Sales of a generic nasal allergy spray led to a surge in revenues and profits at Hi-Tech Pharmacal Co., of Amityville — and the best results in its history — the company said yesterday as it released its annual earnings report for the year ended April 30.
The company had revenue of $190.8 million compared with $159.3 million in the same quarter last year, and net income of $41.25 million compared to $31.12 million in the year-ago quarter.
“Strong unit sales at higher average prices helped increase sales of fluticasone propionate nasal spray to $73.8 million for the current fiscal year versus $13.8 million in the previous fiscal year,” the company said.
When Hi-Tech got FDA approval in January 2008 for its generic version of GlaxoSmithKline’s nasal spray, it started shipping immediately and predicted the product would generate the highest level of sales and profits to date.
It had generated $1 billion in sales a year in its original branded version, and was expected to be a $700 million annual market as a generic, the company said.
“We are very pleased with results for the fourth quarter and fiscal year end as we reported the best results in the company’s history,” David Seltzer, the president and chief executive, said. The company’s sales and profits have been increasing steadily since it rolled out the generic nasal spray three years ago.
“Fluticasone propionate nasal spray, our generic version of Flonase, in particular, was an outstanding success, and we continue to gain market share. Additionally, our pipeline of products and our balance sheet have never been stronger and will continue to facilitate the growth of the company,” Seltzer said Thursday.
Seltzer has long been predicting that the nasal spray would succeed. “...We are still to date only the third generic approved while this product has been off patent for five years,” he said at an investor conference in September.
“Volume-wise, this is clearly the biggest opportunity that Hi-Tech has ever had in its history. We have never before been involved in a product that has done so many units...,” he said.
Hi-Tech specializes in liquid forms of generics. it makes and markets generic, prescription, over-the-counter and nutritional products for asthma, bronchial disorders, dermatologic disorders, allergies, pain, stomach, oral care, neurological disorders, glaucoma, and other conditions. The company's generic pharmaceutical products include oral solutions and suspensions, topical creams and ointments, and nasal sprays.
Photo: Hi-Tech Pharmacal chief executive David Seltzer visits the sterile packaging area in the Amityville plant.
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