V1, squetch, Rman and other CYTO followers, while I would not suggest everyone run out and buy CYTO, it looks to me like their porduct related revenues are moving very nicely. Below I have copied the earnings report. Pros sales have slowed considerably and next Q should tell us if it is another Oncoscint or not. However, it looks like Quad may be very big, which is most important.
Ok, so we know that CYTO received 1.5M in royalties from Quad. What we don't know is the royalty rate. I have heard "reliable" estimates that CYTO's share is anywhere from 25-48% of the first 70--100M, before they pay Dow. Does anyone know if the 1.5M is before or after Dow is paid?. I am assuming before.
In any case if we take a middle figure of about 33% as the royalty rate (before paying Dow), then we come up with total Quad sales of about 4.5M for this Q. I know some on the thread feel this 33% figure is high, which would make Quad sales even more impressive. Remember, this is in light of all the slowdowns due to regulatory approvals, new drug ramp up, etc. Once would guess that these figures will at least double next Q for total Quad sales of say, 10M. Furthermore, as word gets out that Quad appears to retard the growth of bone cancer from breast cancer mets, and as we hear P2 quad as therapeutic results (if we do hear anything about them), Quad will probably be used a LOT more (including repeat uses). My guess would be that CYTO could well be breaking even by the end of Q1 or (more likely) Q2 of 1998. Looks pretty good for CYTO. At a little over $3 a share, CYTO looks very cheap. I would wait to buy until we hear financing news and see what happens in the way of tax loss selling.
I hear the Targon spinoff will happen in Q1 or Q2 of 98 and bring CYTO a substantial amount of money as Elan exercises its option for 50% of the newco. ALT filing with FDA should be this month. I hear the P3s are very good, but knowing McKearn, we may not see them. There is still all the PMSA stuff (tests and vaccines), not to mention the oral insulin product and the oral morphine. At 150M market cap, CYTO looks like a bargain to me. Quad sales alone could be as high as 80M in 1998.
Will be interested to hear responses of VDers.
Thursday October 30 9:07 AM EST
Company Press Release
CYTOGEN Reports Third Quarter Results; Increased Revenue Attributable to Quadramet(R) and ProstaScint(R)
PRINCETON, N.J., Oct. 30 /PRNewswire/ -- CYTOGEN Corporation (Nasdaq:CYTO) today reported its financial results for the quarter and nine months ended September 30, 1997. Total revenue for the third quarter of 1997 was $4.2 million compared to $1.2 million for the same period in 1996. Royalties from the Quadramet(R) product for bone pain relief and sales of ProstaScint(R) prostate cancer imaging agent contributed to the increased revenue. Product-related revenue was $3.2 million for the quarter compared to $0.4 million for the same period in 1996.
For the nine month period ended September 30, 1997 revenues were $10.2 million compared to $3.9 million in the same period last year, including $5.4 million of product-related revenue, compared to $1.1 million for the prior year period. The increase is mainly due to CYTOGEN's royalties earned on Quadramet and to sales of ProstaScint, both launched earlier this year.
Total operating expenses for the third quarter of 1997 were $16.1 million compared to $7.0 million for the comparable quarter of 1996. The increase is primarily attributable to a licensing fee of $7.5 million incurred by Targon Corporation, CYTOGEN's subsidiary, to obtain exclusive worldwide rights of Morphelan from Elan Corporation, plc., the Company's collaborative partner in its Targon venture. Morphelan is an oral once-daily, controlled-release formulation of morphine sulfate which is being developed by Targon as an analgesic for moderate to severe pain. The balance of the increase was for administrative costs and the development and marketing of new products.
Dr. Robert Maguire, Executive Vice President and Chief Scientific Officer of Targon, stated, ''Morphelan is well suited to Targon's strategy for development of products for use in cancer treatment. Assuming success in clinical trials and in obtaining FDA approval, Targon plans to pursue a marketing relationship with a major pharmaceutical firm for commercialization of the product.'' Dr. Maguire added that this approach would be consistent with CYTOGEN's marketing alliance for its Quadramet product with the radiopharmaceutical division of the DuPont-Merck Company.
Operating expenses for the nine month period ended September 30, 1997 were $36.8 million versus $21.3 million in the first nine months of 1996. The year to date expenses for 1997 include a one time $4.0 million milestone payment to The Dow Chemical Company, the licensing fee relating to Morphelan, and the impact of development and marketing efforts on the Company's new products.
The third quarter 1997 net loss was $11.9 million and net loss per common share was $0.23, compared to a net loss of $5.6 million and $0.12 loss per common share for the quarter ended September 30, 1996. The third quarter 1997 net loss per common share included $0.15 per share attributable to the Morphelan product acquisition. For the nine month period ended September 30, 1997 the Company reported a net loss from operations of $26.1 million, and net loss per common share of $0.51, also reflecting the $0.15 per share impact of the Morphelan transaction. For the comparable period in 1996, the Company reported a net loss of $16.7 million, and net loss per common share of $0.35.
The cash, restricted cash and short term investments on September 30, 1997 totaled $16.0 million compared to the December 31, 1996 position of $34.7 million. The Company anticipates it will be able to meet its operating and product cash needs through financings and continued growth in product related revenues.
CYTOGEN's Quadramet drug, which is indicated for the relief of bone cancer pain, reached the marketplace in late May. As the Company has previously stated, hospitals and physicians have been amending their user licenses for radioactive products to include the Quadramet product. This is an ongoing process; many hospitals and physicians have received necessary licensure and additional hospitals and physicians continue through the licensing process. This one time licensing procedure is a standard requirement for handling radiopharmaceutical products.
ProstaScint, CYTOGEN's non-invasive (non-surgical) diagnostic imaging agent, indicated for prostate cancer patients considered at high risk for cancer spread outside the prostate, showed a continuing increase in sales over the prior quarters. There are now 166 PIE(TM) (Partners in Excellence) sites which are qualified to offer ProstaScint scans, more than double the number of sites since the product was launched earlier this year. This increase has included a number of major cancer centers across the country and the PIE network now includes a majority of those prestigious centers within the National Comprehensive Cancer Network. Priority for additional PIE sites includes criteria that the institution diagnose and treat a significant number of prostate cancer patients. CYTOGEN, in conjunction with the American College of Nuclear Physicians (ACNP), is establishing PIE sites which receive rigorous training, proficiency testing and certification by the ACNP. ProstaScint scans are only available at certified PIE sites.
Thomas J. McKearn, President, Chief Executive Officer and Chairman of CYTOGEN, stated, ''We are pleased with the growth of product-related revenues which comprise the majority of the revenues recorded for the third quarter. We are even more pleased by the enthusiastic acceptance of these products by those centers around the country that are using these new radiopharmaceuticals. Historically, the rates of penetration of the marketplace by successful radiopharmaceuticals is slower than for conventional pharmaceuticals; however, the successful radiopharmaceuticals have been able to sustain their rates of growth over the first several years following market launch. We look forward to the continuing market acceptance of ProstaScint and Quadramet in the months and years ahead.''
For the most current news on CYTOGEN and a current listing of PIE sites, visit the Company's web site at www.cytogen.com, or call 1-800-758-5804, extension 224650, to receive news releases by facsimile.
CYTOGEN is a biopharmaceutical company engaged in the development, manufacture and commercialization of products for the targeted delivery of diagnostic and therapeutic substances directly to disease sites. CYTOGEN has demonstrated its ability to develop new technology from early discovery through clinical development, regulatory approval and commercial-scale biologic manufacturing.
Except for historical information contained herein, the matters discussed in this press release contain forward looking statements that involve risks and uncertainties, including those related to the Company's and the Company's partners' ability to successfully market products, and other risks detailed from time to time in the Company's SEC reports.
Financial Statements Follow.
CYTOGEN CORPORATION AND SUBSIDIARIES
THIRD QUARTER ENDED SEPTEMBER 30, 1997
(All amounts in thousands except per share data)
(Unaudited)
CONDENSED CONSOLIDATED BALANCE SHEETS
Sept. 30, 1997 Dec. 31, 1996
Assets:
Cash, Restricted Cash
and Short Term Investments $16,018 $34,682
Accounts Receivable, net 3,099 439
Property and Equipment 4,217 4,816
Other Assets 2,086 2,007
Total Assets $25,420 $41,944
Liabilities & Stockholders' Equity:
Accounts Payable & Accrued Liabilities $6,042 $5,338
Other Current Liabilities 2,050 1,824
Long Term Liabilities 10,201 1,855
Stockholders' Equity 7,127 32,927
Total Liabilities & Stockholders' Equity $25,420 $41,944
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1997 1996 1997 1996
Revenues $4,172 $1,188 $10,194 $3,939
Operating Expenses:
On-going Operating
Expenses 8,615 6,957 29,341 21,327
Acquisition of product
rights 7,500 --- 7,500 ---
Total Operating
Expenses 16,115 6,957 36,841 21,327
Other Non-Operating
Income, net 19 197 555 737
Net Loss $(11,924) $(5,572) $(26,092) $(16,651)
Net Loss Per
Common Share $(0.23) $(0.12) $(0.51) $(0.35)
Weighted Average Common
Shares Outstanding 51,152 48,358 51,124 47,703 |
