also includes nearly $7.1 million in gains on the early retirement of debt." Mr. Flanzraich also noted that, "Another IVAX strategy for future growth is the acquisition of products that complement our existing product line, such as our recent acquisition of the currently marketed intranasal in·tra·na·sal adj. Within the nose. steroid brand products, Nasarel(R) and Nasalide Na·sa·lide A trademark for the drug flunisolide. (R), for the treatment of allergic rhinitis Allergic Rhinitis Definition Allergic rhinitis, more commonly referred to as hay fever, is an inflammation of the nasal passages caused by allergic reaction to airborne substances. . We believe these products have significant growth potential as allergic rhinitis affects more than 25% of the U.S. population and the domestic intranasal steroid market is growing rapidly toward $1.5 billion in annual revenues. We expect to continue purchasing brand products as part of a plan to expand our domestic proprietary sales force in anticipation of the approval of our own innovative products." Continuing, Mr. Flanzraich said, "In response to recent incidents following the September 11th terrorist attacks on America, IVAX, as a leading manufacturer of brand equivalent antibiotics Antibiotics Definition Antibiotics may be informally defined as the subgroup of anti-infectives that are derived from bacterial sources and are used to treat bacterial infections. , has increased production and sales of several of these, such as generic doxacycline, one of several antibiotics approved to treat anthrax anthrax (ăn`thrăks), acute infectious disease of animals that can be secondarily transmitted to humans. It is caused by a bacterium (Bacillus anthracis . We also have an application pending with the FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. for our ciprofloxacin ciprofloxacin /cip·ro·flox·a·cin/ (sip?ro-flok´sah-sin) a synthetic antibacterial effective against many gram-positive and gram-negative bacteria; used as the hydrochloride salt. cip·ro·flox·a·cin n. , the generic equivalent of Cipro(R), the antibiotic antibiotic, any of a variety of substances, usually obtained from microorganisms, that inhibit the growth of or destroy certain other microorganisms. Types of Antibiotics most commonly used to treat anthrax." IVAX continues to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. shares under its current 12.5 million share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: in August 2000. Approximately 5.25 million shares remain available for repurchase under the current authorization The right or permission to use a system resource; the process of granting access. See access control. , with approximately 7.25 million shares repurchased to date at prices ranging from $17.99 to $35.05 per share. Since February 1998, IVAX has repurchased approximately 48.4 million of its shares. As previously announced, certain IVAX executives also recently purchased the company's securities. IVAX Corporation, headquartered in Miami, Florida “Miami” redirects here. For the Native American tribe, see Miami tribe. Miami is a major city in southeastern Florida, in the United States. It is the county seat of Miami-Dade County. Miami is a gamma world city with an estimated population of 404,048. , is engaged in the research, development, manufacturing, and marketing of branded and brand equivalent pharmaceuticals and veterinary veterinary /vet·er·i·nary/ (vet´er-i-nar?e) 1. pertaining to domestic animals and their diseases. 2. veterinarian. vet·er·i·nar·y adj. and diagnostic products in the U.S. and international markets. Copies of this and other news releases may be obtained free of charge from IVAX' Web site at http://www.ivax.com. This press release contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, regarding, among other things, statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc goals, plans and projections regarding the company's financial position, results of operations, market position, product development and business strategy. These statements involve risks and uncertainties that cannot be predicted or quantified and, consequentially con·se·quen·tial adj. 1. Following as an effect, result, or conclusion; consequent. 2. Having important consequences; significant: , actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others, the uncertainty that the impact of competitive products and prices may be greater than anticipated, that IVAX has in the past and may in the future experience difficulties in obtaining raw materials necessary for the production of IVAX' products, particularly paclitaxel, on commercially reasonable terms or at all, that the recently approved paclitaxel products and any subsequently approved paclitaxel products may diminish the growth prospects and demand for IVAX' paclitaxel, that the company may not be able to purchase additional brand products or increase its sales force, that acquired products may not achieve anticipated growth, that benefits anticipated from acquisitions will not occur, that benefits anticipated from tax structures will not occur, that clinical trials and studies for products and compounds under development may not be commenced, may take longer than anticipated, may fail, may not achieve the expected results or effectiveness and may not generate the data that would support the approval or marketing of these products for the indications being stated or for other indications, and that the compounds and products in IVAX' research pipeline will not be successfully developed, will not receive regulatory approval or will not be successfully commercialized. In addition to the risk factors set forth above, IVAX' forward looking statements may also be adversely affected by general market factors, competitive product development, product availability, current and future branded and generic competition for the company's products, federal and state regulations and legislation, the regulatory process for new products and indications, manufacturing issues that may arise, trade buying patterns, exchange rate fluctuations, patent positions and the timing and outcome of legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. , among other things. For further details and discussion of these and other risks and uncertainties, see IVAX' Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and other filings with the Securities and Exchange Commission. IVAX undertakes no obligation to publicly update any forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" or to reflect the occurrence of unanticipated events. Cipro(R) is a registered trademark of Bayer Corporation.
IVAX Corporation and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Nine Months
Period Ended 2001 2000 2001 2000
September 30, --------- --------- ---------- -----------
(In thousands, except
per share data)
Net revenues $ 321,990 $ 182,566 $ 883,704 $ 550,651
Cost of sales 150,128 94,389 417,191 284,769
--------- --------- ---------- -----------
Gross profit 171,862 88,177 466,513 265,882
--------- --------- ---------- -----------
Selling, general
and administrative 73,078 43,417 183,310 124,848
Research and
development 26,307 17,017 65,210 49,626
Amortization 5,404 2,653 13,226 6,408
Restructuring costs
(accrual reversal) 1,317 (895) 1,097 (4,039)
--------- --------- ---------- -----------
Total operating
expenses 106,106 62,192 262,843 176,843
--------- --------- ---------- -----------
Income from
operations 65,756 25,985 203,670 89,039
Total other income
(expense), net (1,705) 9,382 18,427 12,534
--------- --------- ---------- -----------
Income from continuing
operations before
income taxes and
minority interest 64,051 35,367 222,097 101,573
Provision for income
taxes 9,938 4,352 39,904 10,974
--------- --------- ---------- -----------
Income from continuing
operations before
minority interest 54,113 31,015 182,193 90,599
Minority interest 228 (95) 143 (533)
--------- --------- ---------- -----------
Income from
continuing
operations 54,341 30,920 182,336 90,066
Cumulative effect of a
change in accounting
principle, net of
taxes - - - (6,471)
Extraordinary item -
gain (loss) on
extinguishment of
debt, net of tax 7,120 - 7,120 (2,254)
--------- --------- ---------- -----------
NET INCOME $ 61,461 $ 30,920 $ 189,456 $ 81,341
========= ========= ========== ===========
BASIC EARNINGS PER SHARE:
Income from contin-
uing operations $ 0.27 $ 0.16 $ 0.91 $ 0.46
Cumulative effect,
net of tax - - - (0.03)
Extraordinary item,
net of tax 0.04 - 0.04 (0.01)
--------- --------- ---------- -----------
Net Income $ 0.31 $ 0.16 $ 0.95 $ 0.42
========= ========= ========== ===========
DILUTED EARNINGS PER
SHARE (1):
Income from contin-
uing operations $ 0.26 $ 0.15 $ 0.88 $ 0.44
Cumulative effect,
net of tax - - - (0.03)
Extraordinary item,
net of tax 0.04 - 0.03 (0.01)
--------- --------- ---------- -----------
Net Income $ 0.30 $ 0.15 $ 0.91 $ 0.40
========= ========= ========== ===========
AVERAGE SHARES
OUTSTANDING:
Basic 200,089 198,452 199,743 195,323
========= ========= ========== ===========
Diluted 214,497 206,786 224,144 203,106
========= ========= ========== ===========
(1) Amounts computed including interest reduction on assumed
conversion of dilutive convertible subordinated debt.
IVAX Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
Condensed Balance Sheets September 30, December 31,
(In thousands) 2001 2000
------------- ------------
Assets
Cash & cash equivalents $ 283,683 $ 174,794
Marketable Securities 128,944 76,734
Other current assets 622,942 407,586
Property, plant and equipment, net 335,702 250,852
Other assets 705,417 158,220
------------- ------------
Total assets $ 2,076,688 $ 1,068,186
============= ============
Liabilities and Shareholders' Equity
Current portion of long-term debt $ 67,198 $ 934
Other current liabilities 302,466 219,690
Long-term debt 913,713 253,755
Other long-term liabilities 35,529 23,472
Minority interest 14,683 1,712
Temporary equity - put options - 84,503
Shareholders' equity 743,099 484,120
------------- ------------
Total liabilities and
shareholders' equity $ 2,076,688 $ 1,068,186
============= ============
IVAX Corporation and Subsidiaries
Business Segment Information
(Unaudited)
Revenues by Region
In Thousands
Three Months Nine Months
Period Ended 2001 2000 2001 2000
September 30, --------- --------- ---------- -----------
North America
External sales $ 139,804 $ 71,098 $ 440,793 $ 213,336
Intersegment sales 758 121 1,221 422
Other revenues 1,152 274 1,420 20,281
--------- --------- ---------- -----------
Net revenues -
North America 141,714 71,493 443,434 234,039
--------- --------- ---------- -----------
Europe
External sales 75,646 62,203 221,844 205,220
Intersegment sales 13,923 6,786 35,123 22,387
Other revenues 14,562 20,351 43,451 45,492
--------- --------- ---------- -----------
Net revenues -
Europe 104,131 89,340 300,418 273,099
--------- --------- ---------- -----------
Latin America
External sales 78,375 19,240 143,545 37,531
Other revenues 1,021 378 1,556 1,188
--------- --------- ---------- -----------
Net revenues -
Latin America 79,396 19,618 145,101 38,719
--------- --------- ---------- -----------
Corporate & other
External sales 9,615 9,126 27,346 27,694
Intersegment sales (14,681) (6,907) (36,344) (22,809)
Other revenues 1,815 (104) 3,749 (91)
--------- --------- ---------- -----------
Net revenues -
Corporate & other (3,251) 2,115 (5,249) 4,794
--------- --------- ---------- -----------
Net revenues $ 321,990 $ 182,566 $ 883,704 $ 550,651
========= ========= ========== ===========
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