3rd Quarter results out!
(PR NEWSWIRE) Pharmos Corporation Reports 1999 Third Quarter Results; Reve
Pharmos Corporation Reports 1999 Third Quarter Results; Revenue Growth Cuts Net
Loss 19%
ISELIN, N.J., Nov. 8 /PRNewswire/ -- Pharmos Corporation (Nasdaq: PARS)
today reported that a ninefold increase in revenues from product sales drove a
19% decrease in its net loss in the third quarter ended September 30, 1999,
compared to the 1998 third quarter. The Company reported a net loss of
$972,285, or $0.02 per share, in the 1999 third quarter compared to a net loss
of $1,202,144, or $0.03 per share, in the 1998 third quarter. Product sales
increased over 800% to $833,118 in the 1999 third quarter compared to product
sales of $90,743 in the 1998 third quarter.
"We are very pleased with our top-line performance and decreased loss,"
said Dr. Haim Aviv, Pharmos' Chairman and CEO. "The growing revenue stream
from our LE products has become a very important source of cash to support the
Company's operations. We look forward to the day when revenues from these
products will cover our operating expenses." Pharmos' two commercial
products, Lotemax(R) and Alrex(R), both for ophthalmic application, were
launched in June 1998 with the Company's marketing partner, Bausch & Lomb
Pharmaceuticals, a subsidiary of Bausch and Lomb Incorporated (NYSE: BOL).
The 1998 third quarter was the first full reporting period of commercial
operations for Pharmos.
Net loss in the quarter improved despite an 18% increase in operating
expenses in the current period compared to the year-ago period. Operating
expenses increased primarily due to an increase in activities focused on the
development of dexanabinol for traumatic brain injury (TBI), and also due to a
modest increase in general and administrative expenses, attributed to one-time
facility costs and employee benefits.
For the nine months ended September 30, 1999, product sales increased 106%
to $2,024,329, compared to product sales of $983,899 for the prior-year
period, which included initial shipments into the wholesale distribution chain
in advance of the products' marketing launch. Net loss for the nine months
ended September 30, 1999 decreased 6% to $3,308,461, or $0.08 per share
compared to a net loss of $3,535,804, or $0.12 per share in the prior year
period.
The clinical advantages of Lotemax over competing products, together with
the marketing capabilities of Bausch & Lomb, have spurred a steady increase in
the market penetration of the drug. According to IMS Health Data, at the end
of September 1999, Lotemax, an anti-inflammatory, had captured a 7.5% market
share for new prescriptions among ophthalmologists compared to 3.7% at the end
of September 1998. During the summer, Alrex, an anti-allergy product, broke
the 9% market share level for new prescriptions among ophthalmologists. "We
are pleased that, despite anticipated seasonal declines from the second
quarter of 2% for the anti-inflammatory market and 15% in the anti-allergy
market, both Lotemax and Alrex gained market share," said Dr. Aviv.
Pharmos' improved financial performance during the quarter helps advance
the Company's business strategy, which emphasizes the building of a stream of
recurring revenues to support Pharmos' pipeline of innovative products.
Current activities at the discovery stage, which reflect the sophistication of
Pharmos' combinatorial chemistry capabilities, include work with dexanabinol
and its congeners for stroke and Parkinson's Disease, and other enhanced
compounds for neuropathic pain and cancer of the breast and prostate.
Pharmos' pipeline also includes novel drug delivery designs such as its
Submicron Emulsion technology for which the Company recently received
additional patent protection.
Pharmos is intensifying its efforts to maximize the value of its existing
products and technologies in the marketplace, to grow its business via
strategic opportunities, and to better position itself to source or license
new products and technologies. As a first step in this effort, Pharmos has
determined that additional business development and marketing resources are
required. A new position responsible for Business Development has been
created, and the Company expects to have a candidate identified for the
position by year-end.
Pharmos Corporation develops and commercializes Enhanced Molecular
Structures (EMS) for the ophthalmic, neurological and other key healthcare
markets. Through EMS activity, the Company improves target molecules to limit
or remove undesirable side effects while retaining each compound's important
therapeutic benefits.
Statements made in this press release related to operational expectations
of the Company, to the continued market penetration of its drug products, and
to the development and commercialization of the Company's pipeline products
are forward-looking and are made pursuant to the safe harbor provisions of the
Securities Litigation Reform Act of 1995. Such statements involve risks and
uncertainties which may cause results to differ materially from those set
forth in these statements. Additional economic, competitive, governmental,
technological, marketing and other factors identified in Pharmos' filings with
the Securities and Exchange Commission could affect such results.
Pharmos Corporation Financial Highlights
Condensed Statements of Operations
For the Three Months Ended For the Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1999 1998 1999 1998
Revenues
Product sales $833,118 $90,743 $2,024,329 $983,899
License fee 0 1,663 0 351,663
833,118 92,406 2,024,329 1,335,562
Cost of goods sold 265,649 32,447 564,444 372,299
Gross margin 567,469 59,959 1,459,885 963,263
Expenses
R&D, net 839,390 675,807 2,591,722 2,738,259
Selling, general &
administrative 599,174 552,467 1,844,477 1,712,941
Patents 61,781 55,675 153,174 168,007
Depreciation &
amortization 85,353 64,002 253,464 167,717
Total operating
expenses 1,585,698 1,347,950 4,842,837 4,786,924
Other income
(expense), net 45,944 85,848 74,491 287,857
Net loss (972,285) (1,202,144) (3,308,461) (3,535,804)
Preferred dividends
& embedded discount (246) (62,500) (22,253) (874,047)
Net loss applicable
to common
shareholders ($972,531) ($1,264,644) ($3,330,714) ($4,409,851)
Net loss per share
applicable to common
shareholders -
basic and diluted ($0.02) ($0.03) ($0.08) ($0.12)
Weighted average
shares outstanding 43,664,398 37,405,455 42,104,485 36,621,907
Condensed Balance Sheets at
September 30, 1999 December 31, 1998
Cash and cash equivalents $3,091,885 $3,452,916
Inventories 2,079,635 1,727,096
Other current assets 1,110,734 1,016,338
Total current assets 6,282,254 6,196,350
Total assets $7,919,062 $8,066,670
Accounts payable $699,273 $936,899
Accrued expenses 426,425 679,737
Advances against future sales 2,253,000 1,836,231
Other current liabilities 947,266 456,575
Total current liabilities 4,325,964 3,909,442
Total liabilities 5,858,303 6,600,465
Total shareholders' equity 2,060,759 1,466,205
Total liabilities
and shareholders' equity $7,919,062 $8,066,670
SOURCE Pharmos Corporation
-0- 11/08/1999
/CONTACT: Gale T. Smith of Pharmos, 732-452-9556/
/Web site: pharmoscorp.com
(PARS BOL)
CO: Pharmos Corporation; Bausch & Lomb Pharmaceuticals; Bausch & Lomb
Incorporated
ST: New Jersey
IN: MTC
SU: ERN
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