PACO NET INCOME CLIMBS 20% IN THIRD QUARTER TO $1.2 MIL.; FIRM ENTERS MARKETING PACT WITH "MAJOR" DRUG FIRM FOR PROPRIETARY CONTACT LENS CARE SOLUTIONS

Executive Summary

Paco's net income jumped 20% in the third quarter ended May 9 to $1.2 mil. despite an 11% decline in volume, from $10.7 mil. in the comparable 1986 period to $9.5 mil. For the first nine months of fiscal 1987, the drug packager's sales were flat at approximately $30 mil. Profits for the nine months ended May 9 were up 11% to $3.1 mil. Paco announced the signing of a supply agreement with "a major pharmaceutical company" covering Paco's proprietary contact lens care solutions. "Test marketing will commence during 1987 and the results of the tests will determine the eventual magnitude of the agreement," the company said. Repligen attributed an $18.1 mil. fourth quarter loss to a nonrecurring charge for the acquisition of technologies, including technology related to a prototype AIDS vaccine, from Centocor. "The $17.3 mil. charge represents the market value of Repligen common stock transferred to Centocor, minus $2.9 mil. in cash paid by Centocor to Repligen," the biotech firm explained. Chart omitted.