Here's today's news release:
biz.yahoo.com
Wednesday February 9, 7:00 am Eastern Time
Company Press Release
SOURCE: The Liposome Company, Inc.
Liposome Reports Record Fourth Quarter Profit of
12 Cents Per Share; ABELCET(R) Sales Set New Record for 4Q & Full
Year
PRINCETON, N.J., Feb. 9 /PRNewswire/ -- The Liposome Company, Inc. (Nasdaq: LIPO - news) today reported record
product sales, revenues, and earnings for the fourth quarter ended January 2, 2000. Total revenues for the quarter were $24.6
million compared to $21.9 million for the fourth quarter of 1998, an increase of 12%. Net income for the fourth quarter of
1999 was $4.8 million, or $0.12 per share on a fully diluted basis, compared to a net income of $1.5 million, or $0.04 per
share, in the fourth quarter of 1998, an improvement of $0.08 per share. Year-to-date revenues totaled $92.5 million versus
$77.9 million for the comparable 1998 period, an increase of 19%. The year-to-date net income was $13.1 million, or $0.32
per share on a fully diluted basis, compared to the 1998 net loss of $4.7 million, or $0.12 per share, an improvement of $17.8
million or $0.44 per share. Net income for fourth quarter and full-year 1999 excludes the impact of the receipt of $3.0 million
from the sale of New Jersey state net operating loss carryforwards.
''1999 marks the first profitable year in the Company's nineteen year history,'' said Charles A. Baker, Chairman and Chief
Executive Officer. ''We continue to see excellent growth in ABELCET® sales, expansion of operating margins and
tremendous potential to leverage our sales and manufacturing infrastructure.''
Fourth quarter worldwide revenues of ABELCET® (Amphotericin B Lipid Complex Injection) increased 12% to $23.1 million
compared to $20.6 million in the fourth quarter of 1998. In the United States, fourth quarter sales exceeded last year's by $1.8
million, or 11%. This increase is due to the continuing penetration of the conventional amphotericin B marketplace resulting
from the increased safety and efficacy profile of the drug. Based on the latest independent market data available, ABELCET®
continues to hold a leading share of the lipid based amphotericin B products sold in the United States. International sales during
the fourth quarter of 1999 increased by $0.7 million or 17%, primarily due to the 1999 launches in Australia and Turkey,
versus the comparable prior year period. Worldwide unit sales of ABELCET® in the fourth quarter exceeded the comparable
prior year period by 8%.
Worldwide revenues of ABELCET® for 1999 were $86.2 million versus $73.5 million, an increase of $12.7 million or 17%
higher than the prior year. U.S. sales for 1999 totaled $69.1 million, an increase of $10.2 million over the prior year.
International sales totaled $17.1 million, an increase of $2.5 million over the prior year. Worldwide unit sales volume for 1999
exceeded the prior year by 18%.
Total expenses in the fourth quarter were $19.4 million compared to $20.4 million in the prior year quarter. Total cost of goods
sold in the fourth quarter 1999 decreased by $0.1 million or 2% versus 1998. Gross margin was 76.5% in fourth quarter 1999
compared to 73.0% in 1998, an improvement of 3.5 points. The reasons for this improvement are related to an increase in the
average selling price and continuing manufacturing efficiencies. For the twelve months ended January 2, 2000, the gross margin
increased to 76.5% versus 71.7% in 1998. This improvement is due to higher 1999 manufacturing volume and efficiencies from
the Indianapolis facility.
Research and development expenses of $5.4 million increased $0.3 million from the comparable 1998 quarter. The increase
was principally due to additional clinical trial activity during the fourth quarter of 1999. For the year 1999, R&D expense was
lower than prior year by approximately $0.9 million. This was principally due to the completion of the Phase III EVACET(TM)
clinical trials in 1998.
Selling, general and administrative expenses were $8.4 million in the fourth quarter of 1999 versus $9.5 million in 1998, a
decrease of $1.1 million. For the year 1999, the decrease versus 1998 was $2.3 million. These decreases were principally due
to reduced marketing expenses in Europe and lower domestic depreciation and insurance costs.
Inventories of $6.1 million increased by 9% from their level of $5.6 million at the end of 1998. Accounts receivable increased
by $0.9 million from their 1998 year-end level due to the increase in sales in fourth quarter 1999. The Company's cash and
marketable securities totaled $76.8 million at year-end compared to $54.3 million at the end of 1998, an increase of $22.5
million. The increase in cash and marketable securities was principally due to positive cash flow from operations and continued
good working capital management. The increase marks the seventh consecutive quarter of positive cash flow for the Company.
In other news, the Company announced that it has hired Warburg Dillon Read to advise the Company on strategic alternatives
that might include merger, acquisition and/or product in-licensing opportunities.
The Liposome Company is a biopharmaceutical company developing, manufacturing and marketing therapeutic products to
treat cancer and related diseases. ABELCET® is marketed in the U.S. and 24 other countries for the treatment of severe,
systemic fungal infections in patients who are refractory to or intolerant of conventional therapy and is the leading lipid-based
formulation of amphotericin B in this country. The Company's product pipeline includes EVACET(TM), TLC ELL-12 and
bromotaxane for the treatment of various cancers and programs focused on the development of new cancer therapies and
vehicles for the delivery of gene therapy.
Except for historical information, this press release contains forward- looking statements that involve risks and uncertainties,
including, but not limited to, statements regarding future sales growth prospects for ABELCET®, the ability of ABELCET® to
maintain its position as the leading lipid-based formulation of amphotericin B in the U.S., the uncertainty that the Company's
financial advisors can identify attractive strategic alternatives, the likelihood that EVACET(TM), TLC ELL-12 or any other
product in the research pipeline can receive regulatory approval in the U.S. or abroad or be successfully developed,
manufactured and marketed and the uncertainty of future profitability. While these statements reflect the Company's best
current judgment, they are subject to risks and uncertainties that could cause actual results to vary, including the risk factors
identified in the Company's 1998 Form 10-K filing and from time to time in the Company's other filings with the Securities and
Exchange Commission.
This release and other company information is available at lipo.com.
THE LIPOSOME COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands Except Per Share Data)
Three Months Ended Year Ended
1/2/00 1/3/99 1/2/00 1/3/99
Product sales $23,143 $20,610 $86,203 $73,495
Interest, investment
and other income 1,479 1,292 6,267 4,373
Total revenues 24,622 21,902 92,470 77,868
Cost of goods sold 5,429 5,562 20,284 20,805
Research and
development expense 5,433 5,148 25,517 26,441
Selling, general and
administrative expense 8,383 9,472 32,277 34,535
Interest expense 109 174 551 773
Total expenses 19,354 20,356 78,629 82,554
Net income/(loss)
before taxes $5,268 $1,546 $13,841 $(4,686)
Provision for income
taxes $490 $-- $790 $--
Net income/(loss) $4,778 $1,546 $13,051 $(4,686)
Net income/(loss)
per share (basic) $0.12 $0.04 $0.34 $(0.12)
Net income/(loss)
per share (diluted) $0.12 $0.04 $0.32 $(0.12)
Weighted average
number of shares
outstanding (basic) 39,140 38,254 38,825 38,172
Weighted average
number of shares
outstanding (diluted) 40,298 39,856 40,284 38,172
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
January 2, January 3,
2000 1999
Cash and short-term investments $71,341 $42,413
Accounts receivable, net 6,208 5,340
Inventories 6,118 5,566
Other current assets 1,308 1,826
Property, plant and equipment, net 19,977 23,165
Restricted cash 5,522 11,930
Other assets, net 284 334
Total assets $110,758 $90,574
Current liabilities $17,646 $13,744
Other liabilities 2,383 5,089
Stockholders' equity 90,729 71,741
Total liabilities and
stockholders' equity $110,758 $90,574 |
