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February
2009
Hi-Tech Pharmacal, an
Amityville, NY publicly traded company on the NASDQ
exchange, has acquired the privately held, Richmond,
Virginia based ECR Pharmaceuticals. Hi-Tech is a major
supplier of liquid, generic prescription products as
well as branded OTC pharmaceuticals. The addition of
a branded pharmaceutical arm provides new opportunities
for the combined companies and enhanced synergy in respect
to the development and acquisition of new products.
For a more detail announcement of this transaction,
please see the accompanying formal press release (News
Release, March 2, 2009).
Hi-Tech Pharmacal
Acquires ECR Pharmaceuticals AMITYVILLE, N.Y.--(BUSINESS
WIRE)--Mar. 2, 2009--
Hi-Tech Pharmacal Co., Inc. (NASDAQ: HITK) announced
today the signing of a definitive agreement under which
Hi-Tech acquired the assets of ECR Pharmaceuticals,
a privately held branded specialty pharmaceutical company
for $5.1 million in an all-cash transaction, which will
be paid over an eight month period. Additionally, Hi-Tech
may pay up to $4.0 million in performance incentives
tied to future ECR product sales and profits. Under
the terms of the acquisition Hi-Tech receives rights
to ECR's product line, including branded prescription
products for the treatment of allergy, headache and
dermatitis/poison ivy. ECR Pharmaceuticals has 45 sales
representatives promoting products to physicians and
pharmacists in 12 mid-Atlantic and southern states.
ECR had net sales of $13.2 million and operating income
of $2.0 million in calendar 2008. The company will continue
to operate under the name ECR Pharmaceuticals.
"This acquisition allows Hi-Tech to capitalize on ECR's
growing sales, and brings experienced management with
a successful track-record developing new products,"
said David Seltzer, President and CEO of Hi-Tech Pharmacal.
"The addition of ECR makes Hi-Tech a more diverse and
flexible company, as we have an additional outlet to
market differentiated products currently in development.
We believe that the ECR acquisition will be earnings
accretive and cash flow positive in the near term, and
contribute to the Company's long term growth."
Hi-Tech is a specialty pharmaceutical company developing,
manufacturing and marketing generic and branded products.
The Company specializes in difficult to manufacture
liquid and semi-solid dosage forms and produces a range
of sterile ophthalmic, otic and inhalation products.
The Company's Health Care Products Division is a leading
developer and marketer of branded prescription and OTC
products for the diabetes marketplace.
Forward-looking statements (statements which are not
historical facts) in this Press Release are made pursuant
to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements
are not promises or guarantees and investors are cautioned
that all forward-looking statements involve risks and
uncertainties, including but not limited to the impact
of competitive products and pricing, product demand
and market acceptance, new product development, the
regulatory environment, including without limitation,
reliance on key strategic alliances, availability of
raw materials, fluctuations in operating results and
other results and other risks detailed from time to
time in the Company's filings with the Securities and
Exchange Commission. These statements are based on management's
current expectations and are naturally subject to uncertainty
and changes in circumstances. We caution you not to
place undue reliance upon any such forward looking statements
which speak only as of the date made. Hi-Tech is under
no obligation to, and expressly disclaims any such obligation
to, update or alter its forward-looking statements,
whether as a result of new information, future events
or otherwise.
Source: Hi-Tech Pharmacal Co., Inc.
Hi-Tech Pharmacal Co., Inc.
William Peters, CFO, 631-789-8228
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