THE WOODLANDS, Texas--(BW Healthwire)--May 15, 1998--Zonagen Inc. (Nasdaq:ZONA - news; Pacific:ZNG) today announced financial results for the first quarter ended March 31, 1998.
Total revenue for the first quarter was $1,996,294, as compared to $942,715 in the same period last year. Revenue for the period included interest income of $1,067,174 compared to $121,362 a year ago. Net loss for the quarter was $5,991,206, or $0.53 per share, versus a net loss of $4,292,436, or $0.62 per share for the same period last year.
Research and development expenses for the three-month period increased to $6,344,159 from $4,012,089 for the same period last year, primarily due to costs associated with the development of Vasomax(TM).
Cash and cash equivalents as of March 31, 1998 were $62.3 million compared to $73.8 million on December 31, 1997.
''During the first quarter two important milestones were achieved. We received our second issued patent for Vasomax(TM), our lead product for male erectile dysfunction. Also, Schering-Plough Corporation [NYSE:SGP - news], which has the worldwide marketing rights to Vasomax(TM), filed an application for product registration of Vasomax(TM) in Mexico,'' said Joseph S. Podolski, president and chief executive officer of Zonagen.
Paul Lammers, M.D. M.Sc. recently joined the company as Senior Vice President of Clinical and Regulatory Affairs. Dr. Lammers was with Hoechst Marion Roussel where he managed the Medical Services Group as Head of Medical Services in International Marketing. Prior to joining Hoechst, Dr. Lammers was employed for eight years at Organon Inc., serving most recently as Medical Director and Director of Medical Services. Dr. Lammers' expertise will be valuable in developing the company's growing clinical programs.
The company is also pleased to announce that Jeffrey M. Jonas, M.D. was nominated to its board of directors. From 1991 through 1996, Dr. Jonas served in various capacities with The Upjohn Company, serving most recently as Vice President of Clinical Development and Chief Medical Officer. Dr. Jonas is currently the President and Chief Executive Officer of Avax Technologies Inc., a biotechnology company based in Kansas City, Mo. Dr. Jonas received his M.D. from Harvard Medical School and his B.A. from Amherst College.
Zonagen also announced that its 1993 research agreement with German pharmaceutical manufacturer Schering AG relating to zona pellucida-based contraceptive vaccines is expected to lapse on or before June 9, 1998. Under the terms of the agreement, Zonagen was required to fund all development until a lead compound was developed which met certain specified standards for use in clinical trials. All rights under the agreement revert back to Zonagen with no further obligation to Schering AG. Schering AG is not affiliated with Schering-Plough Corporation.
Zonagen Inc. specializes in products and services for management of reproductive health. Its technologies focus on the areas of urology, female health and contraception. Through its wholly owned subsidiary, Fertility Technologies Inc. (FTI), Zonagen sells devices, instruments and supplies to the fertility specialist and the OB/GYN.
Any statements that are not historical facts contained in this release are forward looking statements that involve risks and uncertainties, including but not limited to those relating to the Company's future capital needs and uncertainty of additional funding, uncertainties related to early stage of development, clinical trial results, substantial dependence on one product, history of operating losses, uncertainty of protection for patents and proprietary technology, governmental regulation, limited sales and marketing and dependence on future collaborators, manufacturing uncertainties and reliance on third parties, competition and technological change, product liability and availability of insurance, and other risks identified in the Company's Annual Report on Form-10K, as amended, for the year ended December 31, 1997, as filed with the Securities and Exchange Commission.
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ZONAGEN INC. AND SUBSIDIARY
(A development stage company)
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended March 31,
1998 1997
-------- --------
(unaudited)
Revenues
Product Sales $ 929,120 $ 821,353
Interest Income 1,067,174 121,362
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Total Revenues 1,996,294 942,715
Costs and Expenses
Cost of Products Sold 619,420 571,246
Research and Development 6,344,159 4,012,089
Sales, General and
Administrative 968,018 597,874
Interest Expense and
Amortization 55,903 53,942
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Total Expenses 7,987,500 5,235,151
Net Loss $ (5,991,206) $ (4,292,436)
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Net Loss per Common Share $ (0.53) $ (0.62)
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Weighted Average Common
Shares used in Computing
Net Loss per Common Share 11,322,142 6,887,156
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CONSOLIDATED BALANCE SHEETS
March 31, 1998
(Unaudited)
Current Assets $ 63,757,486
Fixed Assets (Net) 537,660
Other Assets (Net) 1,724,696
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Total Assets $ 66,019,842
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Accounts Payable and
Accrued Liabilities $ 4,519,362
Notes Payable 11,906
Long-Term Notes Payable 1,066
Shareholder's Equity 61,487,508
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Total Liabilities and
Shareholder's Equity $ 66,019,842
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Contact:
Zonagen Inc., The Woodlands
Jean Anne Mire, 281/367-5892 |
