Bone Care International, Inc. Announces Fourth Quarter Results.

MADISON, Wis.--(BUSINESS WIRE)--Aug. 5, 1999--

Bone Care International, Inc. (NASDAQ: BCII) today announced a net loss of $1,213,000, or $0.12 per share, in the quarter ended June 30, 1999 compared with a net loss of $1,125,000, or $0.13 per share, for the quarter ended June 30, 1998. For the year ended June 30, 1999, the net loss was $5,777,000, or $0.57 per share, compared with a net loss of $4,490,000, or $0.51 per share, for the year ended June 30, 1998.

Losses increased primarily due to ongoing preparations for the U.S. launch of Bone Care's lead product, Hectorol(TM) (doxercalciferol) Capsules. This new vitamin D-hormone therapy was approved by the United States Food and Drug Administration (FDA) on June 9, 1999, for the management of secondary hyperparathyroidism (SHPT) in kidney dialysis patients. Bone Care currently is building a sales force to market and sell Hectorol Capsules, and expects to begin product sales in October 1999.

SHPT is an undertreated, chronic condition in which excessive blood levels of parathyroid hormone (PTH) contribute to the development of debilitating bone diseases. This condition is commonly diagnosed in kidney dialysis patients, which number approximately 250,000 in the U.S. It also is diagnosed in other, larger patient populations, including pre-dialysis and osteoporosis patients. Bone Care plans to continue development of Hectorol for these larger markets.

In June 1999, Bone Care signed a letter of intent with a Japanese pharmaceutical company which sets out the terms under which it will license exclusive rights to Hectorol for Japan, the world's largest market for vitamin D-hormone therapies. The parties are currently negotiating the terms of a definitive agreement, which are expected to include milestone payments and ultimately royalties to Bone Care. Bone Care received a payment of $125,000 upon signing the letter of intent. Bone Care is actively pursuing license agreements with other companies for marketing rights to Hectorol in the remaining major pharmaceutical markets of the world.

Research and development expenses decreased from prior year levels as synthesis and formulation research related to Hectorol Capsules was completed. Marketing, general, and administrative expenses have progressively increased during the current year as Bone Care expanded pre-marketing activities associated with the upcoming launch of Hectorol Capsules.

In February 1999, Bone Care submitted a second New Drug Application (NDA) to the FDA for intravenous Hectorol (Hectorol Injection) for the same indication as Hectorol Capsules. The FDA has not yet accepted this NDA for review and continues to request additional information as a condition for acceptance, which we intend to provide promptly. Clinical investigators presented the results of the pivotal Phase 3 trials at the 1998 annual meetings of the American Society of Nephrology and the American Society of Bone and Mineral Research. They reported that Hectorol Injection, like Hectorol Capsules, effectively reduces blood parathyroid hormone levels without significant side effects.

Our 1999 Annual Meeting of Shareholders will be held on November 17, 1999. Accordingly, a shareholder proposal or nomination intended to be brought before the 1999 Annual Meeting must be received by the Assistant Secretary on or after August 19, 1999, and on or prior to September 17, 1999.

Bone Care International is a pharmaceutical company which is developing vitamin D-hormone therapies with improved safety and efficacy profiles for treatment of a) secondary hyperparathyroidism associated with end-stage renal disease and pre-dialysis renal disease, b) osteoporosis, c) psoriasis, and d) cancers of the breast, prostate, and colon.

                    BONE CARE INTERNATIONAL, INC.
                  Consolidated Statements of Income
                             (Unaudited)

                                         Three Months Ended
                                   -----------------------------
                                    June 30,            June 30,
                                     1999                 1998
                                   -----------------------------

Revenues                       $          --      $          --

Operating expenses
  Research and development           717,607            870,225
  Marketing, general and
    administrative                   591,218            309,898
                                  ----------         ----------
                                   1,308,825          1,180,123
                                  ----------         ----------
Loss from operations              (1,308,825)        (1,180,123)
Interest income                       96,279             55,166
                                  ----------         ----------
Net loss                       $  (1,212,546)     $  (1,124,957)
                                  ==========         ==========
Net loss per common share             $(0.12)            $(0.13)
                                  ==========         ==========
Weighted average number of
    common shares                 10,156,714          8,782,857
                                  ==========         ==========



                     BONE CARE INTERNATIONAL, INC.
                   Consolidated Statements of Income

                                           Year Ended
                               --------------------------------
                                   June 30,           June 30,
                                     1999               1998
                               --------------------------------
Revenues                       $          --      $          --

Operating expenses
  Cost of sales                           --                 --
  Research and development         3,455,401          3,932,008
  Marketinging, general
    and administrative             2,854,785            898,274
                                  ----------         ----------
                                   6,310,186          4,830,282
                                  ----------         ----------
Loss from operations              (6,310,186)        (4,830,282)
Interest income                      533,571            340,349
                                  ----------         ----------
Net loss                       $  (5,776,615)     $  (4,489,933)
                                  ==========         ==========
Net loss per common share             $(0.57)            $(0.51)
                                  ==========         ==========
Weighted average number of
    common shares                 10,055,327          8,746,677
                                  ==========         ==========



                     BONE CARE INTERNATIONAL, INC.
                      Consolidated Balance Sheets

                               June 30, 1999      June 30, 1998
                               -------------      -------------
Assets

Current assets:
  Cash and cash equivalents    $   7,313,551      $   3,484,374
  Inventory                        1,119,262            229,500
  Other current assets               110,017             50,162
                                  ----------         ----------
Total current assets               8,542,830          3,764,036

Property, plant, and
  equipment - net                    309,592            310,088
Intangible assets - net            1,400,706          1,366,317
Other non-current assets              50,133            372,835
                                  ----------         ----------

Total Assets                   $  10,303,261      $   5,813,276
                                  ==========         ==========

Liabilities and Shareholders' Equity

Current liabilities:
  Accounts payable             $     202,686      $      59,585
  Accrued clinical study
    and research costs               171,988            481,005
  Other current liabilities          211,788            150,705
                                  ----------         ----------
Total current liabilities            586,462            691,295

Shareholders' equity               9,716,799          5,121,981
                                  ----------         ----------
Total Liabilities and
  Shareholders' Equity         $  10,303,261      $   5,813,276
                                  ==========         ==========