Medtech Insight is part of Pharma Intelligence UK Limited

This site is operated by Pharma Intelligence UK Limited, a company registered in England and Wales with company number 13787459 whose registered office is 5 Howick Place, London SW1P 1WG. The Pharma Intelligence group is owned by Caerus Topco S.à r.l. and all copyright resides with the group.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By

UsernamePublicRestriction

SCIMED EARNINGS ADVANCE 49.6% IN FY 1993, BOOSTED BY OPERATING EFFICIENCIES AND LOWER LITIGATION COSTS; SALES FOR YEAR MOVE FORWARD 21.1% TO $222.7 MIL.

This article was originally published in The Gray Sheet

Executive Summary

Scimed's earnings advanced 49.6% to $51.4 mil. for the year ended Feb. 28 on sales of $222.7 mil., which were up 21.1% from the prior year. The company noted in an April 5 release announcing the figures that "improved operating efficiencies, lower sales and marketing expenses as a percent of sales, and lower litigation expense" contributed to the gain. The reduction in litigation expense is presumably due to the November 1991 settlement of patent litigation with Lilly's Advanced Cardiovascular Systems subsidiary over Scimed's Express rapid exchange angioplasty catheter. Scimed still, however, is embroiled in patent litigation with Pfizer subsidiary Schneider over the Express ("The Gray Sheet" Oct. 12, 1992, In Brief) and a shareholder suit brought against the company last August ("The Gray Sheet" Aug. 17, 1992, In Brief). Earnings for the year were "adversely impacted by royalty payments, increased investments in research and development, and slightly lower gross margins due to changes in sales mix, startup manufacturing costs in Belgium and amortization of license fees," according to the company. The Belgian manufacturing operations are expected to help Scimed reduce its royalty payments to ACS; under the settlement agreement, Scimed pays ACS royalties only on sales of Express catheters that are manufactured or sold in the U.S. ("The Gray Sheet" Dec. 2, 1991, p. 1). Scimed noted that during the year, the firm "introduced more than 10 new coronary and peripheral angioplasty products" and "expanded its patent portfolio and the technological depth of its manufacturing and research and development operations." The firm also noted that it "continued to strengthen its sales and marketing organization worldwide." For the fourth quarter, Scimed reported sales of $60.3 mil., a 24.7% increase over the fourth quarter 1991. Fourth quarter earnings reached $15.5 mil., a gain of 25.8%.

You may also be interested in...



Japan Grants Global-First Approval To Zolbetuximab, 15 Other New Drugs

Astellas's first-in class CLDN18.2-targeting antibody receives its first approval worldwide, while crovalimab and a number of drugs for rare diseases also receive nods from regulators and are now awaiting reimbursement price-listing.

Hanmi-OCI Merger Hits Wall As Brothers Win Shareholder Vote, Board Seats

The planned merger of Korea's Hanmi Pharm Group with OCI Group hits a major speed bump as the two sons of Hanmi's founder and other candidates recommended by them secture board seats. But it remains to be seen how the Lim brothers will fulfil their ambitious promises.

Beauty Firms Using AI-Based Tools Could Be Subject To Health Privacy Laws In US States

Using AI-based programs to collect and store consumer information risks running afoul of new health privacy laws cropping up in US states. Lack of federal regulation or guidance on the issue is one of the biggest challenges for beauty firms deploying AI, according to Stacy Marcus, partner at Reed Smith LLP.

Latest Headlines
See All
UsernamePublicRestriction

Register

MT000479

Ask The Analyst

Ask the Analyst is free for subscribers.  Submit your question and one of our analysts will be in touch.

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts

Cancel