Hi-Tech 1Q profit jumps on generic drug sales

Hi-Tech Pharmacal fiscal 1st-quarter profit rises on generic drug sales and ECR revenue

• On 11:14 am EDT, Wednesday September 9, 2009

AMITYVILLE, N.Y. (AP) -- Hi-Tech Pharmacal Co. said Wednesday its fiscal first-quarter profit climbed more than fivefold due to strong sales of new generic drugs, including treatments for ear infections.

Hi-Tech said its profit rose to $8.7 million, or 73 cents per share, for the quarter ended July 31. That compares with a profit of $1.5 million, or 13 cents per share, in the year-ago period. Revenue more than doubled to $43.5 million from $15.8 million.

In morning trading, the company's stock soared to a three-year high, rising $4.21, or 24.4 percent, to $21.48. Earlier the shares peaked at $21.95, their greatest value since May 2006.

For the first quarter, generic drug sales almost tripled to $36.7 million from $12.5 million. Hi-Tech said the gains came from sales of products launched within the last year, including ophthalmic solutions with dorzolamide, and hydrocortisone with acetic acid, which is used to treat ear canal infections, bacteria and fungi.

The company also reported strong sales of a generic version of fluticasone nasal spray and the antibiotic sulfamethoxazole, which is used against urinary tract infections and other infections.

Hi-Tech said it got $3.3 million in revenue from ECR Pharmaceuticals, which it bought in February. The company's products include antihistamines, corticosteroids, analgesic tablets and a new treatment for swimmer's ear.

Revenue from the health care products division, which makes over-the-counter products, rose 13 percent, to $2.1 million from $1.9 million mainly due to higher sales of Diabetic Tussin. Sales from Midlothian Labs came to $1.4 million, an increase of 2 percent.

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