Barr Labs CEO Outlines Company's Four-Year Business Strategy

At the Warburg Dillon Read Global Specialty Pharmaceutical Conference in New York, Bruce L. Downey, chairman, president and CEO of Barr Laboratories Inc. (Pomona, NY), outlined details of the strategy that could more than quadruple earnings per share by the end of fiscal 2003. Barr described how success in delivering on the potential of Barr's proprietary, generic, and patent challenge business strategies could reshape the financial profile of the company.

Proprietary Portfolio
Downey provided an overview of the 10 proprietary products currently in development at Barr, which include products that are targeted for launch in the near-, mid-, and long-term. Barr intends to invest as much as $35 million over the next several years in its proprietary activities. The company's current proprietary portfolio includes four cancer therapies representing eight dosage forms, three oral contraceptives representing four dosage forms, one hormonal product, one anti-viral product, and one product in two dosage forms in the psychotherapeutic category.

Generic Portfolio
In describing Barr's emphasis on the commercialization of distinct generic pharmaceuticals, Downey noted that strong performance of new products is a key component in current earnings and is expected to continue as new generic launches in the next several years replace the revenue stream generated by products with declining life-cycles. Downey reported that the company expects to file 15–20 new generic product applications during fiscal 2000, and expects to launch as many as a dozen products during the coming fiscal year.

Patent Challenge Portfolio
In describing Barr's patent challenge strategy, Downey focused on the potential impact of a March 1999 FDA decision that reaffirmed Barr's right to 180 days of generic exclusivity for Tamoxifen. The drug, which is distributed by Barr under terms of a patent challenge settlement, is the only one currently indicated for the reduction in incidence of breast cancer in women at high risk for developing this disease. Barr was also first to file with Tamoxifen, AZT, Ciprofloxacin, and Prozac, all of which lose patent protection between 2001 and 2006. "Barr is poised to significantly benefit from our investment to be first to bring a lower priced generic version of these products to consumers," said Downey.

Barr Laboratories Inc. is engaged in the development, manufacture and marketing of generic and proprietary pharmaceuticals.

For more information: Bruce L. Downey, President and CEO, Barr Laboratories Inc., 2 Quaker Rd., Pomona, NY 10970-0519. Tel: 914-362-1100. Fax: 914-362-2774.