Transcript of an interview with QLT's CFO which was on CNBC this morning.
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CNBC- SQUAWK BOX
QLT (QLTI) EXECUTIVE VICE PRESIDENT AND CFO KENNETH GALBRAITH ON THE COMPANY'S LATEST QUARTERLY NUMBERS
AUGUST 1, 2000
SUMMARY: Galbraith discusses the company's latest quarterly results. Galbraith comments on the company's profitability potential. Galbraith comments on the company's
drug Visudyne.
Mark: Canadian biotech firm QLT is out with its latest quarterly numbers. Excluding one time gains the company posted a net loss of $5.6 million American.
In the year-ago period the company lost $6 1/2 million. Revenues more than doubled to $10 million Canadian. The company focuses on pharmaceuticals that are activated when
exposed to light. Let's get more details on the company. Joining us now from Boston is Kenneth Galbraith, chief financial officer at QLT. Thank you for being with us.
Good morning.
Mark: So the losses narrowed. Do you anticipate breaking into the black here?
Yeah, we had a fantastic quarter not only did the sales exceed expectations, but we managed our cost structure. Foreign currency went in our favor and even if you strip out the
one-time gain we lost about half a cent for the quarter. So, we can't get of much closer to break even or profitability than that.
Mark: I want to make sure we understand what is going on here. The company will get to profitability and stay there?
Absolutely. If you look at the potential for Visudyne, you have just launched a breakthrough product in the U.S. with approval on Friday to launch the product in Europe. So, we
are covering 85% of the patients with AMD. This is a patient population where there are 500,000 new cases around the world and growing with the aging population. So with that
in front of us and the Visudyne is the only approved effective treatment for treating wet maculargeneration, so we are looking for several years of substantial top and bottom line
growth.
Mark: How many people get this?
There are about 500,000 new cases around the world. Including 200,000 in this country. Similar instances in the U.S. as breast cancer. This is a patient population before
Visudyne had no effective therapy their prognosis was to lose vision over several months to years. Now they have Visudyne to arrest the deterioration of the vision. We think it
will do well in Europe as it has here in the initial launch.
David Simon: Isn't there also a company the is coming out with a new product in the next four to six months that will compete with Visudyne and it is said to work better than
your product?
The only company that could compete with us in the next three to five years is Pharmacia. We have seen no clinical data on that product and there is a difference between
making claims before seeing the data and doing what we have done. Which is proving to the administration and regulators in Europe that you have a proven safe effective
therapy. So we are excited to be the only proven effective therapy in the marketplace. Given the numbers, physicians adopted our therapy quickly because it is safe and effective
and we have treated 20,000 patients in the quarter. That is an extremely high number.
Mark: Why the deal on Photofrin. You sold it for interest, right?
Yeah, we did a swap for some cash and equity interest in a company. Again we were trying to focus down as a company like ourselves when you look at this growth we will
have with Visudyne. You need to say extremely focused, to outline the cost structure and bottom line performance. Also staying focused with the management team. The fact
that we are able to have a successful launch with our partner, the eye care of Novartis and preparing a European launch. We are doing more work to expand the label. We just
wanted to remained focused and put Photofrin in good hands with equity interest. We think the product will do well.
Joe: The age-related macular generation is the leading cause of blindness among the elderly?
It is the leading cause in this country and in people over 50. It is a growth market and unfortunately it is growing at a rate of 4 to 6% every year because of the aging of the baby
boomers. Before Visudyne people were faced with this inevitable vision loss, the loss in the ability to read and write and see a face across the table. It is a patient population
that is independent, healthy and now they don't have to face the inevitable vision loss.
Joe: The idea of activating it with light. You administer the drug systematically in all the tissues and you activate the tissues you want to work what is the deal with activating it
with light?
We administer in it the arm. We wait about ten minutes and the key is turning the drug on when it accumulates in the back of the eye. There is a requirement for specific
therapy with this disease because you are talking about treating abnormal leaky blood vessels in the back of the eye without harming the normal blood vessel you need to keep
the vision. It is a specific, safe therapy only acting at the right time. When it has accumulated in the right concentration you can have a specific therapy. It is not only effective in
stopping the deterioration of vision loss, but it is safe and proved safe over the long-term with the product and in a substantial number of patient trials. That is why you are seeing
a quick adoption not only is it safe, but it is effective.
Mark: Thank you very much, we appreciate the update.
Thank you very much.
Mark: Kenneth Galbraith, chief financial officer at QLT. |
