Paladin Reports Record Revenue for Third Quarter: Sales of Key Promoted Brands Grew 80% During Third Quarter.MONTREAL -- Paladin Paladin archetypal gunman who leaves a calling card. [TV: Have Gun, Will Travel in Terrace, I, 341] See : Wild West Labs Inc. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :PLB (Picture Level Benchmark) A benchmark for measuring graphics performance on workstations. The Benchmark Interface Format (BIF) defines the format, the Benchmark Timing Methodology (BTM) performs the test, and the Benchmark Reporting Format (BRF) generates results in ), a leading Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. specialty pharmaceutical company, today reported its financial results for the three and nine-month periods ended September 30, 2005.The Company achieved record revenue for the third quarter and first nine months of 2005 and is well positioned to achieve its 10th consecutive year of record revenues in 2005. Third Quarter 2005 Highlights - Revenue totaled a record $9.2 million, a 16% increase compared to Q3 2004 - Sales of key promoted brands, including Dostinex(R), Estring(R), Oxytrol(R), Plan B(R) and Twinject(TM) grew 80% compared to the corresponding period a year ago - Launched Twinject(TM) in Canada - Acquired Canadian license for Pennsaid(R) - Established Licensing Advisory Board (LAB) - Subsequent to the third quarter, Paladin entered into a Canadian license and distribution agreement with Duramed Pharmaceuticals, Inc., a wholly-owned subsidiary of Barr Pharmaceuticals, Inc. for Seasonale(R) - Subsequent to the third quarter, appointed Mr. Michael Freeman, Vice-President of Government Affairs "This quarter's record revenues was the result of strong performance of our key promoted brands which increased 80% compared to the corresponding period a year ago.In the last twelve months, I am pleased to report Paladin has launched Twinject(TM), Oxytrol(R) and the re-launch of Plan B(R) as a non-prescription product.In 2006, Paladin will be launching more products, including Trelstar(R) and Vantas(TM), two products for the treatment of prostate cancer prostate cancer, cancer originating in the prostate gland. Prostate cancer is the leading malignancy in men in the United States and is second only to lung cancer as a cause of cancer death in men. . In addition, we continue to strengthen our product pipeline for long term growth with the addition of Seasonale(R)," said Jonathan Ross Goodman Goodman was a polite term of address, used where Mister (Mr.) would be used today. Compare Goodwife. Goodman refers to:
Financial Results Revenue for the three months ended September 30, 2005 increased 16% to $9.2 million compared to $7.9 million in the third quarter of 2004.Revenue for the nine months ended September 30, 2005 increased 18% to $23.6 million compared to $19.9 million in the corresponding period a year ago.Revenue from the Company's key promoted brands including, Dostinex(R), Estring(R), Oxytrol(R), Plan B(R) and Twinject(TM) increased by 61% in the first nine months of 2005 compared to the same period a year ago and 80% in the third quarter of 2005 compared to the third quarter last year. Paladin's earnings before interest, taxes, depreciation, and amortization Earnings before interest, taxes, depreciation, and amortization (EBITDA) A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (1)) remained steady at $2.6 million for the third quarter of 2005 and the third quarter of 2004.For the nine months ended September 30, 2005, EBITDA increased to $6.5 million compared to EBITDA of $5.9 million in the first nine months of 2004. Net income for the third quarter was $808,000 or $0.05 per fully 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 net income of $1.0 million or $0.07 per fully diluted share in the third quarter a year ago.Net income for the nine months ended September 30, 2005 was $1.9 million or $0.13 per fully diluted share, compared to net income of $2.1 million or $0.14 per fully diluted share in the same period a year ago. Gross profit, as a percentage of revenues, for the third quarter and nine months ended September 30, 2005 totalled 74% compared to 72% and 74% respectively for the third quarter and nine months ended September 30, 2004. Selling and marketing expense for the third quarter of 2005 increased to $3.3 million compared to $1.9 million in the third quarter of 2004.Selling and marketing expense for the first nine months of 2005 increased to $8.4 million from $5.1 million in the first nine months of 2004.Increased selling and marketing expenses in 2005 have resulted primarily from increased promotion activities behind the launch of Twinject(TM), Oxytrol(R) and the re-launch of Plan B(R) as a non-prescription product. At September 30, 2005, Paladin's cash, cash equivalents and investments in marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has totalled $39.2 million.From this strong cash position, Paladin continues to pursue product acquisition opportunities. Product Developments Paladin announced the Canadian launch of Twinject(TM) (epinephrine) following the Canadian marketing and supply agreement with Verus Pharmaceuticals Verus Pharmaceuticals is a privately held pharmaceutical company based in San Diego, California. Founded in November 2002 by three former Dura Pharmaceuticals executives: Bob Keith, Peter Schineller and Cam Garner, with an initial focus on the treatment of asthma, allergies, and , Inc.Twinject(TM) is a novel epinephrine auto-injector indicated for the emergency treatment of severe allergic reactions allergic reaction n. A local or generalized reaction of an organism to internal or external contact with a specific allergen to which the organism has been previously sensitized. (anaphylaxis anaphylaxis (ăn'əfəlăk`sĭs), hypersensitive state that may develop after introduction of a foreign protein or other antigen into the body tissues. ).Twinject(TM) comes in two dosages for self-administration - a 0.3 mg used for adults and a 0.15 mg used for children.According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. IMS (1) See IP Multimedia Subsystem. (2) (Information Management System) An early IBM hierarchical DBMS for IBM mainframes. IMS was widely implemented throughout the 1970s under MVS and continues to be used under z/OS. Canada, the anaphylaxis market was $25 million in 2004 and grew at a compounded annual growth rate of 22% since 2001. The Company announced the acquisition of the Canadian license for Pennsaid(R) through the acquisition of Dimethaid Health Care Ltd. (DHCL), a subsidiary of Nuvo Research Inc. (TSX: DMX See DMX512. ), formerly Dimethaid Research Inc.Pennsaid(R) is a lotion lotion /lo·tion/ (lo´shun) a liquid suspension, solution, or emulsion for external application to the body. lo·tion n. 1. approved by Health Canada Health Canada (French: Santé Canada) is the department of the government of Canada with responsibility for national public health. Health Canada's goal is to improve Canadian life by improving Canadian longevity, lifestyle and use of public healthcare. for the treatment of symptoms of knee osteoarthritis osteoarthritis or osteoarthrosis or degenerative joint disease Most common joint disorder, afflicting over 80% of those who reach age 70. It does not involve excessive inflammation and may have no symptoms, especially at first. . Subsequent to the third quarter, Paladin announced a license and distribution agreement with Duramed Pharmaceuticals, Inc. a wholly-owned subsidiary of Barr Pharmaceuticals Barr Pharmaceuticals, Inc., (NYSE: [http://www.nyse.com/about/listed/lcddata.html?ticker=BRL BRL]) is global specialty pharmaceutical company that operates in more than 30 countries worldwide and is engaged in the development, manufacture and marketing of generic and , Inc. granting Paladin an exclusive Canadian license for Seasonale(R) extended-cycle oral contraceptive oral contraceptive n. A pill, typically containing estrogen or progesterone, that prevents conception or pregnancy. Also called birth control pill. . Corporate Developments During the quarter, Paladin furthered its core capabilities in the sourcing and assessment of licensing and development candidates through the establishment of its Licensing Advisory Board (LAB). Appointed to the LAB are the following Canadian key thought leaders: (1) Dr. Neil Fleshner MD, MPH MPH Master of Public Health. MPH Master's Degree in Public Health , FRCSC FRCSC Fellow of the Royal College of Surgeons of Canada , Head of the Division of Urology urology Medical specialty dealing with the urinary system and male reproductive organs. It traces its origin to medieval lithologists, itinerant healers who specialized in surgical removal of bladder stones. at the University Health Network in Toronto (incorporating Princess Margaret Hospital There are several Princess Margaret Hospitals :
Medical and surgical specialty concerned with the management of pregnancy and childbirth and with the health of the female reproductive system. and Chief, Division of Reproductive Endocrinology Reproductive endocrinology and infertility (REI) is a surgical subspecialty of obstetrics and gynecology that addresses hormonal functioning as it pertains to reproduction. at Queen's University Queen's University, at Kingston, Ont., Canada; nondenominational; coeducational; founded 1841 as Queen's College. It achieved university status in 1912. It has faculties of arts and sciences, education, law, medicine, and applied science, as well as schools of in Kingston, Ontario Kingston, Ontario, is a Canadian city located at the eastern end of Lake Ontario, where the lake runs into the St. Lawrence River and the Thousand Islands begin. Kingston is the county seat of Frontenac County. , and (3) Dr. Luc Valiquette MD, FRCSC, Full Clinical Professor in the Department of Surgery at the Universite de Montreal and Chief of Urology Department at the CHUM."We are thrilled thrill v. thrilled, thrill·ing, thrills v.tr. 1. To cause to feel a sudden intense sensation; excite greatly. 2. To give great pleasure to; delight. See Synonyms at enrapture. to have the opportunity to actively collaborate with Drs. Fleshner, Reid and Valiquette in building an exciting and rich product portfolio and pipeline for Paladin," said Mark Nawacki, Paladin's Vice President of Business Development."The LAB will be a critical component of our business development process and will ensure that Paladin is at the leading edge of scientific and clinical evaluation clinical evaluation Medtalk An evaluation of whether a Pt has symptoms of a disease, is responding to treatment, or is having adverse reactions to therapy of acquisition and licensing candidates.Given the critical importance of the LAB function, we look forward to announcing further appointments and expanding our collaborations with an even broader group of clinical experts in therapeutic areas of strategic interest to Paladin." Further information about the LAB, together with members' biographies, will be available shortly on the Paladin web site. Subsequent to the quarter, Paladin appointed Mr. Michael Freeman Michael Roy Freeman (born 9 December 1960, London, England) is a New Zealand chess player. He emigrated to New Zealand in September 1967. He was a pupil at Otago Boys High School, Dunedin from 1974 to 1978. as Vice-President, Government Affairs.Mr. Freeman Freeman can mean:
Paladin announced that it has received regulatory approval from the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. to carry out a normal course issuer bid effective February 22, 2005.Paladin has been authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: to purchase up to 630,000 of its common shares, or approximately 10% of its public float of 6,300,990 common shares, in the twelve-month period following the bid's effective date.To date, Paladin has purchased 107,500 shares for a total amount of $482,000. 2005 Revenue Guidance Paladin is maintaining revenue guidance for fiscal 2005 of $29 million to $30 million.This forecast excludes the impact of acquisitions and/or new product launches that may be made by the Company between now and the end of 2005. (1) EBITDA does not have any standardized standardized pertaining to data that have been submitted to standardization procedures. standardized morbidity rate see morbidity rate. standardized mortality rate see mortality rate. meaning prescribed pre·scribe v. pre·scribed, pre·scrib·ing, pre·scribes v.tr. 1. To set down as a rule or guide; enjoin. See Synonyms at dictate. 2. To order the use of (a medicine or other treatment). by generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) and therefore may not be comparable to similar measures presented by other public issuers. EBITDA performance and guidance is presented herein because Paladin management believes that, in addition to net income, EBITDA is a useful supplemental measure of the Company's financial performance. Conference Call Notice Paladin will host a conference call to discuss its third quarter results today at 10:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy .The dial-in number for the conference call is 1-888-789-0150 or 416-695-6120.The call will be audio-cast live and archived for 90 days at www.paladinlabs.com. About Paladin Labs Paladin Labs Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian market.With this strategy, a focused national sales team and proven marketing expertise, Paladin has evolved into one of Canada's leading specialty pharmaceutical companies.Paladin's shares trade on the Toronto Stock Exchange under the symbol PLB.For more information about Paladin, please visit the Company's web site at www.paladinlabs.com. This news 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. or predictions.These statements represent our judgement as of this date and are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed in such forward-looking statements.Potential risks and uncertainties include, without limitation, those associated with product development, clinical trials, future revenues and profitability, and obtaining marketing approval and other factors that are discussed in the Management Discussion and Analysis section of the Company's Annual Report and Annual Information Form.
CONSOLIDATED BALANCE SHEET
(In thousands of Canadian dollars)
September 30 December 31
2005 2004
$ $
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(unaudited)
ASSETS
Current
Cash and cash equivalents 2,353 1,507
Short-term marketable securities 36,863 36,039
Accounts receivable 6,650 5,878
Inventories 2,613 2,718
Income tax credits receivable 827 -
Other current assets 686 735
Future income tax assets 1,124 600
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Total current assets 51,116 47,477
Long-term marketable securities - 4,578
Property, plant and equipment 55 77
Intangible assets 11,396 11,065
Deferred charges 3,943 4,176
Investments 1,434 1,433
Future income tax credits recoverable 457 439
Future income tax assets 5,214 1,715
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73,615 70,960
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities 6,251 4,723
Accounts payable to related parties 838 1,754
Income taxes payable 450 229
Balance of license agreements payable 464 1,062
Balance of sale payable 227 -
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Total current liabilities 8,230 7,768
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Long-Term
Balance of sale payable 470 -
Shareholders' equity
Capital stock 57,482 57,837
Other paid-in capital 804 554
Retained earnings 6,629 4,801
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Total shareholders' equity 64,915 63,192
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73,615 70,960
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CONSOLIDATED STATEMENTS OF INCOME
(In thousands of Canadian dollars except for share and per
share amounts)
(unaudited)
Three-month Nine-month
period ended period ended
September 30 September 30
2005 2004 2005 2004
--------------------------------------------------------------------
$ $ $ $
Revenues 9,196 7,938 23,570 19,932
Cost of sales 2,357 2,259 6,159 5,211
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Gross profit 6,839 5,679 17,411 14,721
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Selling and marketing 3,262 1,898 8,447 5,115
General and administrative 808 655 2,469 2,124
Research and development 666 774 1,279 2,452
Amortization of
intangible assets and
deferred charges 1,273 1,109 3,455 3,010
Interest income, net (339) (267) (966) (866)
Other Income (37) - (147) -
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Income before
income taxes 1,206 1,510 2,874 2,886
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Provision for income taxes
Current - 25 - 75
Future 398 447 982 748
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398 472 982 823
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Net income 808 1,038 1,892 2,063
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Earnings per share
Basic 0.05 0.07 0.13 0.14
Diluted 0.05 0.07 0.13 0.14
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--------------------------------------------------------------------
Weighted average number
of shares outstanding
Basic 14,757,260 14,851,775 14,820,555 14,828,278
Diluted 14,835,682 14,909,415 14,851,610 14,908,868
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CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of Canadian dollars)
(unaudited)
Three-month Nine-month
period ended period ended
September 30 September 30
2005 2004 2005 2004
--------------------------------------------------------------------
$ $ $ $
Operating activities
Net income 808 1,038 1,892 2,063
Add items not affecting
cash
Amortization 1,416 1,124 3,628 3,057
Stock based
compensation expense 66 62 258 280
Future income taxes 861 408 1,429 558
Unrealized foreign
exchange loss (gain) 2 - (15) -
--------------------------------------------------------------------
3,153 2,632 7,192 5,958
--------------------------------------------------------------------
Net change in non-cash
balances relating
to operations (127) (139) (94) (5,360)
--------------------------------------------------------------------
Cash flows from operating
activities 3,026 2,493 7,098 598
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Investing activities
Additions to pharmaceutical
product licenses, rights,
intellectual property
and deferred charges (202) (519) (1,211) (2,460)
Acquisition of property,
plant and equipment (5) (2) (23) (4)
Purchases of short-term
marketable securities (9,632) (7,895) (29,550) (24,664)
Maturities of short-term
marketable securities 10,903 7,748 35,287 36,272
Purchases of long-term
marketable securities - (1,468) (1,983) (4,086)
Business acquisition (7,748) - (7,748) -
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Cash flows (used in)
from investing
activities (6,684) (2,136) (5,228) 5,058
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Financing activities
Common shares issued
for cash 18 14 42 267
Accounts payable related
to the acquisition of
intellectual property
and deferred charges - (1,039) (598) (3,522)
Repurchase of shares - - (482) -
Repayment of share
purchase loan - - 20 20
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Cash flows from (used in)
financing activities 18 (1,025) (1,018) (3,235)
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Effect of exchange rate
change on cash and
cash equivalents 1 - (6) -
Net change in cash and
cash equivalents
during the period (3,639) (668) 846 2,421
Cash and cash
equivalents, beginning
of period 5,992 5,080 1,507 1,991
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Cash and cash equivalents,
end of period 2,353 4,412 2,353 4,412
--------------------------------------------------------------------
--------------------------------------------------------------------
Cash and cash equivalents 2,353 4,412
Short-term
marketable securities 36,863 30,948
Long-term
marketable securities - 4,086
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39,216 39,446
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