Advanced Polymer Systems Reports First Quarter 2001 Results; Royalty Income from Dermik's Carac Commences.Business Editors & Health/Medical Writers REDWOOD CITY Redwood City, city (1990 pop. 66,072), seat of San Mateo co., W Calif., on San Francisco Bay; inc. 1868. Manufactures include commmunications, electrical, electronic, and medical equipment. , Calif.--(BW HealthWire)--May 3, 2001 Advanced Polymer Systems Inc. (Nasdaq: APOS APOS American Psychosocial Oncology Society APOS After Point of Sales APOS Acoustic Processor Operating Station APOS Advanced Process Oriented Steering ), a specialty pharmaceutical company focused on the development of ethical pharmaceuticals utilizing its proprietary drug delivery systems, today reported financial results for the three months ended March 31, 2001, and highlighted progress in the first quarter. Highlights of the 2001 first quarter included: -- A second prescription formulation (Carac(TM)) utilizing the company's technology was successfully launched by marketing partner, Dermik Laboratories, an Aventis company. Royalties from Carac make immediate contribution to income stream. -- Royalty stream continues from sales of Retin-A(R) Micro(TM), which was launched in 1997. -- The company had $21 million cash at March 31, 2001. -- Scaled-up manufacturing and toxicology studies are in progress for the company's Biochronomer(TM) systems in preparation for Phase I clinical studies. -- Feasibility studies utilizing the company's technology have been initiated with several pharmaceutical companies. Michael O'Connell, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , commented, "We have refocused Advanced Polymer Systems as a specialty pharmaceutical company, devoting our resources to the development of ethical pharmaceutical products with longer life cycles and higher margins. We are very pleased with the level of royalties generated by Carac following its recent introduction in March 2001. Our cash position, together with royalties from Carac and Retin-A Ret·in-A A trademark for a preparation of retinoic acid. tretinoin Warning - Hazardous drug! Avita, Renova, Retin-A, Retin-A Micro, Vesanoid Micro, should provide us with sufficient resources to develop our bioerodible injectable in·ject·a·ble adj. Capable of being injected. Used of a drug. n. A drug or medicine that can be injected. and implantable delivery systems for partnership arrangements. "Our Biochronomer(TM) systems were specifically designed for the release of drugs into various sites such as under the skin, in muscle, or in the peritoneal cavity peritoneal cavity n. The potential space between the parietal and visceral layers of the peritoneum. peritoneal cavity (per´it , and we believe that they offer potential for use in a broad array of pharmaceutical products. Opportunities include pain management and the delivery of proteins, peptides and DNA DNA: see nucleic acid. DNA or deoxyribonucleic acid One of two types of nucleic acid (the other is RNA); a complex organic compound found in all living cells and many viruses. It is the chemical substance of genes. for applications associated with surgical therapeutics therapeutics Treatment and care to combat disease or alleviate pain or injury. Its tools include drugs, surgery, radiation therapy, mechanical devices, diet, and psychiatry. . We are confident that our near-complete pre-clinical studies will provide key data to facilitate partnership arrangements and to bring innovative new pharmaceutical products to market," concluded O'Connell. Q1 Results The company reported total revenues for the first quarter of 2001 of $971,000, compared with $730,000 for the same period in the prior year. The increase in revenues was primarily attributable to the commencement of royalties on sales of Carac, a newly approved topical topical /top·i·cal/ (top´i-k'l) pertaining to a particular area, as a topical antiinfective applied to a certain area of the skin and affecting only the area to which it is applied. top·i·cal adj. treatment for pre-cancerous skin lesions Skin Lesions Definition A skin lesion is a superficial growth or patch of the skin that does not resemble the area surrounding it. Description Skin lesions can be grouped into two categories: primary and secondary. , by the company's marketing partner Dermik Laboratories, an Aventis company. Research and development expense for the first quarter of 2001 was $1,378,000, compared with $554,000 for the first quarter 2000, an increase of $824,000 due mainly to expenses associated with ongoing toxicology toxicology, study of poisons, or toxins, from the standpoint of detection, isolation, identification, and determination of their effects on the human body. Toxicology may be considered the branch of pharmacology devoted to the study of the poisonous effects of drugs. and feasibility studies The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. . The company expects that its investment in R&D will increase during 2001 as progress is made with a number of feasibility and new product development programs. The net loss from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the first quarter of 2001 was $963,000, compared with a net loss from continuing operations of $807,000 for the first quarter of 2000. Earnings Conference Call Information Advanced Polymer Systems will host a conference call to discuss first quarter results today, beginning at 11 a.m. Eastern Time. To participate in the live call via telephone, call 888/740-0194. A telephone replay will be available for 48 hours following the conclusion of the call by dialing 800/633-8284 and entering reservation number 18749208. The conference call will be broadcast live over the Internet at www.advancedpolymer.com. A replay will be available on the company's Website for 30 days. About Advanced Polymer Systems Advanced Polymer Systems is a specialty pharmaceutical company focused on the development of ethical (prescription) pharmaceuticals utilizing its proprietary polymer-based drug delivery systems. The company's primary focus is the development and commercialization of its bioerodible injectable and implantable systems under the trade name Biochronomer(TM). Initial targeted areas of application for the company's drug delivery technology include pain management, inflammation inflammation, reaction of the body to injury or to infectious, allergic, or chemical irritation. The symptoms are redness, swelling, heat, and pain resulting from dilation of the blood vessels in the affected part with loss of plasma and leucocytes (white blood , oncology oncology /on·col·o·gy/ (ong-kol´ah-je) the sum of knowledge regarding tumors; the study of tumors. on·col·o·gy n. and ophthalmology ophthalmology (ŏf'thălmŏl`əjē), branch of medicine specializing in the anatomy, function and diseases of the eye. Ophthalmologists specialize in the medical and surgical treatment of eye disorders, vision measurements for applications. The company's product development programs are funded by royalties from topical products currently marketed by pharmaceutical partners and proceeds from the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of its cosmeceutical cos·me·ceu·ti·cal n. A cosmetic that has or is purported to have medicinal properties. product lines. For further information visit the company's Website at www.advancedpolymer.com. Forward-looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Except for historical information, this news release contains certain forward-looking statements that involve risks and uncertainties, including among others, uncertainty associated with timely development, approval, launch and acceptance of new products, establishment of new corporate alliances and progress in research and development programs. Other risks and uncertainties associated with the company's business and prospects are identified in the company's filings with the Securities and Exchange Commission. The company does not undertake to revise these forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or occurring in the future.
ADVANCED POLYMER SYSTEMS INC.
Income Statement Highlights
(in thousands, except per share data)
(Unaudited)
Three Months Ended
March 31, March 31,
2001 2000
Royalties and License Fees $ 675 $ 426
Product Revenues 296 304
Total Revenues 971 730
Cost of Sales 93 124
Operating Expenses:
Research & Development 1,378 554
Selling, General & Administrative 813 768
Total Operating Expenses 2,191 1,322
Operating Loss (1,313) (716)
Interest Income (Expense), Net 348 (53)
Other Income, Net 2 2
Loss Before Income Taxes (963) (767)
Income Tax Expense 0 40
Loss from Continuing Operations (963) (807)
(Loss) Income from Discontinued Operations (158) 1,027
Net (Loss) Income ($1,121) $ 220
Basic and Diluted (Loss) Income Per
Common Share:
Loss from Continuing Operations (0.05) (0.04)
Net (Loss) Income (0.06) 0.01
ADVANCED POLYMER SYSTEMS INC.
Balance Sheet Highlights
(in thousands)
(Unaudited)
March 31, December 31,
2001 2000
Assets
Cash, Cash Equivalents and
Marketable Securities $21,049 $22,523
Accounts Receivable, Net 1,413 1,691
Inventory 77 71
Other Current Assets 647 765
Total Current Assets 23,186 25,050
Property, Plant & Equipment, Net 1,731 1,795
Other Non-Current Assets 151 151
Total Assets $25,068 $26,996
Liabilities and Shareholders' Equity
Current Liabilities $3,910 $4,963
Long-Term Deferred Revenues 857 874
Shareholders' Equity 20,301 21,159
Total Liabilities and Shareholders' Equity $25,068 $26,996
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