Report available here in PDF -
drugroyalty.com
I'll get around to looking at it eventually.
nig
(edit)
Last quarter -
JANUARY 7, 2002 - 08:02 EST
Drug Royalty Reports Strong Growth In First Quarter
TORONTO, ONTARIO--Drug Royalty Corporation Inc. ("DRC") today
announced strong results for its first quarter of fiscal 2002
ended November 30, 2001 that included several key measures of
annual performance.
Among the financial highlights for the first quarter of 2002:
* Royalty revenue increased 22% to $5.7 million
* Net earnings increased 15% to $1.7 million
* Cash Flow from Operations grew by 10% to $4.4 million
"Our solid growth is the direct result of our focused business
strategy of identifying and negotiating profitable royalty
agreements," said Jim Webster, President of Drug Royalty. "With a
proven track record and strong financial position in place, Drug
Royalty will continue to seek opportunities to increase
shareholder value."
Royalty revenue for the quarter ended November 30, 2001 grew 22%
to $5.7 million compared with $4.7 million in the same quarter
last year. Total revenue was $6.0 million compared with $5.5
million in the prior year. Last year's revenue contained a
non-recurring gain from a break-up fee. Net earnings increased 15%
to $1.7 million versus net earnings of $1.4 million reported in
the first quarter of 2001.
The Company's robust financial performance helped to enhance its
balance sheet. Cash flow from operations grew 10% to $4.4 million
or $0.11 per share compared with $3.9 million or $0.10 per share
reported in the prior year period. At the end of November 2001,
Drug Royalty's working capital was $29 million, of which $26
million was cash. Drug Royalty remains free of debt.
Drug Royalty's growth is primarily attributable to two new
investments made during 2001 and early fiscal 2002, Johnson and
Johnson's Remicade(R) and Celgene's Thalomid(R). The increase in
royalty revenues also reflects the launch of Mylan's generic
paclitaxel product in July 2001, an early investment in the
commercialization of generic paclitaxel, which was partially
offset by the decline in royalties from Bristol-Myers' Taxol(R).
In first quarter of 2002, Drug Royalty had a number of positive
developments in its royalty portfolio. These events are expected
to drive future growth of the Company:
* Acambis plc announced a new contract with the U.S. Centers for
Disease Control where it would supply 155 million doses of the
smallpox vaccine for US$428 million to be delivered by the end of
2002. This would be in addition to a contract signed in 2000 for
54 million doses, valued at US$343 million. Drug Royalty has a
broad royalty interest in Acambis revenues.
* Celgene Corporation announced a licensing agreement with
Pharmion Pharmaceuticals and Penn Pharmaceutical Services Limited
to expand Thalomid(R)'s international expansion. DRC earns a
percentage of worldwide sales of Thalomid.
* Subsequent to the quarter-end, Schering-Plough Corporation
(NYSE: SGP) announced that CLARINEX(R) (desloratadine) 5 mg
Tablets received marketing clearance from the U.S. Food and Drug
Administration (FDA) for the treatment of seasonal allergic
rhinitis (SAR) in adults and children 12 years of age and older.
CLARINEX is a new antihistamine that is said by Schering-Plough to
provide 24-hour relief from the symptoms of SAR. An H-1 receptor
antagonist, CLARINEX Tablets taken once daily in clinical trials
significantly reduced total symptom scores of the nasal and
non-nasal symptoms of seasonal allergies. Drug Royalty has a
royalty interest in the worldwide sales of CLARINEX that it
acquired in late 1999 for $7 million.
The Company's Annual Meeting of Shareholders will be held at the
Toronto Stock Exchange Conference Centre on Tuesday, February 12,
2002 at 10:00 a.m.
About Drug Royalty Corp. Drug Royalty Corporation Inc. profits
from the growth of the global healthcare market by acquiring
royalty streams generated from pharmaceutical products. Drug
Royalty is building an international royalty portfolio of
high-growth pharmaceutical products.
The Company's common shares trade on The Toronto Stock Exchange
under the symbol DRI. This release and other information about
Drug Royalty Corporation Inc. can be found on their website at
www.drugroyalty.com.
Drug Royalty cannot guarantee that any predictions, forecasts and
other forward-looking statements in this news release will
materialize. Nor is it possible for the company to commit itself
to updating information about risks and other factors pertaining
to its business that might appear in this or any other
public-disclosure documents it publishes. For further information
contact:
/T/
DRUG ROYALTY CORPORATION INC.
3 Months Ended
Nov. 30, 2001 Nov. 30, 2000
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Revenues
Royalties $ 5,739,530 $ 4,712,274
Fees and gain on sale of royalty
interests - 500,869
Interest and other 261,575 328,987
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6,001,105 5,542,130
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Expenses
General & administration 667,695 645,666
Amortization, write-downs and
provisions 2,693,245 2,418,288
Financial 5,591 5,131
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3,366,531 3,069,085
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Earnings Before Income Taxes 2,634,574 2,473,045
Income taxes 977,668 1,029,452
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Net Earnings 1,656,906 1,443,593
Retained Earnings - Beginning of
Quarter 27,824,067 21,581,536
Excess of redemption price of
capital stock (30,828) -
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Retained Earnings - End of
Quarter $ 29,450,145 $ 23,025,129
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Basic Earnings Per Share $ 0.04 $ 0.04
Cash Flow from Operations $ 4,350,151 $ 3,945,381
Basic Cash Flow from
Operations Per Share $ 0.11 $ 0.10
Weighted Average Number
of Shares Outstanding 40,608,939 40,658,006
As at Nov. 30, As at Nov. 30, As at Aug. 31,
2001 2000 2001
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Working Capital $29,301,655 $22,357,510 $29,564,170
Royalty Interests $52,526,272 $50,532,177 $50,563,448
Shareholders' Equity $82,706,428 $76,291,177 $81,050,548
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