CollaGenex Pharmaceuticals Reports Record First Quarter 2002 Revenues, Up 53% to $10.8 Million; Loss Narrows to $0.09 per Share.Business Editors/Health & Medical Writers NEWTOWN, Pa.--(BUSINESS WIRE)--April 23, 2002 CollaGenex Pharmaceuticals, Inc. (Nasdaq:CGPI CGPI Corporate Goods Price Index (Japan) CGPI Capital Goods Price Index (New Zealand) ) today announced record total revenues of $10.8 million for the first quarter of 2002, a 53% increase over total revenues in the first quarter of 2001. Net product sales were a record $9.9 million, a 62% increase over net product sales in the first quarter of 2001. During the fourth quarter of 2001, total revenues and net product sales were $10.2 million and $9.7 million, respectively. The net loss allocable to common stockholders for the first quarter of 2002 improved considerably to $1.0 million, or $0.09 per basic and diluted share, compared to a net loss allocable to common stockholders of $3.1 million, or $0.33 per basic and diluted share, for the first quarter of 2001. During the fourth quarter of 2001, the net loss allocable to common stockholders was $1.6 million, or $0.15 per basic and diluted share. "CollaGenex continued to achieve increases in quarterly total revenue during the first quarter of 2002, and our net loss declined significantly," said Brian M. Gallagher, PhD, chairman, president and chief executive officer of CollaGenex. "Our top priority for 2002 is to achieve profitability, and we are on course to attain this goal during the third quarter. As we previously announced, we anticipate 2002 total revenues of $48 to $52 million, including Periostat 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 $38 to $40 million, and we expect to post a modest profit for the year." "Our net product sales continued to increase from the fourth quarter of 2001 to the first quarter of 2002," said Nancy C. Broadbent, chief financial officer of CollaGenex. "Periostat net sales increased to $9.0 million despite considerable weakness in the consumer economy, which typically reduces the number of elective dental procedures such as scaling and root planing The objective of scaling and root planing, otherwise known as conventional periodontal therapy, is to remove or eliminate the etiologic agents which cause inflammation: dental plaque, its products and calculus,[1] . Our DTC DTC See: Depository Transfer Check DTC See: Depository Trust Company DTC See Depository Trust Company (DTC). campaign, which continues to run in select markets, has been highly effective in increasing the visibility and consumer awareness of Periostat. Net sales of the Atrix dental products increased to approximately $900,000 during the first quarter, up from approximately $700,000 during the fourth quarter of 2001. We expect sales of the Atrix dental products to increase at a more rapid rate during the remainder of 2002 as the excess stocking that occurred prior to our marketing and sales of these products is depleted de·plete tr.v. de·plet·ed, de·plet·ing, de·pletes To decrease the fullness of; use up or empty out. [Latin d ." "We are particularly pleased with our improving bottom line financial performance," Ms. Broadbent continued. "Our gross margins continued to increase and were 84% of net product sales in the first quarter of 2002 compared to 78% in the first quarter of 2001 and 83% during the fourth quarter of 2001. Moreover, other 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. declined slightly from the fourth quarter of 2001 despite continuing investments in DTC advertising for Periostat, marketing and promotion for the recent launch of the Atrix dental products and the development of a modest commercial infrastructure in dermatology dermatology (dûrmətŏl`əjē), branch of medicine concerned with diagnosis and treatment of diseases and disorders of the skin. . Our increased revenue, combined with effective management of our operating costs operating costs npl → gastos mpl operacionales , produced an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. before preferred dividends preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) for the first quarter of 2002 of just under $600,000, which is very encouraging as we progress towards our goal of becoming a profitable company." "Turning to our balance sheet, at March 31, 2002 we had working capital of $5.9 million," said Ms. Broadbent. "We also have a $4.0 million working capital line of credit and an $8.5 million equity credit line, which provide additional liquidity to execute our business plan." During the quarter, CollaGenex also presented a series of scientific papers at the International Dental Research Meeting held in San Diego, California “San Diego” redirects here. For other uses, see San Diego (disambiguation). San Diego is a coastal Southern California city located in the southwestern corner of the continental United States. As of 2006, the city has a population of 1,256,951. . This research highlighted and reaffirmed the clinical advantages of Periostat, even in patients with severe disease, and continues to validate the benefit of our proprietary IMPACS IMPACS Institute for Media, Policy and Civil Society IMPACS Integrated Manufacturing Planning and Control System IMPACS International Message and Packet Switching Service technology. The Company continued to make progress on its investigational products. Encouraging results of an NCI-sponsored Phase I clinical trial 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 evaluating our anti-angiogenesis compound, Metastat(R), in the treatment of AIDS-related Kaposi's Sarcoma Kaposi's sarcoma (käp`əshē', kəpō`sē), a usually fatal cancer that was considered rare until its appearance in AIDS patients. were featured in the January 2002 issue of the Journal of Clinical Oncology The Journal of Clinical Oncology is a medical journal published by the American Society of Clinical Oncology. The Journal was founded in 1983 and publishes original research and review articles on topics relating to cancer. It is published 3 times a month. . The inclusion of Phase I data in such a prominent publication and the investigators' conclusion that Metastat, a once-daily oral dosing, was well tolerated and demonstrated anti-tumor activity, reinforce our belief in the potential of Metastat. CollaGenex Pharmaceuticals, Inc. is a specialty pharmaceutical company currently focused on providing innovative medical therapies to the dental and dermatology markets. The Company's lead product, Periostat, 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 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, and Atridox(R), Atrisorb(R) and Atrisorb-D(R), Atrix Laboratories Inc.'s products 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. . 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 (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. VIOXX(R)is a trademark of Merck & Co., Inc. Atridox, Atrisorb and Atrisorb-D are trademarks of Atrix Laboratories, Inc. Financial Tables Follow
Summary Financial Data
(Unaudited)
(In thousands, except share and per share amounts)
Three Months Ended March 31,
---------------------------
2002 2001
---- ----
Statement of Operations Data
Revenues:
Product sales $ 9,881 $ 6,113
Contract revenues 792 875
License revenues 87 36
----------- -----------
10,760 7,024
Operating Expenses:
Cost of product sales 1,580 1,366
Research and development 829 944
Selling, general and
administrative 8,928 7,477
----------- -----------
Total operating expenses 11,337 9,787
Other Income (Expense):
Interest income 22 63
Interest expense (1) (3)
Other income (expense) (1) 12
----------- -----------
Net loss (557) (2,691)
Preferred stock dividend 420 420
----------- -----------
Net loss allocable to common
stockholders $ (977) $ (3,111)
=========== ===========
Basic and diluted net loss per share
allocable to common stockholders $ (0.09) $ (0.33)
=========== ===========
Shares used in computing basic and
diluted net loss per share allocable
to common stockholders 11,078,258 9,336,639
Selected Balance Sheet Data: March 31, Dec. 31,
---------------------------- -------- --------
2002 2001
---- ----
Cash, cash equivalents and short-term
investments $ 4,195 $ 6,171
Total current assets 12,909 13,251
Total assets 14,433 14,698
Total current liabilities 7,013 6,957
Long-term debt 0 0
Total liabilities 7,565 7,571
Total stockholders' equity 6,868 7,127
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 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 relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc 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 US Securities and Exchange Commission. |
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