SEQUUS Pharmaceuticals, Inc. announces first quarter results.MENLO PARK Menlo Park. 1 Residential city (1990 pop. 28,040), San Mateo co., W Calif.; inc. 1874. Electronic equipment and aerospace products are manufactured in the city. Menlo College and a Stanford Univ. research institute are there. 2 Uninc. , Calif.--(BUSINESS WIRE)--April 29, 1997--SEQUUS Pharmaceuticals, Inc. (Nasdaq: SEQU) today announced financial results for the first quarter ended March 31, 1997. The Company reported an 85% increase in total revenues for the first quarter of 1997 as compared to the comparable quarter in the prior year, from $4,494,000 to $8,323,000. This increase was due to a 46% increase in product sales revenue from $4,457,000 in the first quarter of 1996 to $6,488,000 in the first quarter of 1997. The increase in product sales revenue is primarily attributable to sales of DOXIL(R), the Company's anticancer therapy utilizing proprietary long-circulating STEALTH(R) liposomes Liposomes Aqueous compartments enclosed by lipid bilayer membranes; liposomes are also known as lipid vesicles. Phospholipid molecules consist of an elongated nonpolar (hydrophobic) structure with a polar (hydrophilic) structure at one end. . SEQUUS received approval from the U.S. Food and Drug Administration ("FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. ") to market DOXIL for the treatment of refractory Kaposi's sarcoma Kaposi's sarcoma (käp`əshē', kəpō`sē), a usually fatal cancer that was considered rare until its appearance in AIDS patients. in November, 1995. Recorded payments from the Company's distribution partner, Schering-Plough, also contributed $1,800,000 to the increase in revenues for the first quarter of 1997. An increase in total expenses from $10,918,000 in the first quarter of 1996 to $16,088,000 in the first quarter of 1997 was primarily due to increases in research and development spending on expanded clinical trials of DOXIL in solid tumors and increased clinical trial expenses for SPI-077, the third SEQUUS drug to enter clinical trials and the second anticancer drug anticancer drug see antineoplastic. anticancer drug Chemotherapeutic, see there using the Company's proprietary STEALTH(R) liposome liposome (lī`pəsōm', lĭp`ə–), microscopic, fluid-filled pouch whose walls are made of layers of phospholipids identical to the phospholipids that make up cell membranes. technology, and in increased selling expenses related to DOXIL and AMPHOTEC. The Company reported a net loss for the first quarter of $7,468,000 ($0.25 per share) compared to a loss of $5,777,000 ($0.21 per share) in the first quarter of the prior year. The Company ended the quarter with $31,498,000 in cash and 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 . Combined revenues from sales of DOXIL and AMPHOTEC were below analysts' expectations. This was primarily due to a slower-than- expected launch of AMPHOTEC, a lipid-based dispersion of amphotericin B amphotericin B (ăm'fətĕr`ĭsĭn), antibiotic that halts the growth of several disease-causing fungi. Discovered in 1956, it is produced by bacteria of the genus Streptomyces. and sodium cholesteryl sulfate sulfate, chemical compound containing the sulfate (SO4) radical. Sulfates are salts or esters of sulfuric acid, H2SO4, formed by replacing one or both of the hydrogens with a metal (e.g., sodium) or a radical (e.g., ammonium or ethyl). , that is designed to treat progressive and potentially fatal systemic fungal infections Fungal infections Several thousand species of fungi have been described, but fewer than 100 are routinely associated with invasive diseases of humans. . The drug received marketing clearance from the FDA on November 22, 1996 and was launched late in the year. "We have been very encouraged by the hospitals and group purchasing organizations that have decided to buy AMPHOTEC," said I. Craig Henderson, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and Chairman of SEQUUS. "However, these commitments have not rapidly translated into orders because of product already in inventory. We anticipate this will change over the next two quarters. Physicians and pharmacists are telling us they do not see much difference in the clinical profile of the lipoid lipoid /lip·oid/ (lip´oid) fatlike. lip·oid adj. Resembling fat; adipoid. n. Lipid. No longer in technical use. amphotericin compounds but that we need to make these drugs available to a much larger segment of the patient population that might benefit. Since we believe we are the lowest cost producer and have the best product, we have embarked on a bold pricing policy that will enable physicians and pharmacists to move toward greater use of AMPHOTEC where they believe it will provide clinical benefit and value to their patients." A decrease in DOXIL sales to distributors from the fourth quarter 1996 to the first quarter of 1997 also contributed to SEQUUS' failure to meet expectations. However, end-user sales of DOXIL during this same period appear to have increased and the trend line from the product launch at the end of 1995 through the end of the first quarter has been upward. "We are particularly encouraged by this trend of increasing end- user sales, since there is considerable indication that the incidence of Kaposi's sarcoma has been decreasing over this period as a result of use of protease inhibitors Protease Inhibitors Definition A protease inhibitor is a type of drug that cripples the enzyme protease. An enzyme is a substance that triggers chemical reactions in the body. for the treatment of AIDS," said Scott Minick, President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of SEQUUS. Founded in 1981 and headquartered in Menlo Park, California Menlo Park is a city in San Mateo County, California in the United States of America. It is located at latitude 37°29' North, longitude 122°9' East. Menlo Park had 30,785 inhabitants as of the 2000 U.S. Census. (with offices in London, England), SEQUUS Pharmaceuticals is a leader in the development, manufacture, marketing and sale of proprietary pharmaceutical products primarily to treat cancer and infectious diseases infectious diseases: see communicable diseases. . NOTE: Any statements contained in this press release that relate to future plans, events or performance, including statements regarding future revenues, product marketing and sales trends or product development, are forward-looking statements that involve risks and uncertainties, including, but not limited to, those relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the uncertainty of market acceptance, technology and product development, regulatory approval process, intellectual property rights and litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , competitive products and other risks identified in the respective Company's Securities and Exchange Commission filings. Actual results, events or performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. SEQUUS Pharmaceuticals, Inc. undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. -0-
SEQUUS PHARMACEUTICALS, INC.
FINANCIAL HIGHLIGHTS
(In thousands except per share data)
(unaudited)
CONDENSED STATEMENT OF OPERATIONS
Three Months Ended
March 31,
1997 1996
Product sales $ 6,488 $ 4,457
Royalties and fees 1,835 37
Total revenue 8,323 4,494
Cost of goods sold 1,314 531
Research and development 7,412 5,929
Selling, general and administrative 7,362 4,458
Total expenses 16,088 10,918
Interest income 297 661
Other income (expense), net - (14)
Net loss $(7,468) $(5,777)
Net loss per share ($0.25) ($0.21)
Weighted average outstanding shares 29,998 27,911
CONDENSED STATEMENTS OF FINANCIAL CONDITION
(unaudited)
March 31, December 31,
1997 1996
Cash and other marketable
investments with maturities
less than one year $31,498 $32,946
Other current assets 12,932 16,270
Property and equipment, net 5,832 5,564
Other assets 319 188
Total assets $50,581 $54,968
Current liabilities $ 9,991 $10,641
Common stock and additional
paid-in capital 198,648 194,951
Accumulated deficit (158,058) (150,624)
Total stockholders' equity 40,590 44,327
Total liabilities and
stockholders' equity $50,581 $54,968
CONTACT: SEQUUS Pharmaceuticals, Inc. Ogilvy Adams & Rinehart Donald J. Stewart (Media Relations) Vice President, Finance Robert Schachter 415/323-9011 212/880-5208 Susan Eckstein 212/880-5207 Burns McClellan (Investor Relations Investor relations The process by which the corporation communicates with its investors. ) Ruth Markowitz 212/505-1919 |
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