Headline: Zonagen Reports Fourth Quarter and 1998 Year-End Results
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THE WOODLANDS, Texas--(BW HealthWire)--Feb. 15, 1999--Zonagen
Inc. (NASDAQ:ZONA)(PCX:ZNG) today announced the Company's financial
results for the fourth quarter and fiscal year ending Dec. 31, 1998.
The Company reported fourth quarter total revenues of $1.4
million for the period ending Dec. 31, 1998, compared to $12
million in the same period last year. Research and development
expenses for the three-month period declined to $5.6 million compared
to $7.7 million for the same period last year, due to a reduction in
the contracted costs associated with Vasomax(R) subsequent to the July
submission of the New Drug Application. Sales, general and
administrative expenses fell to $1.3 million from $1.7 million for the
same period last year. The net loss for the period was $6.0 million,
or ($0.53) per share, versus net income of $1.9 million, or $0.16 per
share for the same period last year.
For the twelve months ending Dec. 31, 1998, the Company reported
total revenues of $16.7 million compared to $15.4 million in the
previous year. Total revenues in 1998 included $163,000 in royalties
on sales of Vasomax(R) by Schering-Plough Corporation (NYSE:SGP)
following product launch in Mexico. During 1998 the Company received a
total of $10 million in milestone payments from Schering-Plough for
the completion of certain developmental goals for Vasomax(R). Research
and development expenses for the year were $22.4 million compared to
$22.3 million for the same period last year. Selling, general and
administrative expenses rose to $4.2 million from $3.8 million last
year. The net loss for the year was $12.3 million, or ($1.09) per
share, as compared to $13.2 million, or ($1.46) per share last year.
"We look back on 1998 as a year of great accomplishment," said
Joseph S. Podolski, president and chief executive officer of Zonagen.
"During the past twelve months we filed our first New Drug Application
in the U.S. for Vasomax(R), Zonagen's rapidly disintegrating oral
formulation of phentolamine mesylate for male erectile dysfunction.
Zonagen is pleased that Schering-Plough launched Vasomax(R) in Mexico,
however until the product is approved and launched on a broader basis,
we expect royalty payments to reflect a certain amount of promotional
activity and inventory stocking. We begin 1999 in a strong financial
position and look forward to a successful global launch of Vasomax
following regulatory approvals."
On Dec. 31, 1998, the Company reported a cash balance of $51.2
million. As of Dec. 31, 1998 common shares outstanding were
11,205,840, which reflects the effect of a $10 million stock
repurchase program authorized by the Board of Directors on Dec. 12,
1997. To date the Company has repurchased 415,300 shares at a weighted
average price of $18.02 per share.
Zonagen Inc. is engaged in the development of pharmaceutical
products for the reproductive system, including sexual dysfunction,
urology, contraception and fertility. Through its wholly owned
subsidiary, Fertility Technologies Inc. (FTI), Zonagen sells devices,
instruments and supplies to fertility specialists, obstetricians and
gynecologists.
A copy of this press release may be obtained via facsimile by
dialing 888/329-0920 or via the Internet by accessing www.zonagen.com.
Any statements that are not historical facts contained in this
release are forward looking statements that involve risks and
uncertainties, including but not limited to those relating to the
uncertainties related to the Company's early stage of development,
clinical trial results and FDA approval in the U.S. and approval of
regulatory authorities in other jurisdictions, substantial dependence
on one product, history of operating losses, future capital needs and
uncertainty of additional funding, uncertainty of protection for
patents and proprietary technology, litigation, governmental
regulation, limited sales and marketing experience and dependence on
collaborators, manufacturing uncertainties and reliance on third
parties, competition and technological change, product liability and
availability of insurance, and other risks identified in the Company's
Annual Report on Form 10-K for the year ended Dec. 31, 1998, as filed
with the Securities and Exchange Commission.
*T
ZONAGEN INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ -------------------
1998 1997 1998 1997
---- ---- ---- ----
(unaudited)(unaudited)
Revenues
Product sales $711 $999 $3,309 $3,456
Licensing fee - 10,000 10,000 10,000
Product royalties (4) - 163 -
Interest income 660 1,038 3,205 1,960
------ ------ ------ ------
Total revenues 1,367 12,037 16,677 15,416
Costs and Expenses
Cost of products sold 446 659 2,188 2,312
Research and development 5,600 7,719 22,438 22,299
Selling, general and
administrative 1,259 1,721 4,153 3,756
Interest expense and
amortization of intangibles 52 58 214 222
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Total costs and expenses 7,357 10,157 28,993 28,589
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Net income (loss) $(5,990) $1,880 $(12,316) $(13,173)
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Income (loss) per share:
Basic and diluted $(0.53) $0.16 $(1.09) $(1.46)
Shares used in income (loss)
per share calculation:
Basic and diluted 11,205 11,402 11,275 9,044
CONSOLIDATED BALANCE SHEETS
December 31, 1998
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Current assets $56,129
Fixed assets (net) 907
Other assets (net) 1,606
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Total Assets $58,642
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Accounts payable and
accrued liabilities $5,252
Notes payable 3
Shareholder's equity 53,387
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Total Liabilities and
Shareholder's Equity $58,642
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*T
CONTACT: Zonagen Inc., The Woodlands
Jean Anne Mire, 281/719-3491
KEYWORD: TEXAS
INDUSTRY KEYWORD: BIOTECHNOLOGY MEDICINE EARNINGS
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