Pink Sheet is part of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By

UsernamePublicRestriction
UsernamePublicRestriction

SCHERER's FOURTH QUARTER EARNINGS PLUMMET; FAY's NET AHEAD OVER 63%

Executive Summary

Scherer's fourth quarter earnings dropped 55.4% to $916,000 as the firm continues to be "affected by lower sales and the additional costs associated with closing and relocating the company's facilities in the United Kingdom," Scherer reported May 11. Noting Scherer's "disappointing year," Scherer President Peter Fink commented: "The company's principal challenges are centered in the domestic market for both soft elastic gelatin (SEG) and two-piece hardshell capsules, where combined sales fell by 25% last year. In the domestic SEG market, aggressive price leadership by the company, softness in the business of some of its health and nutritional customers, and additional competitive SEG capacity all acted in concert to lower the company's sales." The 55.4% earnings decline was Scherer's fourth straight quarter with a net income decline of more than 40%. For the year, the company's earnings fell 50.2% to $4.04 mil. Scherer's sales for the fourth quarter were off 7.5% to $45.1 mil. For the year, the company's volume inched ahead 1.2% to $171.7 mil. Fay's fared best among the chain drug stores reporting financial results with first quarter earnings ahead 63.5% to $1.33 mil. on sales of $82.6 mil., up 20.5%. Fay's Chairman Henry Panasci noted: "Our Rx departments continue to benefit from the AccuFays computerized pharmacy system . . . Pharmacy sales increased 24% in the first quarter." Adams Drug's first quarter earnings advanced a slight .4% to $570,000, while sales were ahead 5.8% for the period to $74.8 mil. Chart omitted.

You may also be interested in...



Part D Discount Liability Coming Into Focus: CMS Releases Drug Cost Data

Newly released Medicare Part D data sheds light on the sales hit that branded pharmaceutical manufacturers will face when the coverage gap discount program gets under way in 2011

FDA Skin Infections Guidance Spurs Debate On Endpoint Relevance

FDA appears headed for a showdown with clinicians and the pharmaceutical industry over the proposed new clinical trial endpoints for acute bacterial skin and skin structure infections, the guidance's approach for justifying a non-inferiority margin and proposed changes in the types of patients that should be enrolled in trials

Shire Hopes To Sow Future Deals With $50M Venture Fund

Specialty drug maker Shire has quietly begun scouting deals with a brand-new $50 million venture fund, the latest of several in-house investment arms to launch with their parent company's pipelines, not profits, as the measure of their worth

UsernamePublicRestriction

Register

OM006665

Ask The Analyst

Ask the Analyst is free for subscribers.  Submit your question and one of our analysts will be in touch.

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts

Cancel