BARR SALES DROP 42% FOR YEAR AFTER FDA RULING; ZENECA CASE YIELDS $7.9 MIL. PROFIT

Executive Summary

Barr Labs sales for the year ended June 30 plunged 42% as a result of the suspension of much of the generic drug manufacturer's product line following litigation with FDA. Barr reported sales of $58 mil. for the year, compared to $100.8 mil. for fiscal 1992. On Feb. 4, Newark federal court Judge Alfred Wolin ordered Barr to cease distribution of 24 products following a court case between Barr and FDA over manufacturing compliance issues. Despite the regulatory setback, Barr posted a $7.9 mil. profit for the year on the strength of $21 mil. in payments from Zeneca as part of a settlement of patent litigation relating to Nolvadex. Without the payments, Barr said, it would have lost $5 mil. for the year. Barr lost $1.9 mil. in fiscal 1992. Barr will begin marketing a generic tamoxifen supplied by Zeneca Nov. 1 as part of the March settlement. The firm has reintroduced eight of the suspended products and "is optimistic that it will continue to reintroduce other suspended products." Genetics Institute posted product sales of $25.9 mil. for the nine months ended Aug. 31, the company reported. Third quarter product sales were $9.1 mil. The figures represent sales of Factor VIII concentrate to Baxter.