CollaGenex Pharmaceuticals Reports First Quarter 2001 Results.Business Editors NEWTOWN, Pa.--(BUSINESS WIRE)--April 24, 2001 Financial Highlights of the Quarter: -- Periostat(R) Sales Up 22% from Q4/2000 -- Total Revenues Up 20% from Q4/2000 -- $7.5 Million Equity Financing and $3 Million Credit Facility Strengthen Balance Sheet CollaGenex Pharmaceuticals, Inc. (Nasdaq:CGPI CGPI Corporate Goods Price Index (Japan) CGPI Capital Goods Price Index (New Zealand) ) today announced its financial results for the first quarter of 2001. Total revenues increased 20% to $7.0 million in the first quarter of 2001 from $5.9 million in the fourth quarter of 2000. This increase was fueled by a 22% increase 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, 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. , which were $6.1 million in the first quarter of 2001 compared to $5.0 million in the fourth quarter of 2000. Total revenues in the first quarter of 2000 were $6.5 million, including $5.5 million in Periostat net sales. During the first quarter of 2001, prescription revenue value, a measure of estimated end user demand for Periostat, was $6.7 million compared to Periostat gross sales Gross Sales A measure of overall sales that isn't adjusted for customer discounts or returns, calculated simply by adding all sales invoices, and not including operating expenses, cost of goods sold, payment of taxes, or any other charge. (before discounts and allowances) of $6.3 million, reflecting an apparent reduction in wholesaler inventory levels. Based on strong ordering patterns during April 2001, the Company believes that its customers have been restocking inventories during the second quarter of 2001 in addition to placing orders to meet current demand. "CollaGenex is off to an excellent start in 2001," said Brian M. Gallagher, PhD, chairman, president and chief executive officer of CollaGenex. "Our first quarter sales of Periostat are the highest ever and reflect very strong growth in the markets where we're conducting direct-to-consumer (DTC DTC See: Depository Transfer Check DTC See: Depository Trust Company DTC See Depository Trust Company (DTC). ) advertising as well as solid growth in non-DTC markets. On April 16, we launched DTC television advertising campaigns in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , Denver, Detroit and Boston, and on April 23 we began running a DTC print advertisement in TIME magazine for national distribution. We are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that the growth we've seen in our other DTC markets will be repeated in these major markets, and that 2001 will be an excellent year for CollaGenex." During the first quarter of 2001, contract revenues of $875,000 were 22% and 35% higher than contract revenues in the fourth and first quarters, respectively, of 2000. Contract revenues were earned in all three periods from the Company's co-promotion of Vioxx(R), a Merck & Co., Inc. drug that the Company promotes for the treatment of acute dental pain, and Denavir(R), a Novartis prescription product for the treatment of cold sores cold sore: see herpes simplex. . 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 2001 was $3.1 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 $2.4 million, or $0.27 per basic and diluted share, in the fourth quarter of 2000. The higher net loss was primarily attributable to increased sales and marketing expenses associated with the company's investment in DTC advertising for Periostat. Research and development expenses were also higher in the first quarter of 2001 compared to the fourth quarter of 2000 due to clinical development expenses for Metastat and expenses relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc new product development. During the first quarter of 2000, CollaGenex recorded a net loss allocable to common stockholders before the cumulative effect of a change in accounting principle of $2.5 million, or $0.29 per basic and diluted share. During the first quarter of 2001, CollaGenex closed a $7.5 million equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. to fund the expansion of its DTC campaign and to provide additional working capital. The financing included the sale of 1,500,000 shares of CollaGenex common stock at a price of $5.00 per share plus the issuance of warrants to purchase an additional 400,000 shares of common stock at an exercise price of $6.00 per share. 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). of this financing were $6.9 million. In addition, CollaGenex secured a $3 million working capital credit facility from Silicon Valley Bank. 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. In February 2001, the FDA granted marketing approval for a new tablet See digitizer tablet and tablet computer. TABLET - A query language. ["Human Factor Comparison of a Procedural and a Non-procedural Query Language", C. Welty et al, ACM Trans Database Sys 6(4):626-649 (Dec 1981)]. formulation for Periostat. Periostat is marketed to the dental community by CollaGenex through a professional pharmaceutical sales force composed of approximately 120 sales representatives and managers. Currently, the Company's dental sales force is also marketing Vioxx(R), a Merck & Co. drug that CollaGenex co-promotes for the treatment of acute dental pain. 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 metastases Metastasis (plural, metastases) A tumor growth or deposit that has spread via lymph or blood to an area of the body remote from the primary tumor. Mentioned in: Malignant Melanoma (Metastat) and a broad range of inflammatory diseases Noun 1. inflammatory disease - a disease characterized by inflammation disease - an impairment of health or a condition of abnormal functioning NEC, necrotizing enterocolitis - an acute inflammatory disease occurring in the intestines of premature infants; . CollaGenex is developing a series of novel, proprietary compounds known as IMPACS IMPACS Institute for Media, Policy and Civil Society IMPACS Integrated Manufacturing Planning and Control System IMPACS International Message and Packet Switching Service (R) (Inhibitors of Multiple Proteases and Cytokines Cytokines Chemicals made by the cells that act on other cells to stimulate or inhibit their function. Cytokines that stimulate growth are called "growth factors. ) to address these applications. The Company intends to pursue further research and development of these technologies 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. Periostat(R), Metastat(R)and IMPACS(R)are trademarks of CollaGenex Pharmaceuticals, Inc. CollaGenex(R)and Periostat(R)are trademarks of CollaGenex International Limited VIOXX(R)is a trademark of Merck & Co., Inc. Denavir(R)is a trademark of Novartis Pharmaceuticals Corporation Financial Tables Follow
Three Months Ended March 31,
----------------------------
2001 2000
Statement of Operations Data ----------- -----------
Revenues:
Product sales $ 6,113 $ 5,510
Contract revenues 875 650
License revenues 36 370
----------- -----------
7,024 6,530
Operating Expenses:
Cost of product sales 1,366 1,170
Research and development 944 847
Selling, general and
administrative 7,477 6,767
----------- -----------
Total operating expenses 9,787 8,784
Other Income (Expense):
Interest income 63 186
Interest expense (3) (5)
Other income (expense) 12 --
----------- -----------
Loss before cumulative effect of change in
accounting principle (2,691) (2,073)
Cumulative effect of change in
accounting principle -- 764
----------- -----------
Net loss (2,691) (2,837)
Preferred stock dividend 420 423
----------- -----------
Net loss allocable to common stockholders $ (3,111) $ (3,260)
=========== ===========
Basic and diluted net loss per share
allocable to common stockholders
before cumulative effect of change in
accounting principle $ (0.33) $ (0.29)
Cumulative effect of change in
accounting principle -- (0.09)
----------- -----------
Basic and diluted net loss per share
allocable to common stockholders $ (0.33) $ (0.38)
=========== ===========
Shares used in computing per
share amounts:
Basic and Diluted 9,336,639 8,651,597
Balance Sheet Data: March 31, 2001 December 31, 2000
------------------ -------------- -----------------
Cash, cash equivalents and
short-term investments $ 7,749 $ 5,448
Total assets 14,864 10,431
Total stockholders equity 9,458 5,264
This news release contains 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 23E 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 Companys business and prospects. The Companys business of selling, marketing and developing pharmaceutical products is subject to a number of significant risks, including risks relating to the implementation of the Companys 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 US Securities and Exchange Commission. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion