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 ALBANY, Ore., Nov. 9 /PRNewswire/ -- Synthetech, Inc. (NASDAQ: NZYM) today announced earnings (before tax benefit of net operating loss carryforward) of $201,000 ($0.015/share) for its fiscal second quarter ended Sept. 30, 1993, compared to a loss of $59,000 (-$0.005/share) in the same period last year. Second quarter revenues of $1,014,000 were a 188 percent increase over the $352,000 posted in the same quarter last year. For the six months ended Sept. 30, 1993, earnings (before tax benefit) of $547,000 was achieved on revenues of $2,352,000 compared to earnings (same basis) of $110,000 on revenues of $1,162,000 for the year-ago period.
 Second Quarter Six Months
 Periods ended 9/30 1993 1992 1993 1992
 Revenue $1,014,000 $352,000 $2,352,000 $1,162,000
 Earnings before
 tax benefit 201,000 (59,000) 547,000 110,000
 Net earnings 322,000 (59,000) 880,000 177,000
 Per share
 Before tax benefit $0.015 ($0.005) $0.041 $0.009
 Net $0.024 ($0.005) $0.067 $0.014
 For the trailing 12-month period ended Sept. 30, 1993, earnings of $1,131,000 ($0.085/share) were achieved on revenues of $4,687,000 compared to earnings of $401,000 ($0.033/share) on revenues of $2,658,000 for the trailing 12-month period ended Sept. 30, 1992. Earnings are before tax benefit from net operating loss carryforwards.
 Addressing the issue of health care reform, Paul C. Ahrens, president and chief executive officer, stated, "Looking at long term trends, two drivers are becoming clear -- (1) cost pressures in the pharmaceutical market and (2) biological advances.
 "Cost pressures in the drug market are tightening the criteria used to assess drug prospects at all phases of drug development programs. This means that we can expect drug development programs to be cancelled more quickly and ruthlessly than in the past. In a 1990 study by the Center for the Study of Drug Development at Tufts University, only 50-75 percent of drugs pass each phase of development and ultimately, only one in five Investigational New Drugs (INDs) obtain approval. Clearly, cancellations are the norm and the successes will be few and far between.
 "On the other hand, the rapid development of new biological advances is creating more and more potential drug candidates. As long as money for R&D continues to be available, there will be a supply of new drug candidates. Clearly, Synthetech is dependent upon new candidates coming along to make up for cancelled and delayed drug development programs.
 "These two powerful trends create a dynamic market opportunity for companies willing and able to supply the materials and services needed by rapidly changing drug development programs."
 Synthetech's peptide building blocks are being used by drug companies to make a wide range of peptide-based drugs presently being developed for treatment of AIDS, cancer, cardiovascular disease and other diseases.
 -0- 11/9/93
 /CONTACT: Paul Ahrens, president & CEO, or Charlie Williams, CFO, both of Synthetech, 503-967-6575/

CO: Synthetech Inc. ST: Oregon IN: MTC SU: ERN

BR-TM -- SF005 -- 2045 11/09/93 08:01 EST
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Publication:PR Newswire
Date:Nov 9, 1993

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