Caraco Posts Lower Sales and a Net Loss

Apr 03, 2001, 01:00 ET from Caraco Pharmaceutical Laboratories, Ltd.

    DETROIT, April 3 /PRNewswire/ -- Caraco Pharmaceutical Laboratories, Ltd.
 (OTC Bulletin Board:   CARA) posted lower sales and a net loss for 2000,
 Narendra N. Borkar, Chief Executive Officer, reported today.
     Net sales for the 12-months ended December 31, 2000 were $2,377,546, down
 17% from net sales of $2,895,022 for 1999.  The net loss for 2000 was
 $7,622,708, or $0.39 per share, compared with a net loss of $9,739,984, or
 $0.58 per share, for 1999.
     The decline in sales and net loss were mainly attributable to a company-
 wide focus on meeting FDA Good Manufacturing Practices (cGMP) at its Detroit
 plant after receiving a FDA warning letter of certain cGMP deficiencies.  The
 FDA warning letter did not call for a plant shutdown or product recall.
 However, most of the Company's resources were directed at cGMP compliance.  As
 a result, production and R&D activities fell-off sharply.
     Remedial steps have been and continue to be implemented to correct the
 deficiencies.  The company retained a FDA cGMP advisory firm and added three
 experienced pharmaceutical-industry professionals to its quality control and
 quality assurance staffs.  An inspection by the FDA is currently underway.
     Mr. Borkar noted that the company completed certain capital projects
 during the year to improve efficiency and production capacity in preparation
 for new-product introductions and higher production volumes in 2001 and
 beyond.  These capital projects include the installation of two high-speed
 tablet compression machines and plant and warehouse improvements.  Subject to
 FDA approvals, the company expects to manufacture and market some of nine new
 generic drugs that are currently under review at the FDA.  The company has 21
 drugs in various stages of development and plans to submit three additional
 drugs for FDA approval in 2001.
     Detroit-based Caraco Pharmaceutical Laboratories, Ltd., develops,
 manufacturers and distributes generic and branded pharmaceuticals to the
 nation's largest drugstore chains, wholesalers, distributors and healthcare
 organizations.
     This news release contains forward-looking statements made pursuant to the
 safe harbor provisions of Section 27A of the Securities Act of 1933, Section
 21E of the Securities Act of 1934 and Private Securities Litigation Reform Act
 of 1995.  Such statements are based on management's current expectations and
 are subject to a number of risk factors 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
 via EDGAR.
 
     For the years ended December 31,             2000             1999
 
     Net Sales                               $ 2,377,546       $2,895,002
     Cost of Goods Sold                        2,678,900        3,091,245
     Gross Margin (Differential)                (301,354)        (196,223)
     SG&A                                      2,508,737        2,159,166
     Research & Development                    3,295,435        6,332,390
     Operating Loss                           (6,105,527)      (8,687,729)
     Interest Income                              38,010           32,764
     Interest Expense                          1,555,192        1,085,019
     Other Expense (net)                               -                -
     Net Loss                               $ (7,622,708)    $ (9,739,984)
     =====================================================================
     Net Loss Per Basic & Diluted Share           $(0.39)          $(0.58)
     =====================================================================
     Weighted Average Number of
      Common Shares Outstanding               19,755,021       16,724,506
 
 

SOURCE Caraco Pharmaceutical Laboratories, Ltd.
    DETROIT, April 3 /PRNewswire/ -- Caraco Pharmaceutical Laboratories, Ltd.
 (OTC Bulletin Board:   CARA) posted lower sales and a net loss for 2000,
 Narendra N. Borkar, Chief Executive Officer, reported today.
     Net sales for the 12-months ended December 31, 2000 were $2,377,546, down
 17% from net sales of $2,895,022 for 1999.  The net loss for 2000 was
 $7,622,708, or $0.39 per share, compared with a net loss of $9,739,984, or
 $0.58 per share, for 1999.
     The decline in sales and net loss were mainly attributable to a company-
 wide focus on meeting FDA Good Manufacturing Practices (cGMP) at its Detroit
 plant after receiving a FDA warning letter of certain cGMP deficiencies.  The
 FDA warning letter did not call for a plant shutdown or product recall.
 However, most of the Company's resources were directed at cGMP compliance.  As
 a result, production and R&D activities fell-off sharply.
     Remedial steps have been and continue to be implemented to correct the
 deficiencies.  The company retained a FDA cGMP advisory firm and added three
 experienced pharmaceutical-industry professionals to its quality control and
 quality assurance staffs.  An inspection by the FDA is currently underway.
     Mr. Borkar noted that the company completed certain capital projects
 during the year to improve efficiency and production capacity in preparation
 for new-product introductions and higher production volumes in 2001 and
 beyond.  These capital projects include the installation of two high-speed
 tablet compression machines and plant and warehouse improvements.  Subject to
 FDA approvals, the company expects to manufacture and market some of nine new
 generic drugs that are currently under review at the FDA.  The company has 21
 drugs in various stages of development and plans to submit three additional
 drugs for FDA approval in 2001.
     Detroit-based Caraco Pharmaceutical Laboratories, Ltd., develops,
 manufacturers and distributes generic and branded pharmaceuticals to the
 nation's largest drugstore chains, wholesalers, distributors and healthcare
 organizations.
     This news release contains forward-looking statements made pursuant to the
 safe harbor provisions of Section 27A of the Securities Act of 1933, Section
 21E of the Securities Act of 1934 and Private Securities Litigation Reform Act
 of 1995.  Such statements are based on management's current expectations and
 are subject to a number of risk factors 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
 via EDGAR.
 
     For the years ended December 31,             2000             1999
 
     Net Sales                               $ 2,377,546       $2,895,002
     Cost of Goods Sold                        2,678,900        3,091,245
     Gross Margin (Differential)                (301,354)        (196,223)
     SG&A                                      2,508,737        2,159,166
     Research & Development                    3,295,435        6,332,390
     Operating Loss                           (6,105,527)      (8,687,729)
     Interest Income                              38,010           32,764
     Interest Expense                          1,555,192        1,085,019
     Other Expense (net)                               -                -
     Net Loss                               $ (7,622,708)    $ (9,739,984)
     =====================================================================
     Net Loss Per Basic & Diluted Share           $(0.39)          $(0.58)
     =====================================================================
     Weighted Average Number of
      Common Shares Outstanding               19,755,021       16,724,506
 
 SOURCE  Caraco Pharmaceutical Laboratories, Ltd.