Axcan Announces 1997 Results.MONTREAL--(BUSINESS WIRE)--Nov. 21, 1997--(ME:AXP The brand name Digital gave to its first family of Alpha-based computers. In 1998, Digital was acquired by Compaq. See Alpha. .)(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :AXP.) Axcan Pharma Axcan Pharma TSX: AXP NASDAQ: AXCA is a Mont-Saint-Hilaire, Quebec based leading specialty pharmaceutical company that develops, manufactures, markets and distributes a broad line of gastrointestinal (GI) products primarily in North America and Europe. Inc. announces an increase of 17 percent in total revenues to $20,072,000 for the year ended September September: see month. 30, 1997, compared to the previous year's revenues of $17,099,000. The Company's net loss amounted to $1,329,000 or $0.09 per share for the year ended September 30, 1997, compared to net earnings of $101,000 or $0.01 per share for the previous year. For the fiscal year ended on September 30, 1997, revenues from sales amounted to $18,779,000, an increase of 17 percent compared to the previous year. This increase was higher for the last quarter where sales increased from $4,269,000 in 1996 to $6,071,000 in 1997 representing an increase of 42 percent. The acquisition of products from Jouveinal and of VIOKASE(R) for the US market in September, 1997, is responsible for this increase in revenues. The cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold over sales decreased from 52 percent in 1996 to 50 percent for the fiscal year ended on September 30, 1997. This improvement is reflected more clearly in the last quarter following the acquisition of products in September 1997. Sales and administratrive costs include half of the expenses of Axcan Schwarz Schwarz is a common surname, derived from the German schwarz, meaning black. It may refer to: People
LLC - Logical Link Control , representing $633,000 for the year and $335 000 for the last quarter. This joint venture was created with Schwarz Pharma US in January, 1997, for the marketing of URSO URSO University Radiation Safety Officer (assesses radiation hazards on campus) (R) in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. as soon as the product is approved by the FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. . 1997: a very busy and exciting year for Axcan. During the last fiscal year, Axcan has confirmed its position as a leader in gastroenterology gastroenterology Medical specialty dealing with digestion and the digestive system. In the 17th century Jan Baptista van Helmont conducted the first scientific studies in the field; William Beaumont published his own observations in 1833. in Canada and has acquired and launched VIOKASE(R), its first product in the US market. With the upcoming launch of URSO(R) in the US, Axcan is poised for significant growth in the next few years. A number of important developments have marked Axcan's second year as a publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. including the following: - Acquisition of the Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. rights to VIOKASE(R), a pancrelipase pancrelipase /pan·cre·li·pase/ (pan?kre-li´pas) a preparation of hog pancreas containing enzymes, principally lipase with amylase and protease; used as a digestive aid in pancreatic insufficiency. preparation formerly marketed by Wyeth Ayerst Canada Inc. - Unanimous recommendation from the FDA's Gastroenterology Advisory Panel for the approval of URSO(R) for the treatment of Primary Biliary Cirrhosis Primary Biliary Cirrhosis Definition Primary biliary cirrhosis is the gradual destruction of the biliary system for unknown reasons. Description . - Creation of Axcan Schwarz LLC, a joint venture with Schwarz Pharma US, which will be responsible for the marketing of URSO(R) in the US following its approval from the FDA. As part of the transaction, Schwarz acquired 750,000 Axcan shares at $15,50. - Completion of private placements of 1,584,300 shares at $11,50 each for total proceeds of $18,219,450. - Distribution agreement with C&L Pharmaceuticals of Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. for PROTECTAID Protectaid® Gynecology A contraceptive sponge containing F-5 Gel®, a formula of 3 different low concentration spermicides–↓ tissue irritation, ↑ prophylactic effect; it is also kills microorganisms associated with STDs. (R). - Initiation of a phase II trial with URSO(R) for the prevention of colorectal cancer colorectal cancer Malignant tumour of the large intestine (colon) or rectum. Risk factors include age (after age 50), family history of colorectal cancer, chronic inflammatory bowel diseases, benign polyps, physical inactivity, and a diet high in fat. . - Approvable Letter received from the FDA in March 97 for URSO(R) for the treatment of Primary Biliary Cirrhosis. - Acquisition of the US rights to VIOKASE(R), a pancrelipase preparation formerly marketed by American Home For the American mortgage lender, see . The American Home is a center of intercultural exchange located in Vladimir, Russia. The home is designed to model a typical American suburban home and its main focus is the ESL school that provides lessons for Russian students. Products Corporation. Axcan started selling VIOKASE(R) in the US in September 97. - Reacquisition of the marketing and distribution of URSOFALK(R), its Canadian ursodiol ursodiol /ur·so·di·ol/ (ur?so-di´ol) the secondary bile acid ursodeoxycholic acid used as an anticholelithic to dissolve radiolucent, noncalcified gallstones. preparation formerly distributed by Jouveinal Inc. - Acquisition of the Gastroenterology product line of Jouveinal Inc. These products include MODULON(R) and LANSOYL(R) as well as 5 products for the treatment of cystic fibrosis cystic fibrosis (sĭs`tĭk fībrō`sĭs), inherited disorder of the exocrine glands (see gland), affecting children and young people; median survival is 25 years in females and 30 years in males. originally licensed from Scandipharm Inc. - Expansion of Axcan's facilities in Mont Saint-Hilaire Mont Saint-Hilaire (en. Mount Saint-Hilaire) is a mountain in the Montérégie region of southern Quebec. The area surrounding the mountain is a biosphere reserve. Geology , Quebec. Conclusion and Profile "Our second year as a publicly traded company has been very productive. Our efforts to prepare the Company for its next growth phase have been successful and we will continue to focus our development efforts on gastroenterology. We look forward to 1997-98 with the upcoming approval of URSO(R) by the FDA for the U.S. market," said Leon Gosselin, Axcan's 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. . "Every single employee of Axcan has contributed to our progress and all can be proud of our achievements," he added. Axcan Pharma is a Canadian pharmaceutical company involved in the development and distribution of pharmaceutical products, mainly in the field of gastroenterology. The Company has nearly 100 employees at its head office in Mont-St-Hilaire and its laboratory in Laval (Quebec). Axcan is one of the ten largest public health- care companies in Canada and is traded on the Montreal and Toronto Stock Exchanges Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the symbol AXP.
CONSOLIDATED BALANCE SHEETS (unaudited)
(In thousands of dollars)
September 30
1997 1996
$ $
ASSETS
Current assets
Cash and short-term
investments 12,749 18,258
Accounts receivable 4,933 2,000
Income taxes 246 406
Inventories 4,828 3,015
Prepaid expenses and
deposit 744 1,462
23,500 25,141
Investments 3,832 3,485
Fixed assets 37,882 7,974
New product acquisition
costs, at amortized cost 1,302 1,446
Goodwill, at amortized cost 1,976 2,126
Deferred income taxes 3,192 1,024
Other assets 231 483
71,915 41,679
LIABILITIES
Current liabilities
Accounts payable and
accrued liabilities 4,650 1,640
Instalments on
long-term debt 2,515 909
7,165 2,549
Long-term debt 2,530 4,964
9,695 7,513
SHAREHOLDERS' EQUITY
Capital stock 59,666 29,404
Retained earnings 2,554 4,762
62,220 34,166
71,915 41,679
-0-
CONSOLIDATED CHANGES IN CASH RESOURCES (unaudited)
(In thousands of dollars)
Three months Years
ended September 30 ended September 30
1997 1996 1997 1996
$ $ $ $
OPERATIONS
Net earnings (loss) (351) (49) (1,329) 101
Dividends from a
company subject to
significant influence 24 22 24 22
Non-cash items:
Depreciation and
amortization 343 45 1,071 624
Deferred exchange loss (27) 15 50 119
Deferred income
taxes (1,440) (107) (1,440) (107)
Share in earnings of
company subject to
significant influence (43) (16) (63) (81)
Gain on disposal of
investment (1) (34) (1) (21)
Changes in working
capital items (546) 126 (1,578) (332)
Source (use) of cash (2,041) 2 (3,266) 325
FINANCING
Long-term loans 45 800 445 800
Repayment of long-term
debt (408) (552) (1,152) (1,240)
Issue of shares 862 30,262 24,360
Shares issue expenses (11) (224) (1,411) (2,771)
Source of cash 488 24 28,144 21,149
INVESTMENT
Acquisition of
investments (147) 90 (237)
Disposal of investments (21) (15) 6 8
Acquisition of fixed
assets (28,441) (249) (30,557) (3,709)
Disposal of fixed
assets 11 (5) 11 19
New product development
costs (1) (142)
Net cash used for
business acquisition 75 (420)
Debt issue costs (10) 27 (10)
Deposit 400 (400) 400 (131)
Proceed from the
conversion of a
subsidiary into a
joint venture (22) 403
Advance to a joint venture 72 72
Use of cash (28,208) (428) (30,387) (3,900)
Increase (decrease)
in cash (29,761) (402) (5,509) 17,574
Cash position,
beginning of period 42,510 18,660 18,258 684
Cash position, end of
period 12,749 18,258 12,749 18,258
-0-
CONSOLIDATED EARNINGS (unaudited)
(In thousands of dollars, except amounts per share)
Three months Years
ended September 30 ended September 30
1997 1996 1997 1996
$ $ $ $
Revenue
Sales 6,071 4,269 18,779 16,093
Other income 370 301 1,293 1,006
6,441 4,570 20,072 17,099
Cost of goods sold 2,742 2,539 9,378 8,317
3,699 2,031 10,694 8,782
Selling and administrative
expenses 2,725 1,557 8,584 5,937
Earnings before the
following items 974 474 2,110 2,845
Financial expenses 208 119 484 510
Depreciation and
amortization 430 148 1,101 659
Research and
development
expenses 989 242 2,452 197
Income taxes (302) 14 (598) 378
1,325 523 3,439 2,744
Net earnings (loss) (351) (49) (1,329) 101
Net earnings (loss)
per share (0,02) (0,01) (0,09) 0,01
Average weighted number
of shares
outstanding 15,221 11,874 14,196 11,874
CONTACT: Axcan Pharma Inc. Bertrand Bolduc, 514/ 467-5138 514/ 464-9979 (FAX) bbolduc@axcan.com http://www.axcan.com |
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