DepoTech Corp. Reports Second-Quarter 1997 Financial Results and Receipt of Initial Payment from Pharmacia & Upjohn.SAN DIEGO--(BUSINESS WIRE)--July 15, 1997--DepoTech Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :DEPO DEPO Delegated Episcopal Pastoral Oversight DEPO Devils Postpile National Monument (US National Park Service) DEPO Defence Export Promotion Organization (Pakistan) DEPO Double Even Pass Odd ) Tuesday reported financial results for the second quarter ended June 30, 1997. Additionally, the company announced the receipt of an initial payment of $2 million from Pharmacia & Upjohn S.p.A., an affiliate of Pharmacia & Upjohn Inc., upon the signing of an agreement under which Pharmacia & Upjohn will market and distribute DepoCyt, an anticancer agent, outside of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . This payment was received in July 1997 and will be recorded as revenue in the third quarter. For the quarter, the company reported operating revenue operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. of $1.8 million and 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. of $8.7 million, compared to operating revenue of $1.5 million and operating expenses of $5.3 million in 1996. Included in operating revenue for the second quarter of 1997 is a milestone payment from Chiron Corp. of $1 million paid to DepoTech upon the filing of a New Drug Application for DepoCyt with the U.S. Food and Drug Administration. Net loss for the period was $6.8 million, or 52 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , compared to net loss of $3.6 million, or 31 cents per share, in 1996. In June 1997, DepoTech repurchased rights to DepoCyt for Europe and Canada from Chiron. Included in operating expenses for the quarter ended June 30, 1997, is a charge of $2 million associated with the repurchase, which must be paid to Chiron by the end of 1997. For the six months ended June 30, 1997, the company reported operating revenue of $2.9 million and operating expenses of $14.0 million compared to operating revenue of $2.7 million and operating expenses of $9.3 million in 1996. Net loss for the period was $10.7 million, or 82 cents per share, compared to $6.0 million, or 53 cents per share, in 1996. The 1997 financial results reflect expanded efforts in clinical trials, manufacturing scale-up and preclinical development of potential DepoFoam products. The company is continuing Phase III Noun 1. phase III - a large clinical trial of a treatment or drug that in phase I and phase II has been shown to be efficacious with tolerable side effects; after successful conclusion of these clinical trials it will receive formal approval from the FDA clinical studies of DepoCyt in neoplastic meningitis The infiltration of the subarachnoid space with cancer cells. The cancer cells can be metastatic or from a primary brain tumor like medulloblastoma. arising from leukemia leukemia (l  kē`mēə), cancerous disorder of the blood-forming tissues (bone marrow, lymphatics, liver, spleen) characterized by excessive production of immature or mature and lymphoma,
as well as a Phase IV nonrandomized trial nonrandomized trial Nonrandomized control trial Clinical trials A study in which Pts are assigned to an arm–intervention, nonintervention–in a nonrandom fashion. Cf Randomized trial. in solid tumor patients.
Earlier this year, DepoTech began a 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 of DepoCyt in pediatric patients pediatric patient Child, see there and a Phase I study of DepoMorphine sustained-release encapsulated morphine sulfate morphine sulfate, n brand names: Duramorph PF, MS Contin, Roxanol; drug class: narcotic analgesic (Controlled Substance Schedule II); action: to treat acute post-surgical pain. Manufacturing scale-up of DepoMorphine is underway. DepoTech is a drug delivery company dedicated to the development and manufacture of innovative, sustained-release therapeutic products based on DepoFoam technology. Products are being developed to satisfy medical needs in cancer, infectious diseases infectious diseases: see communicable diseases. , pain management and other fields. -0- Financial chart follows. -0- This press release may contain 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. regarding DepoTech Corp.'s results of operations or financial condition. Actual results could differ materially from those described in this press release as a result of a number of factors, including, but not limited to, the following: There can be no assurance that any product in the DepoTech product pipeline will be successfully developed or manufactured, or that final results of human clinical trials will be supportive of regulatory approvals required to market products, or that final regulatory approval will be received in a timely manner, if at all, or that patient and physician acceptance of these products will be achieved. The company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this release. -0- Additional written materials and recent releases regarding DepoTech are available on the World Wide Web at http://www.depotech.com . -0-
DEPOTECH CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
Three Months Ended Six Months Ended
June 30, June 30,
1997 1996 1997 1996
(Unaudited) (Unaudited)
Contract
revenue $760,149 $1,464,301 $1,931,959 $2,664,955
Milestone
payment 1,000,000 - 1,000,000 -
Total revenue 1,760,149 1,464,301 2,931,959 2,664,955
Costs and
expenses:
Research and
development 5,698,303 4,449,094 10,081,206 7,720,498
General and
administrative 1,022,009 818,767 1,955,604 1,605,028
Repurchase of
marketing rights 2,000,000 - 2,000,000 -
Total costs
and expenses 8,720,312 5,267,861 14,036,810 9,325,526
Loss from
operations (6,960,163) (3,803,560) (11,104,851) (6,660,571)
Interest income 390,718 424,412 844,511 935,771
Interest expense (246,316) (177,743) (466,265) (322,326)
Net loss $(6,815,761) $(3,556,891)$(10,726,605)$(6,047,126)
Net loss per share $(0.52) $(0.31) $(0.82) $(0.53)
Shares used
in computing net
loss per share 13,116,053 11,456,702 13,074,428 11,388,639
CONDENSED BALANCE SHEETS
June 30, December 31,
1997 1996
(Unaudited)
Cash, cash equivalents
and short-term investments $25,339,519 $18,198,097
Accounts receivable
from Chiron collaboration 1,066,129 614,580
Other current assets 942,200 1,160,394
Total current assets 27,347,848 19,973,071
Property and equipment, net 22,179,563 16,851,574
Other assets, net 863,082 783,760
Total assets $50,390,493 $37,608,405
Current liabilities $7,882,949 $5,107,146
Non-current liabilities 8,595,319 7,272,025
Shareholders' equity 33,912,225 25,229,234
Total liabilities and
shareholders' equity $50,390,493 $37,608,405
-0-
Note: This release moved over Business Wire July 15, 1997.
CONTACT: DepoTech Corp., San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. Dana S. McGowan, 619/625-2424 |
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