-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, C57QH+ZqWSwNf8/VcZHbszyOzcshmX1TwZyDulnkzt2ojkZAdx1HKqVMYHxiBPUy M6qmNzpe4pqGsmL7INdDMQ== 0000950124-03-001538.txt : 20030506 0000950124-03-001538.hdr.sgml : 20030506 20030506142126 ACCESSION NUMBER: 0000950124-03-001538 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030430 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030506 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CARACO PHARMACEUTICAL LABORATORIES LTD CENTRAL INDEX KEY: 0000887708 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 382505723 STATE OF INCORPORATION: MI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-24676 FILM NUMBER: 03683950 BUSINESS ADDRESS: STREET 1: 1150 ELIJAH MCCOY DR CITY: DETROIT STATE: MI ZIP: 48202 BUSINESS PHONE: 3138718400 MAIL ADDRESS: STREET 1: 1150 ELIJAH MCCOY DRIVE CITY: DETROIT STATE: MI ZIP: 48202 8-K 1 k76754e8vk.txt CURRENT REPORT SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): APRIL 30, 2003 CARACO PHARMACEUTICAL LABORATORIES, LTD. (EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER) MICHIGAN 38-2505723 (STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER IDENTIFICATION NUMBER) INCORPORATION) 0-24676 (COMMISSION FILE NUMBER) 1150 ELIJAH MCCOY DRIVE, DETROIT, MICHIGAN 48202 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (313) 871-8400 (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE) ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits 99.1 April 30, 2003 Press Release ITEM 9. REGULATION FD DISCLOSURE (INFORMATION PROVIDED UNDER ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION) The following information is furnished to the Commission under Item 12. The information required by Item 12 is being furnished pursuant to this Item 9 in accordance with the interim guidance provided by the Securities and Exchange Commission in Release No. 33-8216, dated March 27, 2003. On April 30, 2003, registrant announced its results of operations for the first quarter ended March 31, 2003 as set forth in the press release included as Exhibit 99.1 hereto. 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: May 2, 2003 CARACO PHARMACEUTICAL LABORATORIES, LTD. (REGISTRANT) By:/s/ Narendra N. Borkar ---------------------------------------- Narendra N. Borkar, CEO 3 EXHIBIT INDEX Exhibit: Description: 99.1 April 30, 2003 Press Release 4 EX-99.1 3 k76754exv99w1.txt APRIL 30, 2003 PRESS RELEASE EXHIBIT 99.1 CARACO PHARMACEUTICAL POSTS NET INCOME OF $2.2 MILLION ON Q1 SALES OF $8.7 MILLION Q1 SECOND-EVER PROFITABLE QUARTER DETROIT, April 30, 2003 -- CARACO PHARMACEUTICAL LABORATORIES, LTD. (OTCBB:CARA) posted net income of $2,204,749, or $0.09 per diluted share, on record sales of $8,721,600 for the first quarter of 2003, Narendra N. Borkar, Chief Executive Officer, reported today. Q1-2003 net sales rose 164% over Q1-2002 net sales of $3,301,959. The Q1-2003 net sales were up 16% over net sales of $7,552,115 for Q4 2002. The Q1-2003 gross profit of $4,495,651 was up 209% over Q1-2002's gross profit of $1,454,412. The net profit for the quarter was $2,204,749, or $0.09 per diluted share, a 525% turnaround from the year-earlier net loss of $519,241, or $(0.03) per diluted share. Mr. Borkar said, "The first period of 2003 was our best quarter ever. We generated strong sales for most of the 13 drugs in our formulary and especially robust sales of newer approved products. "Both gross margin and our bottom-line improved appreciably, reflecting the success of our vertical-integration efforts and the purchase of raw materials and active substances at highly competitive prices. These positive operating results also reflect enhanced manufacturing efficiencies and economies of scale due to larger production-batch sizes. "We also continued to work closely with Sun Pharmaceutical Industries, most notably in R&D," he said. The Company has 20 drugs in various stages of development. Mr. Borkar noted that the Company had restructured it mortgage loan with the Economic Development Corporation of the City of Detroit. The new agreement, which has been under negotiation for several years, provides the Company with considerably more favorable interest rates and terms. "Looking forward, we are very optimistic about the second quarter and coming year. We are on plan to achieve forecasted 2003 sales of $35 million, which would represent a 56% jump over 2002 sales. We expect our strong sales momentum to continue through the second quarter and the entire year. "We expect approval, this year, of the three drugs currently under FDA review and we plan to file two or three new FDA drugs applications with the FDA. We also plan to launch three or four generic drugs in 2003, raising our formulary to 16 or 17. 5 "While we did not incur a R&D technology-transfer charge during the first quarter, we expect, on average, to receive five or six generic drugs (technology transfers) from Sun Pharma/Sun Global each year over a period of five years under our previously announced R&D Agreement. In the absence of an R&D technology-transfer charge, we would expect the second quarter of 2003 to be profitable, as well," he said. Under terms of its R&D Agreement, Sun Pharma and its subsidiary Sun Global will provide Caraco Pharma with 25 generic drugs over the course of five years. Caraco remits 544,000 shares of a newly issued nonvoting preferred stock for each technology transfer (generic drug) and simultaneously incurs a noncash charge for the aggregate amount, based on the shareprice of Caraco's common stock. Caraco has received FDA approval for 10 generic drugs over the past eight quarters. These are: digoxin, a generic form of Glaxo Wellcome's Lanoxin; clozapine, a generic form of Novartis' Clozaril; ticlopidine hydrochloride, a generic form of Hoffman LaRoche's Ticlid; meperidine hydrochloride, a generic form of Sanofi-Synthelabo's Demerol; metformin hydrochloride, a generic form of Bristol Myers Squibb's Glucophage; oxaprozin, a generic form of G.D. Searle's Daypro; carbamazepine (chewable), a generic form of Novartis' Tegretol; clonazepam, a generic form of Roche's Klonopin; flurbiprofen, a generic form of Pharmacia's Ansaid; and tramadol hydrochloride, a generic form of R.W. Johnson Pharma Research Institute's Ultram. Detroit-based Caraco Pharmaceutical Laboratories, Ltd., develops, manufactures and distributes generic and private-label prescription drugs to some of the nation's largest wholesalers, distributors, drugstore chains, healthcare systems and state and federal agencies. Sun Pharmaceutical Industries Ltd., is India's fifth largest pharmaceutical company and owns about one-half of Caraco's outstanding shares of common stock. Safe Harbor. This news release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to a number of risks and uncertainties which could cause actual results to differ materially from those described in the forward-looking statements. These risk factors and uncertainties are contained in the Corporation's filings with the Securities and Exchange Commission, available free via EDGAR. The Company assumes no responsibility to update forward-looking statements.
FOR THE THREE MONTHS ENDED MARCH 31, (unaudited) 2003 2002 - ----------------------------------- ---- ---- Net Sales $ 8,721,600 $ 3,301,959 - -------------------------------------------------------------------------------------------- Cost of Goods Sold 4,225,949 1,847,547 - -------------------------------------------------------------------------------------------- Gross Profit 4,495,651 1,454,412 - -------------------------------------------------------------------------------------------- SG&A 949,784 754,655 - -------------------------------------------------------------------------------------------- Research & Development 899,931 850,873 - -------------------------------------------------------------------------------------------- Operating Profit / (Loss) 2,645,936 (151,116) - -------------------------------------------------------------------------------------------- Interest Expense - net (441,187) (368,127) - -------------------------------------------------------------------------------------------- Net Profit / (Loss) $ 2,204,749 $ (519,241) ============================================================================================ Net Profit / (Loss) Per Share $ 0.09 $ (0.03) Basic & Diluted ============================================================================================ Weighted Average Number of Common Shares Outstanding 25,061,469 21,242,874
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