| IPO Company Profile |
| Current Quote | News | SEC Filings | Peer IPO Companies |
| Schein Pharmaceutical, Inc. |
| 100 Campus Drive, Florham Park, NJ 07932 * (973) 593-5500 |
| The company is one of the leading generic pharmaceutical companies in the U.S. The company develops, manufactures and markets one of the broadest generic product lines through integration of product development expertise and production capacity. |
| Manager | Tier | Phone |
| Cowen & Company | Lead Manager | (212) 495-6000 |
| Bear, Stearns & Co. Inc. | Co-manager | (212) 272-4850 |
| Salomon Smith Barney | Co-manager | (212) 723-7300 |
| NYSE: | SHP | Manufacturing: | SIC 2834 | |
| Type of Shares: | Common Shares | Filing Date: | 12/3/97 | |
| U.S. Shares: | 3,000,000 | Offer Date: | 4/8/98 | |
| Non-U.S. Shares: | 0 | Filing Range: | $14.00 - $16.00 | |
| Primary Shares: | 3,000,000 | Offer Price: | $17.00 | |
| Secondary Shares: | 0 | Gross Spread: | $1.19 | |
| Offering Amount: | $45,000,000 | Selling: | $0.67 | |
| Expenses: | $0 | Reallowance: | $0.10 | |
| Post-IPO Shares: | - | |||
| Employees: | 1850 |
| Issuer's Law Firm: | Proskauer Rose Goetz & Mendelsohn |
| Bank's Law Firm: | Brown & Wood |
| Registrar/Transfer Agent: | ChaseMellon Shareholder Services, L.L.C. |
| Auditor: | BDO Seidman |
Dollar amounts in U.S. millions except for per share data | |||||
| 9 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 9/30/97 | 9/30/96 | 9/30/97 | ||
| Revenue: | $476.30 | $353.83 | $352.17 | Assets: | $520.70 |
| Net Income: | $1.40 | $3.73 | $2.15 | Curr Assets: | $204.61 |
| EPS: | $0.04 | $0.11 | $0.06 | Liabilities: | $383.61 |
| Prior EPS: | -$0.41 | $27.07 | -$8.73 | Curr Liab: | $111.13 |
| Cash Flow/Oper: | $10.76 | -$30.07 | $11.94 | Equity: | $137.08 |
| Cash Flow/Fin: | $3.56 | $1.25 | -$11.02 | Cash: | $0.39 |
| Cash Flow/Inv: | -$20.02 | Working Cap: | $93.48 | ||
| Competition |
| The pharmaceutical industry is intensely competitive. The Company competes with numerous companies in the pharmaceutical industry generally and the generic segment of the industry specifically. These competitors include generic drug manufacturers and large pharmaceutical companies that continue to manufacture the branded and/or generic versions of drugs after the expiration of their patents relating to these drugs. Many of the Company's competitors have greater financial and other resources than the Company and, therefore, are able to spend more than the Company on research, product development and marketing. In addition, following the expiration of patents on branded drugs, manufacturers of these products have employed various strategies intended to maximize their share of the markets for these products, as well as, in some cases, generic equivalents of these products, and are expected to continue to do so in the future. There can be no assurance that developments by others will not render any product the Company produces or may produce obsolete or otherwise non-competitive. |
| Business Plan |
| The Company's objective is to become the leading generic pharmaceutical company in the approximately $10.0 billion generic pharmaceutical industry in the United States. An important focus of the Company includes the development, manufacture and marketing of complex generic products and branded products for select therapeutic categories. The Company's strategy for achieving this objective comprises the following five elements: (I) Leverage Diverse Pharmaceutical Formulation and Manufacturing Capabilities to Extend the Breadth of Its Generic Product Line, (ii) Pursue Strategic Collaborations to Supplement Product Development and Manufacutirng Resources, (iii) Focus Product Development on Complex and Other Generic Drugs that Require Specialized Development or Manufacturing Technology and Encounter Limited Competition, (iv) Develop and Market Branded Drugs for Select Therapeutic Categories and (v) Expand Market Penetration through Direct Sales and Innovative Marketing Programs. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to reduce existing indebtedness, including a term loan, senior floating rate notes and a revolving credit loan. |
| Name of Shareholder | % Owned Before | % Owned After |
| Martin Sperber | 64.30% | |
| Marvin H. Schein | 29.60% | |
| Bayer Corporation | 25.50% | |
| Pamela Schien | 22.40% | |
| Pamela Joseph | 8.70% |
| Officer Name | Title | Age |
| Martin Sperber | Chairman of the Board of Directors, Chief Executive Officer and President | 66 |
| Marvin Samson | Executive Vice President and Director | 56 |
| Dariush Ashrafi | Executive Vice President, Chief Financial Officer and Director | 50 |
| Paul Feuerman | Senior Vice President, General Counsel, and Director | 38 |