Printer Friendly

GYNEX PHARMACEUTICALS REPORTS FIRST YEAR OF REGULAR REVENUE STREAM; MERGER PLANNED WITH BIO-TECHNOLOGY GENERAL

 VERNON HILLS, Ill., March 31 /PRNewswire/ -- Gynex Pharmaceuticals, Inc. (NASDAQ: GYNX) today reported results for its first year of regular revenues and the fourth quarter ended Dec. 31, 1992.
 Net sales for 1992 were $648,729, reflecting Gynex' first regular product shipments which began in the second quarter. Gynex had no sales in 1991. For the latest year, the company reported a net loss of $737,734, equal to 6 cents per share, compared with a net loss of $134,418 or 2 cents per share in 1991.
 In the fourth quarter, net sales were $267,972. This represents a 5 percent increase over net sales of $255,439 for the 1992 third quarter. The net loss for the three months was $596,418 equal to 5 cents per share, compared with a loss of $157,744, equal to 2 cents per share, for the fourth quarter last year.
 Gynex saw a significant improvement in its financial condition in 1992. Total assets increased nearly four times to $3.9 million from $1.0 million. Working capital also was about four times larger at $3.3 million from $877,000 for 1991. The company has no long-term debt. Shareholders' equity rose nearly four times as well to $3.4 million in 1992 from $925,000 for the prior year. Most of this improvement resulted from a $3.0 million equity investment received in early 1992.
 Beginning to reach important physician groups
 Commenting on the company's sales, Stephen M. Simes, president, said "Two product introductions in 1992 allowed us to cover a portion of our overhead and begin to market to the same physician groups that will be important for other products we are developing. Introducing Delatestryl(R) (injectable testosterone) in the second quarter was significant for Gynex because it gave us regular sales. We now believe near-term sales of Delatestryl will not approach the $2 million traditionally seen by Bristol-Myers Squibb, from which we licensed the product in March 1992. We also expect sales for the first quarter 1993 to be lower than the 1992 fourth quarter primarily because many of our customers stocked up on Delatestryl at year end. However, we are continuing our marketing program begun in late 1992 to increase sales long term."
 Clinical trials expand
 "Increases in expenses reported for the fourth quarter and year ended Dec. 31, 1992 compared with the prior year were due to the planned expansion of our human clinical trials in addition to sales and marketing support of Delatestryl," noted Bruce N. Barron, Gynex' vice president and chief financial officer. "We now have four Phase III studies and three Phase II studies at approximately 25 medical centers. We continue to make progress in each of these trials and expect to begin submitting New Drug Applications (NDAs) to the FDA in 1993 as the trials are completed."
 Merger with Bio-Technology General
 On March 10, 1993 Gynex announced that it signed a definitive agreement to merge with a wholly owned subsidiary of Bio-Technology General Corp. (NASDAQ: BTGC).
 Under the agreement, approved by the boards of directors of both companies, BTGC will exchange newly issued shares of its common stock in exchange for all outstanding Gynex Common Stock. This exchange will be made at a fixed rate of 0.61 BTGC shares for each Gynex share. The ratio will not vary regardless of any stock price fluctuations that occur prior to the merger's consummation. The merger is subject to approval by stockholders of each company, required regulatory approvals and other conditions. The two companies expect to finalize the transaction in early summer 1993.
 BTGC making progress on product development
 BTGC has received approval to market its human growth hormone in several European countries. The company's European growth hormone marketing partner, Ferring, expects initial sales to begin this year. BTGC believes it will receive Japanese approval soon, with sales targeted for mid-1993. U.S. approval for BTGC's human growth hormone is expected in early 1994, upon expiration of Eli Lilly's orphan drug status.
 Several other BTGC products are projected to enter the marketplace within the next one to three years. These include bovine growth hormone, porcine growth hormone, hyaluronic acid, a psoriasis agent and hepatitis B vaccine. BTGC has a number of clinical trials in these areas as well as other product indications such as use of human growth hormone in cancer and AIDS cachexia, use of superoxide dismutase in neonates to prevent development of bronchopulmonary dysplasia, and pilot clinical trials of a new thrombus imaging agent.
 Gynex Pharmaceuticals, Inc., develops and markets pharmaceutical products for use in endocrinology, urology, metabolism, AIDS and gynecology.
 Bio-Technology General Corp. is a leading biotechnology company engaged in the research, development and manufacture of genetically engineered products for human and animal healthcare.
 GYNEX PHARMACEUTICALS, INC.
 Selected Financial Data, Unaudited
 Three Months Year
 Periods ended Dec. 31 1992 1991 1992 1991
 Operating Data:
 Net sales $ 267,972 $0 $ 648,729 $0
 Cost of goods sold 34,870 0 81,483 0
 Research & development,
 net of reimbursements 541,195 56,928 1,311,182 195,919
 Selling and
 administrative 395,414 123,262 1,187,611 440,630
 Total costs and
 expenses 971,479 180,190 2,580,276 636,549
 (Loss) from
 operations (703,507) (180,190) (1,931,547) (636,549)
 Other income 107,089 22,446 1,193,813 502,131
 Net income (loss) (596,418) (157,744) (737,734) (134,418)
 Per share (.05) (.02) (.06) (.02)
 Weighted average
 shares outstanding 13,081,000 10,172,000 12,608,000 8,900,000
 BALANCE SHEET DATA
 12/31/92 12/31/91
 Working capital $3,355,553 $ 877,254
 Total assets 3,882,792 1,020,212
 Long-term debt 0 0
 Total liabilities 459,484 94,812
 Shareholders' equity 3,423,308 925,400
 -0- 3/31/93
 /CONTACT: Bruce N. Barron of Gynex, 708-913-1144/
 (GYNX)


CO: Gynex Pharmaceuticals, Inc. ST: Illinois IN: MTC SU: ERN

WB -- NY032 -- 1463 03/31/93 11:34 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Mar 31, 1993
Words:997
Previous Article:TEXTRON TO ACQUIRE THE PLASTICS OPERATIONS OF CHRYSLER CORPORATION'S ACUSTAR DIVISION
Next Article:UNITED CAPITAL CORP. REPORTS PURCHASE OF SELECTED ASSETS OF INTERNATIONAL TRANSFORMER CORPORATION
Topics:


Related Articles
GYNEX PHARMACEUTICALS REPORTS FIRST REGULAR REVENUE STREAM FOR SECOND QUARTER, SIX MONTHS
WATSON PHARMACEUTICALS REPORTS RECORD FIRST QUARTER RESULTS
IBAH, INC. ANNOUNCES THIRD QUARTER RESULTS
IBAH, INC. ANNOUNCES FOURTH QUARTER AND YEAR-END RESULTS
PHARMACEUTICAL PRODUCT DEVELOPMENT REPORTS RECORD SECOND QUARTER NET INCOME, NET REVENUES
Pharmaceutical Product Development, Inc. Files 8-K to Disclose October Results
Pharmaceutical Product Development, Inc. Reports Revenue, EPS Growth In First Quarter 1997
Pharmaceutical Product Development Reports Record Revenue And EPS For Third Quarter 1998.
Valentis Announces Fourth Quarter and Fiscal Year 1999 Financial Results.
Valentis Announces First Quarter Fiscal Year 2000 Financial Results.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters