Profits, sales soar for Amityville drug firm
Amityville-based drugmaker Hi-Tech Pharmacal said Monday that second-quarter profits soared 38 percent on stronger sales for its over-the-counter and generic medicines, including a generic version of the nasal spray Flonase.
Sales rose 27 percent to $56.9 million, from $44.7 million in the August to October period a year ago. Earnings jumped to $13.8 million, or $1.04 per share. Both measures beat the expectations of analysts polled by Bloomberg News, who were expecting earnings of 77 cents per share on $51.4 million in sales.
“We are very pleased with our continued strong performance,” said David Seltzer, Hi-Tech Pharmacal’s president and chief executive.
“Our generic drug business continues to excel.”
Sales of the Flonase generic, fluticasone propionate, rose to $23 million from $17.3 million a year ago.
Overall, generic sales were up 33 percent on the quarter. Sales in the division that makes the company’s over-the-counter treatments, including a pain relief ointment and multivitamins, were $4.7 million, up 40 percent from the second quarter last year.
Hi-Tech Pharmacal employs about 300 people on Long Island.
In early afternoon trading, Hi-Tech Pharmacal's shares were trading down $2.74, or 6.42 percent, at $39.94.
Research analyst Timothy Chiang at CRT Capital Group in Stamford, Conn., said investors appear to be taking profits after a good year for the company's stock. Year to date, shares are up 60 percent.
He added that the company does remain heavily dependent on the Flonase generic, which could worry investors. Fluticasone propionate accounted for nearly half of the company's generic sales last year.
Photo: Hi-Tech Pharmacal employees in the Amityville plant.
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