BERGEN SHOWS DOUBLE-DIGIT FIRST QUARTER SALES GROWTH BUT PROFITS ARE OFF 53%; REVCO FIRST QUARTER NET EARNINGS JUMP 94%, BUYOUT IS APPROVED
Executive Summary
Bergen Brunswig reported an 11% jump in first quarter sales. For the three months ended Nov. 30, volume was $846 mil., compared to $760 mil. for the same 1985 period. The wholesaler's n et earnings, however, plummeted 53% during the period, to $2.9 mil. from $6.2 mil. the previous year. The results appear to reflect Bergen's aggressive acquisition activity during the last two years when the wholesaler acquired six regional distribution companies with total sales of $853 mil. "Consolidation of facilities and integration of recent acquisitions in the drug and health care segment are ahead of schedule, contributing to lower operating expenses and interest expense reduction," Chairman Emil Martini noted. Revco reported a 94.3% jump in profits for the 12 weeks ended Nov. 15, from $5.5 mil. to $10.8 mil. Volume was up 7.6% to $647.2 mil. during the period. The chain's 24-week volume through Nov. 15 was $1.3 bil., up 7.4% from $1.2 bil. in 1985, while net earnings were up nearly 16%, from $14.8 mil. to $17.1 mil. Revco also said that its proposed $1.3 bil., or $38.50 a share leveraged buyout offer has been approved by 75% of its shareholders. The chain is being taken private by Anac Holding Corp., an investor group that includes Chairman Sidney Dworkin, President William Edwards and 33 other members of current Revco management. 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