Hi-Tech Pharmacal Co., Inc. (NASDAQ: HITK) today reported results for the fourth quarter and year ended April 30, 2012.
Fourth Quarter Results
For the three months ended April 30, 2012, the Company reported net sales of $61.3 million, an increase of 7% from $57.2 million for the same period last year.
During the quarter ended April 30, 2012, net sales of generic pharmaceutical products were $52.7 million, an increase of 10% compared to $48.0 million for the same fiscal 2011 period. The primary reason for the change was an increase in sales of Fluticasone Propionate nasal spray. Sales of Fluticasone Propionate nasal spray totaled $28.4 million, up from $26.9 million in the same fiscal 2011 period, as volume increases were partially offset by lower average prices. New product launches such as Ranitidine oral solution, Levofloxacin oral solution, Lidocaine sterile jelly, Nystatin oral suspension and Lidocaine 5% ointment also contributed to the positive results. Pricing and quantity decreases for Dorzolamide ophthalmic products partially offset these increases.Sales for the Health Care Products division (“HCP”), which markets the Company’s branded OTC products, increased 59% to $5.3 million for the three months ended April 30, 2012 compared to $3.3 million for the same fiscal period in the prior year. The increase was primarily due to the re-launch of Nasal Ease ®, the acquisition of Sinus Buster ® products and increased sales of Multibetic ®, Diabetiderm ®, Zostrix ® and Mag-Ox ®. Sales for ECR Pharmaceuticals, which markets the Company’s branded prescription products, were $3.3 million for the three months ended April 30, 2012, down from $5.9 million for the same period in the prior year. The decrease was due to the discontinuation of the Lodrane ® line of prescription strength antihistamines, which had sales of $4.7 million in the April 30, 2011 quarter. Increased sales of Bupap ® and Dexpak ® and sales of Tussicaps ®, Orbivan ® and Zolvit ®, which were acquired earlier in 2012, partially offset the decrease in sales for the fiscal year. Cost of sales increased to $29.5 million for the three months ended April 30, 2012 from $25.9 million, and increased as a percentage of sales to 48% from 45% of sales. Lower sales in the higher margin ECR subsidiary as well as pricing declines for Fluticasone Propionate nasal spray and Dorzolamide ophthalmic products led to this change. This trend was partially offset by launches of new generic products with above average margins.