Gensia Sicor Announces Improved Results for the First

Gensia Sicor Inc. (Nasdaq: GNSA) today announced that operating income for the quarter ended March 31, 1999 was $3.9 million compared to an operating loss of $879,000 for the quarter ended March 31, 1998. Net loss for the first quarter of 1999 was $1.7 million, or $0.02 per share, versus a net loss of $3.8 million, or $0.05 per share before a write-down of investment, in the first quarter of 1998. Including an investment write-down of $1.1 million, the net loss in the first quarter of 1998 was $4.9 million, or $0.06 per share. Total revenues for the first quarter of 1999 were $53.7 million versus $43.6 million in the same period in 1998. Product sales were $48.4 million in the 1999 first quarter versus $41.3 million in the same period of 1998. This increase was due to increased sales in the international operations, primarily attributable to the introduction of new products, and the sale of inventory from the domestic operations to Abbott Laboratories as a result of a sales and distribution agreement entered into in January 1999. Gross margins decreased slightly for the three months ended March 31, 1999, to 31.2% compared to 31.8% in the comparable period in the first quarter of 1998. Total costs and expenses for the first quarter of 1999, before the amortization of intangibles, were $48.2 million, an increase from the $43.1 million reported in the first quarter of 1998. This increase was almost entirely made up of cost of sales that support the similar increase in product sales. "Gensia Sicor's performance improvement over the March 1998 quarter's results reflect the significant progress we have made to continue our trend towards profitability," said Carlo Salvi, president and chief executive officer. "These results were very consistent with our expectations and are reflective of our ongoing commitment to the future growth of this company. In fact, our recent initiatives, including our new agreement with Abbott Laboratories and our amended agreement with Baxter PPI, aim to position the Company to improve our financial results while continuing to build for the future. We anticipate that we will see the benefits of both these relationships as the year progresses. Salvi continued, "Additionally this quarter, we quickly and efficiently ramped up our production of propofol after receiving our marketing approval in January. The first shipment of propofol left our U.S. manufacturing facilities on April 16, 1999, an exciting day for everyone who worked so hard to achieve this significant milestone. Our production remains on target to supply Baxter with enough product to meet the anticipated market demand. The propofol product is a key element for Gensia Sicor to achieve profitability in 1999. "We also believe we are on course with our plans to enhance our product line by introducing a steady stream of newly approved, manufactured and distributed products, while continually adding to our development pipeline," concluded Salvi. "We are very pleased with the results for the first quarter, as they represent an outstanding start to what we believe will be a record year for Gensia Sicor." Gensia Sicor Inc. is a vertically integrated pharmaceutical company with proven expertise in the development, manufacturing and marketing of injectable pharmaceuticals and in the production of active pharmaceutical ingredients utilizing synthesis or fermentation. The company is focused on the worldwide oncology and injectable pharmaceutical markets. Gensia Sicor's commercial pharmaceutical businesses include Gensia Sicor Pharmaceuticals, Inc., a California-based manufacturer and marketer of multisource injectable drugs, SICOR-Societa Italiana Corticosteroidi S.p.A. and Diaspa S.p.A., both of Milan Italy, and Sicor de Mexico, S.A. de C.V. in Toluca, Mexico all which produce active pharmaceutical ingredients, and Lemery, S.A. de C.V. in Mexico City which manufactures injectable and oral finished multisource drug products. Gensia Sicor's corporate offices are located in Irvine, CA. This press release contains forward looking statements that are subject to risks and uncertainties, including whether Gensia Sicor's commercial launch of propofol will be successful, whether the Company's expectations for the sale of propofol will be fulfilled, whether the Company will be able to introduce a steady stream of products, whether Gensia Sicor will achieve profitability and growth and whether the Company will see any benefits from the agreements with Abbott Laboratories and Baxter PPI. Actual results may differ materially from those set forth in the forward-looking statements. Those matters set forth in the risk factors section of Gensia Sicor's filings on Forms 10-K and 10-Q with the Securities and Exchange Commission contain discussions of risks that could adversely affect actual results. These forward looking statements represent the Company's judgment as of the date of this press release. The Company disclaims any intent or obligation to update these forward looking statements. For more information on the Company, visit Gensia Sicor's new web site at News releases are also available at no charge through PR Newswire's News On-Call fax service. For a menu of available news releases or to retrieve a specific release made by Gensia Sicor, call 800-758-5804, extension 354050. Please retain these numbers for future reference.



First Quarter ended March 31, 1999


Balance Sheet Data: 3/31/99 12/31/98



Cash and short-term investments $25,166 $24,461

Other current assets 113,382 116,079

Property and equipment, net 105,772 105,067

Other assets 11,617 11,243

Intangibles, net 113,354 114,964

Total assets $369,291 $371,814

Liabilities and Stockholders'


Current liabilities $119,525 $123,208

Other liabilities 62,431 58,144

Deferred taxes 20,645 21,453

Stockholders' equity 166,690 169,009

Total liabilities and equity $369,291 $371,814

Statement of Operations Data: Three months ended

March 31,

1999 1998


Product sales $48,357 $41,271

Contract research and license

fees 5,303 2,333

Total revenue 53,660 43,604

Costs and expenses:

Cost of sales 33,287 28,136

Research and development 5,322 5,233

Selling, general and

administrative 9,623 9,726

Total costs and expenses 48,232 43,095

Amortization of intangibles 1,528 1,388

Operating income (loss) 3,900 (879)

Interest and other income

(expense), net (2,595) (1,702)

Write-down of investment -- (1,130)

Minority interest 31 287

Income/(loss) before

income taxes 1,336 (3,424)

Provision for income taxes (1,501) (17)

Net loss before dividends (165) (3,441)

Dividends on preferred stock (1,488) (1,488)

Net loss applicable to common

shares $(1,653) $(4,929)

Net loss per common share -

basic and diluted $(0.02) $(0.06)

Weighted average number of

common shares 79,813 79,194 ots Original Text Service: Gensia Sicor Inc. Internet: Contact: Laurie W. Little of Gensia Sicor Inc., 949-455-4879; or Carolyn Bass or Jim Byers, 415-296- 7383, or Patricia Walsh or Mark Owen, 212-850-5600, all of Morgen-Walke Associates, Inc. for Gensia Sicor Inc. Company News On-Call: or fax, 800- 758-5804, ext. 354050 Web site:

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