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Biotech / Medical : LIPO-Liposome -- Ignore unavailable to you. Want to Upgrade?

To: Cacaito who wrote (640)	10/23/1998 11:24:00 AM
From: Beltropolis Boy	Respond to of 900

The Liposome Company Reports Third Quarter Loss of 1 Cent Versus A Loss of 17 Cents for the Prior Year PRINCETON, N.J., Oct. 22 /PRNewswire/ -- The Liposome Company, Inc. (Nasdaq: LIPO) today reported financial results for the third quarter ended September 27, 1998. Total revenues for the quarter were $18.6 million compared to $16.0 million for the third quarter of 1997, an increase of 16%. Net loss for the third quarter of 1998 was $308,000, or $0.01 per share, compared to a net loss of $6.2 million, or $0.17 per share, in the third quarter of 1997. Year-to-date revenues totaled $56.0 million versus $48.6 million for the comparable 1997 period, an increase of 15%. The year-to-date net loss applicable to Common Stock was $6.2 million, or $0.16 per share, compared to the 1997 nine month net loss of $19.2 million, or $0.52 per share, an improvement of $13.0 million or $0.36 per share. ABELCET(R) (Amphotericin B Lipid Complex Injection) sales increased 34% to $17.6 million compared to $13.1 million in the third quarter of 1997. In the U.S., third quarter 1998 sales exceeded last year's by $2.9 million, an increase of 25%. International sales during the third quarter increased by $1.6 million or 102%, primarily due to increased market penetration in the United Kingdom and Spain versus the comparable prior period as well as sales into new markets such as Italy, France and Canada in which ABELCET(R) was launched in late 1997. Worldwide unit sales of ABELCET(R) in the third quarter were ahead of the comparable prior year by 39%, with both U.S. and international markets contributing to the increase. U.S. third quarter unit sales increased 23%, while international unit sales increased by 159%. Worldwide revenues of ABELCET(R) for the first nine months of 1998 were $52.9 million versus $42.8, an increase of $10.1 million or 24% higher than the comparable prior period. U.S. sales for the nine months ended September 27, 1998 exceeded prior year by $5.4 million, while international sales increased by $4.7 million. Worldwide unit volume for the first nine months of 1998 exceeded the prior year period by 48%. Total expenses in the third quarter were $19.0 million compared to $22.3 million in the comparable prior year quarter. During the third quarter of 1997, the Company implemented a planned shift in manufacturing sites from Princeton to its high volume facility in Indianapolis which was approved by the FDA in August 1997. The Company incurred certain costs in connection with this move which resulted in a gross margin of 45.9% in the third quarter of last year compared to 70.4% for the third quarter of 1998, an improvement of 24.5 points. Selling, general and administrative expenses were $8.0 million in the third quarter of 1998, a decrease of 4% over the 1997 third quarter. This decrease was principally due to reduced legal and administrative expenses partially offset by increased facility related costs. Research and development expenses of $5.5 million declined by $1.1 million from the comparable 1997 quarter spending of $6.6 million. The decline was primarily attributable to reduced spending relating to the completion of the Phase III clinical trials of EVACET(TM) (formerly TLC D-99), a treatment for metastatic breast cancer, for which the Company expects to file a New Drug Application (NDA) later this year. Inventories of $5.3 million declined by 50% from their level on December 28, 1997. Accounts receivable decreased by $744,000 from their level on December 28, 1997 despite the 24% increase in sales for nine months ended September 27, 1998. The Company's cash and marketable securities totaled $49.2 million at the end of the third quarter compared to $45.5 million at December 28, 1997, an increase of $3.7 million. This was accomplished without any increase in the level of borrowings or the sale of any additional equity, and was principally due to improved operating results and improvements in working capital.