Pharmaceutical Resources, Inc. Reports Earnings Per Share of $.06 for the First Quarter 2001

First Quarter 2001 Sales Increase 42%;

Gross Margin Increases 145% Compared to 2000



Apr 26, 2001, 01:00 ET from Pharmaceutical Resources, Inc.

    SPRING VALLEY, N.Y., April 26 /PRNewswire/ -- Pharmaceutical Resources,
 Inc. ("PRI") (NYSE:   PRX; PCX), a holding company that, through its
 subsidiaries develops, manufactures and distributes generic pharmaceutical
 products, today reported results for the first quarter ended March 31, 2001.
     The Company reported net income for the first quarter 2001 of $1,677,000,
 or $.06 per share, compared to a net loss of ($2,096,000), or ($.07) per
 share, in the corresponding quarter of the prior year, reflecting continued
 sales and gross margin growth from the introduction of new products.  Net
 sales of $25,704,000 increased $7,565,000, or 42%, in the quarter from
 $18,139,000 in the corresponding quarter of the prior year, primarily due to
 four new products introduced since the second quarter of 2000.  The higher
 sales generated gross margin increases of $5,006,000 to $8,428,000 (33% of net
 sales) for the most recent quarter compared to $3,422,000 (19% of net sales)
 for the first quarter 2000.  Research and development expenses of $1,538,000
 decreased $601,000 from the comparable quarter of 2000, primarily due to the
 timing of bio-studies planned for later in 2001.  Total research and
 development expenses in 2001 are expected to exceed 2000 levels.  Selling,
 general and administrative costs of $4,014,000 for the most recent quarter
 increased $694,000 from the prior year, as the Company continues to incur
 legal costs related to several patent infringement actions.  The income tax
 provision of $1,298,000 in the first quarter is a non-cash expense.  The
 Company did not recognize a tax benefit for its losses in the first quarter
 2000.
     Kenneth I. Sawyer, the Chairman and CEO of PRI commented, "We are
 extremely pleased to be reporting our fourth consecutive profitable quarter.
 The foundation we have built in order to achieve our goals of profitability
 and growth is strong as evidenced by our continued introduction of new
 products and recent additions to our pipeline of products for the future.  As
 previously announced, we have added fourteen new products, six of which are
 filed with the U.S.
     Food and Drug Administration ("FDA") awaiting approval, through a new
 agreement with Dr. Reddy's Laboratories.  PRI now has a total of 23
 abbreviated new drug applications ("ANDAs") for potential products, filed by
 either the Company or one of its strategic partners, awaiting FDA approval.
 PRI's filings include ANDAs for megestrol acetate oral suspension (Megace Oral
 Suspension(R)) (tentatively approved), flecainide acetate tablets
 (Tambocor(R)) and fluoxetine 10mg and 20mg tablets and 40mg capsules
 (Prozac(R)) which we believe are first-to-file opportunities and may entitle
 the Company up to 180 days of marketing exclusivity after FDA approval."  Mr.
 Sawyer continued, "We have launched two new products this year, including
 buspirone 7.5mg tablets (BuSpar(R)) which has up to 180 days marketing
 exclusivity, and we believe up to seven additional products could be approved
 by the FDA and introduced to market during the remainder of 2001.  We will
 continue to focus on new product introductions and further expand our product
 pipeline through strategic alliances and product development, including
 seeking additional first-to-file opportunities, vertical integration with raw
 material suppliers and unique dosage forms and strengths to differentiate our
 products in the marketplace."
 
     PRI's wholly owned primary operating subsidiary, Par Pharmaceutical, Inc.,
 located in Spring Valley, New York, manufactures and distributes approximately
 106 products representing various dosage strengths for 47 drugs.  For press
 release and other Company information, visit our website at
 http://www.parpharm.com.
 
     Certain statements in this press release 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 events or future financial performance.  Any such statements that refer
 to PRI's anticipated future results, product performance, or other non-
 historical facts are forward-looking and reflect PRI's current perspective of
 existing trends and information.  These statements involve risks and
 uncertainties that cannot be predicted or quantified and consequently, actual
 results may differ materially from those expressed or implied by such forward-
 looking statements. Such risks and uncertainties include, among others, the
 uncertainty associated with complex litigation, including the eventual outcome
 and litigation costs and expenses incurred along the way, the success of PRI's
 product development activities, and the timeliness with which regulatory
 authorizations and product introduction may be achieved, market acceptance of
 PRI's products, the availability on commercially reasonable terms of raw
 materials, successful compliance with extensive, costly, complex, and evolving
 governmental regulations and restrictions, exposure to product liability, and
 other risks and uncertainties detailed in PRI's filings with the Securities
 and Exchange Commission, such as the Company's Form 10-K, Form 10-Q and Form
 8-K reports.
 
 
                         PHARMACEUTICAL RE

SOURCES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands, Except Per Share Amounts) Three Months Ended March 31, April 1, 2001 2000 (Unaudited) (Unaudited) Net sales $25,704 $18,139 Cost of goods sold 17,276 14,717 Gross margin 8,428 3,422 Operating expenses: Research and development 1,538 2,139 Selling, general and administrative 4,014 3,320 Total operating expenses 5,552 5,459 Operating income (loss) 2,876 (2,037) Other income, net 319 89 Interest expense, net (220) (148) Income (loss) before provision for income taxes 2,975 (2,096) Provision for income taxes 1,298 -- Net income (loss) $1,677 ($2,096) Net income (loss) per share of common stock: Basic $0.06 ($0.07) Diluted $0.05 ($0.07) Weighted average number of common and common equivalent shares outstanding: Basic 29,661 29,566 Diluted 31,235 29,566 March 31, Dec. 31, 2001 2000 (Unaudited) (Audited) Selected Balance Sheet Items: Cash and cash equivalents $252 $222 (1) Working capital, including cash and cash equivalents 21,728 18,512 Long-term debt, less current portion 121 163 Total shareholders' equity 62,019 60,085 (1) Working capital includes current portion of long-term debt and short-term debt of $13,155 at March 31, 2001 and $11,070 at December 31, 2000 MAKE YOUR OPINION COUNT -- Click Here http://tbutton.prnewswire.com/prn/11690X73737568

SOURCE Pharmaceutical Resources, Inc.
    SPRING VALLEY, N.Y., April 26 /PRNewswire/ -- Pharmaceutical Resources,
 Inc. ("PRI") (NYSE:   PRX; PCX), a holding company that, through its
 subsidiaries develops, manufactures and distributes generic pharmaceutical
 products, today reported results for the first quarter ended March 31, 2001.
     The Company reported net income for the first quarter 2001 of $1,677,000,
 or $.06 per share, compared to a net loss of ($2,096,000), or ($.07) per
 share, in the corresponding quarter of the prior year, reflecting continued
 sales and gross margin growth from the introduction of new products.  Net
 sales of $25,704,000 increased $7,565,000, or 42%, in the quarter from
 $18,139,000 in the corresponding quarter of the prior year, primarily due to
 four new products introduced since the second quarter of 2000.  The higher
 sales generated gross margin increases of $5,006,000 to $8,428,000 (33% of net
 sales) for the most recent quarter compared to $3,422,000 (19% of net sales)
 for the first quarter 2000.  Research and development expenses of $1,538,000
 decreased $601,000 from the comparable quarter of 2000, primarily due to the
 timing of bio-studies planned for later in 2001.  Total research and
 development expenses in 2001 are expected to exceed 2000 levels.  Selling,
 general and administrative costs of $4,014,000 for the most recent quarter
 increased $694,000 from the prior year, as the Company continues to incur
 legal costs related to several patent infringement actions.  The income tax
 provision of $1,298,000 in the first quarter is a non-cash expense.  The
 Company did not recognize a tax benefit for its losses in the first quarter
 2000.
     Kenneth I. Sawyer, the Chairman and CEO of PRI commented, "We are
 extremely pleased to be reporting our fourth consecutive profitable quarter.
 The foundation we have built in order to achieve our goals of profitability
 and growth is strong as evidenced by our continued introduction of new
 products and recent additions to our pipeline of products for the future.  As
 previously announced, we have added fourteen new products, six of which are
 filed with the U.S.
     Food and Drug Administration ("FDA") awaiting approval, through a new
 agreement with Dr. Reddy's Laboratories.  PRI now has a total of 23
 abbreviated new drug applications ("ANDAs") for potential products, filed by
 either the Company or one of its strategic partners, awaiting FDA approval.
 PRI's filings include ANDAs for megestrol acetate oral suspension (Megace Oral
 Suspension(R)) (tentatively approved), flecainide acetate tablets
 (Tambocor(R)) and fluoxetine 10mg and 20mg tablets and 40mg capsules
 (Prozac(R)) which we believe are first-to-file opportunities and may entitle
 the Company up to 180 days of marketing exclusivity after FDA approval."  Mr.
 Sawyer continued, "We have launched two new products this year, including
 buspirone 7.5mg tablets (BuSpar(R)) which has up to 180 days marketing
 exclusivity, and we believe up to seven additional products could be approved
 by the FDA and introduced to market during the remainder of 2001.  We will
 continue to focus on new product introductions and further expand our product
 pipeline through strategic alliances and product development, including
 seeking additional first-to-file opportunities, vertical integration with raw
 material suppliers and unique dosage forms and strengths to differentiate our
 products in the marketplace."
 
     PRI's wholly owned primary operating subsidiary, Par Pharmaceutical, Inc.,
 located in Spring Valley, New York, manufactures and distributes approximately
 106 products representing various dosage strengths for 47 drugs.  For press
 release and other Company information, visit our website at
 http://www.parpharm.com.
 
     Certain statements in this press release 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 events or future financial performance.  Any such statements that refer
 to PRI's anticipated future results, product performance, or other non-
 historical facts are forward-looking and reflect PRI's current perspective of
 existing trends and information.  These statements involve risks and
 uncertainties that cannot be predicted or quantified and consequently, actual
 results may differ materially from those expressed or implied by such forward-
 looking statements. Such risks and uncertainties include, among others, the
 uncertainty associated with complex litigation, including the eventual outcome
 and litigation costs and expenses incurred along the way, the success of PRI's
 product development activities, and the timeliness with which regulatory
 authorizations and product introduction may be achieved, market acceptance of
 PRI's products, the availability on commercially reasonable terms of raw
 materials, successful compliance with extensive, costly, complex, and evolving
 governmental regulations and restrictions, exposure to product liability, and
 other risks and uncertainties detailed in PRI's filings with the Securities
 and Exchange Commission, such as the Company's Form 10-K, Form 10-Q and Form
 8-K reports.
 
 
                         PHARMACEUTICAL RESOURCES, INC.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                    (In Thousands, Except Per Share Amounts)
 
                                                       Three Months Ended
                                                    March 31,       April 1,
                                                       2001           2000
                                                    (Unaudited)   (Unaudited)
 
     Net sales                                        $25,704        $18,139
 
     Cost of goods sold                                17,276         14,717
 
     Gross margin                                       8,428          3,422
 
     Operating expenses:
     Research and development                           1,538          2,139
 
     Selling, general and administrative                4,014          3,320
 
     Total operating expenses                           5,552          5,459
 
     Operating income (loss)                            2,876        (2,037)
 
     Other income, net                                    319             89
 
     Interest expense, net                               (220)          (148)
 
     Income (loss) before
      provision for income taxes                        2,975         (2,096)
 
     Provision for income taxes                         1,298             --
 
     Net income (loss)                                 $1,677        ($2,096)
 
     Net income (loss) per share of common stock:
       Basic                                            $0.06         ($0.07)
       Diluted                                          $0.05         ($0.07)
 
     Weighted average number of common and
     common equivalent shares outstanding:
       Basic                                           29,661         29,566
       Diluted                                         31,235         29,566
 
 
                                                       March 31,     Dec. 31,
                                                         2001          2000
                                                      (Unaudited)   (Audited)
     Selected Balance Sheet Items:
      Cash and cash equivalents                           $252           $222
      (1)  Working capital, including cash and
           cash equivalents                             21,728         18,512
           Long-term debt, less current portion            121            163
           Total shareholders' equity                   62,019         60,085
 
      (1) Working capital includes current portion of long-term debt
          and short-term debt of $13,155 at March 31, 2001 and
          $11,070 at December 31, 2000
 
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 SOURCE  Pharmaceutical Resources, Inc.