The Liposome Company Reports First Quarter Operating
Results - ABELCET(R) Unit Sales Increase By 54 Percent
-
PRINCETON, N.J., April 28 /PRNewswire/ -- The Liposome Company, Inc. (Nasdaq: LIPO -
news) today reported financial results for the first quarter ended March 29, 1998. Total revenues for
the quarter were $17.1 million compared to $15.9 million for the first quarter of 1997. Net loss for
the first quarter of 1998 was $5.1 million, or $0.13 per share, compared to a loss of $4.5 million, or
$0.12 per share, in the first quarter of 1997.
First quarter sales of ABELCET(R) (Amphotericin B Lipid Complex Injection) increased 11.4
percent to $16 million compared to $14.4 million in the first quarter of 1997. Unit sales of the drug
were 54 percent greater than the comparable 1997 quarter due to increased market penetration in
the United States and several European countries such as France and Italy. According to Charles A.
Baker, Chairman and Chief Executive Officer, ''ABELCET(R) continues to maintain its position as
the leading lipid-based formulation of Amphotericin B in the U.S. despite intense competition. Our
international business continues to increase through the introduction of ABELCET(R) into new
markets and from increasing efforts in those markets in which we already have a presence.''
Total expenses in the first quarter were $22.2 million compared to $20.3 million in the comparable
prior year quarter. The gross margin on 1998 product sales was 70.1 percent compared to 76.0
percent for the comparable prior period but represented a considerable improvement over the 59.2
percent for the fourth quarter of 1997 due to the realization of large-scale manufacturing efficiencies
at the Company's high volume facility in Indianapolis. The gross margin on first quarter 1998 product
sales was lower than that in the first quarter of last year because of the targeted pricing program
adopted in the U.S. market in May of 1997. Last week, the Company announced that its
Indianapolis site will begin manufacturing Astra's M.V.I.(R)-12 Unit Vial under a new three-year
contract. Future partnerships are presently being sought.
During the first quarter of 1997, ABELCET(R) was manufactured at the Company's Princeton, New
Jersey facility which has been reoriented to the production of clinical supplies. Selling, general and
administrative expenses were $8.9 million in the first quarter of 1998, a decrease of 5.2 percent over
the 1997 first quarter. This decrease was primarily due to a reduction in legal expenses associated
with certain patent litigation which was settled last year.
Research and development expenses increased to $8.3 million versus $7.3 million over the
comparable 1997 quarter as the Company continued its efforts on research and product
development programs for the treatment of different types of cancers. The increase in research and
development spending was primarily due to enhanced clinical development activities relating to the
Phase III studies of EVACET(TM) (formerly TLC D-99), a treatment for metastatic breast cancer,
for which the Company expects to file an NDA in the second half of this year, as well as preclinical
toxicology studies of TLC ELL-12, liposomal ether lipid, which can be used to treat various cancers.
The Company will be presenting the interim data from its Phase III clinical trials of EVACET(TM) to
the field's leading researchers at this year's conference of the American Society of Clinical Oncology
to be held in May. The Company will discuss the clinical studies and scientific advantages of
EVACET(TM) with members of the medical community and breast cancer advocacy groups.
As planned, inventories at $9.2 million declined by 13 percent from their level on December 28,
1997, as the Company realized manufacturing efficiencies as a result of the shift to production of
ABELCET(R) at its Indianapolis facility. Accounts receivable increased due to the overall growth in
sales of ABELCET(R) during the first quarter of 1998 versus the fourth quarter of 1997, including a
greater mix of international receivables which typically have longer payment terms. The Company
had $44.4 million in cash and marketable securities at the end of the first quarter compared to $45.5
million at December 28, 1997.
The Liposome Company is a broad-based biopharmaceutical company dedicated to developing and
marketing products based on its knowledge of lipid technology. ABELCET(R) (Amphotericin B
Lipid Complex Injection) is marketed in the U.S. and 18 other countries for the treatment of severe
systemic fungal infections. EVACET(TM) (formerly TLC D-99, liposomal doxorubicin) and other
products are being developed to treat various cancers. The Company is also conducting research in
the area of bioactive lipids for their potential therapeutic activity.
Except for historical information, this press release contains forward- looking statements that involve
risks and uncertainties, including, but not limited to, statements regarding the sales growth prospects
for ABELCET(R), the filing of an NDA for EVACET(R) and the ability of EVACET(R), TLC
ELL-12 or any other product to be developed successfully or to gain marketing approval. While
these statements reflect the Company's best current judgment, they are subject to risks and
uncertainties that could cause actual results to vary, including the risk factors identified in the
Company's recently filed Form 10-K and the Company's other SEC filings.
This press release and other company information is also available at lipo.com.
THE LIPOSOME COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands Except Per Share Data)
(Unaudited)
Three Months Ended
3/29/98 3/30/97
Product sales $16,044 $14,405
Research and development revenues 0 900
Interest, investment
and other income 1,050 549
Total revenues 17,094 15,854
Cost of goods sold 4,799 3,450
Research and development
expense 8,292 7,315
Selling, general and
administrative expense 8,869 9,357
Interest expense 211 201
Total expenses 22,171 20,323
Net loss applicable to
Common Stock $(5,077) $(4,469)
Net loss per share applicable to
Common Stock
(basic & diluted) $(0.13) $(0.12)
Weighted average number of
common shares
outstanding (basic & diluted) 37,846 36,132
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
(Unaudited)
March 29, 1998 December 28, 1997
Cash and short-term
investments $29,484 $30,595
Accounts receivable, net 8,554 7,150
Inventories 9,160 10,530
Other current assets 1,548 1,250
Long-term investments 3,000 3,000
Property, plant
and equipment, net 26,044 26,652
Restricted cash 11,930 11,930
Other assets, net 378 393
Total assets $90,098 $91,500
Current liabilities $13,935 $10,959
Other liabilities 6,903 6,879
Stockholders' equity 69,260 73,662
Total liabilities and
stockholders' equity $90,098 $91,500
SOURCE: Liposome Company, Inc. |
