Headline: Zonagen Reports Second Quarter Results
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THE WOODLANDS, Texas--(BUSINESS WIRE)--Aug. 10, 1998--Zonagen
Inc. (NASDAQ:ZONA)(Pacific:ZNG) today announced financial results for
the second quarter ended June 30, 1998.
Total revenues for the second quarter were $6,799,641, as
compared to $847,008 in the same period last year. In June the Company
received an accelerated $5 million milestone payment from
Schering-Plough Corporation (NYSE:SGP) that was paid at the completion
of the clinical program that was used in support of the New Drug
Application (NDA) for Vasomax(R). Interest income for the second
quarter was $729,299 compared to $66,526 for the same period last
year. Net loss for the quarter was $664,029 or $0.06 per share, versus
a net loss of $4,905,199 or $0.65 per share for the same period last
year.
During the second quarter the Company reported its first royalty
payment in the amount of $167,170 for product sales of Vasomax(R) in
Mexico during the month of June. Schering-Plough commenced sales of
Vasomax(R) in Mexico in June under the brand name Z-MAX. In November
1997 Schering-Plough Corporation and Zonagen signed an exclusive
worldwide marketing agreement for Vasomax(R) for the treatment of male
erectile dysfunction.
"In the second quarter of 1998 we reported the first
sales-related revenues from a drug developed by Zonagen," said Joseph
S. Podolski, president and chief executive officer of Zonagen. "The
launch of Z-MAX in Mexico by Schering-Plough is a first step towards
Zonagen's evolution from a development-stage biopharmaceutical company
to one that is driven by product sales and supported by a growing
product pipeline."
Research and development expenses for the three-month period were
$5,847,455 compared to $4,483,328 for the same period last year. The
increase reflected expenses associated with the July 14 submission of
the New Drug Application (NDA) for Vasomax(R). Sales, general and
administrative expenses increased to $948,927 from $717,635 during the
same period last year.
For the six months ended June 30, 1998 the Company reported total
revenues of $8,795,935 compared with $1,789,723 for the same period
last year. Interest income for the six months period increased to
$1,796,473 from $187,888 last year. Net loss for the six months was
$6,655,235 or $0.59 per share, compared to a net loss of $9,197,635 or
$1.27 per share last year. Research and development expenses increased
to $12,191,614 from $8,495,417, primarily due to the completion of
product development and submission of the New Drug Application for
Vasomax(R).
Cash and cash equivalents as of June 30, 1998 were $60 million
compared to $3.1 million on June 30, 1997.
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 early stage of development, clinical trial results and FDA
approval, substantial dependence on one product, history of operating
losses, future capital needs and additional funding, ability to
protect patents and proprietary technology, litigation, governmental
regulation, limited sales and marketing experience and dependence on
collaborators, limited manufacturing capabilities and reliance on
third-party manufacturers, competition and technological change,
product liability and insurance, and other risks identified in the
Company's Annual Report on Form 10-K for the year ended December 31,
1997, as filed with the Securities and Exchange Commission.
*T
ZONAGEN INC. AND SUBSIDIARY
(A development stage company)
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Six Months
Ended June 30, Ended June 30,
1998 1997 1998 1997
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Revenues
Product Sales $ 903,172 $ 780,482 $ 1,832,292 $ 1,601,835
Licensing Fee 5,000,000 - 5,000,000 -
Product Royalties 167,170 - 167,170 -
Interest Income 729,299 66,526 1,796,473 187,888
----------- ----------- ----------- -----------
Total Revenues 6,799,641 847,008 8,795,935 1,789,723
Costs and Expenses
Cost of Products
Sold 614,153 496,597 1,233,573 1,067,843
Research and
Development 5,847,455 4,483,328 12,191,614 8,495,417
Sales, General
and Administrative 948,927 717,635 1,916,945 1,315,509
Interest Expense
and Amortization 53,135 54,647 109,038 108,589
----------- ----------- ----------- -----------
Total Expenses 7,463,670 5,752,207 15,451,170 10,987,358
Net Loss $ (664,029)$(4,905,199) $(6,655,235)$(9,197,635)
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Net Loss per
Common Share $ (0.06)$ (0.65) $ (0.59)$ (1.27)
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Weighted Average
Common Shares
used in Computing
Net Loss per
Common Share 11,310,453 7,579,707 11,316,265 7,235,345
CONSOLIDATED BALANCE SHEETS
June 30, 1998
(Unaudited)
Current Assets $ 62,309,464
Fixed Assets (Net) 661,127
Other Assets (Net) 1,798,271
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Total Assets $ 64,768,862
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Accounts Payable and
Accrued Liabilities $ 3,839,056
Notes Payable 9,051
Shareholder's Equity 60,920,755
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Total Liabilities and
Shareholder's Equity $ 64,768,862
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*T
CONTACT: Zonagen Inc., The Woodlands
Jean Anne Mire, 281/367-5892
KEYWORD: TEXAS
INDUSTRY KEYWORD: PHARMACEUTICAL BIOTECHNOLOGY MEDICINE EARNINGS
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