For the March Quarter First Call had GNSA losing .20 a share. It looks like after one time items they lost .30. Hope the market takes this in its stride. Top line growth is good however. Roader
Gensia Sicor Reports 1997 First Quarter Results
SAN DIEGO, May 15 /PRNewswire/ -- Gensia Sicor Inc. (Nasdaq: GNSA) today
reported a net loss of $40.3 million, or $0.66 per share, in the first quarter
ended March 31, 1997 compared to a net loss of $12.8 million, or $0.36 per
share, in the first quarter of 1996. The 1997 first quarter results include the
operations of Rakepoll Holding B.V. and its subsidiaries for one month from
February 28, 1997, the date of their acquisition by Gensia Sicor, and a $29.2
million write-off of in-process research and development associated with the
acquisition of Rakepoll Holding and its subsidiaries.
Total revenues were $22.6 million in the 1997 first quarter compared to $13.6
million in the 1996 first quarter. The increase in revenues in the 1997 first
quarter over revenue levels in the 1996 first quarter is attributable to the
inclusion of one month of revenues from the Rakepoll Holding companies in the
Gensia Sicor operating results and to an increase in contract research revenue.
The Company also reported that its Board of Directors has declared a record date
of May 19, 1997 for the preferred stock quarterly dividend payment of $1.5
million payable June 1, 1997.
Product sales in the first quarter of 1997 were $19.8 million versus $12.9
million in the same period of 1996. The increase in product sales is
attributable to the inclusion of one month of sales reported by the Rakepoll
Holding companies for March. The cost of sales was $16.5 million for the first
quarter of 1997 and $8.5 million for the first quarter of 1996. The gross
margin for the 1997 first quarter decreased compared to the first quarter of
1996 principally due to increased competition with respect to certain of Gensia
Laboratories Ltd.'s multisource injectable products and to a $1.2 million
increase in the cost of sales for Rakepoll Holding products resulting from the
write-up of inventory associated with the acquisition of Rakepoll Holding. The
second quarter gross margin will also be negatively affected as the remainder of
the inventory write-up is charged to cost of sales.
Contract research and license fee revenue was $2.6 million in the first
quarter of 1997, including $1.2 million from the Company's collaboration with
Pfizer, Inc. and a $1.4 million upfront commitment fee from Sankyo Co., Ltd.
There was no contract research revenue in the first quarter of 1996.
Research and development expenses declined to $5.9 million in the 1997 first
quarter from $8.2 million in the comparable 1996 period. The decrease in the
1997 first quarter was due to the reduction of spending on the Geomatrix
nifedipine project and to the Company's expense reduction programs. Selling,
general and administrative expenses were $9.1 million in the 1997 first quarter
compared to $7.9 million in the 1996 first quarter. The increase is primarily
attributable to selling, general and administrative expenses associated with the
Rakepoll Holding companies.
At March 31, 1997 Gensia Sicor had cash and short-term investments of $27.4
million. On May 2, 1997 Gensia Sicor announced that it signed an agreement with
Health Care Capital Partners, L.P. for the private placement of $20 million in
convertible notes. The financing is expected to be completed in May.
Gensia Sicor Inc. is a specialty pharmaceutical company focused on the
development, manufacture and marketing of pharmaceutical products for the
worldwide oncology and injectable pharmaceutical markets. Gensia Sicor's
commercial pharmaceutical businesses include Gensia Laboratories, Ltd., a
California based manufacturer and marketer of multisource injectable drugs,
SICOR-Societa Italiana Corticosteroidi S.p.A. in Milan Italy, and Sintesis Lerma
S.A. de C.V. in Toluca, Mexico which produce specialty bulk drug substances, and
Lemery S.A. de C.V. in Mexico City which manufactures injectable and oral
finished multisource drug products. Gensia Sicor is transferring its
proprietary medical products business into a newly formed a subsidiary, Gensia
Automedics, Inc. In addition, Gensia Sicor has formed a subsidiary, Metabasis
Therapeutics, Inc., which conducts basic research in four primary areas: pain,
diabetes, inflammation and cardiovascular disease.
This press release contains forward looking statements that are subject to
risks and uncertainties that could cause actual results to differ materially
from those set forth in the forward looking statements, including whether Gensia
Sicor will be successful completing the financing with Health Care Capital
Partners, L.P. of $20 million in convertible notes, and the risk factors set
forth in Gensia Sicor's recent filing on Form 10-K with the Securities and
Exchange Commission. These forward looking statements represent Gensia Sicor's
judgment as of the date of this press release. Gensia Sicor disclaims any intent
or obligation to update these forward looking statements.
Gensia Sicor Inc.
Consolidated Balance Sheet Data:
(in thousands)
March 31, December 31,
Assets:
Cash and short-term investments $27,402 $21,367
Other current assets 94,997 24,353
Property and equipment, net 68,064 33,657
Other assets 7,162 8,148
Intangibles, net 103,446 2,025
Total assets $301,071 $89,550
Liabilities and stockholders' equity:
Current liabilities $92,123 $20,966
Other liabilities 15,202 585
Stockholders' equity 193,746 67,999
Total liabilities and
stockholders' equity $301,071 $89,550
Consolidated Statement of Operations Data:
(In thousands, except per share data)
Three months ended
March 31,
1997 1996
Revenue:
Product sales $19,805 $12,894
Contract research and license fees 2,563 --
Interest income 223 712
Total revenues 22,591 13,606
Costs and expenses:
Cost of sales 16,457 8,471
Research and development 5,914 8,197
Selling, general and administrative 9,084 7,927
Interest expense and other (336) 307
Amortization of goodwill 408 --
Write-off of in-process research
and development 29,200 --
Total costs and expenses 60,727 24,902
Net loss before income taxes (38,136) (11,296)
Provision for income taxes (627) --
Net loss before dividends (38,763) (11,296)
Dividends on preferred stock (1,488) (1,488)
Net loss applicable to common shares ($40,251) ($12,784)
Net loss per common share(1) ($0.66) ($0.36)
Weighted average number of common shares61,395 35,458
(1) Net loss per share of common stock is computed by dividing net loss plus
applicable preferred stock dividends paid by the weighted average number of
shares of common stock outstanding. |
