SICOR Delivers Net Income and Positive Earnings

Irvine, California (PROTEXT) - -- Net Income Was $2.3 Million Before Special Charges -- Diluted Earnings Per Share Were $0.03 Before Special Charges -- Special Charges for Divestiture of Certain Interest in Metabasis Therapeutics, Inc. -- Gross Profit Up 48 Percent Over Prior Year and Up 41 Percent Over Prior Quarter SICOR Inc. (Nasdaq: SCRI) today announced positive operating results for the second quarter ended June 30, 1999. SICOR reported a net profit, after the payment of preferred dividends and special charges related to the divestiture of partial interest in Metabasis Therapeutics, Inc., a proprietary research and development subsidiary. Net income for the second quarter, before special charges, was $2.3 million, or $0.03 earnings per share on a diluted basis. SICOR's 1999 second quarter results include special charges totaling $1.8 million related to the divestiture of certain interest in Metabasis. Earnings for the quarter ended June 30, 1999, including special charges, were $0.5 million, or $0.01 earnings per share on a diluted basis, compared to a net loss of $2.5 million, or a loss of $0.03 per share in the second quarter ended June 30, 1998. Total operating revenue for the three months ended June 30, 1999 increased 14% to $54.7 million compared to $48.0 million for the three months ended June 30, 1998. The second quarter of 1998 included revenue from Metabasis of $1.9 million. Excluding the 1998 revenue attributable to Metabasis, total revenue increased 19% for the quarter ended June 30, 1999. Total costs and operating expenses for the second quarter of 1999, before the amortization of intangibles, were $47.7 million, up slightly from $45.2 million in the second quarter of 1998. This increase was almost entirely made up of cost of sales that support the increase in product sales. Gross margins increased from 32% in the second quarter of 1998 to 39% in the second quarter of 1999 due to a more profitable product mix. Net income for the six months ended June 30, 1999, excluding the special charges, was $0.6 million or $0.01 earnings per share, compared to a net loss of $7.4 million, or a loss of $0.09 per share for the six months ended June 30, 1998. Net loss for the first half of 1999, including the special charge, was $1.2 million, or a loss of $0.01 per share. For the six months ended June 30, 1999, total revenue increased 18% to $108.4 million compared to $91.6 million for the six months ended June 30, 1998. "This is indeed a significant quarter for SICOR as we finally break out of the historic red ink and deliver a positive earnings report to our shareholders", said Carlo Salvi, president and chief executive officer. "We have made notable progress in the areas we had targeted as financial priorities for 1999. Our revenues continued to increase from the addition of new products, our gross profit margins on product sales improved significantly and our total operating expenses remained in line with expectations. We believe that these results are a clear demonstration of our focus on delivering shareholder value through improved operating results, while also developing our product pipeline for long-term growth." Mr. Salvi continued, "During the quarter we also achieved other significant milestones; we raised additional capital to retire portions of our short and long term debt; we received four new product approvals from the Food and Drug Administration; and we divested a partial interest in Metabasis. We also began shipping propofol during the quarter, which was a significant factor in our improved financial results. Propofol production is currently ahead of expectations and current market acceptance remains at high levels." SICOR Inc. is a vertically integrated specialty pharmaceutical company with proven expertise in the development, manufacturing and marketing of multi-source injectable pharmaceuticals. With a strategy of combining both the production of active pharmaceutical ingredients utilizing chemical synthesis or fermentation and state of the art manufacturing facilities, SICOR's primary focus is on the worldwide injectable pharmaceutical market, which currently includes oncology, anesthesiology, cardiology and other therapeutic areas. SICOR operates several manufacturing facilities in Europe, Mexico and the U.S.A., while maintaining its corporate headquarters in Irvine, California. This press release contains forward looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward looking statements, including whether propofol production will continue to proceed ahead of expectations and remain on track to achieve significant results, whether market acceptance for propofol will remain at high levels, whether financial results for 1999 will continue to improve, whether we can be profitable in the future, and those matters set forth in the risk factors section of SICOR's filings on Forms 10-K and 10-Q with the Securities and Exchange Commission. 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 SICOR's web site at www.gensiasicor.com. 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 SICOR, call 800-758-5804, extension 354050. Please retain these numbers for future reference. SICOR Inc. PRESS RELEASE SUMMARY Second Quarter ended June 30, 1999 ($000's) Balance Sheet Data: 6/30/99 12/31/98 (AUDITED) Assets: Cash and cash equivalents $38,131 $24,461 Other current assets 115,584 116,079 Property and equipment, net 108,013 105,067 Other assets 12,095 11,243 Intangibles, net 111,807 114,964 Total assets $385,630 $371,814 Liabilities and Stockholders' Equity: Current liabilities $110,335 $123,208 Other liabilities 53,532 58,144 Deferred taxes 20,719 21,453 Stockholders' equity 201,044 169,009 Total liabilities and equity $385,630 $371,814 Statement of Operations Data: Three months ended Six months ended June 30, June 30, 1999 1998 1999 1998 Revenue: Product sales $54,691 $44,515 $103,048 $85,786 Contract research and license fees -- 3,477 5,303 5,810 Total revenue 54,691 47,992 108,351 91,596 Costs and expenses: Cost of sales 33,499 30,187 66,786 58,323 Research and developmen 3,605 5,256 8,927 10,489 Selling, general & administrative 10,644 9,714 20,267 19,440 Total costs and expenses 47,748 45,157 95,980 88,252 Amortization of intangibles 1,524 1,498 3,052 2,886 Operating income 5,419 1,337 9,319 458 Interest and other income (expense), net (1,896) (1,239) (4,491) (2,941) Charge related to divestiture of business (1,777) -- (1,777) (1,130) Minority interest -- 472 31 759 Income/(loss) before income taxes 1,746 570 3,082 (2,854) Income tax (expense)/benefit 259 (1,527) (1,242) (1,544) Net income (loss) before dividends 2,005 (957) 1,840 (4,398) Dividends on preferred stock (1,504) (1,504) (2,992) (2,992) Net income (loss) applicable to common shares $501 $(2,461) $(1,152) $(7,390) Net income (loss) per common share - basic $0.01 $(0.03) $(0.01) $(0.09) Net income (loss) per common share - diluted $0.01 $(0.03) $(0.01) $(0.09) Weighted average number of common shares - basic 84,092 79,440 81,965 79,318 Weighted average number of common shares - diluted 84,223 79,440 81,965 79,318 ots Original Text Service: SICOR Inc. Internet: http://www.newsaktuell.de Contact: Laurie W. Little of SICOR Inc., (USA) 949-455-4879; or Carolyn Bass, or Jim Byers, (USA) 415-296-7383, or Patricia Walsh, or Eric Gonzales, (USA) 212- 850- 5600, all of Morgen-Walke Associates, Inc., for SICOR Inc. Web site: http://www.gensiasicor.com Subscribers please note that material bearing the slug "PROTEXT" is not part of CTK's news service and is not to be published under the "CTK" slug. Protext is a commercial service providing distribution of press releases from clients, who are identified in the text of Protext reports and who bear full responsibility for their contents. PROTEXT