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SYNTEX'S FISCAL 1992 ANNUAL REPORT NOW AVAILABLE; MANAGEMENT DISCUSSES CERTAIN EFFECTS OF OCTOBER 21 COST-REDUCTION ANNOUNCEMENT

SYNTEX'S FISCAL 1992 ANNUAL REPORT NOW AVAILABLE; MANAGEMENT DISCUSSES
 CERTAIN EFFECTS OF OCTOBER 21 COST-REDUCTION ANNOUNCEMENT
 PALO ALTO, Calif., Oct. 29, /PR Newswire/ -- Syntex Corp.'s (NYSE: SYN) annual report for the fiscal year ended July 31, 1992, was mailed to shareholders and financial analysts this week. It reviews a year in which the company's sales exceeded $2 billion for the first time and net income rose to a record level. The report also outlines the company's continued commitment to maintaining its excellence in research and development.
 The annual report notes that sales in fiscal 1992 rose 15 percent to the previously reported level of $2,085.0 million. Net income rose 11 percent to a record $472.3 million. The lower rate of increase in net income compared to sales was due primarily to investments in marketing to introduce the company's new products, and to investments in research and development.
 As previously reported, sales of Syntex's newer products increased 66 percent to $400.7 million in fiscal 1992, and represented 63 percent of the company's year-to-year increase in human-pharmaceutical sales worldwide. The newer products are Toradol(R) (ketorolac tromethamine), available both as an intramuscular injection and a tablet; Ticlid(R) (ticlopidine hydrochloride); Cytovene(R) (ganciclovir sodium); Cardene(R) (nicardipine hydrochloride); and Synarel(R) (nafarelin acetate). Sales of Toradol accounted for nearly half of the newer-product revenues.
 "Toradol is becoming a major product for us," said Paul E. Freiman, Syntex chairman and chief executive officer. "Of the thousands of prescription drugs currently on the market, approximately 100 have annual sales of $200 million or more. Worldwide sales of Toradol reached nearly $198 million in fiscal 1992 -- just two years after we introduced the first formulation in the United States."
 Freiman noted, however, that there has been some disappointment in the sales performance to date of Toradol oral and Ticlid, and that the company is implementing new strategies to increase the appropriate use of these new products. He said that how the company does in fiscal 1993 will largely depend on Naprosyn(R) (naproxen) and Anaprox(R) (naproxen sodium) sales and "how well we do with our new products." He said that "increased sales of Toradol worldwide will be Syntex's highest marketing priority in fiscal 1993."
 Shortly after the fiscal 1992 annual report went to press, Syntex announced on Oct. 21 that it was undertaking a cost reduction program, occasioned by the need to position the company to be more competitive in the rapidly changing healthcare environment, and in light of disappointing results in the first two months of the first quarter of fiscal 1993. The cost reduction program will consist of restructuring some of Syntex's administrative and marketing organizations, eliminating a number of positions, reprioritizing some of its research and development activities to focus on the most promising programs, and consolidating some production facilities.
 Although no final decisions had been made as of the mailing of the fiscal 1992 annual report, the announcement directly affects some of the prospective figures contained in this report, including capital spending, which was previously projected to be approximately $300 million in fiscal 1993, but is now expected to be approximately $250 million. The one-time cost of adopting the Federal Accounting Standards Board rule no. 106, regarding retiree health care benefits, was projected in the report to be approximately $130 million; it is now expected to be approximately $105 million. Potentially affected, as well, are some of the research priorities outlined in the report. Although the financial impact of the cost reduction program is not yet certain, the company expects to identify cost savings designed to reduce selling, general and administrative expenses.
 "We are making every effort now," Freiman said in the Oct. 21 announcement, "to be sure that we will be the right-sized company, focusing on the right priorities in the more challenging years ahead."
 The company's annual report cites additional fiscal 1992 milestones for Syntex, including record sales exceeding $200 million for Syva Co., Syntex's medical-diagnostics subsidiary. Further, worldwide sales of Naprosyn(R) (naproxen) and Anaprox(R) (naproxen sodium) surpassed $1 billion for the first time. This increase was primarily due to volume growth in the United States.
 The company said that in view of the expiration, in December 1993, of the U.S. patents for Naprosyn and Anaprox, and the significant loss of market share that can be expected when branded prescription pharmaceutical products face generic competition, it is trying to vigorously defend Naprosyn and Anaprox, in part by continuing to market current forms of the branded, prescription-strength products. The company also plans to market bulk naproxen (the active ingredient in Naprosyn) to generic-drug manufacturers after the U.S. patent expires.
 The third component of the company's plan regarding the patent expiration is to introduce an over-the-counter (OTC) version of naproxen through a joint venture with The Procter & Gamble Co., assuming the U.S. Food and Drug Administration (FDA) approves marketing of the OTC formulation. "Given the heavy initial investments related to introduction of OTC products," Freiman cautioned, "we do not expect Syntex to realize profits from the OTC venture for several years. Nevertheless, we believe that establishing a safe-and-effective OTC brand-name product can provide a continuing income stream into the future," Freiman said.
 In fiscal 1992, Syntex increased its investment in research 19 percent to $374.4 million. This investment represents 18 percent of sales, among the highest percentage-of-sales investments in the pharmaceutical industry.
 Looking to the future, the report says Syntex is committed to continuing its leading-edge research to discover and develop advanced human pharmaceutical products that will treat chronic diseases and conditions of an aging population where medical needs are either unmet or undermet.
 "We are sharpening our focus on compounds in development research," Freiman said, "so we invest our resources in drugs that we identify as having the greatest therapeutic and market potential, as well as those drugs that will provide a cost savings to the total healthcare system."
 According to the report, Syntex is redesigning its worldwide Development Research organization to further enhance quality and to shorten the time required to bring compounds from drug discovery to the marketplace. Syntex will also substantially increase its use of pharmacoeconomic analysis and clinical pharmacology to guide the development process.
 Copies of Syntex's fiscal 1992 annual report are available upon request from Syntex Corporation, Public Affairs Department, 3401 Hillview Avenue, Palo Alto, CA 94304, Fax: 415-855-5526.
 Syntex Corp. is a multinational health-care company that discovers, develops, manufactures and markets prescription medicines to treat serious human diseases. Syntex also develops, manufactures and markets medical-diagnostic systems and animal-health products.
 -0- 10/29/92
 /CONTACT: Linda Thomas, 415-852-1321, or Jan Potts, 415-855-5052, of Syntex/
 (SYN) CO: Syntex Corp. ST: California IN: MTC HEA SU: ACC


TM -- SJ004 -- 6686 10/29/92 14:55 EST
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