Printer Friendly

SYNCOR PLANS DIVESTITURE OF HOME INFUSION BUSINESS TO FOCUS ON MORE PROFITABLE BUSINESS

 CHATSWORTH, Calif., Feb. 17 /PRNewswire/ -- Syncor International Corporation (NASDAQ: SCOR) today announced the planned divestiture of its home infusion business which represents approximately 6 percent of total revenue. Syncor will close four home infusion sites and will sell the remaining nine facilities. The divestiture should be completed by May 31, 1993. Robertson Stephens & Co. will assist in the sale of the business.
 Gene McGrevin, Syncor's president and chief executive officer stated, "We are highly confident of achieving earnings estimates for fiscal year 1993, ending May 31, 1993. The net effect of the divestiture is not expected to impact earning estimates which include a $.06 per share loss associated with the home infusion business. Upon the completion of the sale, earnings per share could improve above the $0.84 to $0.86 analysts' estimates, based on current market valuations of home infusion companies. The timing of the divestiture could also impact this estimate.
 Fiscal year 1993 will continue to demonstrate Syncor's outstanding financial performance. Over the past four years, sales have grown at an annual compounded rate of 22 percent and net income has increased at an annual compounded rate of 38 percent."
 Long Range Sales and Profit Goals
 Mr. McGrevin continued, "Syncor's financial goal is to continue our outstanding sales and profit trends. We expect sales to increase to $500 million and achieve a 10 percent pretax profit by 1998. This will be accomplished by expanding the market penetration of existing radiopharmaceutical services, accelerating the shift towards commercial radiopharmacies, acquiring and opening new pharmacy locations, and by signing favorable distribution agreements for products awaiting FDA approval.
 We are also announcing that for the past 15 months, Syncor has been developing an important new revenue stream in the oncology market. Utilizing our national pharmacy network and core technical competencies, we will be introducing a central pharmacy concept for oncologists' offices similar to the central radiopharmacy concept we pioneered in the hospital market. Our goal is to create an oncology group which will provide a national comprehensive pharmacy program for oncology management which will include the compounding and dispensing of patient specific chemotherapy agents and support products and services to local oncology offices and clinics for administration to patients. This new service concept will help improve the quality of patient care, improve physician office efficiency and reduce treatment costs. Early results of our pilot programs have been encouraging and we will continue to support this test market into fiscal year 1994."
 The number of patients receiving cancer chemotherapy is expected to grow dramatically through the end of this decade. The American Cancer Society estimates that 1.1 million new cases of cancer were diagnosed in 1991. The current primary source for the compounding and dispensing of patient specific chemotherapy is through oncologists' offices and other alternate sites. The size of this chemotherapy market is currently estimated at $1.8 billion and is expected to grow to $2.6 billion by 1996.
 Mr. McGrevin continued, "We have set aggressive objectives for our company's future growth. Based on our sales and profit performance over the past four years and the exciting new opportunities that are developing, we are confident that our goals are achievable."
 Syncor International Corporation operates an expanding nationwide network of 97 nuclear pharmacy service centers. The company compounds and dispenses patient specific intravenous drugs and solutions for use in diagnostic imaging and a complete range of high-tech pharmacy services. Syncor services over 6,000 hospitals, clinics, and physicians' offices. Syncor is the only national pharmacy network of its kind that provides this combination of diagnostic, therapeutic, and monitoring services to hospitals and alternate site markets.
 -0- 2/17/93
 /CONTACT: Michael E. Mikity, vice president-finance of Syncor International Corporation, 818-886-7400, or Susan Noonan or Anthony J. Russo of Noonan/Russo Communications, Inc., 212-979-9180, for Syncor/
 (SCOR)


CO: Syncor International Corporation ST: California IN: MTC SU: TNM

SM-OS -- NY032 -- 7314 02/17/93 12:00 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 17, 1993
Words:654
Previous Article:IRT CORPORATION ANNOUNCES FINANCIAL RESULTS FOR THIRD QUARTER, FISCAL 1993
Next Article:AMERICAN EXPLORATION COMPANY ANNOUNCES SOUTH LOUISIANA DISCOVERY
Topics:


Related Articles
SYNCOR OPENS POSITRON EMISSION TOMOGRAPHY CENTER AND EXPANDS NATIONAL PHARMACY NETWORK
SYNCOR ANNOUNCES RECORD THIRD QUARTER AND NINE MONTH RESULTS
SYNCOR ANNOUNCES RECORD FIRST QUARTER RESULTS
SYNCOR ANNOUNCES RECORD SECOND QUARTER AND SIX MONTH RESULTS
SYNCOR REPORTS RECORD THIRD QUARTER AND NINE MONTH RESULTS
SYNCOR SIGNS LETTER OF INTENT TO SELL HOME INFUSION BUSINESS; W.R. GRACE & CO. TO PURCHASE EIGHT HOME CARE SITES
SYNCOR COMPLETES SALE OF HOME INFUSION BUSINESS
SYNCOR APPOINTS ROBERT G. FUNARI AS CHIEF OPERATING OFFICER
SYNCOR ANNOUNCES RECORD RESULTS; NET INCOME INCREASES 46.4 PERCENT FOR THE QUARTER AND 42.2 PERCENT FOR THE FISCAL YEAR
Option Care Issues Third Quarter Earnings Update and Announces Restructuring.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters