INDUSTRY SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2012

INDUSTRY SEGMENT INFORMATION [Abstract]

INDUSTRY SEGMENT INFORMATION

NOTE 12 - INDUSTRY SEGMENT INFORMATION

During the quarters ended March 31, 2012 and March 31, 2011, the Company reported results for three segments:

- Ophthalmic

- Hospital Drugs & Injectables

- Contract Services

The ophthalmic segment manufactures, markets and distributes diagnostic and therapeutic pharmaceuticals. The hospital drugs & injectables segment manufactures, markets and distributes drugs and injectable pharmaceuticals, primarily in niche markets. The contract services segment manufactures products for third party pharmaceutical and biotechnology customers based on their specifications.

The Company's reportable segments are based upon internal financial reports that aggregate certain operating information. The Company's chief operating decision maker, as defined in ASC Topic 280, Segment Reporting (formerly SFAS No. 131, Disclosures about Segments of an Enterprise and Related Information), is its chief executive officer, or CEO. The Company's CEO oversees operational assessments and resource allocations based upon the results of the Company's reportable segments, all of which have available discrete financial information.

The Company's basis of accounting in preparing its segment information is consistent with that used in preparing its consolidated financial statements.

The revenue and gross profit of the business acquired through the Kilitch Acquisition has been included within the Contract Services segment for the three months ended March 31, 2012. The manufacture and sale of pharmaceutical products for contract customers in India represents a substantial majority of their business.

Selected financial information by industry segment is presented below (in thousands).

	THREE MONTHS ENDED MARCH 31,
	2012		2011
REVENUES:
Ophthalmic	$	21,811	$	11,018
Hospital Drugs & Injectables		27,376		9,055
Contract Services		2,530		5,371
Total revenues	$	51,717	$	25,444
GROSS PROFIT:
Ophthalmic	$	12,719	$	7,186
Hospital Drugs & Injectables		17,041		4,861
Contract Services		1,141		2,206
Total gross profit		30,901		14,253
Operating expenses		14,915		8,545
Operating profit		15,986		5,708
Other (expense) income		(2,420)		642
Income before income taxes	$	13,566	$	6,350

The Company manages its business segments to the gross profit level and manages its operating and other costs on a company-wide basis. Inter-segment activity at the gross profit level is minimal. The Company does not identify assets by segment for internal purposes, as certain of the Company's manufacturing and warehouse facilities support more than one segment.