Mexico Clouds Sicor’s 2002 Outlook
Sluggish sales and more competition in Mexico have prompted Irvine-based Sicor Inc. to scale back its growth projection for the rest of the year.
The generic drug maker said last week it expects third-quarter sales to be flat with the second quarter’s $112 million level. For the year, Sicor said it see sales growth coming in at the low end of its previously projected 20% to 25% range. The company expects to earn 80 cents to 82 cents per share for the year, up from 65 cents in 2001.
“While our overall business remains strong, we have begun to experience a weakness in our Mexican operations,” Chief Executive Marvin Samson said.
Sicor has seen “enforced price and volume declines” in its finished dosage business in Mexico, Samson said. Sicor’s finished dosage business includes injectable anesthesiology and cancer drugs used in hospitals and clinics. Sales to Mexico’s health system make up about 10% of Sicor’s yearly sales.
Sicor also sells compounds used by other drug makers in their products. One of the company’s lead compounds in Mexico now competes with a generic rival from the U.S., Samson said.
Second-quarter sales were up 23% from the year-ago period, thanks to more sales of finished dosage products in the U.S. Sicor’s compounds business saw sales fall due to the sale of Sicor’s Diaspa SPA unit in the first quarter.
The company saw its second-quarter operating profit nearly double to $41 million.
