Flamel Technologies Announces Third Quarter Results
Thursday October 30, 9:16 am ET
Partnership with Bristol-Myers-Squibb on Basulin and Improved Balance Sheet
biz.yahoo.com
Conference Call to Discuss Earnings Scheduled for 4:15 p.m. EST October 30, 2003. Dial-in Number is 800-374-1498; Conference ID 3757634 International Dial-in Number is 706-634-7261.
LYON, France--(BUSINESS WIRE)--Oct. 30, 2003-- Flamel Technologies (Nasdaq:FLML - News) today announced its financial results for the third quarter of 2003.
For the third quarter, Flamel reported total revenues of $5.4 million, compared to $6.3 million in the third quarter of 2002. Expenses increased to $7.3 million, from $4.1 million in the third quarter of 2002, largely as a result of increased research and development and clinical studies and a 20% increase in the value of the Euro against the U.S. dollar during the 12 month period. Net loss in the third quarter of 2003 was $1.87 million, compared to a net profit of $2.4 million in the third quarter of last year. Net income per share for the third quarter of 2003 was ($0.11), compared to a net profit per share in the third quarter of 2002 of $0.15. Cash on hand at the end of the third quarter was $22.1 million, with an additional $4.3 million in accounts receivable, versus $14.6 million, with an additional $2.9 million in accounts receivable at the end of the third quarter a year ago.
Flamel's third quarter revenues included license and research revenues of $4.2 million, which included revenues from research contracts, but no milestones. License and research revenues in the third quarter of 2002 of $5.4 million included a $4 million milestone payment from Servier. Revenues from product sales and services increased slightly to $0.9 million, compared to $0.7 million in the third quarter of 2002, reflecting diminished services to Corning and increasing contract manufacturing revenues. Other revenues remained stable at $0.2 million. Costs and expenses of Flamel's research and development increased to $7.3 million, from $4.1 million in the third quarter of 2002, largely as a result of increasing clinical and preclinical study work, primarily related to projects developed internally, as well as the increase of 20% in the value of the Euro against the U.S. dollar during the twelve month period. Costs of goods and services sold increased to $0.9 million, compared to $0.5 million a year ago, in large part in conjunction with increased revenues in this category. SG&A increased to $1.4 million from $0.7 million, largely as a result of additional expenses related to the secondary offering completed in October.
"We are very pleased and excited to work on the development of Basulin® with Bristol-Myers-Squibb. We feel confident that they will be an excellent partner. As planned, the Phase II(a) study on Basulin® has commenced," said Dr. Gerard Soula, president and chief executive officer of Flamel Technologies S.A. "We continue actively the development of Medusa® for other proteins and Micropump for small molecules."
Stephen Willard, chief financial officer of Flamel, commented: "Our research and development income increased substantially compared to a year ago as we perform work for a variety of partners under license. The research and development income in the third quarter of 2002 was largely the result of receipt of a $4 million milestone payment from Servier. Expenses increased year-over-year as we have increased our budget for research and development and preclinical studies to reflect work on a number of new projects."
Mr. Willard also noted: "Our cash position to date has also improved significantly. As a result of the exercise of warrants, the addition of approximately $61 million from our recent secondary offering, and the $20 million upfront payment from BMS which is expected shortly, we project that we will have, upon receipt of that payment, approximately $100 million of cash on our balance sheet. On an operating basis, we expect to be cash flow positive for the year 2003."
Flamel Technologies, S.A. is a biopharmaceutical company principally engaged in the development of two unique polymer-based delivery technologies for medical applications. Flamel's Medusa® technology is designed to deliver therapeutic proteins. Micropump® is a controlled release and taste-masking technology for the oral administration of small molecule drugs.
Flamel's expertise in polymer science has also been instrumental in the development of a photochromic eyeglass lens product now marketed by Corning Inc.
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Schedule Follows
Schedule
Three months Nine months
ended ended
September 30, September 30,
-----------------------------------
2002 2003 2002 2003
-------- -------- -------- --------
Revenue :
License and research revenue $5,441 $4,245 $10,801 $10,504
Product sales and services 653 899 1,967 2,800
Other revenue 183 222 718 594
-------- -------- -------- --------
Total revenue 6,277 5,366 13,486 13,898
-------- -------- -------- --------
Costs and expenses :
Cost of goods and services sold (457) (883) (1,538) (2,694)
Research and development (2,929) (4,989) (8,624) (13,514)
Selling, general and
administrative (745) (1,467) (2,536) (3,818)
Stock compensation expense (3) (10) (13) (14)
-------- -------- -------- --------
Total costs and expenses (4,134) (7,349) (12,711) (20,040)
-------- -------- -------- --------
Profit (loss) from operations 2,143 (1,983) 775 (6,142)
Other income 80 (8) 2,476 999
Interest income (expense), net 78 65 156 207
Foreign exchange gain (loss) 72 57 (75) (236)
-------- -------- -------- --------
Income tax benefit (20)
======== ======== ======== ========
Net loss $2,373 $(1,869) $3,332 $(5,192)
======== ======== ======== ========
Earnings (loss) per ordinary
shares
Basic $0.15 $(0.11) $0.21 $(0.27)
Diluted $0.14 $(0.11) $0.19 $(0.27)
Weighted average number of
ordinary shares
outstanding (in thousands)
Basic 16,198 19,292 16,198 19,292
Diluted 16,711 19,292 16,711 19,292
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