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SYNTEX FIRST QUARTER FY '92 EPS INCREASED 5 PERCENT; EXPECTS DOUBLE-DIGIT EPS GROWTH FOR FULL FISCAL YEAR

 SYNTEX FIRST QUARTER FY '92 EPS INCREASED 5 PERCENT;
 EXPECTS DOUBLE-DIGIT EPS GROWTH FOR FULL FISCAL YEAR
 PALO ALTO, Calif., Nov. 25 /PR Newswire/ -- Syntex Corp. (NYSE: SYN) today reported that earnings per share in the first quarter of the company's 1992 fiscal year increased 5 percent over the prior year quarter and stated that it expects double-digit percentage growth in earnings per share for the full 1992 fiscal year.
 Earnings per share for the fiscal 1992 first quarter, which ended Oct. 31, 1991, were a record 59 cents compared with 56 cents in the first quarter a year ago. Sales increased 12 percent to a record $508.4 million, up from $454.6 million in the year-ago quarter.
 FIRST QUARTER RESULTS
 ($ in millions, except per share data)
 First Quarter Second Quarter Percent
 1992 1991 Change
 Net Sales $508.4 $454.6 12
 Operating Income $146.5 $144.5 1
 Net Income $132.3 $125.2 6
 Earnings per share $.59 $.56 5
 "Although we had good sales growth in the first quarter, our earnings per share for the quarter increased at a lower rate than did sales," said Paul E. Freiman, Syntex chairman and chief executive officer. "Our current high level of profitability and financial strength provides us with the basis for making sound investments in marketing and research now to enhance profitability in the future. These expenditures include preparations for new product introductions and the development of new systems and processes to bring potential new products through our research and development pipeline more quickly. Such activities are key elements of our strategic plan to bring new products to the market in a timely way in light of the December 1993 expiration of the United States patent for Naprosyn(R) (naproxen) and Anaprox(R) (naproxen sodium)."
 Naprosyn and Anaprox are the company's leading pharmaceutical products, prescribed for the relief of pain and inflammation associated with arthritis.
 "Even with these investments in marketing and research, we expect fiscal 1992 to be a good year for Syntex, with double-digit percentage earnings per share growth for the full year compared with fiscal 1991," he said. "However we expect a different pattern of quarter-to- quarter profitability than in the past few years. We currently expect the second half of fiscal 1992 to be much stronger than the first half of the year. In the first and second quarters, we are incurring heavy marketing expenses to pave the way for successful new product introductions, without yet benefitting from sales of those products."
 Syntex received approval from the United States Food and Drug Administration (FDA) in late October to market Ticlid(i) (ticlopidine hydrochloride) to reduce the risk of thrombotic stroke. Freiman said he expects that initial shipments of Ticlid will occur in December 1991. He noted that the company has 11 products pending marketing approval at the FDA, including an oral formulation of Toradol(R) (ketorolac tromethamine).
 In the fiscal 1992 first quarter, Syntex's worldwide human pharmaceutical sales increase over the fiscal 1991 first quarter was due primarily to higher sales of Naprosyn and Anaprox in the United States and increased sales of newer products in the United States and other countries.
 WORLDWIDE HUMAN PHARMACEUTICAL SALES
 ($ in millions)
 First Quarter Second Quarter Percent
 1992 1991 Change
 U.S. Sales $318.0 $267.4 19
 Non-U.S. Sales 119.4 119.7 -
 Total $437.4 $387.1 13
 Human pharmaceutical sales in the United States in the fiscal 1992 first quarter reflected $8.8 million in mandatory rebates to state Medicaid agencies. The rebate law was not in effect in the first quarter of fiscal 1991.
 Worldwide sales of naproxen and naproxen sodium increased 13 percent to $265.9 million in the first quarter of fiscal 1992.
 NAPROXEN/NAPROXEN SODIUM SALES
 ($ in millions)
 First Quarter Second Quarter Percent
 1992 1991 Change
 U.S. Sales $207.9 $169.2 23
 Non-U.S. Sales 58.0 65.1 (11)
 Total $265.9 $234.3 13
 "We were pleased with the strength of Naprosyn and Anaprox sales in the United States, which showed healthy gains in the 1992 first quarter compared with both the fiscal 1991 first quarter and the fiscal 1991 fourth quarter," Freiman said.
 He said that sales of naproxen and naproxen sodium outside the United States decreased in the first quarter of fiscal 1992 compared with the prior year primarily due to new competition in various markets, the negative impact of currency fluctuations and price decreases.
 In the first quarter of fiscal 1992, combined sales of Syntex's four newer products were $69.3 million compared with $53.5 million in the year-ago quarter. The newer products are Toradol, prescribed for the short-term management of pain; Cardene(R) (nicardipine hydrochloride), prescribed to treat angina and hypertension; Cytovene(R) (ganciclovir sodium), an anti-viral compound for the treatment of cytomegalovirus infections in immunocompromised patients, including people with AIDS; and Synarel(R) (nafarelin acetate), prescribed for the management of endometriosis.
 Sales of Toradol intramuscular (IM) injectable in the United States have been limited by a shortage of syringe-filling capacity over the past three quarters. Freiman said that Syntex has entered into an agreement with and is seeking FDA approval for Wyeth-Ayerst Laboratories as an additional syringe supplier to increase substantially the supply of Toradol intramuscular (IM) in the United States. Pending FDA approval Syntex expects that beginning in January, Toradol IM will be available in Wyeth-Ayerst's Tubex(RM) closed injection system, the most widely used pre-filled syringe in the United States, in addition to the current Cartrix(RM) syringes provided by Survival Technology Inc.
 Selling, general and administrative expenses in the first quarter of fiscal 1992 increased 21 percent to $185.2 million. To support new product introductions, Syntex has added 166 representatives to its United States sales force since the first quarter of fiscal 1991.
 Research expenses for the first quarter of fiscal 1992 were $85.2 million, a 19 percent increase over the first quarter of fiscal 1991. The company's research spending for fiscal 1992 is expected to be approximately $370 million, a 17 percent increase over fiscal 1991 research spending of $316 million.
 Nonoperating expenses in the fiscal 1992 first quarter included $2.1 million related to environmental matters described in the company's annual report. The fiscal 1991 first quarter included expenses of $10.5 million related to environmental matters.
 The effective income tax rate for the first quarter of fiscal 1992 was 13 percent, an 18 percent increase from the tax rate of 11 percent in the year-ago quarter. The company's tax rate for the full 1992 fiscal year is expected to be 13 percent. A similar rate of increase in the tax rate is expected for the next several years.
 Consolidated statements of income and sales by location and business segment follow.
 SYNTEX CORPORATION AND SUBSIDIARY COMPANIES
 Consolidated Statements of Income
 ($ in millions, except per share amounts)
 First Fiscal Quarter
 1992 1991
 Net sales $508.4 $454.6
 Costs and expenses:
 Cost of goods sold 91.5 85.2
 Selling, general
 and administrative 185.2 153.3
 Research & development 85.2 71.6
 Total 361.9 310.1
 Operating income 146.5 144.5
 Nonoperating income (expense):
 Interest income 14.4 14.0
 Interest expense (7.6) (8.6)
 Other--net (1.2) (9.2)
 Total 5.6 (3.8)
 Income before taxes on income 152.1 140.7
 Provision for taxes on income 19.8 15.5
 Net income $132.3 $125.2
 Shares of common stock 225.1 224.4
 Earnings per share $.59 $.56
 SYNTEX CORPORATION AND SUBSIDIARY COMPANIES
 Sales by Location and Business Segment
 ($ in millions)
 First Fiscal Quarter Percent
 1992 1991 Change
 Location
 U.S. sales $368.7 $317.1 16
 Non-U.S. sales 139.7 137.5 2
 Total $508.4 $454.6 12
 Business Segment
 Pharmaceuticals:
 Pain and inflammation:
 Naproxen/naproxen sodium $265.9 $234.3 13
 Ketorolac 24.0 13.4 79
 Total pain and inflammation 289.9 247.7 17
 Reproductive and endocrinology:
 Oral contraceptives 28.7 28.4 1
 Nafarelin 7.2 9.7 (26)
 Other 3.3 4.0 (18)
 Total reproductive
 and endocrin 39.2 42.1 (7)
 Cardio and cerebrovascular:
 Nicardipine 20.8 18.7 11
 Other .8 .1 100+
 Total cardio and
 cerebrovascular 21.6 18.8 15
 Dermatological 28.4 28.4 -
 Ganciclovir 17.3 11.7 48
 Other human pharmaceuticals 41.0 38.4 7
 Animal health 19.9 19.8 1
 Total pharmaceuticals 457.3 406.9 12
 Diagnostics 51.1 47.7 7
 Total $508.4 $454.6 12
 Worldwide Human Pharmaceutical Sales
 U.S. sales $318.0 $267.4 19
 Non-U.S. sales 119.4 119.7 -
 Total $437.4 $387.1 13
 Naproxen/Naproxen Sodium Sales
 U.S. sales $207.9 $169.2 23
 Non-U.S. sales 58.0 65.1 (11)
 Total $265.9 $234.3 13
 -0- 11/25/91
 /CONTACT: Nancy Peterson, 415-855-5567 or Kathleen Gary, 415-855-5924 or Linda Thomas, 415-852-1321 all of Syntex Corp./
 (SYN) CO: Syntex Corp. ST: California IN: MTC SU: ERN


DG -- SJ002 -- 6960 11/25/91 15:18 EST
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