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Biotech / Medical : Pathogenesis(pgns) -- Ignore unavailable to you. Want to Upgrade?

To: Ken M who wrote (76)	4/29/1998 5:07:00 PM
From: Bill Li	Respond to of 228

PGNS reported 1Q TOBI sale of $ 14.5 vs concensus esttimated $10.5, and EPS of $0.06 vs est. of -$0.08. Great news!

To: Ken M who wrote (76)	4/29/1998 5:37:00 PM
From: seasidecafe	Read Replies (1) \| Respond to of 228

PGNS just reported 1Q earnings: excerpt from company press release found at Yahoo site (sorry I don't know how to provide the link) For the first quarter ended March 31, 1998, PathoGenesis reported net revenues of $14.7 million, including TOBI sales of $14.5 million. Non-sales revenues were generated by research grants and royalties. Net income was $985,000 for the first quarter of 1998, or six cents per diluted share. Earnings were also six cents per basic share based on 16.2 million shares outstanding. For the first quarter of 1997, the company's net loss was $6.2 million, or 43 cents per basic and diluted share based on 14.4 million shares outstanding. The increase in shares outstanding resulted from the company's third public stock offering in March 1997 and option exercises. ''It's remarkable to achieve profitability in the first quarter of having sales,'' said Wilbur H. Gantz, chairman and chief executive officer. ''TOBI achieved rapid market acceptance because of its strong clinical results, fast reimbursement authorizations by Medicaid and other third party payors, and the confidence of physicians in the 69 cystic fibrosis centers who participated in the TOBI clinical trials. We estimate that about $10 million to $10.5 million of TOBI sales went to fill prescriptions, and the remainder was for inventory in the distribution channels.'' First quarter research and development costs were $6.6 million, a 13 percent increase from $5.8 million for the first quarter of 1997. The increase is due in part to ongoing Phase II clinical trials of TOBI for bronchiectasis (a form of severe chronic bronchitis) and tuberculosis, as well as a Phase II clinical trial of an oral drug candidate for tuberculosis, PA-1648. PathoGenesis expects to report the results of those trials in the fourth quarter of 1998. Selling, general and administrative expenses were $5.5 million in the first quarter of 1998, versus $1.3 million for general and administrative expenses in the same period a year ago. The increase was largely due to costs associated with supporting a full sales force and launching TOBI. Gantz said that in the remaining quarters of this year, selling, general and administrative expenses should be closer to the $4.2 million reported for the fourth quarter of 1997. In the second quarter of 1998, PathoGenesis intends to add three sales people to its current sales force of 21. Market Outlook for TOBI Gantz said he expects TOBI sales in the second and third quarters of 1998 to be in the same range as first quarter sales. This represents a strong increase in demand for TOBI, because the first quarter included orders to stock the distribution channels. However, Gantz said third quarter sales may not exceed second quarter sales, because cystic fibrosis patients are less likely to visit their doctors in the summer and therefore fewer new patients will begin taking TOBI during this time. Gantz said more new patients can be expected to start on TOBI in the fall and winter, resulting in stronger fourth quarter sales of the drug. ''Based on our TOBI sales expectations, we believe PathoGenesis will be profitable in each quarter of 1998 and for the entire year,'' Gantz said. ''The possibility exists that we may license a drug candidate before the end of the year. That could require an up-front payment that would be expensed -- but even so, we'd still expect to report a profit for the year.'' In March, PathoGenesis filed a new drug submission in Canada using its U.S. clinical trial data. The Health Protection Branch of Canada has granted TOBI a priority review. In addition, PathoGenesis intends to file for regulatory approval of TOBI in the United Kingdom in the fourth quarter of 1998, as a first step toward marketing the drug in other European countries. A majority of the 70,000 people with cystic fibrosis worldwide live in the U.S., Canada and Europe, because cystic fibrosis is a Caucasian genetic disease. Additional information available in press release from the company.