VIVUS Reports Second Quarter and Six Months Financial 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.--(BW HealthWire)--July 9, 1997--VIVUS, Inc. (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 :VVUS) today announced net income of $10 million or $0.28 per share for the second quarter ended June June: see month. 30, 1997, compared with a net loss of $3.7 million or $0.13 per share for the same period in 1996. Second quarter earnings exceeded first quarter earnings of $9.6 million or $0.27 per share. (First quarter earnings included a $5 million milestone payment from Janssen Pharmaceutica Janssen Pharmaceutica, is a pharmaceutical company based in Beerse, Belgium, was established in 1953 by Dr. Paul Janssen. It was created not as a subsidiary of a chemical factory but solely with the aim of conducting pharmacological research. International, a subsidiary of Johnson & Johnson.) For the six months ended June 30, 1997, net income was $19.5 million, or $0.55 per share, compared with a net loss of $10 million, or $0.35 per share, for the same period in 1996. Product sales for the second quarter were $33.5 million, an increase of $5.7 million or 20 percent over the first quarter. Revenues and net earnings for the second quarter and six months ended June 30, 1997 were higher than the same periods last year due to the commercial launch of the Company's first product, MUSE(R) (alprostadil alprostadil /al·pros·ta·dil/ (al-pros´tah-dil) name for prostaglandin E when used pharmaceutically as a vasodilator and platelet aggregation inhibitor; used for the treatment of patent ductus arteriosus and the diagnosis and treatment of ) in January January: see month. 1997. The product gross margin of 71 percent of net product sales for the second quarter was comparable with the first quarter. Research and development expenses for the second quarter in 1997 were less than the same period in 1996 due principally to a $5.9 million charge for 200,000 pre-split shares of common stock issued in May 1996 to ALZA ALZA Corporation is a pharmaceutical and medical systems company founded in 1968 by Dr Alejandro Zaffaroni; the company's name is a portmanteau of his name. In addition to a variety of pharmaceuticals, ALZA makes a range of drug delivery systems. Corporation to maintain exclusive rights to certain patents and patent applications beyond 1998, and higher pre-launch manufacturing expenses in 1996. For the six months ended June 30, 1997, research and development expenses were less than 1996 levels due to these factors, as well as higher clinical and regulatory costs in 1996 associated with the preparation and filing of the Company's New Drug Application for MUSE (alprostadil). Research and development expenses for the second quarter of 1997 decreased slightly from the first quarter of 1997. Selling, general and administrative expenses increased in the second quarter and first six months of 1997 compared with the same periods in 1996 as a result of higher marketing expenses and the hiring of additional personnel, including a 50 person direct sales force, to support the growth of the Company's operations and the commercial launch of MUSE (alprostadil). Selling, general and administrative expenses for the second quarter of 1997 were lower than the first quarter of 1997 due to a lower level of promotional and launch-related expenses. The effective tax rate for the second quarter of 1997 was 16.6 percent, reflecting a reduction in the Company's estimate of the annual effective tax rate. Cash, cash equivalents and available-for-sale securities at June 30, 1997 totaled $95 million, compared with $84 million at December December: see month. 31, 1996. Assets at June 30, 1997 also included net accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying of $13.5 million related to commercial sales of MUSE (alprostadil). Net fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → at June 30, 1997 increased $10 million from December 31, 1996 primarily resulting from $7 million of construction costs associated with the Company's new 90,000 square foot plant currently under construction in New Jersey. "The numbers reported today reflect the vitality vi·tal·i·ty n. 1. The capacity to live, grow, or develop. 2. Physical or intellectual vigor; energy. of the erectile dysfunction Erectile Dysfunction Definition Erectile dysfunction (ED), formerly known as impotence, is the inability to achieve or maintain an erection long enough to engage in sexual intercourse. market and the fact that MUSE and the concept of transurethral transurethral /trans·ure·thral/ (trans?u-re´thral) performed through the urethra. transurethral performed through the urethra. delivery have been well accepted by erectile dysfunction specialists and patients," stated Leland Leland is the name of several places:
National Formulary see under N. for·mu·lar·y n. acceptance with approximately 67% of retail prescriptions reimbursed through third party insurance coverage." Founded in 1991, VIVUS, Inc. is a leader in the development of advanced therapeutic systems for the treatment of erectile dysfunction. VIVUS has pioneered a novel therapy for erectile dysfunction known as the transurethral system for erection erection /erec·tion/ (e-rek´shun) the condition of being rigid and elevated, as erectile tissue when filled with blood. e·rec·tion n. 1. . This therapy consists of a proprietary, non-invasive Non-invasive A procedure that does not penetrate the body. Mentioned in: Multiple-Gated Acquisition Scan non-invasive 1. not penetrating the skin, e.g. a non-invasive test. 2. , drug delivery system that delivers pharmacologic pharmacologic /phar·ma·co·log·ic/ (-kah-loj´ik) pertaining to pharmacology or to the properties and reactions of drugs. pharmacological, pharmacologic pertaining to pharmacology. agents via the urethra urethra (y  rē`thrə), canal in most mammals that carries urine from the bladder to the outside of the body; in the male it also serves as a genital duct. . -0-
VIVUS, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
--------------------- -------------------------
1997 1996 1997 1996
--------------------- -------------------------
Net product sales $ 33,458 $ - $ 61,249 $ -
Milestone revenue - 10,000 5,000 10,000
-------- ----------- ---------- -----------
Net revenues 33,458 10,000 66,249 10,000
Cost of goods sold 9,584 - 17,650 -
-------- ----------- ---------- -----------
Gross margin 23,874 10,000 48,599 10,000
-------- ----------- ---------- -----------
Operating expenses:
Research and
development 1,940 12,187 3,967 17,545
Selling, general
and administrative 11,258 2,004 23,067 3,383
-------- ----------- ---------- -----------
Total operating
expenses 13,198 14,191 27,034 20,928
-------- ------------ --------- -----------
Income (loss) from
operations 10,676 (4,191) 21,565 (10,928)
Interest income 1,264 446 2,385 949
-------- ------------ --------- -----------
Income (loss)
before taxes 11,940 (3,745) 23,950 (9,979)
Income taxes 1,982 - 4,438 -
-------- ---------- --------- ----------
Net income
(loss) $ 9,958 $ (3,745) $ 19,512 $ (9,979)
======== ============ ========= ===========
Net income (loss) per
common and equivalent
share $ 0.28 $ (0.13) (1) $ 0.55 $ (0.35) (1)
======== ============== ======= =============
Shares used in the
computation of
net income (loss)
per share 35,579 28,448 (1) 35,626 28,200 (1)
======== ============ ========= ===========
(1) Prior period figures have been adjusted to reflect the 2 for 1
stock split which occurred in the second quarter of 1997.
VIVUS, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
ASSETS
June 30, December 31,
1997 1996
----------- ---------------
(unaudited)
Current assets:
Cash $ 2,076 $ 555
Available-for-sale securities 78,850 60,710
Trade and other receivables 14,411 748
Inventories 5,180 4,540
Prepaid expenses and other 757 587
----------- ----------
Total current assets 101,274 67,140
Property & equipment 16,279 6,332
Available-for-sale securities, non-current 14,423 23,060
----------- ----------
Total $ 131,976 $ 96,532
=========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 6,344 $ 3,324
Accrued and other liabilities 17,431 3,428
---------- ----------
Total current liabilities 23,775 6,752
---------- ----------
Stockholders' equity:
Common stock; $.001 par value; shares
authorized 200,000,000;
shares outstanding -
June 30, 1997, 33,035,116;
December 31, 1996, 32,454,340 (1); 33 32
Paid in capital 158,374 156,173
Less treasury stock, at cost;
151,000 shares
at June 30, 1997; none
at December 31, 1996 (3,401) -
Unrealized gain (loss) on securities (16) 77
Deferred compensation (147) (348)
Accumulated deficit (46,642) (66,154)
---------- ----------
Total stockholders' equity 108,201 89,780
---------- ----------
Total $ 131,976 $ 96,532
========== ==========
(1) Prior period shares have been adjusted to reflect the 2 for 1
stock split which occurred in the second quarter of 1997.
CONTACT: VIVUS, Inc. Nina W. Ferrari, 415/325-5511 (Investor Relations Investor relations The process by which the corporation communicates with its investors. ) David Yntema, 415/325-5511 (CFO See Chief Financial Officer. ) |
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