Axcan Pharma Reports its First Quarter Results - Revenues Up 146 Percent.MONTREAL--(BUSINESS WIRE)--Feb. 19, 1998--AXCAN PHARMA(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. announced today that for the first quarter ended December December: see month. 31, 1997, revenues more than doubled reaching $10,258,000 compared to $4,169,000 for the same period in the previous fiscal year. This 146 percent increase is mainly due to sales from product lines acquired in September September: see month. 1997. The Company ended the quarter with net earnings of $826,000, or $0.05 per share, compared to a net loss of $361,000, or $0.03 per share, for the quarter ended December 31, 1996. Selling and administration expenses increased to $3,670,000 for this quarter from $1,851,000 for the same period in the previous fiscal year reflecting increased activity related to the recently acquired products. These quaterly results also include results from Axcan Schwarz LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , the Company's joint venture operation with Schwarz Pharma US which will launch 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. . These launch expenses for URSO(R) were $874,000 for the quarter and are expected to increase sharply in the next few quarters which may result in net operating losses Net operating losses Losses that a firm can take advantage of to reduce taxes. during the launch period. "The first quarter of fiscal 1998 has been the most eventful e·vent·ful adj. 1. Full of events: an eventful week. 2. Important; momentous: an eventful decision. quarter of our Company's young existence. Revenues have risen on the heels of several product acquisitions announced in September 1997 and the Company has increased its focus on its area of expertise: 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. ," commented Mr. Leon F. 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. . Highlights URSO(R) 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. Of all events that happened during the first quarter of fiscal 1998, and indeed in the entire histrory of the Company, 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 is, without a doubt, the most outstanding. URSO(R) is only the fourth innovative drug from a 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. public company to be approved by the Food and Drug Administration (FDA). Investment in Biozymes Inc. During the quarter, the Company became a shareholder of Biozymes Inc., a biotechnology company located in Quebec City. Biozymes will extract enzymes Enzymes Organic substances (proteins) composed of amino acids that trigger and regulate chemical reactions in the body. There are over 700 identified human enzymes. Mentioned in: Interactions, Nutritional Supplements such as 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. , a raw material used in Axcan's VIOKASE(R). Axcan's partners participating in this financing include Le Fonds Regional de Solidarite Chaudiere- Appalaches , a subsidiary of Le Fonds de Solidarite des Travailleurs du Quebec, and Societe Innovatech Quebec Chaudiere- Appalaches. Axcan has invested $600,000 in shares and loans. Total financing obtained by Biozymes amounts to $2,500,000. Agreement with Warnex Pharma to Sell Biopharm Laboratories Inc. During the first quarter, Axcan Pharma Inc. and Warnex Pharma Inc. (ASE (Adaptive Server Enterprise) A relational DBMS from Sybase that runs on Windows NT/2000, Linux and a variety of Unix platforms. ASE is a comprehensive and robust data management product with a long history dating back to the late 1980s. : Symbol WNX) jointly announced that Axcan's subsidiary, Biopharm Laboratories has signed a letter of intent with Warnex Pharma Inc. and certain members of Biopharm's management, to sell all operating assets Operating Assets Another term for working capital. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc its ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9002 certified See certification. laboratory services business. Private placement with Mutual Asset Management Axcan has concluded a private placement with Mutual Asset Management, a member of the Mutual Group, which has subscribed 450,000 shares at a price of $12.97 per share for a total consideration of $5,836,500. The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from this offering have been injected in·ject·ed adj. 1. Of or relating to a substance introduced into the body. 2. Of or relating to a blood vessel that is visibly distended with blood. injected 1. introduced by injection. 2. congested. into the Company's working capital. Axcan Pharma is a Canadian pharmaceutical company involved in the development and distribution of pharmaceutical products, mainly in the field of gastroenterology. Axcan is one of the ten largest publicity traded health-care companies in Canada and is listed 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 AXP symbol. -0-
CONSOLIDATED BALANCE SHEETS (unaudited)
______________________________________________________________
(in thousands of dollars)
December 31
___________
1997 1996
____ ____
$ $
ASSETS
Current assets
Cash 17,424 16,063
Accounts receivable 7,151 2,156
Income taxes 13 988
Inventories 4,875 3,862
Prepaid expenses 1,099 2,187
______ ______
30,562 25,256
Investments in companies subject
to significant influence 1,542 1,122
Investments in bonds, at amortized
cost 2,222 2,101
Other investments, at cost 628 292
Fixed assets 38,416 8,796
Deferred exchange loss 12 147
Debt issue costs 210 291
New product acquisition costs,
at amortized cost 1,301 1,446
Goodwill, at amortized cost 1,940 2,088
Deferred income taxes 3,219 1,024
______ ______
80,052 42,563
______ ______
______ ______
LIABILITIES
Current liabilites
Accounts payable and
accrued liabilities 5,926 2,523
Instalments on
long-term debt 595 1,212
______ ______
6,521 3,735
Long-term debt 4,434 5,023
______ ______
10,955 8,758
______ _____
______ _____
SHAREHOLDER'S EQUITY
Capital stock 65,743 29,404
Retained earnings 3,354 4,401
______ ______
69,097 33,805
______ ______
80,052 42,563
______ ______
______ ______
CONSOLIDATED CHANGES IN CASH RESOURCES (unaudited)
(in thousands of dollars)
Three months
ended December 31
_____________________
1997 1996
____ ____
$ $
OPERATIONS
Net earnings (loss) 826 (361)
Non-cash items:
Depreciation and amortization 748 220
Deferred exchange loss (4) 32
Deferred income taxes (27)
Changes in working capital
items (788) (1,427)
__________ __________
Source (use) of cash 755 (1,536)
__________ __________
FINANCING
Long-term loans 8 400
Repayment of long-term debt (24) (35)
Issue of shares 6,077
Shares issue expenses (40)
__________ __________
Source of cash 6,021 365
__________ __________
INVESTMENT
Acquisition of investments (560) (30)
Acquisition of fixed assets (1,232) (994)
Accounts payable - fixed assets (309)
__________ __________
Use of cash (2,101) (1,024)
__________ __________
Increase (decrease) in cash 4,675 (2,195)
Cash position,
beginning of period 12,749 18,258
__________ __________
Cash position, end of period 17,424 16,063
__________ __________
__________ __________
CONSOLIDATED EARNINGS (unaudited)
____________________________________________________________
(in thousands of dollars, except amounts per share)
Three months
ended December 31
__________________________
1997 1996
_________ __________
$ $
Revenue
Sales 10,022 3,970
Other income 236 199
__________ ___________
10,258 4,169
Cost of goods sold 3,625 1,928
__________ ___________
6,633 2,241
Selling and administrative
expenses 3,670 1,851
__________ ___________
Earnings before the following
items 2,963 390
__________ ___________
Financial expenses 226 101
Amortization and depreciation 735 207
Research and development
expenses 792 641
__________ ____________
1,753 949
__________ ____________
Earnings (loss) before income
taxes 1,210 (559)
Income taxes 384 198
__________ ____________
Net earnings (loss) 826 (361)
__________ ____________
__________ ____________
Net earnings (loss) per share 0.05 (0.03)
__________ ____________
__________ ____________
Average weighted number of
common shares 15 385 556 12 860 000
__________ ____________
__________ ____________
CONTACT: Axcan Pharma Inc., Montreal Bertrand Bolduc, 514/467-5138 514/464-9979 (FAX) bbolduc@axcan.com http://www.axcan.com |
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