Wednesday December 22, 3:17 pm Eastern Time
Company Press Release
SOURCE: OSI Pharmaceuticals, Inc.
OSI Pharmaceuticals Reports 1999 Financial Results
UNIONDALE, N.Y., Dec. 22 /PRNewswire/ -- OSI Pharmaceuticals, Inc. (Nasdaq: OSIP - news) today announced
year-end financial results. The Company reported a net loss for fiscal 1999 of $9,798,437 or $(0.46) per share compared to a
net loss of $10,184,468, or $(0.48) per share reported for fiscal 1998. Revenues increased 16% to $22.7 million, compared
to $19.5 million in the prior year period, a trend that the Company anticipates will continue in fiscal year 2000.
''With a current cash and investment position in excess of $27 million, and over $75 million in committed funding going
forward, OSI now has the financial resources and partnerships to be a leading pharmaceutical research and development
organization,'' stated Colin Goddard, Ph.D., President and Chief Executive Officer of OSI Pharmaceuticals, Inc. ''The
Company's pipeline is strong with 45 ongoing programs, two in clinical development, and seven in advanced pre-clinical
development and we believe the Company is well-positioned as we head into fiscal 2000. The pipeline includes CP-358,774
with Pfizer, which entered large-scale, multi-center Phase II trials for cancer this past Spring and CP-609,754 which recently
entered the clinical development phase.''
The increase in revenues for fiscal year 1999 was driven principally by the expansion of the Pfizer/Anaderm program in April
for the discovery and development of cosmeceuticals, as well as the receipt of a $2 million license fee from Biochem Pharma.
Research and development expenses increased by approximately $4.6 million reflecting the expansion of the Company's drug
discovery programs and the Company's acquisition of the research and development assets of Cadus. The loss for 1999 has
been offset by a gain of approximately $3.3 million on the sale of the Company's equity interest in Anaderm to Pfizer.
Corporate Highlights
During the year, the Company purchased certain assets of Cadus Pharmaceuticals Corporation for approximately $2.2 million
in cash. The acquisition expanded the Company's pipeline of proprietary drug candidates and added a directed library of
150,000 small molecule compounds designed for drug discovery in the GPCR area. Also, by assuming operation of Cadus'
fully-equipped research facility and retaining 45 researchers, OSI has significantly strengthened its drug discovery capabilities.
The Company recorded a charge of approximately $800,000 for acquired in-process research and development in connection
with this acquisition.
In May, the Company announced that its partner Pfizer entirely financed the expansion of the program with Anaderm Research
Corp. committing up to $50 million in research and development funding to OSI. OSI is functioning as the drug discovery and
pre-clinical development arm of Anaderm. Thus far, this program has generated multiple, advanced pre-clinical candidates.
In September, the Company announced a partner-funded discovery program with Tanabe Seiyaku for diabetes that will
commence in fiscal 2000. Tanabe has outsourced the drug discovery to OSI and has committed $20 million in funding thus far.
OSI can potentially receive up to $30 million in milestones for each successful target and royalties in the future. A multi-million
dollar initiation fee was received in September for this program.
In November, the Company completed the divestiture of its diagnostics business to Bayer for $11 million, further strengthening
the Company's cash position and continuing the focusing of the business in pharmaceutical research and development.
OSI Pharmaceuticals is a leading drug discovery company with a substantial pipeline of product opportunities for
commercialization with the pharmaceutical industry. OSI's research programs are focused in the areas of cancer therapeutics,
cosmeceuticals, diabetes, and GPCR-directed drug discovery. OSI utilizes a comprehensive drug discovery and development
capability to facilitate the rapid and cost-effective discovery and development of novel, small molecule compounds in more than
40 research and development programs. OSI is involved in long-term research alliances with Pfizer, Tanabe, Novartis, Hoechst
Marion Roussel, Sankyo, and Solvay.
Additional information on OSI Pharmaceuticals is available on the World Wide Web at osip.com
This news release contains forward-looking statements. These statements are subject to known and unknown risks and
uncertainties that may cause actual future experience and results to differ materially from the statements made. Factors that
might cause such a difference include, among others, uncertainties related to the identification of lead compounds, the successful
pre-clinical development thereof, the completion of clinical trials, the FDA review process and other governmental regulation,
pharmaceutical collaborators' ability to successfully develop and commercialize drug candidates, competition from other
pharmaceutical companies, product pricing and third part reimbursement, and other factors described in OSI Pharmaceuticals'
filings with the Securities and Exchange Commission.
OSI Pharmaceuticals, Inc. and Subsidiaries
Selected Financial Information
Condensed Consolidated
Income Statements Year Ended September 30,
1999 1998
Revenues
Collaborative program
revenues principally
from related parties $18,166,693 $16,165,613
Other research revenues 994,277 1,428,853
License revenue 2,271,016 752,422
Sales 1,220,317 1,121,449
Total revenues 22,652,303 19,468,337
Expenses
Research and development 24,484,540 19,877,339
Production 1,753,474 813,464
Selling, general and
administrative 9,190,774 8,691,386
Amortization of
intangibles 1,468,801 1,460,740
Total expenses 36,897,589 30,842,929
Loss from operations ($14,245,286) ($11,374,592)
Other income(expense):
Net investment income 1,290,611 1,467,412
Other expense (134,777) (277,288)
Gain on the sale of
Anaderm common stock 3,291,015 0
Net loss ($9,798,437) ($10,184,468)
Net loss per share ($0.46) ($0.48)
Weighted average number
of shares of common
stock outstanding 21,450,812 21,372,655
Condensed Consolidated
Balance Sheet September 30, September 30,
1999 1998
Cash and short-term
investments $18,861,854 $24,418,281
Total assets $47,031,328 $50,417,980
Total stockholders'
equity $33,364,946 $43,059,246
SOURCE: OSI Pharmaceuticals, Inc. |
