CollaGenex Pharmaceuticals, Inc. Reports Second Quarter 2000 Revenues of $6.7 Million vs. $3.4 Million in Second Quarter 1999.Business Editors NEWTOWN, Pa.--(BUSINESS WIRE)--July 25, 2000 CollaGenex Pharmaceuticals, Inc. (Nasdaq: CGPI CGPI Corporate Goods Price Index (Japan) CGPI Capital Goods Price Index (New Zealand) ) announced net revenues of $6.7 million in the second quarter of 2000 compared to $3.4 million in the second 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 second quarter of 2000 was $2.3 million, or $0.27 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 $4.4 million, or $0.51 per basic and diluted share, for the second quarter of 1999. The most recent quarter's revenues included $5.7 million in 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. , $878,000 in contract revenues and $100,000 in licensing fees. Total net revenues for the three months ended June 30, 1999 included $3.2 million of Periostat net sales, $128,000 in contract revenues and $100,000 in licensing fees. During the first quarter of 2000, the Company recorded $5.5 million in net sales of Periostat and $650,000 of contract revenues. Contract revenues are derived from the Company's co-promotion activities relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Vioxx(R) (rofecoxib), a Merck & Co. drug that the Company has promoted since September 1999 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. . Licensing revenues during the two quarters ended June 30, 2000 and June 30, 1999 were derived from foreign marketing and distribution agreements for Periostat. "We are actively working to build on our early success in introducing Periostat to the dental community," said Brian M. Gallagher, PhD, chairman, president and chief executive officer of CollaGenex. "The rate of adoption for new therapies to treat dental diseases A dental disease is a disease which affects the teeth or gums. Some of the most prevalent types of dental disease include dental caries (also known as tooth decay), and gum disease. typically is slower than adoption rates in other medical specialties Medical Specialties See also anatomy; disease and illness; drugs; health; remedies; surgery. adenography the science of the description of glands. — adenographic, adj. . However, nearly 30,000 dentists Dentists can refer to one of the following:
v. To give directions, either orally or in writing, for the preparation and administration of a remedy to be used in the treatment of a disease. Periostat for a broad spectrum of their patients with adult periodontitis." "During the second quarter," Dr. Gallagher continued, "we initiated new marketing programs to increase and broaden the usage of Periostat by the many dentists who have prescribed pre·scribe v. pre·scribed, pre·scrib·ing, pre·scribes v.tr. 1. To set down as a rule or guide; enjoin. See Synonyms at dictate. 2. To order the use of (a medicine or other treatment). Periostat to only a few of their patients, typically their most advanced or refractory refractory Material that is not deformed or damaged by high temperatures, used to make crucibles, incinerators, insulation, and furnaces, particularly metallurgical furnaces. cases. We have also initiated plans to make the patient population better aware of the potential benefits of Periostat, which we intend to test through a direct-to-consumer advertising direct-to-consumer advertising Drug industry The use of mass media–eg, TV, magazines, newspapers, to publicly promote drugs, medical devices or other products which, by law, require a prescription, which targets consumers, with the intent of having a Pt campaign in two cities during the fourth quarter of this year. Meanwhile, our success in co-promoting Vioxx and Denavir to the dental market continues to broaden and contribute to our revenue base. We are actively seeking additional products to market to the dental community." For the six months ended June 30, 2000, total net revenues were $12.9 million compared to $5.9 million for the six months ended June 30, 1999. For the first half of 2000, the net loss allocable to common stockholders was $5.2 million, or $0.60 per basic and diluted share, compared to $9.5 million, or $1.10 per basic and diluted share, for the first half of 1999. 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 cost of product sales, research and development expenses and selling, general and administrative expenses, were $8.8 million in the second quarter of 2000 compared to $7.7 million in the second quarter of 1999. Cost of product sales was $1.1 million, or 19.7% of net product sales, during the second quarter of 2000 compared to $710,000 or 22.1% of net product sales, during the second quarter of 1999. Research and development expenses were $1.0 million during the second quarter of 2000 compared to $1.3 million during the second quarter of 1999. The Company's research and development activities in 2000 have been focused primarily on developing a tablet formulation of Periostat and on conducting Phase IV marketing studies of Periostat. Selling, general and administrative expenses were $6.7 million in the second quarter of 2000 compared to $5.7 million in the second quarter of 1999. The 2000 second quarter selling, general and administrative expenses reflect higher costs associated with a modest 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 June 30, 2000 were $10.8 million compared to $14.4 million at December 31, 1999. The decrease was due primarily to the Company's cash loss from operations during the six months ended June 30, 2000. A conference call for the financial community will be held today at 2:00 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . 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, 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 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. 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. 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
(Unaudited)
(In thousands, except share amounts)
Three Months Ended June 30,
2000 1999
----------- -----------
Statement of Operations Data
----------------------------
Revenues:
Product sales $ 5,723 $ 3,210
Contract revenues 878 128
License revenues 100 100
----------- -----------
6,701 3,438
Operating Expenses:
Cost of product sales 1,127 710
Research and development 965 1,291
Selling, general and administrative 6,669 5,677
----------- -----------
Total operating expenses 8,761 7,678
----------- -----------
Operating loss (2,060) (4,240)
Other Income (Expense):
Interest income 165 245
Interest and other expense (6) (147)
----------- -----------
Net loss (1,901) (4,142)
Preferred stock dividend 426 235
Net loss allocable to common
stockholders $ (2,327) $ (4,377)
=========== ===========
Net loss per share allocable
to common stockholders:
Basic and diluted $ (0.27) $ (0.51)
=========== ===========
Shares used in computing net
loss allocable to common
stockholders:
Basic and diluted 8,678,073 8,589,704
Six Months Ended June 30,
2000 1999
----------- -----------
Statement of Operations Data
Revenues:
Product sales $ 11,233 $ 5,620
Contract revenues 1,528 136
License revenues 100 100
----------- -----------
12,861 5,856
Operating Expenses:
Cost of product sales 2,297 1,253
Research and development 1,812 2,229
Selling, general and administrative 13,436 11,772
----------- -----------
Total operating expenses 17,545 15,254
----------- -----------
Operating loss (4,684) (9,398)
Other Income (Expense):
Interest income 351 359
Interest and other expense (10) (191)
----------- -----------
Net loss (4,343) (9,230)
Preferred stock dividend 849 235
----------- -----------
Net loss allocable to
common stockholders $ (5,192) $ (9,465)
=========== ===========
Net loss per share allocable
to common stockholders:
Basic and diluted $ (0.60) $ (1.10)
=========== ===========
Shares used in computing net loss
allocable to common
stockholders:
Basic and diluted 8,664,835 8,589,371
Balance Sheet Data: June 30, 2000 Dec. 31, 1999
------------------- ------------- -------------
Cash, cash equivalents and
short-term investments $10,826 $14,367
Total assets 15,458 18,563
Total stockholders' equity 9,693 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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