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VESTAR REPORTS THIRD QUARTER 1993 RESULTS

 SAN DIMAS, Calif., Oct. 22 /PRNewswire/ -- Vestar Inc. (NASDAQ: VSTR) today reported that for the third quarter ended Sept. 30, 1993, total revenues were $8.3 million, representing a 5 percent increase over revenues of $7.9 million for the same period in 1992.
 For the third quarter ended Sept. 30, 1993, the company lost $0.7 million, or $.05 per share, compared to reporting net income of $0.9 million, or $.06 per share, for the third quarter of 1992.
 For the nine months ended Sept. 30, 1993, revenues were $26.4 million, a 21 percent increase over revenues for the comparable previous-year period of $21.8 million. For the nine months ended Sept. 30, 1993, Vestar lost $0.1 million, or $.01 per share, compared to reporting net income of $3 million, or $.19 per share, for the same period of 1992.
 Sales of AmBisome(R), Vestar's first product, during the third quarter were affected by adverse economic conditions throughout Europe including the strong dollar and pharmacy budget constraints in Germany.
 The company also noted that the quarter's R&D expenditures of $3.9 million represented a 44 percent increase over the comparable quarter of 1992, during which R&D expenditures totaled $2.7 million. For the year-to-date ended Sept. 30, 1993, R&D expenditures were $10.7 million, a 49 percent increase over R&D expenditures of $7.2 million during the comparable period of 1992. These planned increases reflect the company's support of clinical trials of AmBisome(R), DaunoXome(R) and MiKasome and an expanding portfolio of anticancer and antiviral molecules.
 "Although AmBisome(R) sales growth slowed in the quarter, we are addressing the situation aggressively and continue to target significant expansion opportunities," said Dr. Roger J. Crossley, chairman, president and chief executive officer, of Vestar. "Those markets which we are now serving on a named-patient basis only -- or not yet at all -- represent more than 50 percent of the potential market opportunity we see for AmBisome(R). The net loss for the quarter reflects the fact that we did not scale back R&D efforts in the face of what we are convinced is a temporary sales slowdown. As we pursue market opportunities and invest in research and development to broaden our product portfolio, we remain committed to managing our cash reserves responsibly."
 Vestar Inc. develops, manufactures and markets pharmaceuticals to treat patients with cancer and serious infections. Among the company's proprietary drug delivery technologies are liposomes to encapsulate pharmaceuticals, lipid prodrug technology for the development of antiviral and anticancer compounds and new synthetic anticancer molecules.
 VESTAR INC.
 Condensed Consolidated Statements of Operations
 (Unaudited)
 Three months ended Nine months ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Revenues
 Product $7,773,000 $7,228,000 $24,770,000 $19,550,000
 Collaborative
 agreement and
 contract 40,000 78,000 105,000 410,000
 Interest income 453,000 627,000 1,538,000 1,792,000
 Total Revenues 8,266,000 7,933,000 26,413,000 21,752,000
 Expenses
 Costs of goods
 sold 1,090,000 976,000 3,581,000 2,905,000
 Research and
 development 3,906,000 2,709,000 10,693,000 7,222,000
 Selling, general &
 administrative 3,995,000 3,234,000 12,264,000 8,363,000
 Total expenses 8,991,000 6,919,000 26,538,000 18,490,000
 Income (loss)
 before provision
 for (benefit from)
 income taxes (725,000) 1,014,000 (125,000) 3,262,000
 Provision for
 (benefit from)
 income taxes (44,000) 91,000 10,000 294,000
 Net income (loss) ($681,000) $923,000 ($135,000) $2,968,000
 Net income (loss)
 per common share ($0.05) $0.06 ($0.01) $0.19
 Shares used in
 computation of net
 income (loss) per
 common share 13,949,000 15,977,000 14,023,000 15,678,000
 -0- 10/22/93
 /CONTACT: Michael E. Hart, CFO of Vestar, 909-394-4119/
 (VSTR)


CO: Vestar Inc. ST: California IN: MTC SU: ERN

NY-LM -- LA005 -- 5614 10/22/93 09:31 EDT
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Publication:PR Newswire
Date:Oct 22, 1993
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