1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission File NO. 0-15242
DURAMED PHARMACEUTICALS, INC.
Incorporated Under the IRS Employer I.D.
Laws of the State No. 11-2590026
of Delaware
7155 East Kemper Road
Cincinnati, Ohio 45249
(513) 731-9900
Indicate by checkmark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months, and (2) has been subject to such filing
requirements for the past 90 days.
YES X NO
--- ---
Common Stock, $.01 par value per share:
Shares Outstanding as of May 9, 1997 14,781,232
Page 1 of 18 pages
2
DURAMED PHARMACEUTICALS, INC.
INDEX
PART I. Financial Information Page
ITEM 1. Financial Statements (Unaudited)
Consolidated Balance Sheets. . . . . . . . . . . . . . . . . . . . 3-4
Consolidated Statements of Operations . . . . . . . . . . . . . . . 5
Consolidated Statements of Cash Flows . . . . . . . . . . . . . . . 6
Consolidated Statements of Stockholders'
Equity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
Notes to Consolidated Financial
Statements. . . . . . . . . . . . . . . . . . . . . . . . . . .8-10
ITEM 2. Management's Discussion and Analysis
of Financial Condition and Results of Operations. . . . . . . 11-15
PART II. Other Information
ITEM 2. Changes in Securities . . . . . . . . . . . . . . . . . . . . . . .16
ITEM 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . . .16
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
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DURAMED PHARMACEUTICALS, INC.
Consolidated Balance Sheets
Assets
March 31, December 31,
1997 1996
------------ ------------
Unaudited
Current assets:
Cash and cash equivalents $ 3,500 $ 1,811,182
Trade accounts receivable,
less allowance of $1,382,000
and $1,339,000, respectively 7,312,812 7,460,452
Inventories 11,138,289 13,188,627
Prepaid expenses and other assets 2,226,673 1,455,251
------------ ------------
Total current assets 20,681,274 23,915,512
Property, plant and equipment:
Land 1,000,000 1,000,000
Buildings and improvements 18,212,730 18,211,740
Equipment, furniture and fixtures 23,644,403 23,589,782
------------ ------------
42,857,133 42,801,522
Less accumulated depreciation
and amortization (13,950,811) (13,499,466)
------------ ------------
Property, plant and equipment - net 28,906,322 29,302,056
Deposits and other assets 501,235 416,288
------------ ------------
Total assets $ 50,088,831 $ 53,633,856
============ ============
See accompanying notes.
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4
DURAMED PHARMACEUTICALS, INC.
Consolidated Balance Sheets
Liabilities and Stockholders' Equity
March 31, December 31,
1997 1996
------------ --------------
Unaudited
Current liabilities:
Accounts payable $ 4,882,904 $ 4,461,434
Accrued liabilities 6,135,503 5,178,068
Current portion of long-term
debt and other liabilities 2,633,217 3,363,798
Current portion of capital lease obligations 1,084,130 1,113,114
------------ ------------
Total current liabilities 14,735,754 14,116,414
------------ ------------
Long-term debt, less current portion 12,008,442 9,989,461
Long-term capital leases, less current portion 1,468,912 1,727,587
Other long-term liabilities -- 161,171
------------ ------------
Total liabilities 28,213,108 25,994,633
------------ ------------
Stockholders' equity:
Convertible Preferred Stock Series B, par value $.001;
outstanding shares in 1997 and 1996 6 6
Common stock - authorized 50,000,000 shares,
par value $.01; 14,707,431 and 14,603,516 shares in
1997 and 1996 respectively 147,074 146,035
Additional paid-in capital 81,067,409 80,073,586
Accumulated deficit (59,338,766) (52,580,404)
------------ ------------
Total stockholders' equity 21,875,723 27,639,223
------------ ------------
Total liabilities and stockholders' equity $ 50,088,831 $ 53,633,856
============ ============
See accompanying notes.
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5
DURAMED PHARMACEUTICALS, INC.
Consolidated Statement of Operations
(Unaudited)
Three Months Ended March 31,
1997 1996
----------- -----------
Net sales $10,738,791 $10,700,198
Cost of goods sold 7,865,592 7,825,200
----------- -----------
Gross profit 2,873,199 2,874,998
----------- -----------
Operating expenses:
Product development 6,372,220 1,099,316
Selling 978,714 1,011,004
General and administrative 1,998,215 2,374,541
----------- -----------
9,349,149 4,484,861
----------- -----------
Operating loss (6,475,950) (1,609,863)
Interest expense 282,412 551,232
----------- -----------
Loss before preferred dividends (6,758,362) (2,161,095)
Preferred dividends -- 274,918
----------- -----------
Net loss to common shareholders $(6,758,362) $(2,436,013)
----------- -----------
Loss per share $ (.46) $ (.28)
----------- -----------
Weighted average number of shares outstanding 14,674,318 8,565,621
=========== ===========
See accompanying notes.
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6
DURAMED PHARMACEUTICALS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three months ended March 31,
1997 1996
------------ ------------
Cash flows from operating activities:
Net loss $(6,758,362) $(2,161,095)
Adjustments to reconcile net loss to net cash
(used in) operating activities:
Depreciation and amortization 465,559 556,082
Recognition of deferred revenues -- (250,000)
Provision for doubtful accounts 42,150 37,871
Common stock issued in connection with
employee compensation plans 54,886 61,905
Changes in assets and liabilities:
Trade accounts receivable 105,490 (439,405)
Inventories 2,050,338 (3,877,352)
Prepaid expenses
and other assets (771,421) (396,737)
Accounts payable 421,470 887,751
Accrued liabilities 1,214,637 (192,462)
Other (77,042) (12,086)
----------- -----------
Net cash (used in) operating activities (3,252,295) (5,785,528)
----------- -----------
Investing activities:
Capital expenditures (79,611) (400,063)
Refunds (deposits) on capital equipment 1,880 (5,808)
----------- -----------
Net cash (used for) investing activities (77,731) (405,871)
----------- -----------
Cash flows from financing activities:
Payments of long-term debt, including current maturities (712,426) (1,994,078)
Net increase (decrease) in revolving credit facility 2,424,918 (4,510,332)
Long-term borrowings 20,772 1,798,832
Issuance of preferred stock - net -- 10,857,367
Issuance of common stock 46,282 162,350
Dividends paid (257,202) (122,740)
----------- -----------
Net cash provided by financing activities 1,522,344 6,191,399
----------- -----------
Net change in cash (1,807,682) --
Cash at beginning of period 1,811,182 2,600
----------- -----------
Cash at end of period $ 3,500 $ 2,600
=========== ===========
Supplemental cash flow disclosures:
Interest paid $ 317,391 $ 562,154
See accompanying notes.
7
DURAMED PHARMACEUTICALS, INC.
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
(UNAUDITED)
Preferred Stock Common Stock Additional
--------------- -------------------- Paid-In Accumulated
Series B Shares Amount Capital Deficit Total
--------------- -------------------- ----------- ------------ ------------
BALANCE - DECEMBER 31, 1996 $ 6 14,603,516 $146,035 $80,073,586 ($52,580,404) $27,639,223
Issuance of stock in connection
with benefit plans 5,501 55 54,831 54,886
Issuance of stock in connection
with stock options 9,045 90 46,192 46,282
Issuance of stock in settlement
of certain liabilities 89,369 894 892,800 893,694
Net loss for 1997 (6,758,362) (6,758,362)
--- ---------- -------- ----------- ------------ -----------
BALANCE - MARCH 31, 1997 $ 6 14,707,431 $147,074 $81,067,409 ($59,338,766) $21,875,723
=== ========== ======== =========== ============ ===========
See accompanying notes.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1: Interim Financial Data
The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the three month period ended March 31,
1997 are not necessarily indicative of the results that may be expected for the
year ended December 31, 1997. For further information, refer to the
consolidated financial statements and notes thereto included in the Annual
Report of Duramed Pharmaceuticals, Inc. (the "Company" or "Duramed") on Form
10-K for the year ended December 31, 1996, as amended (the "1996 10-K").
Note 2: Loss Per Share
Loss per share is computed using the weighted average of common shares
outstanding only. Recognition of outstanding options, warrants and convertible
preferred stock in computing loss per share is not required as their effect
would be antidilutive.
Note 3: Inventories
Inventories are stated at the lower of cost (first-in, first-out) or market.
Components of inventories include:
March 31, December 31,
1997 1996
--------- ------------
Raw materials $ 7,106,876 $ 6,767,105
Work-in-process 475,238 452,905
Finished goods 4,700,401 7,520,247
Reserves (1,144,226) (1,551,630)
------------ ------------
Net inventory $ 11,138,289 $ 13,188,627
============ ============
The Company had manufactured a commercial launch quantity of its conjugated
estrogens product which was developed in accordance with the Food and Drug
Administration's (FDA) guidance established in 1991 and current official USP
compositional standards. On May 5, 1997, the Company was notified by the FDA
that at this time, it would not approve a generic conjugated estrogens product
developed in accordance with the guidance established by the FDA in 1991 and
current official USP compositional standards. The Company is evaluating various
options with respect to its conjugated estrogens product and related inventory.
In view of the
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FDA's decision, however, the Company has determined that it is prudent to write
off the conjugated estrogens inventory; accordingly, a charge in the amount of
$3,465,000 has been recorded and is reflected in product development expenses
for the quarter ended March 31, 1997.
The product currently meets the required stability criteria and will be
retained until such time as it no longer passes those tests. In the event the
Company is ultimately successful in obtaining approval for the product, some,
or all of the inventory write-off may be recovered.
Note 4: Debt and Other Long-Term Liabilities
Debt
March 31, December 31,
1997 1996
------------ ------------
Revolving credit facility $ 2,424,918 $ --
Manufacturing facility expansion loan 5,362,500 5,500,000
Equipment liability 4,000,000 4,000,000
Equipment loan 1,920,140 2,118,979
Note payable to State of Ohio 832,329 877,342
Installment notes payable 101,772 124,415
------------ ------------
14,641,659 12,620,736
Less amount classified as current 2,633,217 2,631,275
------------ ------------
$ 12,008,442 $ 9,989,461
============ ============
During 1997, the Company funded its operations with net proceeds received
previously from private placements of Convertible Preferred Stock and
borrowings under its revolving credit facility.
The amended terms of the revolving credit facility permit the Company to borrow
up to $6.5 million based upon eligible collateral ($11.2 million as of May 9,
1997) and the Company's current financial condition and operating performance.
Borrowings on the revolving credit facility bear interest at the rate of prime
plus 1%, and are collateralized by substantially all assets of the Company
including inventory, receivables and the manufacturing facility. As of May 9,
1997, the Company had $3,309,000 in borrowings outstanding under its revolving
credit facility.
The manufacturing facility expansion loan is a ten year $5.5 million facility
which provided a portion of the financing for the expansion of the Company's
manufacturing facility and is supported by a loan guaranty from Johnson &
Johnson. Principal payments on this loan commenced on January 1, 1997. Interest
is payable monthly based upon the prime rate.
The equipment liability of $4.0 million at December 31, 1996 represents an
obligation to Ortho-McNeil Pharmaceutical Corporation ("Ortho-McNeil") for
equipment that was provided in connection with the Company's facility expansion
that was completed in 1995. Since the Company did not receive regulatory
approval to market its conjugated estrogens product, the Company will be
required, at Ortho-McNeil's option, either to return the equipment or to
purchase it at fair market value. The Company and Ortho-McNeil are currently in
negotiations, which could revise the terms of the agreement and the repayment
schedule for this equipment. However, based on the current agreement terms, if
Ortho-McNeil requires Duramed to purchase
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the equipment, repayments would be established on the basis of equal quarterly
payments over a three year period based upon the fair market value of the
equipment at the time, and the obligation would be subject to interest at the
prime rate in effect.
The Company anticipates that the manufacturing facility expansion and related
equipment will be utilized to commercialize products on file with the FDA
(exclusive of the Company's conjugated estrogens product) as well as other
products under development. Accordingly, the facility and its equipment are an
integral part of the Company's business plan.
The equipment loans represent financing by the Company's bank for equipment
purchases, bear interest at the rate of prime plus 1%, and require monthly
installments of principal and interest. One of the loans is payable over a
three year term and requires a monthly principal payment of $42,355 plus
interest through April 1, 1999; the other loan is payable over a five year term
and requires a monthly principal payment of $23,925 plus interest through March
1, 2000. These loans are collateralized by the assets financed.
The note payable to the State of Ohio is secured by the Company's manufacturing
facility. The loan bears interest at 7.5%. In the third quarter of 1996, the
State waived the balloon payment that was due on November 1, 1996 and revised
the terms to require minimum monthly payments of $20,394 through November 1,
2000, and certain other payments as defined by the agreement. This debt is
personally guaranteed by a former officer and by a director.
Other long-term debt also includes facilities of varying amounts and terms
which are generally collateralized by the assets financed.
The Company's other long-term liabilities consist of the following:
Other Long-Term Liabilities March 31, December 31,
- --------------------------- 1997 1996
----------------------------
Abandoned facility obligation - net $ -- $ 893,694
Less amount classified as current -- 732,523
---------- ------------
$ -- $ 161,171
========== ============
The abandoned facility obligation represented the amounts due, net of sublease
income, under terms of a lease which extended through September 30, 1998. Due
to the Company's financial condition at the time, the Company was unable to
meet its commitments under the lease and vacated the facility in 1991. During
the first quarter of 1997, the Company settled the remaining obligation through
the issuance of 89,369 shares of Duramed common stock.
- 10 -
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
CONJUGATED ESTROGENS UPDATE
The Company has had an application on file with the FDA for a generic
conjugated estrogens product since September 1994. The product was developed
based upon the bioequivalency guidance established by the FDA in 1991, which
had been reaffirmed repeatedly over the past six years, and current official
USP compositional standards.
On May 5, 1997, the Company was notified by the FDA that at this time it would
not approve a generic conjugated estrogens product based upon the guidance
established by the FDA in 1991 and current official USP compositional
standards.
The Company's science, regulatory and legal team is reviewing the FDA's decision
to determine the appropriate response and course of action with regards to its
product. The Company believes it has various options with respect to its
conjugated estrogens product including instituting certain studies encouraged by
the FDA, seeking a new drug approval for the product and seeking approval for
the product in markets outside the United States. In view of the FDA's decision,
however, the Company has determined that it is prudent to write off the
conjugated estrogens inventory, accordingly, a charge in the amount of
$3,465,000 has been recorded and is reflected in product development expenses
for the quarter. The product currently meets the required stability criteria and
will be retained until such time as it no longer passes those tests. In the
event the Company is ultimately successful in obtaining approval for the
product, some, or all of the inventory write-off may be recovered. Additionally,
the Company accrued approximately $300,000 in pre-marketing expenses for the
quarter related to the terms of certain contractual commitments associated with
its conjugated estrogens product.
NET SALES
Net sales for the three month period ended March 31, 1997 were comparable to
the same period in 1996. The Company has agreements with several manufacturers
including Ortho-McNeil, whereby the Company markets and distributes their
generic prescription drug products. The terms of these agreements vary, but
typically provide for a sharing of profits between the Company and the
manufacturer. For the period ended March 31, 1997 and 1996, the percentage of
the Company's sales comprised of products marketed for others were 34.3%.
Recognition of deferred revenues from Ortho-McNeil contributed $250,000 to net
sales in the first quarter of 1996.
GROSS MARGIN
The gross margin, and the corresponding percentage of net sales, was $2.9
million (26.8%) for the first quarter of 1997 compared to $2.9 million (26.9%)
for the first quarter of 1996 resulting from
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a comparable sales mix. The gross margin in the first quarter of 1996 was
favorably impacted by the recognition of $250,000 in deferred revenues, which
were fully recognized in 1996. The gross profit generated by products
distributed by the Company pursuant to agreements with manufacturers including
Ortho-McNeil was approximately $559,000, and $652,000 for the period ended
March 31, 1997 and 1996, respectively.
There can be no assurance that, with the Company's current product line, the
present gross margin levels can be maintained if the Company's products,
particularly Methylprednisolone, should experience increased competition.
OPERATING EXPENSES
Product Development
Excluding the $3,465,000 conjugated estrogens inventory charge, product
development expenditures increased by $1,808,000 (164.5%) in the period ended
March 31, 1997 compared to the comparable period in 1996. The increase was due
to spending for bioequivalency studies, milestone payments to product
development partners and the expansion of the Company's product development
capabilities through the acquisition of Hallmark Pharmaceuticals, Inc.
("Hallmark"). The increase in product development expenditures reflects the
Company's commitment to expanding its product line. The Company's product
development program is broad-based with product development activities in
Cincinnati, the Hallmark division in New Jersey, Kiel Labs in Georgia and
Duramed Europe in Oxford, England. The product development emphasis is on
products and therapeutic categories such as hormones, oncology, cardiovascular
and pain. These products are being developed through sophisticated technology
including patented control release delivery systems and biotechnology. In
addition to nine product applications awaiting approval at the FDA, the
Company has approximately 35 active product development projects which should
result in filed applications by the end of 1998. The Company received approval
of its Prochlorperazine product which is the generic equivalent of Compazine(R)
on May 2, 1997. The Company filed the application for this product on July 28,
1996 and expects to begin shipments in the third quarter of 1997, following
completion of process validation. Product development expenditures in the 1996
period are net of reimbursements received from Schein Pharmaceutical, Inc.
("Schein") pursuant to the terms of a contractual agreement in connection with
the development of the conjugated estrogens product.
Selling
The Company's sales and marketing expenses in the first quarter of 1997
decreased by $332,000 (32.8%) over the same period in 1996 excluding a charge
of $300,000 in connection with certain contractual commitments associated with
its conjugated estrogens product. The reduction in selling expenses is a
reflection of the Company's steps taken during 1996 to reduce operating
expenses.
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General and Administrative
The decrease in general and administrative expenses in the first quarter of
1997 compared to the same period in 1996 was due primarily to a reduction of
staff positions and attendant costs. The expense levels in both the first
quarter of 1996 and 1997 reflect comparable levels of legal and consulting
costs associated with responding to various issues in connection with its
Abbreviated New Drug Application ("ANDA") for conjugated estrogens.
Net Interest Expense
Interest expense decreased in the first quarter of 1997 compared to the same
period in 1996, due primarily to a reduction in borrowings under the Company's
revolving credit facility.
Income Taxes
Due to the reported net loss in the first quarters of 1996 and 1997, no
provision for income tax was recorded.
Preferred Dividends
Preferred dividends in the first quarter of 1996 were $274,918, which
represented the dividend provision associated with outstanding Convertible
Preferred Stock. All issued Convertible Preferred Stock converted into common
stock during 1996, accordingly; there is no continuing dividend requirement.
Other Matters
Under the terms of agreements with Ortho-McNeil, Duramed has non-exclusive
distribution rights to the Ortho-McNeil products Acetaminophen with Codeine,
Tolmetin Sodium, Tolmetin Sodium DS, Oxycodone with Acetaminophen and
Estropipate. The distribution agreement for each of these products specifies a
term of ten years subject to reduction to three years (if not extended) from
the date of first sale if Duramed's conjugated estrogens product is not
approved. Duramed commenced marketing Estropipate during the fourth quarter of
1993 and the other Ortho-McNeil products during the fourth quarter of 1994.
The Company is continuing to distribute the products and is discussing an
extension of these rights with Ortho-McNeil. Loss of these distribution rights
would likely have a material adverse effect upon the Company's financial
position and results of operations.
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Management believes that it is in the best interest of the
Company and its shareholders to continue its product development program and
accordingly plans to continue its spending on its product development program
which will likely result in operating losses in the range of $3.0 to $5.0
million per quarter until the Company receives approval on pending product
applications and commences marketing the products. The Company expects to begin
to generate a profit from operations during the second half of 1998.
LIQUIDITY AND CAPITAL RESOURCES
The Company has funded its operations by raising capital through the issuance of
Convertible Preferred Stock, all of which has converted into common stock as of
December 31, 1996; and through borrowings under its revolving credit facility.
The amended terms of the Company's revolving credit facility permits the
Company to borrow up to $6.5 million, based upon eligible collateral ($11.2
million as of May 9, 1997) unless the Company's operating results substantially
improve or the Company obtains additional sources of financing. As of May 9,
1997 the Company had $3,309,000 in borrowings under the revolving credit
facility.
In connection with various agreements related to the Company's conjugated
estrogens product along with the distribution rights for certain products,
Ortho-McNeil provided $2 million in cash and the use of $4 million in equipment
for the Company's hormone replacement therapy ("HRT") facility expansion and
Ortho-McNeil's parent, Johnson & Johnson, guaranteed a $5.5 million
construction loan for the HRT facility expansion. Under the terms of the
agreement, if FDA approval of the conjugated estrogens product is not obtained,
the Company may be required, at Ortho-McNeil's option, either to return the
equipment or to purchase it at its fair market value at that time. Under the
existing agreement, if the Company is required to purchase the equipment, the
purchase price plus interest at the current prime rate will be payable on a
quarterly basis over three years. In the fourth quarter of 1996, the Company
recorded a $4.0 million liability for the equipment provided by Ortho-McNeil.
In view of the FDA's decision the Company is discussing all aspects of its
current contractual arrangements with Ortho-McNeil. At this time, the Company
cannot predict the outcome of these discussions.
The Company anticipates that the HRT manufacturing facility expansion and
related equipment will be utilized to commercialize products on file with the
FDA (exclusive of the Company's conjugated estrogens product) as well as a
number of other products under development. Accordingly, the facility and its
equipment are an integral part of the Company's business plan.
- 14 -
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Management is encouraged by the results to date from the Company's product
development program and has concluded that it is in the best interests of the
Company and its stockholders for the Company to continue substantial spending
for research and development and for hiring incremental personnel and procuring
necessary equipment to prepare for the production and launch of certain products
on file. Management recognizes that such actions will result in continued
reported losses for the Company until the Company begins to receive anticipated
revenues from products now on file, or to be filed, with the FDA. The Company
does not anticipate substantial revenues from such products before late 1997
and, accordingly, does not anticipate a return to profitable operations until
the second half of 1998. In the meantime, the Company's product development
program will not be supported from the Company's operations and therefore will
require additional capital which may result in substantial dilution to current
shareholders. The Company is in the final phase of accessing the financial
resources to continue the execution of the Company's business plan. If necessary
capital is not available, implementation of the Company's plans will be
restricted or delayed with a negative effect upon the Company's prospects.
Certain statements in this Form 10-Q constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995,
including those concerning management's expectations with respect to future
financial performance and future events, particularly relating to sales of
current products as well as the introduction of new manufactured and distributed
products. Such statements involve known and unknown risks, uncertainties and
contingencies, many of which are beyond the control of the Company, which could
cause actual results and outcomes to differ materially from those expressed
herein. Factors that might affect such forward-looking statements set forth in
this Form 10-Q include, among others, (i) increased competition from new and
existing competitors and pricing practices from such competitors, (ii) the
amount of funds continuing to be available for internal research and development
and for research and development joint ventures, (iii) research and development
project failures or delays, or delays in or the lack of obtaining regulatory
approvals and (iv) the ability of the Company to retain and attract personnel in
key operational areas.
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PART II - OTHER INFORMATION
Item 2. Changes in Securities
On February 27, 1997, the Company issued 89,369 shares of common
stock to Charles J. Kubicki in exchange for the release from the
abandoned facility obligation (see Note 4. Debt and Other Long-Term
Liabilities). The issuance was exempt pursuant to Section 4 (2) of
the Securities Act of 1933.
Item 6. Exhibit and Reports on Form 8-K
(a) Exhibit:
(11) Statement re: Computation of Earnings Per Share
(27) Financial Data Schedule*
(b) Reports on Form 8-K for the quarter ended March 31, 1997: None
- ------------------
*Contained only in electronic filing with Securities and Exchange Commission.
- 16 -
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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 thereunto duly authorized.
DURAMED PHARMACEUTICALS, INC.
Dated: May 15, 1997 by: /s/ E. THOMAS ARINGTON
------------ ---------------------------------
E. Thomas Arington
President, Chairman of the Board
Chief Executive Officer
Dated: May 15, 1997 by: /s/ TIMOTHY J. HOLT
------------ -----------------------------------
Timothy J. Holt
Senior Vice President - Finance,
Treasurer, Chief Financial Officer