This is looking absolutely outstanding. Blew away the
estimates even though some approvals were a little later
in the quarter than expected. Trading near $70US in the
pre market.
Ian
+++++++++++
QLT Announces Financial Results for Second Quarter and First Half of 2000
VANCOUVER, Aug. 1 /PRNewswire/ - QLT Inc., previously referred to as QLT
PhotoTherapeutics Inc., (NASDAQ: QLTI; TSE: QLT) today reported financial results for
both the second quarter and first half of 2000. All amounts, unless specified otherwise, are in
Canadian dollars.
For the three months ended June 30, 2000, QLT reported net income of $14,207,000 or
$0.21 per common share compared to a net loss of ($6,086,000) or ($0.10) per common
share for the same period in 1999 and a net loss of ($12,522,000) or ($0.19) per common
share for the first quarter of 2000.
``Profitability in this quarter was the direct result of a one-time gain relating to the completion of
the sale of PHOTOFRIN(R) (porfimer sodium) product rights to Axcan Pharma Inc. (Axcan)
during the second quarter,'' said Kenneth H. Galbraith, QLT's Executive Vice President and
CFO.
Excluding the effect of the gain on the sale of PHOTOFRIN product rights, the Company
would have reported a net loss of ($559,000) or ($0.01) per common share for the second
quarter of 2000.
For the six months ended June 30, 2000, the Company reported net income of $1,685,000 or
$0.02 per common share compared to a net loss of ($11,997,000) or ($0.20) per common
share in the same period in 1999.
Mr. Galbraith further explained that ``Even excluding the effect of the one-time gain, the
Company's net loss was greatly reduced this quarter due to the Company's share of profits
from sales of Visudyne(TM) (verteporfin) for age-related macular degeneration (AMD), the
leading cause of blindness among people over age 50.''
``Global sales of Visudyne of approximately U.S.$25.5 million during the second quarter
significantly exceeded expectations due mainly to the stellar launch in the U.S. which
commenced April 13, 2000.''
``Strong sales performance in the second quarter in the U.S. clearly illustrates that AMD is a
significant public health concern. Our co-development and marketing partner, CIBA Vision, the
eye care unit of Novartis, executed an extremely effective launch immediately following
approval to ensure that Visudyne was broadly available to the thousands of patients diagnosed
each month in the U.S. with this devastating condition.''
Commercial Visudyne sales in the U.S. represented U.S. $19.5 million or approximately 76%
of total Visudyne sales in the second quarter. The remaining U.S. $6 million or approximately
24% was the result of commercial sales in Switzerland and expanded access programs that
were underway in over 25 countries during the second quarter.
QLT's revenue from the Visudyne business is a combination of a manufacturing reimbursement
and 50% of the net profits computed by deducting marketing and manufacturing costs from
Visudyne sales revenue.
Research and development costs increased by 13% in the second quarter of 2000 compared to
the second quarter of 1999 as the Company continued to increase new investment in additional
indications for Visudyne and other opportunities in QLT's product portfolio.
The Company ended the quarter with approximately $262 million (U.S. $177 million) in
available cash resources. The Company also has an investment of approximately $16 million in
Axcan as a result of the PHOTOFRIN transaction.
Long-term debt of approximately $14 million was utilized to fund a portion of the capital cost of
the Company's new headquarters and research facilities located in Vancouver, Canada.
QLT Inc. is a world leader in the development and commercialization of proprietary
pharmaceutical products for use in photodynamic therapy, a new field of medicine utilizing
light-activated drugs in the treatment of disease. QLT's innovative science has advanced
photodynamic therapy beyond applications in cancer towards breakthrough treatments in
ophthalmology and autoimmune disease. For more information, you are invited to visit the QLT
website at www.qltinc.com.
Visudyne(TM) is a trademark of Novartis AG
PHOTOFRIN(R) is a registered trademark of Axcan Pharma
- CANADIAN DOLLARS -
QLT Inc.-Financial Highlights
(Formerly known as QLT PhotoTherapeutics Inc.)
CONSOLIDATED STATEMENTS OF OPERATIONS
-------------------------------------
Three months Six months
(In thousands of Canadian ended June 30, ended June 30,
dollars, except per share data) 2000 1999 2000 1999
------------------------------------------------------------------------
Revenues
Revenue from Visudyne(TM) $ 8,446 $ - $ 8,446 $ -
Royalties on product sales -
Photofrin(R) 350 684 969 1,305
Contract research and
development 1,589 3,974 3,089 7,300
Revenue from collaborative
arrangements - - - 754
------------------------------------------------------------------------
10,385 4,658 12,504 9,359
------------------------------------------------------------------------
Costs & Expenses
Manufacturing 3,013 - 3,013 -
Research and development 13,246 11,647 22,828 21,312
Selling, general and
administrative 1,967 2,220 4,815 3,872
Amortization 435 376 1,782 716
------------------------------------------------------------------------
18,661 14,243 32,438 25,900
------------------------------------------------------------------------
Operating Income(Loss) (8,276) (9,585) (19,934) (16,541)
------------------------------------------------------------------------
Gain on sale of Photofrin(R)
product rights 14,766 - 14,766 -
Investment and other income 7,916 3,499 12,352 4,544
Interest expense (199) - (199) -
Market development and other
joint business costs - - (5,300) -
------------------------------------------------------------------------
Net Income(Loss) before income
tax 14,207 (6,086) 1,685 (11,997)
------------------------------------------------------------------------
Income tax provision - - - -
------------------------------------------------------------------------
------------------------------------------------------------------------
Net Income(Loss) $14,207 $(6,086) $ 1,685 $(11,997)
------------------------------------------------------------------------
------------------------------------------------------------------------
Net Income(Loss) per common
share $0.21 $(0.10) $0.02 $ (0.20)
------------------------------------------------------------------------
Weighted average number of
common shares outstanding (in
thousands) 66,200 61,000 66,000 58,600
------------------------------------------------------------------------
All amounts shown are in Canadian dollars and presented in accordance
with Canadian GAAP. At June 30, 2000, the exchange rate was approximately
U.S. $1.00 equals Cdn. $1.4806 and the average exchange rate for the six
months ending June 30, 2000 was approximately U.S. $1.00 equals
Cdn.$1.4656.
- CANADIAN DOLLARS -
CONDENSED CONSOLIDATED BALANCE SHEETS
-------------------------------------
(In thousands of Canadian dollars, June 30, December 31,
except per share data) 2000 1999
------------------------------------------------------------------------
Current assets
Cash and cash equivalents $261,741 $ 96,722
Short-term investment securities - 160,611
Short-term investment in Axcan Pharma 6,375 -
Receivables, inventories and other assets 32,579 31,972
------------------------------------------------------------------------
300,695 289,305
------------------------------------------------------------------------
Long-term investment in Axcan Pharma 9,549 -
Property and equipment 40,722 32,260
Intangible assets - 200
------------------------------------------------------------------------
$350,966 $321,765
------------------------------------------------------------------------
------------------------------------------------------------------------
Current liabilities $ 18,053 $26,438
Non-current liabilities 13,966 6,004
------------------------------------------------------------------------
32,019 32,442
------------------------------------------------------------------------
Shareholders' equity 318,947 289,323
------------------------------------------------------------------------
$350,966 $321,765
------------------------------------------------------------------------
------------------------------------------------------------------------
As at June 30, 2000, there were 66,560,234 issued and outstanding common
shares and 5,272,799 outstanding options to purchase common shares.
All amounts shown are in Canadian dollars and presented in accordance
with Canadian GAAP. At June 30, 2000, the exchange rate was approximately
U.S. $1.00 equals Cdn. $1.4806 and the average exchange rate for the six
months ending June 30, 2000 was approximately U.S. $1.00 equals
Cdn.$1.4656.
- CANADIAN DOLLARS -
QLT Inc.
(Formerly known as QLT PhotoTherapeutics Inc.)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
------------------------------------------------------------------------
Six Months Ended June 30,
(In thousands of Canadian Dollars except per ------------------------
share information) 2000 1999
------------------------------------------------------------------------
(Unaudited)
Cash Provided by (Used In) Operating Activities
Net income(loss) for the period $ 1,685 $(11,997)
Add(deduct) items not involving a
current cash flow:
Gain on sale of Photofrin product rights (14,766) -
Amortization 1,782 716
Other (352) -
Changes in non-cash working capital
components (11,700) (1,271)
------------------------------------------------------------------------
(23,351) (12,552)
------------------------------------------------------------------------
Cash Provided by (Used In) Investing
Activities
Purchase of property and equipment (10,631) (7,764)
Redemption (purchase) of short-term
investment securities 160,611 (40,257)
------------------------------------------------------------------------
149,980 (48,021)
------------------------------------------------------------------------
Cash Provided by (Used In) Financing
Activities
Increase in long-term mortgage 13,966 -
Issuance of common shares related to:
Public share offering - 188,853
Stock options exercise 24,424 19,376
Share purchase warrant exercise - 4,410
------------------------------------------------------------------------
38,390 212,639
------------------------------------------------------------------------
Increase in Cash and Cash Equivalents 165,019 152,066
Cash and Cash Equivalents, Beginning of
Period 96,722 74,275
------------------------------------------------------------------------
Cash and Cash Equivalents, End of Period $261,741 $226,341
------------------------------------------------------------------------
------------------------------------------------------------------------
All amounts shown are in Canadian dollars and presented in accordance
with Canadian GAAP. At June 30, 2000, the exchange rate was approximately
U.S. $1.00 equals Cdn. $1.4806 and the average exchange rate for the six
months ending June 30, 2000 was approximately U.S. $1.00 equals
Cdn.$1.4656.
- U.S. DOLLARS -
QLT Inc.-Financial Highlights
(Formerly known as QLT PhotoTherapeutics Inc.)
CONSOLIDATED STATEMENTS OF OPERATIONS
-------------------------------------
Three months Six months
ended ended
(In thousands of U.S. dollars, June 30, June 30,
except per share data) 2000 1999 2000 1999
------------------------------------------------------------------------
Revenues
Revenue from Visudyne
business $ 5,711 $ - $ 5,711 $ -
Royalties on product sales -
Photofrin(R) 236 465 663 876
Contract research and
development 1,074 2,700 2,107 4,901
Revenue from collaborative
arrangements - - - 499
------------------------------------------------------------------------
7,021 3,165 8,481 6,275
------------------------------------------------------------------------
Costs & Expenses
Manufacturing 2,037 - 2,037 -
Research and development 8,956 7,912 15,554 14,307
Selling, general and
administrative 1,330 1,508 3,291 2,601
Amortization 294 255 1,222 480
------------------------------------------------------------------------
12,617 9,676 22,104 17,389
------------------------------------------------------------------------
Operating Income(Loss) (5,596) (6,511) (13,624) (11,114)
------------------------------------------------------------------------
Gain on sale of Photofrin(R)
product rights 9,984 - 9,984 -
Investment and other income 5,352 2,376 8,407 3,068
Interest expense (135) - (135) -
Market development and other
joint business costs - - (3,650) -
Premium on conversion value
of first preference shares - (449) - (887)
------------------------------------------------------------------------
Net Income(Loss)
before income tax 9,606 (4,584) 983 (8,933)
------------------------------------------------------------------------
Income tax provision -
------------------------------------------------------------------------
------------------------------------------------------------------------
Net Income(Loss) $ 9,606 $ (4,584) $ 983 $(8,933)
------------------------------------------------------------------------
------------------------------------------------------------------------
------------------------------------------------------------------------
Net Income(Loss)
per common share $ 0.15 $ (0.08) $ 0.01 $ (0.15)
------------------------------------------------------------------------
Weighted average number of
common shares outstanding (in
thousands) 66,200 61,000 66,000 58,600
------------------------------------------------------------------------
All amounts shown are in U.S. dollars translated using the current rate
method and presented in accordance with U.S. GAAP. At June 30, 2000, the
exchange rate was approximately U.S. $1.00 = Cdn. $1.4806 and the average
exchange rate for the six months ending June 30, 2000 was approximately
U.S. $1.00 = Cdn.$1.4656.
- U.S. DOLLARS -
CONDENSED CONSOLIDATED BALANCE SHEETS
-------------------------------------
(In thousands of U.S. dollars, except June 30, December 31,
per share data) 2000 1999
------------------------------------------------------------------------
Current assets
Cash and cash equivalents $ 176,780 $ 66,572
Short-term investment securities - 110,545
Short-term investment in
Axcan Pharma 4,306 -
Receivables, inventories and
other assets 22,004 22,005
------------------------------------------------------------------------
203,090 199,122
------------------------------------------------------------------------
Long-term investment in Axcan Pharma 6,449 -
Property and equipment 27,504 22,204
Intangible assets - 138
------------------------------------------------------------------------
$ 237,043 $ 221,464
------------------------------------------------------------------------
------------------------------------------------------------------------
Current liabilities $ 12,193 $ 18,197
Non-current liabilities 9,433 4,132
------------------------------------------------------------------------
21,626 22,329
------------------------------------------------------------------------
Shareholders' equity 215,417 199,135
------------------------------------------------------------------------
$ 237,043 $ 221,464
------------------------------------------------------------------------
------------------------------------------------------------------------
All amounts shown are in U.S. dollars translated using the current rate
method and presented in accordance with U.S. GAAP. At June 30, 2000, the
exchange rate was approximately U.S. $1.00 = Cdn. $1.4806 and the average
exchange rate for the six months ending June 30, 2000 was approximately
U.S. $1.00 = Cdn.$1.4656.
QLT Inc. is listed on The Nasdaq Stock Market under the trading symbol ``QLTI'' and on The
Toronto Stock Exchange under the trading symbol ``QLT''. |
