QLT announces third quarter financial results
Strong Growth in Visudyne(TM) Sales Results in First Quarter of
Profitability
VANCOUVER, Oct. 17 /CNW/ - QLT Inc.(NASDAQ: QLTI; TSE: QLT) today
reported financial results for both the third quarter and first nine months of
2000. All amounts, unless specified otherwise, are in Canadian dollars.
For the three months ended September 30, 2000, QLT reported net income of
$4,251,000 or $0.06 per common share (U.S.$0.04 per common share) compared to
a net loss of ($9,715,000) or ($0.15) per common share (U.S.($0.11) per common
share) for the same period in 1999.
"We are extremely pleased that the strong growth in Visudyne(TM) sales
has resulted in the treatment of a significant number of additional patients
with age-related macular degeneration (AMD), the leading cause of blindness
among people over the age of 50," said Kenneth H. Galbraith, QLT's Executive
Vice President and CFO.
"We were able to accomplish our corporate goal of profitability a
calendar quarter earlier than expected due to a combination of 22% growth in
Visudyne sales, strong investment and other income and lower than expected
costs."
For the nine months ended September 30, 2000, the Company reported net
income of $5,936,000 or $0.09 per common share (U.S.$0.06 per common share)
compared to a net loss of ($21,712,000) or ($0.36) per common share
(U.S.($0.26) per common share) in the same period in 1999.
"Global sales of Visudyne of approximately U.S.$31 million during the
third quarter slightly exceeded expectations due to continued growth in the
U.S. market and higher than expected contributions from European and other
markets for which approvals were recently received," said Mr. Galbraith.
"We are confident that our co-development and marketing partner, CIBA
Vision, the eye care unit of Novartis, will continue its efforts to ensure
that Visudyne is made widely available to the thousands of patients diagnosed
with this devastating condition each month in the United States, Canada,
Europe and other markets where approvals have been received."
Commercial Visudyne sales in North America represented U.S. $22 million
or approximately 71% of total Visudyne sales in the third quarter. The
remaining U.S. $9 million was related to sales in Europe and other markets.
QLT's revenue from the Visudyne business is a combination of a
manufacturing reimbursement and 50% of the net profits computed by deducting
marketing and manufacturing costs from Visudyne sales revenue.
During the quarter, the Company received a milestone payment of
$2,500,000 from Axcan Pharma relating to the sale of PHOTOFRIN(R) completed in
the second quarter of 2000.
The Company ended the quarter with approximately $270 million (U.S. $180
million) in available cash resources. The Company also has an investment of
approximately $16 million in Axcan Pharma (NASDAQ: AXPI; TSE: AXP) as a result
of the PHOTOFRIN transaction.
Long-term debt of approximately $14 million was utilized to fund a
portion of the capital cost of the Company's new headquarters and research
facilities located in Vancouver, Canada.
QLT Inc. is a world leader in the development and commercialization of
proprietary pharmaceutical products for use in photodynamic therapy, a new
field of medicine utilizing light-activated drugs in the treatment of disease.
QLT's innovative science has advanced photodynamic therapy beyond applications
in cancer towards breakthrough treatments in ophthalmology and autoimmune
disease. For more information, you are invited to visit the QLT website at
www.qltinc.com.
Visudyne(TM) is a trademark of Novartis AG
PHOTOFRIN(R) is a registered trademark of Axcan Pharma
<<
- CANADIAN DOLLARS -
QLT Inc.
(Formerly known as QLT PhotoTherapeutics Inc.)
CONSOLIDATED STATEMENTS OF OPERATIONS
-------------------------------------
(In thousands of Canadian Three months Nine months
dollars, except per share ended September 30, ended September 30,
data) 2000 1999 2000 1999
-------------------------------------------------------------------------
Revenues
Revenue from Visudyne(TM) $ 11,561 $ - $ 20,007 $ -
Royalties on product
sales - Photofrin(R) - 528 969 1,833
Contract research and
development 1,387 5,838 4,476 13,138
Revenue from collaborative
arrangements 2,500 - 2,500 754
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15,448 6,366 27,952 15,725
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Costs & Expenses
Manufacturing 3,423 - 6,436 -
Research and development 10,278 14,036 33,106 35,348
Selling, general and
administrative 3,567 2,168 8,382 6,040
Amortization 902 371 2,684 1,087
-------------------------------------------------------------------------
18,170 16,575 50,608 42,475
-------------------------------------------------------------------------
Operating Income(Loss) (2,722) (10,209) (22,656) (26,750)
-------------------------------------------------------------------------
Gain on sale of
Photofrin(R) product
rights - - 14,766 -
Investment and other
income 7,260 4,444 19,612 8,988
Interest expense (287) - (486) -
Market development and
other joint business
costs - (3,950) (5,300) (3,950)
-------------------------------------------------------------------------
Net Income(Loss) before
income tax 4,251 (9,715) 5,936 (21,712)
-------------------------------------------------------------------------
Income tax provision - - - -
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net Income(Loss) $ 4,251 $ (9,715) $ 5,936 $(21,712)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net Income(Loss) per
common share $0.06 $(0.15) $0.09 $(0.36)
-------------------------------------------------------------------------
Weighted average number
of common shares
outstanding (in
thousands) 67,200 64,000 66,600 60,500
-------------------------------------------------------------------------
All amounts shown are in Canadian dollars and presented in accordance
with Canadian GAAP. At September 30, 2000, the exchange rate was
approximately U.S. $1.00 equals Cdn. $1.5035 and the average exchange
rate for the nine months ending September 30, 2000 was approximately U.S.
$1.00 equals Cdn.$1.4717.
- CANADIAN DOLLARS -
QLT Inc.
(Formerly known as QLT PhotoTherapeutics Inc.)
CONDENSED CONSOLIDATED BALANCE SHEETS
-------------------------------------
(In thousands of Canadian September 30, December 31,
dollars) 2000 1999
-----------------------------------------------------------------------
Current assets
Cash and cash equivalents $ 90,151 $ 96,722
Short-term investment
securities 179,768 160,611
Short-term investment in Axcan
Pharma 12,275 -
Receivables, inventories and
other assets 43,277 31,972
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325,471 289,305
-----------------------------------------------------------------------
Long-term investment in Axcan Pharma 3,958 -
Property and equipment 47,553 32,260
Other assets - 200
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$ 376,982 $ 321,765
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Current liabilities $ 17,159 $ 26,438
Non-current liabilities 13,775 6,004
-----------------------------------------------------------------------
30,934 32,442
-----------------------------------------------------------------------
Shareholders' equity 346,048 289,323
-----------------------------------------------------------------------
$376,982 $321,765
-----------------------------------------------------------------------
-----------------------------------------------------------------------
As at September 30, 2000, there were 67,663,557 issued and outstanding
common shares and 5,217,067 outstanding options to purchase common
shares.
All amounts shown are in Canadian dollars and presented in accordance
with Canadian GAAP. At September 30, 2000, the exchange rate was
approximately U.S. $1.00 equals Cdn. $1.5035 and the average exchange
rate for the nine months ending September 30, 2000 was approximately U.S.
$1.00 equals Cdn.$1.4717.
- CANADIAN DOLLARS -
QLT Inc.
(Formerly known as QLT PhotoTherapeutics Inc.)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
-----------------------------------------------
Nine Months Ended
September 30,
----------------------------
(In thousands of Canadian Dollars) 2000 1999
-----------------------------------------------------------------------
Cash Provided by (Used In) Operating
Activities
Net income(loss) for the period $5,936 $(21,712)
Add(deduct) items not involving a
current cash flow:
Gain on sale of Photofrin(R)
product rights (14,766) -
Amortization 2,684 1,087
Other (1,267) -
Changes in non-cash working
capital components (26,588) 2,037
-----------------------------------------------------------------------
(34,001) (18,588)
-----------------------------------------------------------------------
Cash Provided by (Used In) Investing
Activities
Purchase of property and equipment (17,977) (16,336)
Purchase of short-term investment
securities (19,157) (98,312)
-----------------------------------------------------------------------
(37,134) (114,648)
-----------------------------------------------------------------------
Cash Provided by (Used In) Financing
Activities
Increase in long-term mortgage 13,775 -
Issuance of common shares related to:
Public share offering - 188,272
Stock options exercise 50,789 29,738
Share purchase warrant exercise - 11,725
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64,564 229,735
-----------------------------------------------------------------------
Increase (Decrease) in Cash and Cash
Equivalents (6,571) 96,499
Cash and Cash Equivalents, Beginning
of Period 96,722 74,275
-----------------------------------------------------------------------
Cash and Cash Equivalents, End of
Period $90,151 $170,774
-----------------------------------------------------------------------
-----------------------------------------------------------------------
All amounts shown are in Canadian dollars and presented in accordance
with Canadian GAAP. At September 30, 2000, the exchange rate was
approximately U.S. $1.00 equals Cdn. $1.5035 and the average exchange
rate for the nine months ending September 30, 2000 was approximately U.S.
$1.00 equals Cdn.$1.4717.
- U.S. DOLLARS -
QLT Inc.
(Formerly known as QLT PhotoTherapeutics Inc.)
CONSOLIDATED STATEMENTS OF OPERATIONS
-------------------------------------
(In thousands of U.S. Three months Nine months
dollars, except per ended September 30, ended September 30,
share data) 2000 1999 2000 1999
-------------------------------------------------------------------------
Revenues
Revenue from Visudyne(TM)
business - $ 7,803 $- $ 13,514 $ -
Royalties on product sales
- Photofrin(R) - 355 663 1,231
Contract research and
development 936 3,927 3,043 8,827
Revenue from collaborative
arrangements 1,687 - 1,687 499
--------------------------------------------------------------------------
10,426 4,282 18,907 10,557
--------------------------------------------------------------------------
Costs & Expenses
Manufacturing 2,309 - 4,346 -
Research and development 6,936 9,446 22,490 23,754
Selling, general and
administrative 2,407 1,459 5,698 4,060
Amortization 609 250 1,831 730
--------------------------------------------------------------------------
12,261 11,155 34,365 28,544
--------------------------------------------------------------------------
Operating Income(Loss) (1,835) (6,873) (15,458) (17,987)
--------------------------------------------------------------------------
Gain on sale of Photofrin(R)
product rights - - 9,984 -
Investment and other income 4,900 2,990 13,307 6,058
Interest expense (194) - (329) -
Market development and other
joint business costs - (2,658) (3,650) (2,658)
Premium on conversion value
of first preference shares - (445) - (1,332)
--------------------------------------------------------------------------
Net Income(Loss) before
income tax 2,871 (6,986) 3,854 (15,919)
--------------------------------------------------------------------------
Income tax provision -
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Net Income(Loss) $ 2,871 $ (6,986) $ 3,854 $(15,919)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Net Income(Loss) per
common share $0.04 $(0.11) $0.06 $(0.26)
--------------------------------------------------------------------------
Weighted average number
of common shares
outstanding (in thousands) 67,200 64,000 66,600 60,500
--------------------------------------------------------------------------
All amounts shown are in U.S. dollars translated using the current rate
method. At September 30, 2000, the exchange rate was approximately U.S.
$1.00 equals Cdn. $1.5035 and the average exchange rate for the nine
months ending September 30, 2000 was approximately U.S. $1.00 equals
Cdn.$1.4717.
- U.S. DOLLARS -
QLT Inc.
(Formerly known as QLT PhotoTherapeutics Inc.)
CONDENSED CONSOLIDATED BALANCE SHEETS
-------------------------------------
(In thousands of U.S. dollars, September 30, December 31,
except per share data) 2000 1999
-----------------------------------------------------------------------
Current assets
Cash and cash equivalents $59,961 $ 66,572
Short-term investment securities 119,566 110,545
Short-term investment in Axcan
Pharma 8,164 -
Receivables, inventories and other
assets 28,784 22,005
-----------------------------------------------------------------------
216,475 199,122
-----------------------------------------------------------------------
Long-term investment in Axcan Pharma 2,632 -
Property and equipment 31,628 22,204
Other assets - 138
-----------------------------------------------------------------------
$250,735 $221,464
-----------------------------------------------------------------------
------------------------------------------------------------------------
Current liabilities $ 11,413 $ 18,197
Non-current liabilities 9,162 4,132
------------------------------------------------------------------------
20,575 22,329
------------------------------------------------------------------------
Shareholders' equity 230,160 199,135
------------------------------------------------------------------------
$250,735 $221,464
------------------------------------------------------------------------
------------------------------------------------------------------------
All amounts shown are in U.S. dollars translated using the current rate
method. At September 30, 2000, the exchange rate was approximately U.S.
$1.00 equals Cdn. $1.5035 and the average exchange rate for the nine
months ending September 30, 2000 was approximately U.S. $1.00 equals
Cdn.$1.4717.
>>
QLT CONTACTS:
Ian Harper Kenneth H. Galbraith
Associate Director, Investor Relations Executive Vice President & CFO
iharper@qltinc.com kgalbrai@qltinc.com
Telephone: (604) 872-7881
1-800-663-5486
QLT Inc. is listed on The Nasdaq Stock Market under the trading symbol
"QLTI" and on The Toronto Stock Exchange under the trading symbol "QLT".
The foregoing information may contain forward-looking statements which
involve known and unknown risks, uncertainties and other factors which may
cause the actual results to be materially different from any future results,
performance, or achievements expressed or implied by such statements. Such
factors include: risks associated with the commercialization of Visudyne(TM)
therapy including patient and doctor demand for the treatment; dependence on
corporate relationships; manufacturing uncertainties; uncertainty of pricing
and reimbursement; uncertainties relating to clinical trials and product
development; QLT Inc.'s history of operating losses and uncertainty of future
profitability; competition; QLT Inc.'s rapid growth; uncertainty regarding
patents and proprietary rights; QLT Inc.'s product liability claims and
insurance; no assurance of regulatory approval; government regulation; QLT
Inc.'s uncertainty of access to capital; anti-takeover provisions; and
volatility of common share price; among others, all as described in the
Company's Annual Information Form on Form 10-K, recent and forthcoming
Quarterly Reports on Form 10-Q and other filings with the U.S. Securities and
Exchange Commission. |
