CollaGenex Pharmaceuticals, Inc. Reports First Quarter 2000 Revenues of $6.2 Million vs. $2.4 Million in First Quarter 1999.Business Editors/Health & Medical Writers NEWTOWN, Pa.--(BUSINESS WIRE)--April 25, 2000 CollaGenex Pharmaceuticals, Inc. (Nasdaq: CGPI CGPI Corporate Goods Price Index (Japan) CGPI Capital Goods Price Index (New Zealand) ) announced net revenues of $6.2 million in the first quarter of 2000 compared to $2.4 million in the first quarter of 1999. The net loss allocable al·lo·ca·ble adj. Capable of being allocated. Adj. 1. allocable - capable of being distributed allocatable, apportionable distributive - serving to distribute or allot or disperse to common stockholders for the first quarter of 2000 was $2.9 million, or $0.33 per basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to $5.1 million, or $0.59 per basic and diluted share, in the first quarter of 1999. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of Periostat(R), the Company's lead drug for the treatment of adult periodontitis periodontitis Inflammation of soft tissues around the teeth (see tooth). Poor dental hygiene leads to deposition of bacterial plaque on the teeth below the gum line, irritating and eroding nearby tissues. , were $5.5 million in the first quarter of 2000 compared to $2.4 million in the first quarter of 1999. During the first quarter of 2000, the Company also recorded $650,000 in contract revenues relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the co-promotion of Vioxx(R) (rofecoxib), a Merck & Co. drug that the Company promotes for the treatment of acute dental pain, and Denavir(R), a SmithKline Beecham Consumer Healthcare prescription drug prescription drug Prescription medication Pharmacology An FDA-approved drug which must, by federal law or regulation, be dispensed only pursuant to a prescription–eg, finished dose form and active ingredients subject to the provisos of the Federal Food, Drug, for the treatment of cold sores cold sore: see herpes simplex. . Contract revenues in the first quarter of 1999 were $8,000 and consisted solely of co-promotion payments relating to products no longer co-promoted by the Company. "During the first quarter we continued to build on the strong foundation we established during 1999, our first fiscal year as a fully commercial, specialty pharmaceutical company," said Brian M. Gallagher, PhD, chairman, president and chief executive officer of CollaGenex. "Following the typical slowdown in periodontal periodontal /peri·odon·tal/ (per?e-o-don´t'l) 1. pertaining to the periodontal ligament or periodontium. 2. near or around a tooth. per·i·o·don·tal adj. 1. procedures during and immediately following the winter holidays, there were more Periostat prescriptions filled in March than in any other month in the Company's history. Moreover, co-promotion revenues relating to Vioxx and Denavir continued to contribute significantly to our revenue base." Total operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , consisting of the cost of product sales, research and development expenses and selling, general and administrative expenses, were $8.8 million in the first quarter of 2000 compared to $7.6 million in the first quarter of 1999. Cost of product sales was $1.2 million, or 21% of net product sales, in the 2000 first quarter compared to $0.5 million, or 22% of sales, in the 1999 first quarter. This improvement in gross margins was due primarily to the absence of launch trade allowances in the first quarter of 2000. Research and development expenses were $0.8 million in the first quarter of 2000 compared to $0.9 million in the first quarter of 1999. Because the Company's research and development activities are carried out by third parties on a project basis, the Company's research and development activities in any particular quarter should not be viewed as indicative of such expenses in future quarters. Selling, general and administrative expenses were $6.8 million in the first quarter of 2000 compared to $6.1 million in the first quarter of 1999. During the 1999 first quarter, these expenses consisted primarily of sales and marketing activities relating to the launch of Periostat. The 2000 first quarter selling, general and administrative expenses reflect higher costs associated with a moderate expansion of our dental pharmaceutical sales force and ongoing marketing and promotional expenses Noun 1. promotional expense - the cost of promoting a product business expense, trade expense - ordinary and necessary expenses incurred in a taxpayer's business or trade for Periostat, Vioxx and Denavir. The Company's cash, cash equivalents and short term investments at March 31, 2000 were $12.1 million compared to $14.4 million at December 31, 1999. The decrease was due primarily to the Company's cash used in operations during the three months ended March 31, 2000. A conference call for the financial community will be held today at 2:00 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. . The conference call will be simulcast over the Internet. To listen to the live call, please go to the Web site at http://www.vcall.com at least fifteen minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call on the Vcall site and on the Company's web site at www.collagenex.com. CollaGenex Pharmaceuticals, Inc. is a specialty pharmaceutical company focused on providing innovative medical therapies to the dental market. The company's lead product, Periostat(R), was 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. in September 1998 and is the first and only pharmaceutical to treat periodontal disease Periodontal Disease Definition Periodontal diseases are a group of diseases that affect the tissues that support and anchor the teeth. Left untreated, periodontal disease results in the destruction of the gums, alveolar bone (the part of the jaws where by inhibiting the enzymes that destroy periodontal support tissues. Periostat is marketed to the dental community by CollaGenex through a professional pharmaceutical sales force composed of approximately 135 sales representatives and managers. Currently, the company's dental sales force is also marketing Vioxx and Denavir. Research has shown that the enzyme-suppression technology underlying Periostat may also be applicable to other diseases involving destruction of the body's connective connective - An operator used in logic to combine two logical formulas. See first order logic. tissues, including cancer metastasis metastasis /me·tas·ta·sis/ (me-tas´tah-sis) pl. metas´tases 1. transfer of disease from one organ or part of the body to another not directly connected with it, due either to transfer of pathogenic microorganisms or to , osteoporosis osteoporosis (ŏs'tēō'pərō`sĭs), disorder in which the normal replenishment of old bone tissue is severely disrupted, resulting in weakened bones and increased risk of fracture; osteopenia , osteoarthritis osteoarthritis or osteoarthrosis or degenerative joint disease Most common joint disorder, afflicting over 80% of those who reach age 70. It does not involve excessive inflammation and may have no symptoms, especially at first. and wounds. Metastat(R), the Company's compound for the treatment of metastatic cancer Metastatic cancer A cancer that has spread to an organ or tissue from a primary cancer located elsewhere in the body. Mentioned in: Liver Cancer metastatic cancer , recently completed two Phase I clinical trials Noun 1. phase I clinical trial - a clinical trial on a few persons to determine the safety of a new drug or invasive medical device; for drugs, dosage or toxicity limits should be obtained phase I under the sponsorship of the National Cancer Institute, and the Company is currently evaluating strategies to continue the clinical development of this drug. CollaGenex intends to pursue the research and development of these other applications primarily through partnerships with third parties. To receive additional information on the Company, please visit our Web site at www.collagenex.com, which is not a part of this press release. Financial Tables Follow
Summary Financial Data
(In thousands, except share and per share amounts)
Three Months Ended March 31,
----------------------------
2000 1999
---- ----
Statement of Operations Data
----------------------------
Revenues:
Product sales $ 5,510 $ 2,410
Contract revenues 650 8
--------- ---------
6,160 2,418
Operating Expenses:
Cost of product sales 1,170 543
Research and development 847 938
Selling, general and administrative 6,767 6,096
--------- ---------
Total operating expenses 8,784 7,577
--------- ---------
Operating Loss 2,624 5,159
Other Income (Expense):
Interest income 186 114
Interest expense (5) (44)
--------- ---------
Net loss (2,443) (5,089)
Preferred stock dividend 423 -
--------- ---------
Net loss allocable to common
stockholders $ (2,866) $ (5,089)
========= =========
Net loss per share allocable to
common stockholders:
Basic and diluted $ (0.33) $ (0.59)
========= =========
Shares used in computing net loss
allocable to common stockholders:
Basic and diluted 8,651,597 8,589,037
Balance Sheet Data: March 31, December 31,
------------------ -------- --------
2000 1999
---- ----
Cash, cash equivalents and
short-term investments $ 12,118 $ 14,367
Total assets 16,236 18,563
Total stockholders' equity 11,279 13,607
This news release contains certain 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. within the meaning of section 21E of the Securities and Exchange Act of 1934, as amended. Investors are cautioned that forward-looking statements involve risks and uncertainties, which may affect the Company's business and prospects. The Company's business of selling, marketing and developing pharmaceutical products is subject to a number of significant risks, including risks relating to the implementation of the Company's sales and marketing plans for Periostat, risks inherent in research and development activities, risks associated with conducting business in a highly regulated environment and uncertainty relating to clinical trials of products under development, all as discussed in the Company's periodic filings with the U.S. Securities and Exchange Commission. |
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