Allergan Specialty Therapeutics, Inc. Reports Second Quarter Results.
IRVINE, Calif.--(BW HealthWire)--July 27, 2000
Allergan Specialty Therapeutics, Inc. (Nasdaq: ASTI) today reported operating results for the quarter ended June 30, 2000. Net loss for the quarter ended June 30, 2000 was $15.1 million, or $4.61 per share, compared with a loss of $12.2 million, or $3.72 per share, for the quarter ended June 30, 1999. Net loss for the six months ended June 30, 2000 was $32.3 million, or $9.85 per share, compared with a loss of $23.0 million, or $7.02 per share, for the six months ended June 30, 1999. Net loss for the period from inception (November 12, 1997) to June 30, 2000 was $121.9 million, or $37.23 per share.
ASTI's revenues, consisting of interest and investment income, were $0.9 million and $2.3 million for the quarters ended June 30, 2000 and 1999, respectively and $1.8 million and $4.5 million for the six months ended June 30, 2000 and 1999, respectively.
Research and development expenses for the quarters ended June 30, 2000 and 1999 were $14.1 million and $12.0 million, respectively and $30.0 million and $22.6 million for the six months ended June 30, 2000 and 1999, respectively. Such costs were reimbursed to Allergan, Inc. pursuant to the Company's Research and Development Agreement.
During the second quarter of 2000, work continued on the following research and development projects - Memantine Oral, Tazarotene Oral Oncology, Tazarotene Oral Acne and Psoriasis, AGN 194310 Mucocutaneous Toxicity and Eczema, Hypotensive Lipid-Timolol Combination, Ketorolac-Oflaxacin Combination, and AGN 195183 Oncology.
ASTI incurred technology fees to Allergan, Inc. of $1.4 million in each of the quarters ended June 30, 2000 and 1999 and $2.8 million in each six months ended June 30, 2000 and 1999. Provision for taxes were $0.3 million and $0.9 million for the quarters ended June 30, 2000 and 1999, and $0.8 million and $1.5 million for the six months ended June 30, 2000 and 1999, respectively.
ASTI commenced operation in 1998 to conduct research and development of potential pharmaceutical products based primarily on Allergan Inc.'s retinoid and neuroprotective technologies, and to commercialize such products, most likely through licensing to Allergan, Inc. At any time through December 1, 2002, or upon the occurrence of certain events, Allergan, Inc. has an option to purchase all ASTI Callable Class A Common Stock at a predetermined price. Such option was not exercised during the period presented.
This press release may contain certain forward-looking statements and actual results could differ materially from those described as a result of factors, including, but not limited to, the following. There can be no assurance: (a) that the Company's products will be successfully developed, that regulatory approvals will be granted, or patient and physician acceptance of these products will be achieved; (b) that if a need for additional financing occurs, such financing will be available to the Company when required or that such financing would be available under favorable terms; or (c) that Allergan, Inc. will exercise the purchase option covering the ASTI Callable Common Stock when the last date to exercise the option is triggered or before.
In addition, patent positions of pharmaceutical and biotechnology firms, including the Company, are uncertain and involve complex legal and factual questions for which some important legal principles are largely unresolved. These forward-looking statements represent the Company's judgment only as of the date of this press release. Actual results could differ materially from expectations reflected in this release. As a result, the reader is cautioned not to rely on these forward-looking statements. The Company disclaims any intent or obligation to update these forward-looking statements.
Additional information concerning the factors affecting the Company's business can be found under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 1999. This filing is available publicly and upon request from the Company's Investor Relations Department: 714-246-6301.
ALLERGAN SPECIALTY THERAPEUTICS, INC. (a development stage company) (In thousands, except share data) Condensed Statements of Operations For the quarters ended June 30, 2000 and 1999 and the period from inception (November 12, 1997) to June 30, 2000 Inception Quarter Ended Six Months Ended to June 30, June 30, June 30, 2000 1999 2000 1999 2000 (unaudited) (unaudited) (unaudited) Revenues $ 861 $ 2,342 $ 1,841 $ 4,492 $ 17,994 Costs and expenses: Research & development 14,066 11,957 30,006 22,646 115,092 Technology fees 1,375 1,375 2,750 2,750 14,770 General and administrative 175 327 551 611 2,682 Total costs and expenses 15,616 13,659 33,307 26,007 132,544 Loss before income taxes (14,755) (11,317) (31,466) (21,515) (114,550) Provision for taxes 344 874 796 1,475 7,326 Net loss $(15,099) $(12,191) $(32,262) $(22,990)$(121,876) Basic and diluted loss per share $ (4.61) $ (3.72) $ (9.85) $ (7.02) $ (37.23) Basic and diluted shares outstanding 3,273,690 3,273,690 3,273,690 3,273,690 3,273,690 Condensed Balance Sheets June 30, December 31, 2000 1999 Assets (unaudited) Cash and equivalents $ 94 $ 47 Investments 74,013 105,252 Prepaid technology fees 4,192 5,292 Other assets 739 1,431 Total assets $ 79,038 $ 112,022 Liabilities and stockholders' equity Payable to Allergan, Inc. $ 4,781 $ 6,047 Accounts payable and accrued liabilities 1 -- Total liabilities $ 4,782 $ 6,047 Stockholders' equity 74,256 105,975 Total liabilities and stockholders' equity $ 79,038 $ 112,022
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|Date:||Jul 27, 2000|
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