Allergan Specialty Therapeutics, Inc. Reports Fourth Quarter and Year Ended 2000 Operating Results.Business Editors & Health/Medical Writers IRVINE, Calif.--(BW HealthWire)--Feb. 2, 2001 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 and year ended December 31, 2000. Net loss for the quarter ended December 31, 2000 was $20.1 million or $6.13 per share compared to a loss of $14.7 million or $4.49 per share for the quarter ended December 31, 1999. Net loss for the year ended December 31, 2000 was $69.2 million or $21.15 per share compared to a loss of $52.8 million or $16.13 per share for the year ended December 31, 1999. Net loss for the period from inception (November 12, 1997) to December 31, 2000 was $158.9 million or $48.53 per share. ASTI's revenues, consisting of interest and investment income, were $0.8 million and $1.3 million for the quarters ended December 31, 2000 and 1999, respectively, and $3.2 million and $7.1 million for the years ended December 31, 2000 and 1999, respectively. Research and development expenses for the quarters ended December 31, 2000 and 1999 were $18.7 million and $13.8 million, respectively, and $64.3 million and $49.2 million for the years ended December 31, 2000 and 1999, respectively. Such expenses were paid to Allergan, Inc. pursuant to the Company's Research and Development Agreement with Allergan. During the fourth quarter of 2000, work continued on the following products -- 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 , 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, Epinastine and AGN AGN Again (Amateur Radio) AGN Active Galactic Nucleus AGN Acute Glomerulonephritis AGN Accountants Global Network AGN Air Gabon (ICAO code) 195183 Oncology. Work was discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: on AGN 194310 for Eczema/Retinoid Induced 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 toxicity /tox·ic·i·ty/ (tok-sis´i-te) the quality of being poisonous, especially the degree of virulence of a toxic microbe or of a poison. and Ketorolac-Ofloxacin Combination for Corneal Ulcer See Corneal ulcers in animals for information about the condition in animals. A corneal ulcer, or ulcerative keratitis, is an inflammatory or more seriously, infective condition of the cornea involving disruption of its epithelial layer with involvement of the . Additionally, the Company's approved 2001 budget does not include funding for Tazarotene Oral -- Oncology, Memantine Topical, and AGN 195183 Oncology, although these projects all remain ASTI Products. However, Allergan proposed to the Company and the Company accepted the following additional projects for 2001, all of which were elevated to the status of ASTI Products (as that term is used in the Company's and Allergan's Research and Development Agreement) and funded for 2001: an Alphagan(R)/Timolol combination for the potential treatment of ocular ocular /oc·u·lar/ (ok´u-lar) 1. of, pertaining to, or affecting the eye. 2. eyepiece. oc·u·lar adj. 1. Of or relating to the eye or the sense of sight. hypertension/primary angle glaucoma glaucoma (glôkō`mə), ocular disorder characterized by pressure within the eyeball caused by an excessive amount of aqueous humor (the fluid substance filling the eyeball). , a Ketorolac reformulation for the potential treatment of post-surgical pain, an alpha-2 compound for the potential treatment of chronic pain, a photo-dynamic therapy for the potential treatment of age-related macular degeneration Age-related macular degeneration (ARMD) Degeneration of the macula (the central part of the retina where the rods and cones are most dense) that leads to loss of central vision in people over 60. and AGN 195795, investigated for the potential treatment of glaucoma. ASTI incurred technology fees to Allergan, Inc. of $1.7 million and $1.4 million in the quarters ended December 31, 2000 and 1999, and $5.8 million and $5.5 million for the years ended December 31, 2000 and 1999, respectively. Provision for taxes were $0.3 million for the quarter ended December 31, 2000 and $0.5 million for the quarter ended December 31, 1999, and $1.4 million and $4.0 million for the years ended December 31, 2000 and 1999, respectively. ASTI was formed by Allergan in 1998 to conduct research and development of potential pharmaceutical products, 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 has not yet been exercised. Additionally, Allergan and the Company have entered into a License Option Agreement providing Allergan with the right to license products from the Company and to commercialize them in exchange for the payment of royalties. 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 fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. 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. In addition, patent positions of pharmaceutical and biotechnology firms, including the Company, are uncertain and involve complex legal and factual questions for which some important legal principles are largely unresolved Not completed; not finished; not linked together. See resolve. . 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 per share data)
Condensed Statements of Operations
For the quarters and years ended December 31, 2000 and 1999
and the period from inception (November 12, 1997)
to December 31, 2000
(unaudited)
Quarter Ended Year Ended
December 31, December 31,
2000 1999 2000 1999
---- ---- ---- ----
Revenues $ 812 $ 1,325 $ 3,218 $ 7,110
Costs and expenses:
Research & development 18,732 13,792 64,299 49,200
Technology fees 1,650 1,375 5,775 5,500
General and
administrative 179 325 1,033 1,198
Total costs and
expenses 20,561 15,492 71,107 55,898
Loss before income
taxes (19,749) (14,167) (67,889) (48,788)
Provision for taxes 331 540 1,357 4,018
Net loss $ (20,080)$ (14,707) $ (69,246)$ (52,806)
Basic and diluted
loss per share $ (6.13)$ (4.49) $ (21.15)$ (16.13)
Basic and diluted
shares outstanding 3,273,690 3,273,690 3,273,690 3,273,690
Inception to
December 31,
2000
----
Revenues $ 19,371
Costs and expenses:
Research & development 149,385
Technology fees 17,795
General and
administrative 3,164
Total costs and
expenses 170,344
Loss before income
taxes (150,973)
Provision for taxes 7,887
Net loss $ (158,860)
Basic and diluted
loss per share $ (48.53)
Basic and diluted
shares outstanding 3,273,690
Condensed Balance Sheets
(unaudited)
December 31, December 31,
2000 1999
---- ----
Assets
Cash and equivalents $ 22 $ 47
Investments 42,581 105,252
Prepaid technology fees 2,576 5,292
Other assets 171 1,431
Total assets $ 45,350 $ 112,022
Liabilities and stockholders' equity
Payable to Allergan, Inc. $ 7,085 $ 6,047
Accounts payable and accrued
liabilities 138 --
Total liabilities 7,223 6,047
Stockholders' equity 38,127 105,975
Total liabilities and stockholders'
equity $ 45,350 $ 112,022
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