FORT LAUDERDALE, Fla., June 17 /PRNewswire-FirstCall/ -- Synovics Pharmaceuticals, Inc. (OTC Bulletin Board: SYVC), a specialty pharmaceutical company, filed its second quarter, 2008 Quarterly Report with the Securities and Exchange Commission. Consolidated gross revenues reported for the quarter that ended April 30, 2008 were $6,121,632 compared to $5,713,761 for the same quarter in 2007. The increased revenue results from continued strong growth of the over-the-counter (OTC) product line as well as increases in sales of prescription products. Cost of revenues for the three-month period ended April 30, 2008 was $3,825,125 compared to $4,121,421 for the three-month period ended April 30, 2007. Overall gross profit percentage increased from 27.9% to 37.5%. Selling, general, and administrative expenses for the three- month period ended April 30, 2008 was $2,921,861 as compared to $6,460,217 for the three-month period ended April 30, 2007. The net loss for the three-month period ended April 30, 2008 was $2,941,124 or $.14 per share, as compared to $6,772,301 or $.23 per share for the three-month period ended April 30, 2007.
Consolidated revenues for the six months ended April 30, 2008 were $10,376,752 compared to $11,257,660 for the same quarter in 2007. The primary reason for the decline in those sales relates to the temporary disruption in the availability of the Company's OTC private label version of the brand Primatene(R) sold by Wyeth ephedrine guaifenesin products in the soft gel form. The Company is actively working on developing an alternate means for making this product available. The shortfall in these products was partially offset by significant growth in the balance of the OTC product line and in the prescription business.
The gross profit percentage for the Company increased to 31.7% for the period (from 27.3% for the prior year). Selling, general, and administrative expenses for the six-month period ended April 30, 2008 was $4,615,070 as compared to $8,138,829 for the six-month period ended April 30, 2007. The Company's net loss was $5,165,827 or $.24 per share for the six-month period ended April 30, 2008 as compared to $9,145,698 or $.31 per share for the six-month period ended April 30, 2007. The significant decline in net loss is attributable to an improvement in gross profit percentage and the reduction in general and administrative expenses.
"Revenues for our second quarter were $6,121,632 compared to $4,255,120 for the first quarter of 2008," stated Steve Getraer, Synovics' Chief Financial Officer. "April was the strongest month of the second quarter with revenue of $2,534,611, and we are seeing continued strength in the third quarter with May and June results. The strength in sales is seen in both our Kirk and ANDAPharm operations with OTC private label and prescription drugs, respectively. If current sales figure continue for the entire third quarter, it will be the Company's strongest performance, by revenue, in its history."
"The growth in Synovics' sales and revenue reflects the success of a Company-wide commitment to provide our customers their three most valued expectations: quality, price and customer service," commented Ronald Howard Lane, Ph.D., Synovics' Chairman and Chief Executive Officer. "The Company announced a joint venture last week with Maneesh Pharmaceuticals, LTD of Mumbai, India, through which we expect to access resources of products, personnel, operating systems and facility utilization as part of our India Front-End strategy. The Company also noted in that announcement an equity funding by Maneesh and Harcharan ("Harry") Singh of an additional $6,000,000. These new funds were used principally to restructure our balance sheet and reduce Company debt and related interest costs. The improvement in revenues, restructuring of the balance sheet and completion of our joint venture with Maneesh represent a pronounced new beginning for Synovics. This together with the addressing of various legal issues is evidence that the Company is clearly moving in the right direction."
Synovics is a specialty pharmaceutical company engaged in the development, manufacturing and commercialization of prescription and over-the-counter (OTC) drugs. The Company has two operating subsidiaries, Kirk Pharmaceuticals, LLC and ANDAPharm, LLC, which manufacture and sell OTC and prescription private label drugs respectively, and Synovics Labs, Inc. a drug development subsidiary that is pursuing generic drug opportunities. Synovics employs approximately 150 people in its Ft. Lauderdale facility of 80,000. Sq Ft. The Company manufactures drug products in specialized containment suites including hormonal prescription drugs and under its Drug Enforcement Administration (DEA) licenses. The Company has a Front-End strategy based business plan -- a strategy of sourcing lowest cost, highly competitive generic drug products from India, marketed to the Company's US customers through its Ft Lauderdale operations. Synovics' previously announced strategic partnerships with Maneesh Pharmaceuticals, LTD and Harcharan ("Harry") Singh of Glopec International that represent the Company's cornerstone for its Front-End India strategy. The Company believes cost is the single most important element in the generic drug industry and it is reaching out through its strategic partners to source products and services from a variety of smaller and quite willing independent Indian pharmaceutical companies that have these assets, but also have limited means of accessing the US market.
"Safe Harbor" statements under the Private Securities Litigation Reform Act of 1995: Except for the historical information contained herein, the statements made in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by their use of words such as "expects," "plans" "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates" and other words of similar meaning. Because such statements inherently involve risks and uncertainties that cannot be predicted or quantified, actual results may differ materially from those expressed or implied by such forward-looking statements depending upon a number of factors affecting the Company's business. These factors include, among others: the difficulty in predicting the timing and outcome of product development including biostudies demonstrating "bioequivalency," outcome of any pending or potential legal proceedings including an undertaking to recover common stock held in escrow; any patent-related matters such as patent challenge settlements and patent infringement cases; the outcome of litigation arising from challenging the validity or non-infringement of patents covering its products; the difficulty of predicting the timing of FDA approvals; court and FDA decisions on exclusivity periods; the ability of competitors to extend exclusivity periods for their products; the Company's ability to complete product development activities in the timeframes and for the costs it expects; market and customer acceptance and demand for its products; the Company's possible dependence on revenues from significant customers; the use of estimates in the preparation of the Company's financial statements; the potential for competitors to file ANDAs prior to any filing by the Company pertaining to the same target brand; the impact of competitive products and pricing on products, including the launch of authorized generics; the ability to launch new products in the timeframes it expects; the availability of raw materials; the availability of any product it may purchase; the regulatory environment; the Company's exposure to product liability and other lawsuits and contingencies; the increasing cost of insurance and the availability of product liability insurance coverage; the Company's timely and successful completion of strategic initiatives, including integrating companies and products it may acquire and implementing its Front-End India strategy; fluctuations in operating results, including the effects on such results from spending for research and development, sales and marketing activities and patent challenge activities; the inherent uncertainty associated with financial projections; the outcome of ongoing efforts to improve Kirks operational efficiency and customer performance; changes in generally accepted accounting principles, fluctuations in operating results; capital adequacy; statements of future plans relating to the Company's capital needs, product development and filings with the FDA, viability, application or continuation of the Company's business licenses including Drug, Enforcement and Administrations licenses for scheduled drugs; business and growth strategies; statements specifically concerning the successful closing of acquisitions, and satisfying closing conditions of any current or future financial transactions including debt or equity requirements, regulatory requirements; and meeting conditions set by potential equity investors, reliance on key strategic alliances, capital markets, and in general risks related to the regulatory environment and government approval processes, and any other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. The forward-looking statements contained in this press release speak only as of the date the statement was made. The Company undertakes no obligation (nor does it intend) to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required under applicable law.
|SOURCE Synovics Pharmaceuticals, Inc.|
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