Atrix Laboratories Reports Second Quarter Results
FORT COLLINS, Colo., July 27 /PRNewswire/ -- Atrix Laboratories (Nasdaq: ATRX - news) a developer of unique drug delivery products and systems, today announced financial results for the second quarter ended June 30, 2000.
Product sales, which include currently-marketed dental products and contract manufacturing, increased 26 percent to $1.7 million from $1.3 million in the second quarter of 1999. The increase was due to continued growth of the dental products line and the addition of contract manufacturing business. Contract research and development revenue increased 19 percent to $222,000 from 186,000, as the company continues to attract interest in the use of Atrix's drug delivery technologies. Total revenue for the second quarter was $1.9 million versus $1.5 million during the second quarter of 1999. The 26 percent increase in total revenue demonstrated the continued effort to increase sales and contract revenue.
``Research and development spending, supporting preclinical and clinical projects, has continued to increase,'' said Dr. Richard L. Jackson, senior vice president of research and development at Atrix. ``These areas are central to the company's expanding focus and our future growth.'' The 1999 second quarter expenses included large payments on several completed clinical studies. Therefore, total research and development expenses decreased from $4.8 million in 1999 to $3.6 million in the second quarter 2000.
The net loss for the 2000 June quarter was $3.8 million or $.33 per basic and diluted share compared to a loss of $4.2 million or $0.37 per basic and diluted share for the same period the previous year.
For the first six months of 2000, product sales increased 8 percent to $2.8 million from $2.6 million during the same period a year ago. Again, this resulted from a combination of steady growth in marketed product sales with an increase in contract manufacturing. First-half 2000 total revenue was $3.7 million, compared with $3.0 million in the first six months of 1999.
The company decreased its loss before extraordinary gain in the first six months of 2000 from $7.9 million in the first 6 month of 1999 to $7.3 million in 2000. However, the prior year included an extraordinary gain of $1.0 million for extinguishment of convertible notes. Therefore, the net loss, which includes the extraordinary gain, for the first six months of 2000 was $7.3 million or a loss of $0.64 per basic and diluted share, compared with a loss of $6.9 million or $0.61 per basic and diluted share, during the same period in 1999.
David Bethune, chairman and chief executive officer of Atrix said, ``This quarter's growth is in line with our expectations. Our strategy of growth and focused effort on our drug delivery technologies will continue to move Atrix forward.''
Atrix Laboratories, Inc. is a drug delivery and drug development company whose patented technologies provide drug delivery from minutes to months. Atrix develops medical, dental and veterinary products in-house and also partners with large pharmaceutical and biotechnology companies to apply its proprietary technologies to new chemical entities or to extend the life cycle of existing products. The company's first major product, ATRIDOX® for the treatment of chronic adult periodontitis, is currently on the U.S. market and was recently approved in a number of countries abroad. Additional information is available on the Atrix Laboratories, Inc. Web site at atrixlabs.com.
Statements contained in this press release, which are not historical facts, are forward-looking statements, as the term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which can cause actual results to differ materially from those currently anticipated, due to a number of factors, which include, but are not limited to, product demand, pricing, market acceptance, timing or failure to secure regulatory approval, changing economic conditions, risks in product and technology development, the effect of the company's accounting policies and other risk factors discussed in documents filed by the company with the Securities and Exchange Commission from time to time.
ATRIX LABORATORIES, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
2000 1999 2000 1999
REVENUE:
Sales $1,663,336 $1,322,384 $2,820,652 $2,551,103
Contract revenue 222,278 186,099 760,150 468,664
Sale of marketing
rights and
milestone revenue 40,000 25,000 105,000 25,000
Total Revenue 1,925,614 1,533,483 3,685,802 3,044,767
OPERATING EXPENSES:
Cost of goods sold 663,860 245,736 1,123,084 947,951
Research and
development 3,609,631 4,751,374 7,330,384 8,310,626
Administrative and
marketing 1,187,401 949,586 2,211,568 1,731,834
Total Operating
Expenses 5,460,892 5,946,696 10,665,036 10,990,411
LOSS FROM
OPERATIONS (3,535,278) (4,413,213) (6,979,234) (7,945,644)
OTHER (EXPENSE)
INCOME:
Investment income 373,752 746,456 888,038 1,510,122
Interest expense (646,603) (776,490) (1,296,460) (1,569,975)
Other 39,400 16,200 78,122 64,240
Net Other
(Expense) Income (233,451) (13,834) (330,300) 4,387
LOSS BEFORE
EXTRAORDINARY
ITEM (3,768,729) (4,427,047) (7,309,534) (7,941,257)
Extraordinary gain
on extinguishments
of debt -- 267,590 -- 1,034,889
NET LOSS $(3,768,729) $(4,159,457) $(7,309,534) $(6,906,368)
BASIC EARNINGS
PER COMMON SHARE:
Loss before
extraordinary
item $(.33) $(.39) $(.64) $(.70)
Extraordinary item -- .02 -- .09
NET LOSS $(.33) $(.37) $(.64) $(.61)
BASIC WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING 11,463,355 11,315,520 11,457,533 11,271,180
BALANCE SHEET DATA
(IN THOUSANDS -- UNAUDITED)
JUNE 30, 2000 JUNE 30, 1999
Working capital $32,624 $50,338
Total assets 46,804 65,689
Convertible subordinated notes payable 36,690 43,000
Shareholders' equity 7,919 20,833
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