Drug Royalty's six month cash flow increases 140 percent.TORONTO--(BUSINESS WIRE)--March 27, 1996--DRUG ROYALTY (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 that for the six month period ending February 28, 1996, 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 was $829,735 or $0.03 per share compared with $347,620 or $0.01 per share in the prior year period. The company's cash position at February 28, 1996 was $12.4 million, or $0.48 per share. For the three month period, cash flow from operations was $497,444 or $0.02 per share compared with $165,593 ($0.01 per share) in the prior year period. Royalty revenue was $652,420, compared with $331,318 in the prior year period. Royalty revenues in the quarter reflect a share of a second payment received by strategic partner Peptech(UK) from Allergan Inc. under its option/license agreement with Allergan. The payment coincided with the completion of the protocol for a double-blind, placebo-controlled Phase II trial for GMDP GMDP Grands Moulins De Paris for psoriasis psoriasis (sôrī`əsĭs), occasionally acute but usually chronic and recurrent inflammation of the skin. The exact cause is unknown, but the disease appears to be an inherited, possibly autoimmune disorder that causes the . Royalty revenues also include royalties on sales of pharmaceutical products by Dura Dura, in the Bible Dura, in the Bible, plain, near Babylon, where Nebuchadnezzar set up a golden image. Dura, ancient city, Syria Dura (d Pharmaceuticals Inc., Ethical Holdings, plc., and on contract revenues received by Cambridge Antibody Technology (C.A.T.). "Peptech(UK)'s progress toward commercialization of GMDP for psoriasis is encouraging", said Jim Webster, Senior Vice-President. "We are particularly pleased that Drug Royalty's revenue stream this quarter is boosted by the two companies in our portfolio whose products are at relatively early stages of clinical development." Drug Royalty owns royalty interests royalty interest The proportional ownership interest by the owner of oil and gas rights in income produced by the asset. See also overriding royalty interest. in over 25 marketed drug products. The company also holds royalty interests in a diverse group of products and technologies at various stages of clinical development. In addition to Peptech(UK)'s progress with GMDP, the following notable developments were reported by Drug Royalty's strategic partners during the quarter: - C.A.T. formed a 50/50 joint venture with Techniclone International, a California-based company, to develop and market a new class of products for cancer therapy and diagnosis. The venture combines C.A.T.'s fully human monoclonal antibodies This is a list of monoclonal antibodies, antibodies which are clones of a single parent cell. When used as medications, the generic names end in -mab (see "Nomenclature of monoclonal antibodies"). with Techniclone's patented Tumour Necrosis necrosis /ne·cro·sis/ (ne-kro´sis) pl. necro´ses [Gr.] the morphological changes indicative of cell death caused by progressive enzymatic degradation; it may affect groups of cells or part of a structure or an organ. Technology (TNT TNT: see trinitrotoluene. TNT in full trinitrotoluene Pale yellow, solid organic compound made by adding nitrate (−NO2) groups to toluene. ). The combination of technologies is intended to play a crucial role in the creation of multiple diagnostic and therapeutic products including products for lung, colon, breast, pancreatic and prostate cancers. Drug Royalty is entitled to receive a royalty on all products commercialized by C.A.T. - C.A.T. also entered into an agreement with Telios Pharmaceuticals, a subsidiary of Integra Lifesciences Integra LifeSciences Corporation, based in Plainsboro, New Jersey, is a leading medical technology company. Integra is a publicly traded company and is listed under the symbol IART. Corporation. C.A.T. paid US$500,000 to obtain certain rights to Telios' anti-TGF-Beta antibodies for fibrotic diseases and obtained right of first refusal Right of First Refusal In general, the right of a person or company to purchase something before the offering is made available to others. Notes: For example, a football team may have the right of first refusal on a player's contract. for Telios' rights to decorin, a mediator of TGF-Beta which plays an important role in dermal dermal /der·mal/ (der´mal) pertaining to the dermis or to the skin. der·mal or der·mic adj. Of or relating to the skin or dermis. scarring and fibrotic diseases. C.A.T. will develop dermal applications of the licensed technology, and will receive royalties on sales of dermal products which will be marketed by Integra. C.A.T. retains the right to market products for all other applications. - Dura Pharmaceuticals, Inc. announced record revenue for the year ended December 31, 1995. Revenues from sales of respiratory pharmaceuticals rose 77 percent to $39.3 million from $22.2 million in 1994. Dura also reported that an Investigational New Drug Application has been filed in Canada for Dura's Spiros(TM) dry powder Dry Powder A slang term for cash reserves kept on hand to cover future obligations. Notes: For example, if a venture capitalist expects bad times in the IPO markets you might hear him say something like, "we want to keep enough dry powder around to keep funding our pulmonary drug delivery system for a pharmacokinetic study of Spiros(TM) with beclomethasone. Trials are also scheduled to begin in the US in late 1996 or early 1997. Drug Royalty receives royalties on sales of Dura's products in 20 US sales territories. - Dura also announced an agreement with Houghten Pharmaceuticals Inc. The collaboration will provide a number of new chemical entities which may be used in the Spiros(TM) delivery system. Dura made a US$5 million investment in Houghten, and Houghten will provide funding totaling US$6 million to Dura over a four year period. - Ethical Holdings, plc. reported that it had licensed its transdermal combination hormone replacement patch to Wyeth Lederle, the UK subsidiary of Wyeth-Ayerst, a division of American Home For the American mortgage lender, see . The American Home is a center of intercultural exchange located in Vladimir, Russia. The home is designed to model a typical American suburban home and its main focus is the ESL school that provides lessons for Russian students. Products. Ethical also signed an agreement with Kyowa Hakko, a leading Japanese pharmaceutical company, for the distribution of Ethical's twice-daily morphine morphine, principal derivative of opium, which is the juice in the unripe seed pods of the opium poppy, Papaver somniferum. It was first isolated from opium in 1803 by the German pharmacist F. W. A. product, Morphine Rhotard(R), in Singapore and Malaysia. Drug Royalty owns a royalty stream on world wide sales of both products. Drug Royalty Corporation Inc. provides shareholders with a means of participating in the global pharmaceutical industry by acquiring royalty rights in emerging and existing drugs and medical technologies. 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. -0- DRUG ROYALTY CORPORATION INC.
3 Months Ended 6 Months Ended
Feb. 29, Feb. 28, Feb. 29, Feb. 28,
1996 1995 1996 1995
Revenue
Royalties $652,420 $331,318 $1,184,648 $723,639
Interest 171,535 199,031 377,153 382,562
-------- -------- ---------- --------
823,955 530,349 1,561,801 1,106,201
Expenses
General and
administration 326,511 364,755 732,066 758,581
Amortization and
provisions 477,810 282,179 771,643 564,261
-------- -------- ---------- ---------
804,321 646,934 1,503,709 1,322,842
-------- -------- ---------- ---------
Net Income (Loss) for the Period 19,634 (116,585) 58,092 (216,641)
Deficit, Beginning
of Period 3,214,981 2,598,342 3,253,439 2,498,286
--------- --------- ---------- ---------
Deficit,
End of Period $3,195,347 $2,714,927 $3,195,347 $2,714,927
---------- --------- ---------- ----------
---------- --------- ---------- ----------
Net Income (Loss) Per Share $ 0.00 $ (0.01) $ 0.00 $ (0.01) Cash Flow from Operations $497,444 $165,593 $829,735 $347,620 Cash Flow from Operations Per Share $ 0.02 $ 0.01 $ 0.03 $ 0.01 Weighted Average Number of Shares Outstanding 25,851,798 25,155,798 25,851,798 25,155,798 As at Feb. 29, 1996 As at Feb. 28, 1995 Working Capital $12,419,409 $ 10,933,880 Royalty Interests $11,446,463 $ 12,881,737 Shareholders' Equity $23,910,055 $ 23,862,475 CONTACT: Drug Royalty Corporation Inc. Jim Webster, 416/863-1865 416/863-5161 (Fax) or Drug Royalty Corporation Inc. Harry Loveys, 416/863-1865 416/863-5161 (Fax) |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion