Bone Care International Announces Second Quarter 2003 Results.

Business Editors/Health & Medical Writers

MIDDLETON, Wis.--(BUSINESS WIRE)--Jan. 27, 2003

Bone Care International, Inc. (NASDAQ: BCII) today announced revenues for the second quarter ended December 31, 2002 decreased to $3,743,000 from $3,832,000 in the quarter ended December 31, 2001. Revenues for the first six months ended December 31, 2002 increased to $9,160,000 from $6,484,000 in the six months ended December 31, 2001. Bone Care reported a net loss of $4,128,000, or $0.29 per share for the second quarter ended December 31, 2002 compared to a net loss of $1,254,000, or $0.09 per share for the quarter ended December 31, 2001. The net loss was $5,759,000, or $0.41 per share for the first six months ended December 31, 2002, compared to a net loss of $3,390,000, or $0.24 per share for the six months ended December 31, 2001.

As previously disclosed, second quarter sales of Hectorol(R) Injection were constrained by an inventory shortage. The U.S. Food and Drug Administration (FDA) is currently conducting a site inspection at Akorn Inc., the supplier of Hectorol Injection. Bone Care and Akorn believe that Akorn has completed the manufacturing process validation batches necessary to commence commercial production and distribution. If the FDA site inspection determines that Akorn is in acceptable compliance with current good manufacturing practices, Bone Care intends to submit a CBE-30 (changes being effected in 30 days) with respect to the manufacturing and process improvements at Akorn.

DRAXIS Pharma has nearly completed manufacturing of the process validation batches necessary to qualify as an additional supplier of Hectorol Injection. Bone Care anticipates filing a CBE-30 with respect to DRAXIS upon completion of the regulatory requirements. As previously disclosed, Bone Care cannot resume shipments of Hectorol Injection until one of these suppliers gains FDA clearance. Cost of sales includes approximately $455,000 for the quarter and $551,000 for the six months ended December 31, 2002, associated with the remediation of manufacturing issues at Akorn and validation costs related to DRAXIS Pharma.

Bone Care announced that it has submitted its response to an "approvable letter" received from the FDA in connection with its supplemental New Drug Application (sNDA) for Hectorol Capsules. The sNDA proposes a new indication, treatment of secondary hyperparathyroidism in chronic kidney disease (CKD) patients prior to dialysis. Based on typical FDA response times, the Company anticipates that if the FDA approves the sNDA, commercial launch could occur in the latter half of 2003.

Paul Berns, President and CEO, commented, "We have provided a robust response to the FDA approvable letter and will work diligently to gain approval of the sNDA. We await the completion of the ongoing activities at Akorn and DRAXIS Pharma, and we anticipate filing for FDA clearance to sell product manufactured by one or both of the manufacturers as soon as possible after those activities are completed. We currently anticipate that we will have commercial supply of Hectorol Injection from one or both of our contract manufacturers during the current quarter ending March 31, 2003, although we cannot give assurance, given the nature of the regulatory process."

Management will host a conference call on Tuesday, January 28, 2003, at 10:00 a.m. Central time. The toll-free number within North America is [phone]; the dial-in number for international participants is [phone]. The call is available for playback until midnight on January 30, 2003 at [phone] within North America and at [phone] for international callers. The playback pass code is 232895. The call can also be accessed via web cast at www.bonecare.com/conferencecall. The presentation will be archived for playback at Bone Care's Web site, www.bonecare.com.

Bone Care is a pharmaceutical company engaged in discovering, developing and commercializing improved vitamin D-hormone therapies to treat secondary hyperparathyroidism in patients with kidney, or renal disease, and osteoporosis, and other diseases including psoriasis and cancers of the prostate, breast and colon.

This press release contains forward-looking statements. Statements relating to future net sales, costs of sales, other expenses, profitability, financial resources, or products and production schedules, or statements that predict or indicate future events and trends and which do not relate solely to historical matters identify forward-looking statements. Forward-looking statements are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are based on management's beliefs as well as assumptions made by and information currently available to management. Accordingly, the Company's actual results may differ materially from those expressed or implied in such forward-looking statements due to known and unknown risks and uncertainties that exist in the Company's operations and business environment, including, among other factors, technical risks associated with the development of new products, regulatory policies in the United States and other countries, reimbursement policies of public and private health care payors, introduction and acceptance of new drug therapies, competition from existing products and from new products or technologies, the failure by the Company to produce anticipated cost savings or improve productivity, the timing and magnitude of capital expenditures and acquisitions, currency exchange risks, economic and market conditions in the United States, Europe and the rest of the world, and other risks associated with the Company's operations. The Company disclaims any obligation to update any such factors or to publicly announce any revisions to any of the forward-looking statements contained herein to reflect future events or developments.

BONE CARE INTERNATIONAL, INC.
STATEMENT OF OPERATIONS

                   Three Months Ended,          Six Months Ended,
                --------------------------  --------------------------
                December 31,  December 31,  December 31,  December 31,
                   2002          2001          2002          2001
                --------------------------  --------------------------

Revenues         $3,743,013    $3,831,997    $9,160,413    $6,484,137
Operating
 Expenses:
  Cost of sales   1,459,838       793,812     2,969,444     1,386,718
  Research and
   development    1,527,725     1,200,031     2,976,160     2,591,748
  Sales &
   Marketing      3,775,761     2,546,782     6,800,711     4,796,617
  Administrative  1,259,696       893,294     2,540,022     1,808,228
                --------------------------  --------------------------
                  8,023,020     5,433,919    15,286,337    10,583,311

    Loss from
     Operations  (4,280,007)   (1,601,922)   (6,125,924)   (4,099,174)
Interest income     152,312       348,019       367,091       709,072
                --------------------------  --------------------------
    Loss before
     income tax  (4,127,695)   (1,253,903)   (5,758,833)   (3,390,102)

Income tax
 expense                  -             -             -             -
                --------------------------  --------------------------
    Net loss   $ (4,127,695) $ (1,253,903) $ (5,758,833) $ (3,390,102)
                ==========================  ==========================

Weighted
 average
 common shares
 outstanding     14,157,425    14,072,551    14,157,099    14,030,063
Net loss per
 common share       $ (0.29)      $ (0.09)      $ (0.41)      $ (0.24)
                ==========================  ==========================



BONE CARE INTERNATIONAL, INC.
BALANCE SHEETS
                                December 31, 2002      June 30, 2002
                                    Unaudited             Audited
                                ------------------------------------
ASSETS
Current Assets:
  Cash and cash equivalents         2,252,745           2,023,969
  Marketable securities            16,685,097          18,436,896
  Accounts receivable, net of
   allowance for doubtful
   accounts of $152,819 at
   December 31, 2002 and
   $152,960 at June 30, 2002.       3,233,158           4,285,569
  Inventories                       1,756,831           2,099,469
  Other current assets              1,261,260             775,596
                                ------------------------------------
    Total current assets           25,189,091          27,621,499

Long term securities                1,939,232           3,719,796
Other long-term assets                110,300                   -

Property, plant, and
 equipment - at cost
  Leasehold improvements              588,632             588,632
  Furniture and fixtures              479,600             452,345
  Machinery and other equipment     2,703,822           2,317,405
                                ------------------------------------
                                    3,772,054           3,358,382
  Less accumulated depreciation
   and amortization                 1,909,257           1,573,497
                                ------------------------------------
                                    1,862,797           1,784,885

Patent fees, net of accumulated
 amortization of $1,070,827 at
 December 31, 2002 and $988,026
 at June 30, 2002                   1,246,339           1,198,249
Goodwill, net of accumulated
 amortization of $1,000,752 as
 of December 31, 2002 and
 June 30, 2002                        359,165             359,165
                                ------------------------------------
                                   30,706,924          34,683,594
                                ====================================

LIABILITIES AND SHAREHOLDER'S
 EQUITY
Current Liabilities:
  Accounts payable                  2,218,715           1,769,665
  Accrued Liabilities
    Accrued clinical study and
     research costs                   363,273             152,352
    Compensation payable            1,155,930             509,677
    Other                                 613               1,924
  Allowance for sales returns         299,520             226,100
                                ------------------------------------
    Total current liabilities       4,038,051           2,659,718

Long term liabilities                 437,691                   -

Shareholder's equity:
  Preferred stock - authorized
   2,000,000 shares of $.001
   par value; none issued                   -                   -
  Common stock - authorized
   28,000,000 shares of no par
   value: issued and outstanding
   14,157,722 at December 31, 2002
   and 14,156,722 at June 30, 2002
   respectively                    11,393,883          11,393,883
  Additional paid-in capital       62,098,382          62,096,272
  Accumulated deficit             (47,279,069)        (41,520,236)
  Accumulated other
   comprehensive income (loss)         17,986              53,957
                                ------------------------------------
    Total shareholder's equity     26,231,182          32,023,876
                                ------------------------------------
                                   30,706,924          34,683,594
                                ====================================