We already knew about the royalty free part, please don't
confuse with the original tech acquisition deal. May be
royalty free, but there are maintenance fees and another
modest lump sum if/when Sibia verdict is poof. Again, I
estimate royalties for the OSIP-proprietary or OSIP-Solvay
projects at 4% (my estimate, please get your own!).
Emphasis (bolding) is mine.......
Monday May 15, 7:02 am Eastern Time
Company Press Release
SOURCE: OSI Pharmaceuticals, Inc.
OSI Pharmaceuticals, Inc. Reports Second Quarter
Results
UNIONDALE, N.Y., May 15 /PRNewswire/ -- OSI Pharmaceuticals, Inc. (Nasdaq: OSIP - news) announced today its
financial results for the second quarter and first half of fiscal 2000. The quarter included a significant improvement to the
Company's balance sheet as a result of the Company raising approximately $53 million in net proceeds through a private sale of
equity. This, together with funds derived from the exercise of stock options by certain employees and directors, has resulted in
an increase in the Company's cash reserve from $26.3 million at December 31, 1999 to $86.5 million at March 31, 2000. For
the second quarter and six-month period ended March 31, 2000, revenues were $6.1 million and $16.0 million, respectively,
compared with $6.6 million and $11.3 million for the prior-year periods. For the second quarter and six-month period ended
March 31, 2000, total collaborative research revenues were $5.8 million and $11.8 million, respectively, compared with $4.0
million and $8.0 million for the prior-year periods. The increases in total collaborative revenues were primarily due to funding
received from Pfizer Inc. for the cosmeceutical discovery and development program with Anaderm Research Corporation, as
well as the collaboration with Tanabe Seiyaku Co., Ltd. directed toward the discovery of drugs to treat diabetes. The increase
was also attributable to funding from a research agreement with Solvay Pharmaceuticals B.V. for G-protein coupled receptor
(GPCR) directed drug discovery.
For the second quarter and six-month period ended March 31, 2000, operating expenses were $11.4 million and $22.2
million, respectively, compared with $7.9 million and $15.0 million for the prior-year periods. The increases in expenses were
associated with the expanded research and development in the Company's proprietary drug discovery programs principally in
cancer, adenosine receptor and GPCR directed drug discovery programs. The increase also included the expansion of the
Anaderm program, the drug discovery agreements with Tanabe and Solvay, and a one-time expenditure associated with the
Company's purchase of the non-exclusive, royalty-free worldwide right and license to use and practice Cadus' technology and
patents involving its GPCR patent estate.
The Company reported a net loss for the fiscal 2000 second quarter of $4,816,834, or $(0.21) per share, versus a net loss of
$1,122,440, or $(0.05) per share for the fiscal 1999 second quarter. Net loss for the first six months of fiscal 2000 was
$1,301,108, or $(0.06) per share, versus a net loss of $3,314,605, or $(0.15) per share for the fiscal 1999 six-month period.
``The resources gained from the financing brings our cash and investments to $86.5 million, giving us solid control over the
Company's future,'' stated Colin Goddard, Ph.D., President & Chief Executive Officer of OSI Pharmaceuticals, Inc. ``This
financing allows us to more aggressively pursue our strategy of building on the value in our collaborative pipeline by increasing
our investment in our fully-owned drug discovery programs particularly in the areas of cancer, adenosine receptors and
GPCR-directed drug discovery.''
Corporate Highlights
During the second quarter, OSI raised $56.5 million in gross proceeds through a private sale of 3.325 million newly-issued
shares of OSI common stock to a select group of institutional investors including Janus Healthcare Fund, The SMALLCAP
World Fund, International Biotechnology Trust, and Biotechnology Value Fund.
Expanded research coverage was initiated in the investment community. Prudential Vector Healthcare initiated coverage in
March 2000, closely followed by Lazard Freres & Co., in addition to the existing coverage by Robertson Stephens.
In addition, OSI signed a non-exclusive licensing agreement with the R.W. Johnson Pharmaceutical Research Institute, a
Johnson & Johnson Company, for OSI's gene transcription patents. Under terms of this agreement, OSI will receive annual
fees together with milestones and success payments from small molecule gene transcription modulators developed and
marketed as pharmaceutical products.
OSI signed a worldwide, non-exclusive, cross-licensing agreement with American Home Products Corporation (AHP)
involving OSI's gene transcription patent estate and a family of patents covering yeast screening technologies developed by
American Cyanamid Company, a subsidiary of AHP.
OSI also announced that it signed a non-exclusive licensing agreement with Cadus Pharmaceutical Corporation involving
Cadus' yeast GPCR patent estate. This agreement provides access to various reagents, a library of over 30,000 yeast strains
and licenses to proprietary bio-informatics software.
OSI Pharmaceuticals is a leading drug discovery company with a substantial pipeline of product opportunities for
commercialization with the pharmaceutical industry. OSI's research programs are focused in the areas of cancer therapeutics,
cosmeceuticals, diabetes, and GPCR-directed drug discovery. OSI utilizes a comprehensive drug discovery and development
capability to facilitate the rapid and cost-effective discovery and development of novel, small molecule compounds in more than
40 research and development programs. OSI is involved in long-term research alliances with Pfizer, Tanabe, Novartis, Aventis,
Sankyo, and Solvay.
This news release contains forward-looking statements. These statements are subject to known and unknown risks and
uncertainties that may cause actual future experience and results to differ materially from the statements made. Factors that
might cause such a difference include, among others, uncertainties related to the identification of lead compounds, the successful
pre-clinical development thereof, the completion of clinical trials, the FDA review process and other governmental regulation,
pharmaceutical collaborators' competition from other pharmaceutical companies, product pricing and third party
reimbursement, and other factors described in OSI Pharmaceuticals' filings with the Securities and Exchange Commission.
Additional information on OSI Pharmaceuticals is available on the World Wide Web at: osip.com
OSI Pharmaceuticals, Inc. and Subsidiaries
Selected Financial Information
Condensed Consolidated Income Statements
Three Months Six Months
Ended March 31, Ended March 31,
2000 1999 2000 1999
Revenues
Collaborative program
revenues, principally
from related
parties $ 5,836,654 $4,048,406 $11,835,738 $8,040,684
Sales of products
and services 55,597 287,467 309,760 598,417
Other research
revenues 103,482 278,439 193,940 579,354
License revenue 100,000 2,000,000 125,000 2,050,000
Technology access fee -- -- 3,500,000 --
Total revenues 6,095,733 6,614,312 15,964,438 11,268,455
Expenses
Research and
development 8,884,403 5,163,500 17,255,314 9,886,988
Production and
service costs 249,680 485,742 471,419 851,150
Selling, general
and
administrative 2,055,913 1,926,704 3,933,134 3,528,485
Amortization
of intangibles 185,473 365,185 498,814 730,370
Total expenses 11,375,469 7,941,131 22,158,681 14,996,993
Loss from
operations $(5,279,736) $(1,326,819) $(6,194,243) $(3,728,538)
Other income(expense)
Net investment
income 478,138 215,348 1,201,860 446,666
Other expense -- net (15,236) (10,969) (54,569) (32,733)
Gain on the sale of
diagnostics business -- -- 3,745,844 --
Net loss $(4,816,834) $(1,122,440) $(1,301,108) $(3,314,605)
Net loss per share $(0.21) $(0.05) $(0.06) $(0.15)
Weighted average number of shares
of common stock
outstanding 23,439,644 21,420,332 22,489,198 21,411,174
Condensed Consolidated Balance Sheet
March 31, September 30,
2000 1999
Cash and short-term investments $86,545,323 $18,861,854
Total assets $102,827,507 $47,031,328
Total stockholders' equity $93,339,499 $33,364,946
SOURCE: OSI Pharmaceuticals, Inc. |
