HiTech Pharmacal Co. Inc. (HITK, Financial) filed Quarterly Report for the period ended 2011-01-31.
Hitech Pharmacal Co. Inc. has a market cap of $247.87 million; its shares were traded at around $19.68 with a P/E ratio of 7.24 and P/S ratio of 1.51.
On March 2, 2011, the US Food and Drug Administration (FDA) indicated in its MedWatch publication that the Agency intends to remove approximately 500 currently marketed cough/cold and allergy related products. Three of these are currently marketed by ECR Pharmaceuticals. According to the FDA press release, ECR Pharmaceuticals must stop shipping these products within 180 days after March 2, 2011. Sales of Lodrane® products amounted to approximately $11,800,000 and $8,500,000 for the nine months ended January 31, 2011 and January 31, 2010, respectively.
Other (income) expense includes the $1,000,000 gain on the sale of the related rights to certain nutritional products previously sold by Midlothian for the nine months ended January 31, 2010. Other (income) expense also includes the $250,000 write-off of the Companys investment in Neuro-Hitech based on the decline in the stock price and the limited trading activity.
The Companys operations are historically financed principally by cash flow from operations. At January 31, 2011 and April 30, 2010, working capital was approximately $119,016,000 and $88,692,000, respectively, an increase of $30,324,000 during the nine months ended January 31, 2011.
Cash flows provided by financing activities of $1,974,000 include the proceeds from the exercise of stock options of $1,197,000 and the draw down on an equipment financing line from JP Morgan Chase of $621,000.
The Company also entered into a $5,000,000 equipment financing agreement with JPMorgan Chase on June 1, 2010. This agreement has similar interest rates. On June 15, 2010 the Company drew down $621,000 of the equipment financing line to fund a down payment for new filling and packaging equipment, and anticipates drawing down an additional $1,379,000 to finance the remaining payments for the equipment.
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Hitech Pharmacal Co. Inc. has a market cap of $247.87 million; its shares were traded at around $19.68 with a P/E ratio of 7.24 and P/S ratio of 1.51.
Highlight of Business Operations:
On March 2, 2011, the US Food and Drug Administration (FDA) indicated in its MedWatch publication that the Agency intends to remove approximately 500 currently marketed cough/cold and allergy related products. Three of these are currently marketed by ECR Pharmaceuticals. According to the FDA press release, ECR Pharmaceuticals must stop shipping these products within 180 days after March 2, 2011. Sales of Lodrane® products amounted to approximately $4,900,000 and $3,500,000 for the three months ended January 31, 2011 and January 31, 2010, respectively.On March 2, 2011, the US Food and Drug Administration (FDA) indicated in its MedWatch publication that the Agency intends to remove approximately 500 currently marketed cough/cold and allergy related products. Three of these are currently marketed by ECR Pharmaceuticals. According to the FDA press release, ECR Pharmaceuticals must stop shipping these products within 180 days after March 2, 2011. Sales of Lodrane® products amounted to approximately $11,800,000 and $8,500,000 for the nine months ended January 31, 2011 and January 31, 2010, respectively.
Other (income) expense includes the $1,000,000 gain on the sale of the related rights to certain nutritional products previously sold by Midlothian for the nine months ended January 31, 2010. Other (income) expense also includes the $250,000 write-off of the Companys investment in Neuro-Hitech based on the decline in the stock price and the limited trading activity.
The Companys operations are historically financed principally by cash flow from operations. At January 31, 2011 and April 30, 2010, working capital was approximately $119,016,000 and $88,692,000, respectively, an increase of $30,324,000 during the nine months ended January 31, 2011.
Cash flows provided by financing activities of $1,974,000 include the proceeds from the exercise of stock options of $1,197,000 and the draw down on an equipment financing line from JP Morgan Chase of $621,000.
The Company also entered into a $5,000,000 equipment financing agreement with JPMorgan Chase on June 1, 2010. This agreement has similar interest rates. On June 15, 2010 the Company drew down $621,000 of the equipment financing line to fund a down payment for new filling and packaging equipment, and anticipates drawing down an additional $1,379,000 to finance the remaining payments for the equipment.
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