Cardiac growth fuels Syncor sales

A 14% growth rate last year in the market for cardiac perfusion radiopharmaceuticals helped boost the financial results of radiopharmaceutical company Syncor International. The Woodland Hills, CA, company on March 9 announced financial results for 1997 (end-December) that showed growth in both revenues and net income.

For the year, Syncor posted revenues of $380.6 million, up 3.9% compared with sales of $366.4 million in 1996. The company had net income of $11.1 million, compared with a profit of $4.6 million in 1996.

In the fourth quarter, Syncor's revenues were $94.8 million, compared with $90.9 million in the same period of 1996, a gain of 4.3%. Net profit for the quarter was $1.7 million, compared with $154,000 in the fourth quarter of 1996.

Syncor president and CEO Robert Funari credited strong growth in the nuclear medicine cardiac perfusion market as one of the keys to the company's performance. Syncor also recorded a one-time gain in 1997 of $1 million due to its exit from the P.E.T.Net joint venture, and the company's gross margins improved due to a $5 million reduction in materials costs related to the renegotiation of its radiopharmaceutical supply deal with Du Pont Merck.

Syncor reported that its diversification plan is moving forward with the now-completed acquisitions of TME and National Diagnostic Services, and the pending acquisition of International Magnetic Imaging, which is expected to close by the end of March. Once the IMI deal is completed, Syncor will own or manage 45 imaging centers in 12 states and Puerto Rico, the company said.