Pharmaceutical Formulations restructuring as losses increase

Pharmaceutical Formulations, one of the largest solid-dose,over-the-counter pharmaceutical manufacturers in the industry, has announced restructuring plans after noting a decline in revenues and a net loss for the first quarter of the fiscal year ended September 30, 2000. Sales and net loss for the period were $13.2 million and $2.5 million, compared to turnover and net income of just under $21 million and $201,000, respectively, for the like, year-earlier period.

The company said that the reduction in sales resulted from a combination of lost business and a softening in its markets. In addition, PF says it encountered difficulties as a result of its changeover to a new computer system "and other management problems." The firm has initiated a restructuring program aimed at improving efficiency, and has appointed the New York investment bank Josephthal & Co to explore strategic options. On a bullish note, however, the company said that its main shareholder, ICC Industries, has demonstrated its confidence in PF's management by providing loans to the firm, replacing those from its asset-based lenders, so giving PF working capital.