8/9....NOVN...Net Income Up 262% Over 1999 Second Quarter; Quarterly Revenues Increase 40% Over Prior Year Period
Miami, Fla
Noven Pharmaceuticals, Inc. (Nasdaq:NOVN - news) today announced record financial results for the quarter and six-month period ended June 30, 2000.
For the quarter, Noven reported net income of $3.5 million, or diluted earnings of $.15 per share, compared to $959,000, or diluted earnings of $.05 per share, for the second quarter of 1999. Revenues were $10.5 million compared to $7.5 million for the same quarter in 1999. Noven increased its research and development spending in the second quarter to $3.6 million from $1.5 million in the second quarter of 1999, most of which related to clinical trials for MethyPatch(TM), Noven's transdermal methylphenidate patch for Attention Deficit Hyperactivity Disorder.
For the first six months of 2000, Noven reported net income of $5.3 million, or diluted earnings of $.23 per share, compared to $1.7 million, or diluted earnings of $.08 per share, for the first half of 1999. Revenues were $20.1 million compared to $15.0 million for the same period in 1999. Research and development expense for the first half of 2000 was $5.4 million, compared to $3.1 million in the same period in 1999.
As of June 30, 2000, Noven's cash and cash equivalents were $18.8 million compared to $15.3 million as of December 31, 1999.
Novogyne Pharmaceuticals, Noven's women's health joint venture with Novartis, contributed $3.3 million and $3.7 million to Noven's second quarter and first half financial results, respectively, which amounts are reported as ``Equity in Earnings of Novogyne'' on Noven's Statements of Operations.
``Strong sales of Vivelle-Dot(TM) in the U.S., together with launches of Estalis® abroad, helped Noven deliver stellar second quarter financial results,'' said Robert C. Strauss, Noven's President and CEO. ``Vivelle-Dot(TM), marketed by Novogyne, continues to show excellent prescription growth in the U.S., and Novogyne as a whole is on track for an outstanding year. Abroad, Novartis is now selling Estalis®, our combination estrogen/progestin patch, in eight countries, and additional launches are scheduled for later this year. In the second quarter, we chose to invest a significant portion of our profits in our future - our R&D and clinical programs - in order to speed the next generation of Noven products, including MethyPatch(TM), to market.''
A telephone conference among management and equity analysts relating to Noven's financial results will be broadcast live via the Internet at www.noven.com beginning at 5:00 p.m. Eastern time today, August 9. Thereafter, a rebroadcast of the call will be accessible at the same site. In addition, a taped replay of the conference call will be available by telephone beginning today at 7:30 p.m. Eastern time to August 11 at 11:59 p.m. by calling 800-475-6701 (from within the U.S.) or 320-365-3844 (from outside the U.S.) and entering the access code 531850.
Noven Pharmaceuticals, Inc., headquartered in Miami, Florida, is a leader in the development of transdermal and transmucosal drug delivery technologies and products. Noven's existing products include advanced estrogen transdermal delivery systems (including Vivelle-Dot(TM), licensed to Novogyne); combination estrogen/progestin transdermal delivery systems (including CombiPatch(TM), licensed to Aventis S.A., and Estalis®, licensed to Novartis Pharma AG); and the first transmucosal patch delivery system approved by the FDA (DentiPatch®). With a range of additional products in development, including MethyPatch(TM) (transdermal methylphenidate system), Noven is committed to becoming the world's premier developer, manufacturer and marketer of transdermal and transmucosal drug delivery systems.
Forward looking statements contained in this release are qualified by and subject to the risks and uncertainties specified by Noven in its most recent filings with the Securities and Exchange Commission, including the risks that Novogyne's results for full-year 2000 may be less than anticipated, that launches of Noven's products outside the U.S. may be delayed, and that products in research and development may not reach market in a timely fashion or at all.
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Statement of Operations Data:
(amounts in thousands, except per share amounts)
Three months ended Six months ended
June 30, June 30,
2000 1999 2000 1999
(Unaudited) (Unaudited) (Unaudited)(Unaudited)
Revenues:
Product sales $ 10,335 $ 7,437 $ 19,791 $ 14,857
License revenue 146 56 293 113
Total revenues 10,481 7,493 20,084 14,970
Expenses:
Cost of products
sold 4,512 3,361 9,023 6,605
Research and
development 3,555 1,485 5,380 3,142
Marketing, general
& administrative 2,307 1,743 4,389 3,647
Total expenses 10,374 6,589 18,792 13,394
Equity in earnings
of Novogyne 3,253 - 3,730 -
Interest income, net 267 64 467 116
Income before taxes 3,627 968 5,489 1,692
Income tax provision 153 9 188 18
Net income $ 3,474 $ 959 $ 5,301 $ 1,674
Basic earnings
per share $ 0.16 $ 0.05 $ 0.24 $ 0.08
Diluted earnings
per share $ 0.15 $ 0.05 $ 0.23 $ 0.08
Weighted average
number of common
shares outstanding:
Basic: 21,797 21,460 21,740 21,496
Diluted: 22,895 21,638 22,862 21,673
As of
June 30, December 31,
Balance Sheet Data: 2000 1999
(Unaudited) (Audited)
Cash and short-term equivalents $ 18,798 $ 15,338
Working capital $ 22,782 $ 16,581
Net property and equipment $ 15,186 $ 15,329
Investment in Novogyne $ 9,868 $ 8,365
Total assets $ 64,165 $ 56,888
Deferred license revenue $ 7,735 $ 8,028
Shareholders' equity $ 47,242 $ 39,393
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CONTACT: Noven Pharmaceuticals, Inc., Miami James B. Messiry, Chief Financial Officer 305/253-1916
SOURCE: NOVEN PHARMACEUTICALS |
