BIOCRAFT ADDS NEW DOSAGE FORMS OF METOCLOPRAMIDE, NYSTATIN AND TRIMETHOPRIM; PENICILLINS STILL REPRESENT OVER 60% OF TOTAL SALES
Biocraft Labs is adding a metoclopramide syrup, nystatin suspension and a 200 mg trimethoprim tab to its growing line of non-penicillin products. The company announced FDA approval of the three additional generic dosage forms on July 15. In its recently released annual report for the fiscal year ended March 31, Biocraft reported that its dependence on penicillin aid semi-synthetic penicillin products is declining, down from 69.5% of sales in 1986 (or just under $30 mil.) to 61.7% in fiscal 1987 ($30.4 mil.). A key factor in the reduced importance of penicillin products to Biocraft's sales mix was the addition of the cephalosporin product, cephradine. The January-March quarter of the most recent fiscal year was particularly strong for Biocraft due to the company's introduction of the generic cephalosporin. The generic introduction catapulted sales up 90% and earnings up 205% over the like period in 1986. Biocraft netted $2.6 mil. in the final quarter of 1987 vs. $866,000 the year before. After receiving a second cephalosporin approval in February for cephalexin (Lilly's Keflex), the company is beginning to prepare for a third cephalosporin introduction. Through an agreement with Lederle, Biocraft has manufacturing rights to cefixime. Under a license from Fujisawa, Lederle has an application pending at FDA for the third generation product. Lederle will market the product as a brandname. Biocraft reports billing Lederle's parent American Cyanamid for $1.1 mil. to prepare the 56,000 sq. ft. Fairfield, NJ plant for cefixime manufacturing. The Fairfield plant was opened in January 1987. Biocraft sales of finished formulations to Lederle exceeded $5 mil. in the twelve-month period ending March 31. Lederle is maintaining a steady 11% percent of Biocraft's business as the generic company grows. Biocraft's total net sales (less returns) advanced 14.9% to $49.3% mil. in the most recent fiscal year. In addition to its cephalosporin project with Lederle, Biocraft says it has moved its first original drug product into clinical testing. In the summer of 1986, the firm indicated that it was studying a semi-snythetic penicillin as well as a peripheral vasodilator. With $28 mil. in cash and equivalents as of March 31, the firm says it is "considering one or more acquisitions of, or joint ventures or other transactions with, pharmaceutical and pharmaceutical chemical companies in complementary businesses." Biocraft notes that it loaned $150,000 to B. V. Chemie Pharmacie Holland "to finance, in part, Chemie's loan to a prospective supplier" to Biocraft. Biocraft also noted in its year-end report that on April 1 it invested $3.3 mil., matched by two other generic companies (Bolar and Mylan), to establish a captive insurance company. The new insurance firm, American Triumvirate Insurance Co., is intended to provide "product liability insurance for the company and the two other generic drug manufacturers." Chart omitted.
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