29% sales rise at Pharma Resources

US generic drugmaker Pharmaceutical Resources has posted net income forthe second quarter of 2001 of $2.4 million, or $0.08 per share, up from $317,000, or $.01 per share for the corresponding period in 2000. Sales increased 29% to $29.3 million, which the firm said was primarily due to new drugs and higher volumes, as well as "more favorable pricing on certain existing products." As a result, gross margins reached just over $11.1 million, or 38% of sales.

Pharmaceutical Resources noted that its R&D costs for the quarter were $2.1 million, while selling, general and administrative expenditure reached $4.6 million. The company's chief executive, Kenneth Sawyer, said that "with our fifth consecutive profitable quarter, we feel a base line of results has been established for the company in which we can overlay the expectations of products in our development pipeline as incremental growth."

The pipeline currently consists of 22 Abbreviated New Drug Applications, and Mr Sawyer said that nine products could be approved by the US Food and Drug Administration and launched on the market by the end of 2001.