Hi-Tech Pharmacal Co., Inc. (NASDAQ: HITK) today reported results for the Company’s fiscal second quarter ended October 31, 2012.
Net sales for the three months ended October 31, 2012 were $57,537,000, an increase of $662,000 compared to the net sales of $56,875,000 for the three months ended October 31, 2011.
Net sales for generic pharmaceuticals for the three months ended October 31, 2012 were $47,286,000, a decrease of $1,381,000 or 3%, compared to sales of $48,667,000 for the respective prior fiscal period. The decrease was primarily due to lower sales of Fluticasone Propionate nasal spray. Sales of Fluticasone decreased to $21,500,000 from $23,000,000 in the comparable quarter as the Company sold more units at a lower average price. This decline was partially offset by sales of new products such as Nystatin oral suspension, Lidocaine 5%, Levetiracetam oral concentrate and Paregoric, launched in February, March, May and August 2012, respectively.ECR Pharmaceuticals contributed $5,593,000 to sales in the current period, an increase of $2,082,000 or 59%, compared to sales of $3,511,000 for the respective fiscal 2012 period. The increase was primarily due to higher sales of Bupap ® and Tussicaps ®. Sales of Bupap ® increased as some customers purchased larger than typical quantities ahead of an announced price increase. Sales from Dexpak ® and Orbivan ® also contributed to the increase in ECR sales. Net sales for the Health Care Products division, which markets the Company’s OTC branded products, were $4,658,000, a decrease of $39,000 compared to $4,697,000 reported for the same period last year. The decrease was primarily due to consumer discounts and promotional pricing on the Nasal Ease ® brand. These declines were partially offset by sales of our Sinus Buster ® product, acquired March 2012. Sales of the Hi-Tech generic division and the Health Care Products division were both adversely affected by superstorm Sandy. Hi-Tech Pharmacal’s facilities in Amityville, NY were without power from October 29, 2012 through November 1, 2012, therefore, the Company was unable to produce and ship products during this period. The Company anticipates that sales lost during this week will be made up in the quarter ending January 2013.
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