Fourth Quarter Results

For the three months ended April 30, 2009, the Company reported net sales of $38.3 million, an increase of 83% from $21.0 million for the same period last year.

During the quarter ended April 30, 2009, net sales of generic pharmaceutical products, including the Company's Midlothian division, were $33.3 million, an increase of 95% compared to $17.0 million for the same fiscal 2008 period. Sales of Dorzolamide with Timolol ophthalmic solution which was launched in October 2008 were $8.4 million. Sales of Dorzolamide ophthalmic solution and Fluticasone Propionate nasal spray also contributed to the sales growth.

Sales for the Health Care Products division ("HCP"), which markets the Company's branded OTC products, decreased 43% to $2.2 million for the three months ended April 30, 2009 compared to $3.9 million for the same fiscal period in the prior year. The weak cough and cold quarter adversely impacted sales of Diabetic Tussin®, which had experienced strong sales in the three months ended April 30, 2008 due to a late cough and cold season in the prior year.

The Company acquired substantially all of the assets of E. Claiborne Robins Company, Inc. d/b/a ECR Pharmaceuticals on February 27, 2009. ECR Pharmaceuticals contributed $2.8 million in sales for the quarter ended April 30, 2009. ECR markets branded prescription drugs, including the Lodrane® line of antihistamines, the DexPak® line of corticosteroids for the topical dermatitis market and Bupap®, an analgesic tablet.

The Company reported quarterly net income of $5.1 million or $.45 per fully diluted share for the three months ended April 30, 2009, compared to a net income of $0.3 million or $.02 per fully diluted share for the same period in the prior year.

Fiscal Year Results

For the year ended April 30, 2009, the Company reported net sales of $108.7 million, an increase of 75% from net sales of $62.0 million for the year ended April 30, 2008.

Generic pharmaceutical product sales were $95.7 million compared to $50.5 million for the years ended April 30, 2009 and 2008, respectively, an increase of 90%. Included in generic sales are $6.9 million of sales from the Midlothian Laboratories division. The launch of Dorzolamide with Timolol ophthalmic solution contributed $20.1 million to sales for the year. Fluticasone propionate nasal spray also contributed to the large increase in sales.

Net sales for the Health Care Products division declined to $10.1 from $10.8 million as sales of Diabetic Tussin® and Multibetic® decreased. Increased sales of Zostrix® Neuropathy cream partially offset this decline.

ECR Pharmaceuticals contributed $2.8 million in sales for the year ended April 30, 2009.

Cost of sales as a percentage of sales declined to 52% for the twelve months ending April 30, 2009 from 65% for fiscal 2008. The decrease in cost of sales as a percentage of net sales is due to higher than average margins for the Dorzolamide with Timolol ophthalmic solution and higher gross margins for the newly acquired ECR Pharmaceuticals division.

Selling, general and administrative (SG&A) expenses increased to $33.3 million in fiscal 2009 from $22.6 million in fiscal 2008. The largest increase was the royalty expense of $5.0 million for our partner on Dorzolamide with Timolol ophthalmic solution. Included in the current period is the cost of ECR Pharmaceutical's 50 person sales force. Full year amortization of the Midlothian Laboratories intangibles as well as a partial year of amortization of the ECR Pharmaceuticals intangibles also contributed to the increase.

Research & Development expenses increased to $7.4 million in fiscal 2009, from $6.2 million for fiscal 2008, due to increased spending on external development projects including projects which require clinical trials and patent challenges being developed with another company.