Interpharm's Profits Fall In 1995

Interpharm of Israel recorded net profits in 1995 of NIS11.6 million ($3.9 million), down 19.4%. Earnings per share were NIS1.86, also down 19.4%. Gross profits for the year were NIS24.1 million, a decline of 50.8%. The decrease was said to have stemmed from a sharp drop in the quantities sold and in the rate of gross profits of natural interferon beta following a decline in transfer prices, as well as a change in the components of revenues which in 1995 included a larger proportion of revenues from development projects.

Net revenues for the year were down 12.2% to NIS142.3 million. This fall was attributed to the decrease in gross profit which was partially offset by the drop in management and general expenditures, R&D expenses and taxes. Sales of natural interferon beta, Interpharm's main product which is sold to Ares-Serono and used for the manufacture of Frone, totalled NIS51.6 million, down from NIS104.1 million in 1994.

The drop of 50% in A-S' orders for the product stems from the continued impact of the Italian health authority's decision to limit the reimbursement for Frone only to certain patients, and the lowering of stock of finished product by A-S to meet market needs. Sales of recombinant interferon beta to A-S for the development and production of Rebif rose 34% to NIS75.7 million in 1995.