Drug Royalty's Second Quarter 1998 Results.TORONTO--(BUSINESS WIRE)--April 8, 1998--Drug Royalty Corp. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :DRI See Digital Research. .) Drug Royalty Corporation Inc. today announced for the six month period ending February 28, 1998, cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses of $13.5 million ($0.42 per share) compared with $1.0 million ($0.03 per share) in the prior year period. Results include the cash proceeds and other entitlements from the sale of royalty interests to Dura Pharmaceuticals completed in December 1997. For the three month period, cash flow from operations was $13.1 million ($0.41 per share) compared with $0.8 million ($0.02 per share) in the prior year period. Net income for the period was $10.2 million ($0.32 per share) compared with net earnings of $0.4 million ($0.01 per share) in the prior period. The pre-tax gain on the sale of royalty interests to Dura was $15.6 million. Royalty revenue for the six-month period was $0.9 million compared with $1.3 million in 1997. Royalty revenue decreased over the prior period primarily due to the sale of the Dura royalty interest, offset by increased royalty revenues from Phytogen Life Sciences, Specialty UltraVision and IMRO IMRO Irish Music Rights Organisation IMRO Investment Management Regulatory Organisation IMRO Internal Macedonian Revolutionary Organization IMRO Interactive Marketing Research Organisation Medical Systems. On January 5, 1998 Drug Royalty announced that it had sold its royalty interest relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Dura's revenues for US$11.3 million in cash plus a warrant. The warrant entitles Drug Royalty to purchase 200,000 common shares of Dura at their average market price in December 1997. On February 24, 1998 Dura announced significantly lower revenue and earnings expectations for 1998 which resulted in a significant drop in its share price. In light of this announcement, US$1.1 million has been attributed to the Dura warrant and included in the gain recorded on the sale in the second quarter. Drug Royalty's timely negotiation of the royalty interest sale prior to announcement of lower revenue expectations, resulted in a maximization of the selling price and value to Drug Royalty's shareholders. We remain positive on the longer-term outlook for Dura, the development of its Spiros(TM) drug delivery systems and the potential to realize a further gain on our warrant in Dura. Drug Royalty's carrying cost Noun 1. carrying cost - the opportunity cost of unproductive assets; the expense incurred by ownership carrying charge opportunity cost - cost in terms of foregoing alternatives of royalty interests was $15.0 million at February 28, 1998 or double the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of $7.7 million as at February 28, 1997. Second quarter results include a provision of $0.5 million against the royalty interest in Peptech Limited due to the recent withdrawal of Allergan in the development of GMDP GMDP Grands Moulins De Paris . The Company's cash position was $42 million at February 28, 1998 versus $35 million a year ago. Highlights of Drug Royalty's strategic partners' activities in the quarter include: - Phytogen's marketing partner, Mylan, has filed an ANDA ANDA abbr. abbreviated new drug application for paclitaxel paclitaxel /pac·li·tax·el/ (pak?li-tak´sel) an antineoplastic that promotes and stabilizes polymerization of microtubules, isolated from the Pacific yew tree (Taxus brevifolia); on breast and ovarian cancer ovarian cancer Malignant tumour of the ovaries. Risk factors include early age of first menstruation (before age 12), late onset of menopause (after age 52), absence of pregnancy, presence of specific genetic mutations, use of fertility drugs, and personal history of breast . - Cambridge Antibody Technology (C.A.T.) received additional licensing fees from Eli Lilly Eli Lilly can refer to:
Cambridge, Massachusetts is a city in the Greater Boston area of Massachusetts, United States. . Drug Royalty receives a royalty percentage on all revenues received by C.A.T., including license fees under this agreement. - UltraVision, Inc. entered into a definitive agreement to acquire the shares and business of St. Shine Optical of Taipei, Taiwan and Lobith, The Netherlands. The acquisition will establish UltraVision as one of the world's highest quality and lowest cost contact lens contact lens, thin plastic lens worn between the eye and eyelid that may be used instead of eyeglasses. Actors, models, and others wear them for appearance, and athletes use them for safety and convenience. manufacturers. Drug Royalty retains interests in Cambridge Antibody Technology (C.A.T.) of the U.K., Phytogen Life Sciences of Vancouver, UltraVision of California, Searle (Canada), Paladin Paladin archetypal gunman who leaves a calling card. [TV: Have Gun, Will Travel in Terrace, I, 341] See : Wild West Labs of Vancouver, IMRO of Montreal Of Montreal is an American indie pop band formed in Athens, Georgia, fronted by Kevin Barnes. It was among the second wave of groups to emerge from The Elephant 6 Recording Company. , University of Birmingham/Peptide Therapeutics Group of the U.K., Spectral Diagnostics Inc. of Toronto, NeuroVir of Vancouver, ILEX Ilex a bush bearing berries containing saponins; cause vomiting, diarrhea. Called also holly. (TM) Oncology of Texas, Peptech of Australia, Dura Pharmaceuticals of 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. and Ethical Holdings of the U.K. Drug Royalty provides shareholders with a means of participating in the global life sciences industry by providing unique financial solutions to health-related organizations around the world in return for royalty interests. Drug Royalty is implementing its strategy through: (i) creating new royalty contracts by providing funds to life science companies in return for royalties; (ii) acquiring existing royalty streams from public institutions, inventors or companies; (iii) acquiring firms which primarily earn their revenues from royalties; and, (iv) acquiring intellectual property rights which can be licensed for royalties. Drug Royalty's common shares trade on The Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the symbol DRI. Total number of shares outstanding is 31,967,648. This release and other information about Drug Royalty Corporation Inc. can be found on their website at www.drugroyalty.com, or directly from: -0-
DRUG ROYALTY CORPORATION INC.
3 Months Ended 6 Months Ended
Feb. 28, Feb. 28, Feb. 28, Feb. 28,
1998 1997 1998 1997
------------------ -----------------------
Revenues
Royalties $ 328,724 $ 977,938 $ 870,257 $1,339,891
Gain on sale of
royalty
interests 15,650,827 - 15,683,345 -
Interest
and other 375,006 276,274 712,120 599,670
---------- ----------- ----------- ----------
16,354,557 1,254,212 17,265,722 1,939,561
---------- ----------- ----------- ----------
Expenses
General and
administration 606,227 493,258 1,174,702 911,922
Amortization and
provisions 892,624 406,679 1,337,249 651,521
---------- ----------- ----------- ----------
1,498,851 899,937 2,511,951 1,563,443
---------- ----------- ----------- ----------
Earnings Before
Income Taxes 14,855,706 354,275 14,753,771 376,118
Income Tax Provision (Recovery)
Current 6,264,181 - 6,240,756 5,000
Deferred (1,600,000) - (1,600,000) -
---------- ----------- ----------- ----------
4,664,181 - 4,640,756 5,000
---------- ----------- ----------- ----------
Net Earnings 10,191,525 354,275 10,113,015 371,118
Retained Earnings
-Beginning
of Period 6,460,683 5,865,979 6,539,193 5,849,136
---------- ----------- ----------- ----------
Retained Earnings
-End of
Period $16,652,208 $6,220,254 $16,652,208 $6,220,254
----------- ----------- ----------- ----------
----------- ----------- ----------- ----------
Basic Earnings
Per Share $ 0.32 $ 0.01 $ 0.32 $ 0.01
Cash Flow from
Operations $13,053,506 $ 760,954 $13,466,506 $1,022,639
Basic Cash Flow from
Operations
Per Share $ 0.41 $ 0.02 $ 0.42 $ 0.03
Weighted Average Number
of Shares
Outstanding 31,916,398 31,230,798 31,848,898 31,230,798
As at Feb. 28, 1998 As at Feb. 28, 1997
------------------- -------------------
Cash and Cash
Equivalents $42,090,652 $34,939,838
Working Capital $35,718,986 $33,288,205
Royalty Interests $14,984,001 $ 7,657,037
Shareholders' Equity $52,567,729 $40,975,674
CONTACT: Drug Royalty Corporation Ian Lennox, 416/863-1865 ext.234 416/863-5161 (FAX) ianl@drugroyalty.com or Drug Royalty Corporation Inc. Jim Webster, 416/863-1865 416/863-5161 (FAX) jimw@drugroyalty.com |
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