Allergan Specialty Therapeutics, Inc. Reports First Quarter Results.Business Editors and Health/Medical Writers IRVINE, Calif.--(BW HealthWire)--April 25, 2000 Allergan Specialty 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. , Inc. (Nasdaq:ASTI) today reported operating results for the quarter ended March 31, 2000. Net loss for the quarter ended March 31, 2000 was $17.2 million or $5.24 per share compared to a loss of $10.8 million or $3.30 per share for the quarter ended March 31, 1999. Net loss for the period from inception (November 12, 1997) to March 31, 2000 was $106.8 million or $32.62 per share. ASTI's revenues, consisting of interest and investment income, were $1.0 million and $2.2 million for the quarters ended March 31, 2000 and 1999, respectively. Research and development expenses for the quarters ended March 31, 2000 and 1999 were $15.9 million and $10.7 million, respectively. Such costs were reimbursed to Allergan, Inc. pursuant to the Company's Research and Development Agreement. During the first quarter of 2000, work continued on the following projects -- Memantine Oral, Tazarotene Oral 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. , Tazarotene Oral Acne acne, common inflammatory disease of the hair follicles and sebaceous glands characterized by blackheads, whiteheads, pustules, nodules and, in the more severe forms, by cysts and scarring. The lesions appear on the face, neck, back, chest, and arms. and Psoriasis psoriasis (sôrī`əsĭs), occasionally acute but usually chronic and recurrent inflammation of the skin. The exact cause is unknown, but the disease appears to be an inherited, possibly autoimmune disorder that causes the , AGN AGN Again (Amateur Radio) AGN Active Galactic Nucleus AGN Acute Glomerulonephritis AGN Accountants Global Network AGN Air Gabon (ICAO code) 194310 Mucocutaneous mucocutaneous /mu·co·cu·ta·ne·ous/ (-ku-ta´ne-us) pertaining to or affecting the mucous membrane and the skin. mu·co·cu·ta·ne·ous adj. Of or relating to the skin and a mucous membrane. Toxicity and Eczema eczema (ĕk`səmə), acute or chronic skin disease characterized by redness, itching, serum-filled blisters, crusting, and scaling. , Hypotensive hypotensive /hy·po·ten·sive/ (-ten´siv) marked by low blood pressure or serving to reduce blood pressure. hy·po·ten·sive adj. 1. Of or characterized by low blood pressure. 2. Lipid-Timolol Combination, Ketorolac-Oflaxacin Combination, and on a Pre-Selection Project -- AGN 195183 Oncology. ASTI incurred technology fees to Allergan, Inc. of $1.4 million in each of the quarters ended March 31, 2000 and 1999. Provision for taxes were $0.5 million for the quarter ended March 31, 2000 and $0.6 million for the quarter ended March 31, 1999. ASTI commenced operation in 1998 to conduct research and development of potential pharmaceutical products based primarily on Allergan Inc.'s retinoid retinoid /ret·i·noid/ (ret´i-noid) 1. resembling the retina. 2. retinal, retinol, or any structurally similar natural derivative or synthetic compound, with or without vitamin A activity. and neuroprotective technologies, and to commercialize such products, most likely through licensing to Allergan, Inc. At any time through December 1, 2002, or upon the occurrence of certain events, Allergan, Inc. has an option to purchase all ASTI Callable Callable Applies mainly to convertible securities. Redeemable by the issuer before the scheduled maturity under specific conditions and at a stated price, which usually begins at a premium to par and declines annually. Class A Common Stock at a predetermined pre·de·ter·mine v. pre·de·ter·mined, pre·de·ter·min·ing, pre·de·ter·mines v.tr. 1. To determine, decide, or establish in advance: price. Such option was not exercised during the period presented. In January 2000, the ASTI Board of Directors approved a research and development plan for fiscal 2000 which, if executed in its entirety, would represent an acceleration in spending on ASTI's research and development programs. ASTI anticipates the acceleration of spending could result in the use of substantially all of the funds available for research and development remaining in ASTI in the first half of 2001. Pursuant to ASTI's Restated Certificate of Incorporation certificate of incorporation n. some states issue a certificate to prove a corporation's existence upon the filing of Articles of Incorporation. In most states the Articles are sufficient proof. and Allergan's rights as the sole holder of all of the ASTI Class B Common Stock, Allergan has certain rights (but no obligation) to purchase all of the ASTI Callable Class A Common Stock (traded on Nasdaq under the symbol "ASTI") which purchase rights could be triggered by the use of substantially all of ASTI's funds. Allergan's purchase rights, which expire if not exercised by Allergan by the 90th day after the date on which Allergan receives notice that the amount of cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has held by ASTI is less than $15 million, are summarized in ASTI's Prospectus dated March 6, 1998. 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. This press release may contain certain forward looking statements and actual results could differ materially from those described as a result of factors, including, but not limited to, the following. There can be no assurance: (a) that the Company's products will be successfully developed, that regulatory approvals will be granted, or patient and physician acceptance of these products will be achieved; (b) that if a need for additional financing occurs, such financing will be available to the Company when required or that such financing would be available under favorable terms; or (c) that Allergan, Inc. will exercise the purchase option covering the ASTI Callable Common Stock Callable Common Stock Common stock that allows the issuer to call back the stock at a specific price. Notes: Typically, callable common stock is issued for a subsidiary company by the parent company. when the last date to exercise the option is triggered or before. These forward-looking statements represent the Company's judgment only as of the date of this press release. Actual results could differ materially from expectations reflected in this release. As a result, the reader is cautioned not to rely on these forward-looking statements. The Company disclaims any intent or obligation to update these forward-looking statements. Additional information concerning the factors affecting the Company's business can be found under the heading "Risk Factors" in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 1999. This filing is available publicly and upon request from the Company's Investor Relations Investor relations The process by which the corporation communicates with its investors. Department: 714-246-6301.
ALLERGAN SPECIALTY THERAPEUTICS, INC.
(a development stage company)
(In thousands, except share data)
Condensed Statements of Operations
For the quarters ended March 31, 2000 and 1999
and the period from inception (November 12, 1997)
to March 31, 2000
(unaudited)
Quarter Ended Inception to
March 31, March 31, March 31,
2000 1999 2000
Revenues $ 980 $ 2,150 $ 17,133
Costs and expenses:
Research & development 15,940 10,689 101,026
Technology fees 1,375 1,375 13,395
General and administrative 376 284 2,507
Total costs and expenses 17,691 12,348 116,928
Loss before income taxes (16,711) (10,198) (99,795)
Provision for taxes 452 601 6,982
Net loss $(17,163) $(10,799) $(106,777)
Basic and diluted loss
per share $ (5.24) $ (3.30) $ (32.62)
Basic and diluted shares
outstanding 3,273,690 3,273,690 3,273,690
Condensed Balance Sheets
March 31, Dec. 31,
2000 1999
Assets (unaudited)
Cash and equivalents $ -- $ 47
Investments 89,957 105,252
Prepaid technology fees 4,742 5,292
Other assets 979 1,431
Total assets $ 95,678 $ 112,022
Liabilities and stockholders' equity
Payable to Allergan, Inc. $ 6,633 $ 6,047
Accounts payable and accrued liabilities 126 --
Total liabilities $ 6,759 $ 6,047
Stockholders' equity 88,919 105,975
Total liabilities and stockholders' equity $ 95,678 $ 112,022
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