Allergan Specialty Therapeutics, Inc. Reports Third Quarter Results.Business Editors & Health/Medical Writers IRVINE, Calif--(BW HealthWire)--Oct. 24, 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 September 30, 2000. Net loss for the quarter ended September 30, 2000 was $16.9 million or $5.16 per share compared to a loss of $15.1 million or $4.62 per share for the quarter ended September 30, 1999. Net loss for the nine months ended September 30, 2000 was $49.2 million or $15.02 per share compared to a loss of $38.1 million or $11.64 per share for the nine months ended September 30, 1999. Net loss for the period from inception (November 12, 1997) to September 30, 2000 was $138.8 million or $42.39 per share. ASTI's revenues, consisting of interest and investment income, were $0.6 million and $1.3 million for the quarters ended September 30, 2000 and 1999, respectively and $2.4 million and $5.8 million for the nine months ended September 30, 2000 and 1999, respectively. Research and Development expenses for the quarters ended September 30, 2000 and 1999 were $15.6 million and $12.8 million, respectively and $45.6 million and $35.4 million for the nine months ended September 30, 2000 and 1999, respectively. Such costs were reimbursed to Allergan, Inc. pursuant to the Company's Research and Development Agreement. During the quarter, Pfizer, Inc. (NYSE NYSE See: New York Stock Exchange :PFE 1. (text, editor) PFE - Programmer's File Editor. 2. (language) PFE - Portable Forth Environment. ) completed its acquisition of Warner Lambert, Inc., including its pharmaceutical division, Parke-Davis. Pfizer has informed Allergan that it will not extend the collaboration that the Company entered into with Parke-Davis for the use of retinoids Retinoids A derivative of synthetic Vitamin A. Mentioned in: Ichthyosis retinoids (reˑ·t in the treatment of metabolic disease metabolic disease, n a disorder that causes dysfunction of the metabolic action of the body, resulting in loss of control of homeostasis. paraneoplastic syndrome . There has been, and continues to be, keen interest in this technology and, as such, the Company and Allergan are presently evaluating other potential collaboration partners. During the third 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 , 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 lipid Any of a diverse class of organic compounds, found in all living things, that are greasy and insoluble in water. One of the three large classes of substances in foods and living cells, lipids contain more than twice as much energy (calories) per unit of weight as the -- Timolol timolol /ti·mo·lol/ (ti´mo-lol) a nonselective beta-adrenergic blocking agent used as the maleate salt in the treatment of hypertension, the treatment and prophylaxis of recurrent myocardial infarction and the prophylaxis of migraine; 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. ASTI incurred technology fees payable to Allergan, Inc. of $1.4 million in the quarters ended September 30, 2000 and 1999, and $4.1 million for the nine months ended September 30, 2000 and 1999, respectively. Provision for taxes were $0.2 million for the quarter ended September 30, 2000 and $2.0 million for the quarter ended September 30, 1999, and $1.0 million and $3.5 million for the nine months ended September 30, 2000 and 1999, respectively. ASTI commenced operations 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. 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; (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. 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 Allergan'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 nine months
ended September 30, 2000 and 1999
and the period from inception (November 12, 1997)
to September 30, 2000
(unaudited)
Quarter Ended
September 30,
2000 1999
Revenues $ 565 $ 1,293
Costs and expenses:
Research & development 15,561 12,762
Technology fees 1,375 1,375
General and administrative 303 262
Total costs and expenses 17,239 14,399
Loss before income taxes (16,674) (13,106)
Provision for taxes 230 2,003
Net loss $ (16,904) $ (15,109)
Basic and diluted loss per share $ (5.16) $ (4.62)
Basic and diluted shares outstanding 3,273,690 3,273,690
Nine Months Ended Inception to
September 30, September 30,
2000 1999 2000
Revenues $ 2,406 $ 5,785 $ 18,559
Costs and expenses:
Research & development 45,567 35,408 130,653
Technology fees 4,125 4,125 16,145
General and administrative 854 873 2,985
Total costs and expenses 50,546 40,406 149,783
Loss before income taxes (48,140) (34,621) (131,224)
Provision for taxes 1,026 3,478 7,556
Net loss $ (49,166) $ (38,099) $ (138,780)
Basic and diluted loss per
share $ (15.02) $ (11.64) $ (42.39)
Basic and diluted shares
outstanding 3,273,690 3,273,690 3,273,690
Condensed Balance Sheets
(unaudited)
September 30, December 31,
2000 1999
Assets
Cash and equivalents $ 98 $ 47
Investments 59,936 105,252
Prepaid technology fees 3,642 5,292
Other assets 447 1,431
Total assets $ 64,123 $112,022
Liabilities and stockholders' equity
Payable to Allergan, Inc. $ 6,207 $ 6,047
Accounts payable and accrued
liabilities -- --
Total liabilities 6,207 6,047
Stockholders' equity 57,916 105,975
Total liabilities and stockholders'
equity $ 64,123 $112,022
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