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SYNTEX SECOND QUARTER E.P.S. UP 20 PERCENT; FIRST HALF E.P.S. UP 12 PERCENT

 SYNTEX SECOND QUARTER E.P.S. UP 20 PERCENT;
 FIRST HALF E.P.S. UP 12 PERCENT
 PALO ALTO, Calif., Feb. 26 /PRNewswire/ -- Syntex Corp. (NYSE: SYN) today reported that earnings per share in the fiscal 1992 second quarter, which ended Jan. 31,1992, increased 20 percent to $.54, compared with $.45 in the second quarter a year ago. Sales increased 20 percent to $530.9 million, up from $444.1 million in the year-ago quarter.
 SECOND QUARTER AND FIRST HALF RESULTS
 Periods ended Jan. 31
 ($ in millions, except per-share data)
 Three Months Percent ?Six Months Percent
 FY92 FY91 Change FY92 FY91 Change
 Net Sales $530.9 $444.1 20 $1,039.3 $898.7 16
 Operating
 Income $141.8 $121.9 16 $ 288.3 $266.4 8
 Net income $121.6 $101.5 20 $ 253.9 $226.7 12
 Earnings per
 share $.54 $.45 20 $1.13 $1.01 12
 "Our strong earnings performance in the second quarter of fiscal 1992 was due to a combination of excellent sales and a special promotion to wholesalers that occurred late in the quarter," said Paul E. Freiman, chairman and chief executive officer of Syntex Corp. "We believe that the promotion moved some sales into the second quarter that would have otherwise occurred in the third quarter.
 "We said earlier that we expected our results in the second half of fiscal 1992 to be stronger than the first half," Freiman said. "In view of the sales shift into the second quarter, we are no longer sure of such a pattern."
 Operating income in the second quarter of fiscal 1992 increased at a lower rate than sales due to higher marketing expenses, including selling commissions and expenses related to new product introductions.
 In the fiscal 1992 second quarter, human pharmaceutical sales increased 21 percent over the prior-year quarter.
 WORLDWIDE HUMAN PHARMACEUTICAL SALES
 ($ in millions)
 Percent
 2Q FY92 2Q FY91 Change
 U.S. sales $326.7 $258.4 26
 Non-U.S. sales 131.7 119.0 11
 Total $458.4 $377.4 21
 Combined worldwide sales of the company's five newer products increased 77 percent to $105.2 million in the fiscal 1992 second quarter. They represented 23 percent of total human pharmaceutical sales in the quarter. Sales of the five newer products accounted for more than half of the increase in human pharmaceutical sales in the second quarter of fiscal 1992 over the year-ago quarter.
 Of the newer products, Freiman noted the accelerating sales in the United States and Canada of Toradol(R) (ketorolac tromethamine), a potent non-narcotic analgesic prescribed for the short-term management of pain. In the fiscal 1992 second quarter, total worldwide sales of Toradol were $51.8 million compared with $17.4 million in the second quarter of fiscal 1991.
 "In the United States, we substantially increased the supply of Toradol intramuscular (IM) injectable with the addition of a second syringe supplier in January," Freiman said.
 Following approval by the United States Food and Drug Administration in December to market Toradol oral, Syntex began shipping the product to wholesalers on Feb. 25. The market introduction is scheduled for March.
 In the fiscal 1992 second quarter, worldwide sales of the newer products (in addition to Toradol) included $23.8 million for Cardene(R) (nicardipine hydrochloride), prescribed to treat angina and hypertension; $17.2 for Cytovene(R) (ganciclovir sodium), prescribed for the treatment of an infection which may lead to blindness in immunocompromised patients, including people with AIDS; and $7.0 million for Synarel(R) (nafarelin acetate), prescribed for the management of endometriosis. Worldwide sales of Ticlid(R) (ticlopidine hydrochloride), which was introduced to the U.S. market during the second quarter of fiscal 1992, were $5.4 million. Ticlid is prescribed to reduce the risk of stroke.
 Worldwide sales of naproxen and naproxen sodium in the fiscal 1992 second quarter increased 14 percent to $253.9 million. In the United States, sales of Naprosyn(R) (naproxen) and Anaprox(R) (naproxen sodium) in the fiscal 1992 second quarter increased 18 percent over the prior year quarter. Naprosyn and Anaprox are Syntex's leading products prescribed for the relief of pain and inflammation associated with arthritis.
 NAPROXEN/NAPROXEN SODIUM SALES
 ($ in millions)
 Percent
 2Q FY92 2Q FY91 Change
 U.S. sales $191.2 $161.6 18
 Non-U.S. sales 62.7 61.5 2
 Total $253.9 $223.1 14
 Human pharmaceutical sales in the United States in the fiscal 1992 second quarter were reduced by $11.0 million in mandatory rebates to state Medicaid agencies compared with $2.8 million in the prior year second quarter when the program was in effect for only one month.
 Selling, general and administrative expenses in the fiscal 1992 second quarter increased 23 percent to $201.5 million.
 Spending for research and development in the second quarter of fiscal 1992 was $88.2 million, a 20-percent increase over the second quarter a year ago.
 Nonoperating expenses in the fiscal 1992 second quarter included $5.5 million related to environmental matters described in the company's annual report. The fiscal 1991 second quarter included expenses of $10.9 million related to environmental matters.
 The effective income tax rate for the second quarter of fiscal 1992 was 13 percent compared with 11 percent for the second quarter a year ago.
 Consolidated statements of income and sales by location and business segment follow.
 SYNTEX CORP. AND SUBSIDIARY COMPANIES
 Consolidated Statements of Income
 (In millions, except per-share amounts)
 Second Quarter First Half
 FY1992 FY1991 FY1992 FY1991
 Net sales $530.9 $444.1 $1,039.3 $898.7
 Costs and expenses:
 Cost of goods sold 99.4 84.3 190.9 169.5
 Selling, general &
 administrative 201.5 164.2 386.7 317.5
 Research & development 88.2 73.7 173.4 145.3
 Total 389.1 322.2 751.0 632.3
 Operating income 141.8 121.9 288.3 266.4
 Nonoperating income (expense):
 Interest income 13.5 14.2 27.9 28.2
 Interest expense (8.4) (9.5) (16.0) (18.1)
 Other--net (7.2) (12.6) (8.4) (21.8)
 Total (2.1) (7.9) 3.5 (11.7)
 Income before taxes on income 139.7 114.0 291.8 254.7
 Provision for taxes on income 18.1 12.5 37.9 28.0
 Net income $121.6 $101.5 $ 253.9 $226.7
 Shares of common stock 225.3 224.5 225.2 224.4
 Earnings per share $.54 $.45 $1.13 $1.01
 SYNTEX CORP. AND SUBSIDIARY COMPANIES
 Sales by Location and Business Segment
 ($ in millions)
 Second Quarter Percent First Half Percent
 FY1992 FY1991 Change FY1992 FY1991 Change
 Location
 U.S. sales $377.9 $305.3 24 $ 746.6 $622.4 20
 Non-U.S. sales 153.0 138.8 10 292.7 276.3 6
 Total $530.9 $444.1 20 $1,039.3 $898.7 16
 Business Segment
 Pharmaceuticals:
 Pain/inflammation:
 Naproxen/
 naproxen
 sodium $253.9 $223.1 14 $ 519.8 $457.4 14
 Ketorolac 51.8 17.4 100+ 75.8 30.8 100+
 Subtotal 305.7 240.5 27 595.6 488.2 22
 Reproductive and
 endocrinology:
 Oral
 contraceptives 26.7 25.5 5 55.4 53.9 3
 Nafarelin 7.0 10.1 (31) 14.2 19.8 (28)
 Other 3.4 3.6 (6) 6.7 7.6 (12)
 Subtotal 37.1 39.2 (5) 76.3 81.3 (6)
 Cardio and
 cerebrovascular:
 Nicardipine 23.8 19.1 25 44.6 37.8 18
 Ticlopidine 5.4 .1 100+ 6.2 .2 100+
 Subtotal 29.2 19.2 52 50.8 38.0 34
 Dermatological 27.8 26.9 3 56.2 55.3 2
 Ganciclovir 17.2 12.8 34 34.5 24.5 41
 Other human
 pharmaceuticals 41.4 38.8 7 82.4 77.2 7
 Animal health 21.7 19.9 9 41.6 39.7 5
 Total
 pharmaceuticals 480.1 397.3 21 937.4 804.2 17
 Diagnostics 50.8 46.8 9 101.9 94.5 8
 Total $530.9 $444.1 20 $1,039.3 $898.7 16
 Worldwide Human Pharmaceutical Sales
 U.S. sales $326.7 $258.4 26 $644.7 $525.8 23
 Non-U.S. sales 131.7 119.0 11 251.1 238.7 5
 Total $458.4 $377.4 21 $895.8 $764.5 17
 Naproxen/Naproxen Sodium Sales
 U.S. sales $191.2 $161.6 18 $399.1 $330.8 21
 Non-U.S. sales 62.7 61.5 2 120.7 126.6 (5)
 Total $253.9 $223.1 14 $519.8 $457.4 14
 -0- 2/26/92
 CONTACT: Nancy Peterson, 415-855-5567, 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


RM -- SJ001 -- 2794 02/26/92 12:10 EST
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