QUOTE AND NEWS
StreetInsider.com  Apr 15  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Akorn%2C+Inc.+%28AKRX%29+Receives+FTC+Approval+to+Acquire+Hi-Tech+Pharmacal+%28HITK%29/9379628.html for the full story.
newratings.com  Apr 14  Comment 
WASHINGTON (dpa-AFX) - Akorn, Inc. (AKRX) said Monday that the U.S. Federal Trade Commission has voted to approve the company's acquisition of Hi-Tech Pharmacal Co., Inc. (HITK). The unanimous vote in support of the deal follows...
StreetInsider.com  Mar 11  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Earnings/Hi-Tech+Pharmacal+Co.+%28HITK%29+Tops+Q3+EPS+by+9c/9267676.html for the full story.
Benzinga  Jan 23  Comment 
Hi-Tech Pharmacal (NASDAQ: HITK) announced today that the US Food and Drug Administration, (FDA) granted final approval for the Company's Abbreviated New Drug Application, (ANDA) for Bromfenac Ophthalmic Solution, 0.09% ...
FiercePharma  Jan 6  Comment 
What's a departing CEO worth after a merger? Not $85 million, according to nearly 5 million Hi-Tech Pharmacal shareholders. But while an advisory vote revealed that many investors were less than enthused with CEO David Seltzer's golden parachute,...
DailyFinance  Dec 26  Comment 
Hi-Tech Pharmacal Co., Inc. (NASDAQ:HITK) today announced that the Texas Attorney General has agreed to close its investigation of Hi-Tech’s pricing of products that were purchased with Texas Medicaid dollars. In settlement,...
Benzinga  Dec 13  Comment 
Below are the top drugs-generic stocks on the NYSE and the NASDAQ in terms of return on assets. The trailing-twelve-month return on assets at Akorn (NASDAQ: AKRX) is 14.50%. Akorn's PEG ratio is 1.23. The trailing-twelve-month return on...
DailyFinance  Dec 10  Comment 
Hi-Tech Pharmacal Co., Inc. (NASDAQ:HITK) today reported results for the second fiscal quarter ended October 31, 2013. Net sales of $58.6 million for the second quarter compared to $57.5 million for the same prior year...
StreetInsider.com  Dec 10  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Earnings/Hi-Tech+Pharmacal+Co.+%28HITK%29+Tops+Q2+EPS+by+23c/8962766.html for the full story.
Benzinga  Oct 8  Comment 
Below are the top drugs-generic stocks on the NYSE and the NASDAQ in terms of cash. Salix Pharmaceuticals (NASDAQ: SLXP) had $817.98 million in total cash and $875.74 million in total debt for the latest quarter. Mylan (NASDAQ: MYL) had...




 
TOP CONTRIBUTORS

Hi-Tech Pharmacal is a specialty manufacturer and marketer of prescription, Over the Counter (OTC) and nutritional products. It makes money by producing medicine that treat glaucoma, asthma, bronchial disorders, dermatological disorders, allergies, pain, stomach, oral care and other conditions. These generic product lines primarily include prescription items through oral solutions and suspensions, topical creams, ointments, and nasal sprays.[1] Increased legislation favoring generic production and limiting original pharmaceutical patent lives will help companies such as Hi-Tech Pharmacal reach greater profitability.

Business Growth

Hi-Tech depends upon customers that include chain drug stores such as CVS Caremark Corporation (CVS), Walgreen Company (WAG), Wal-Mart (WMT), as well as managed care purchasing organizations such as McKesson (MCK). Its operating segments are as follows:

  • Hi-Tech Generics represents roughly 79.0% of total revenues. This segment include some private label contract manufacturing.
  • Health Care Products represents roughly 6.9% of total revenues. This segment markets OTC products.
  • Midlothian Laboratories represents roughly 0.3% of total revenues, and sells nutritional products.
  • ECR Pharmaceuticals represents roughly 11.4% of total revenues, and is a acquired entity that sells branded prescription products.

Trends and Forces

As a Generic Manufacturer, Hi-Tech is Exposed to Highly Competitive Market Fighting for the Same Expiring Patent

Typically, a pharmaceutical company that sells a patented drug receives special designation to hold all rights to reap the benefits of R&D for the original development of the drug for a set number of years after approval from the Food and Drug Administration (FDA). Once these patents expire, companies such as Hi-Tech receive the authorization to develop same or similar products that often dilute the market share of the first developer. Because the Food and Drug Administration (FDA) give special privileges to the first generic manufacturer to submit an application, called Abbreviated New Drug Application (ANDA), for approval in order to encourage the generics industry, generics such as Hi-Tech are highly incentivized to rush into drug as soon as the medicine is off-patent. Unfortunately, this prompts extremely high competition which erodes the profitability quickly such that generics have a tougher time to sustain the same gross profit margins experienced by the same pharmaceuticals under patent.

Generic Customers are Limited to Few Major Customers that may Control Profitability

Hi-Tech's top five customers, including such companies as Wal-Mart (WMT), control 66% of total sales. As a result, these large customers control the ability to influence the price Hi-Tech may charge to them, which therefore influences its profitability. Any significant reduction of businesses from these top five customers may have material effects upon the business, and this is a force that is similar across most companies producing generic drugs (small molecule).

Competition

Hi-Tech competes against other generic manufacturers including:




References

  1. HITK Business Description
  2. ENDP Business Description
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki