Headline: Zonagen Reports Third Quarter Results
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THE WOODLANDS, Texas--(BW HealthWire)--Nov. 16, 1998--Zonagen
Inc. (NASDAQ:ZONA)(Pacific:ZNG) today announced financial results for
the third quarter ended September 30, 1998.
Total revenues for the third quarter were $6,513,756, as compared
to $1,589,428 in the same period last year. In September the Company
received a $5 million milestone payment from Schering-Plough
Corporation (NYSE:SGP) that was paid when the Food and Drug
Administration (FDA) accepted the filing of the New Drug Application
(NDA) for Vasomax(R). Interest income for the third quarter was
$748,279 compared to $734,116 for the same period last year. Net
income for the quarter was $328,504 or $0.03 per share, versus a net
loss of ($5,855,312) or ($0.57) per share for the same period last
year.
Research and development expenses for the three-month period
decreased 24 percent to $4,646,129 compared to $6,084,613 for the same
period last year. The decrease was due primarily to the decline in
costs associated with the development of Vasomax as a result of the
July 14, 1998 NDA submission.
"The third quarter of 1998 represented a major step forward for
Zonagen. Not only were we able to submit the NDA for Vasomax, we also
established a clinical and regulatory department at Zonagen," said
Joseph S. Podolski, president and chief executive officer of Zonagen.
"In the last nine months we have also seen product royalties from
distribution of Z-MAX (Vasomax) in Mexico. We are pleased with the
early results and we look forward to future growth in Mexico."
For the nine months ended September 30, 1998 the Company reported
total revenues of $15,309,691 compared with $3,379,151 for the same
period last year. Total revenues for the nine months included license
revenue of $10,000,000 compared to zero during the same period last
year. Product royalties for the nine months was $167,170 as compared
to zero for the same period last year. Interest income for the nine
months increased to $2,544,752 from $922,004 last year. Net loss for
the nine months was ($6,326,732) or ($0.56) per share compared to a
net loss of ($15,052,947) or ($1.82) per share last year. Research and
development expenses increased 15 percent to $16,837,743 from
$14,580,030, primarily due to the completion of product development
and submission of the NDA for Vasomax.
Cash and cash equivalents as of September 30, 1998 were
$57,762,154 compared to $70,188,963 on September 30, 1997. Since
November 1997, the Company has received a total of $20 million in
license and milestone payments from Schering-Plough Corporation, the
worldwide licensing partner for Vasomax. During the third quarter the
Company repurchased 127,000 shares at an average purchase price of
$17.128 per share, bringing the total number of shares repurchased to
415,300 since the stock buyback program was announced in December
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 fertility specialists, obstetricians and
gynecologists.
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 Ended Nine Months Ended
September 30, September 30,
-------------------- --------------------
1998 1997 1998 1997
---- ---- ---- ----
Revenues
Product Sales $765,477 $855,312 $2,597,769 $2,457,147
Licensing Fee 5,000,000 -- 10,000,000 --
Product Royalties -- -- 167,170 --
Interest Income 748,279 734,116 2,544,752 922,004
-------- --------- ---------- ---------
Total Revenues 6,513,756 1,589,428 15,309,691 3,379,151
Costs and Expenses
Cost of Products
Sold 508,889 584,720 1,742,462 1,652,563
Research and
Development 4,646,129 6,084,613 16,837,743 14,580,030
Sales, General
and
Administrative 977,677 720,117 2,894,623 2,035,626
Interest Expense
and Amortization 52,557 55,290 161,595 163,879
--------- --------- ---------- ----------
Total Expenses 6,185,252 7,444,740 21,636,423 18,432,098
========= ========= ========== ==========
Net Income (Loss) $328,504 $(5,855,312) $(6,326,732) $(15,052,947)
========= ============ ============ ============
Income (Loss) per
Common Share
Basic $0.03 $(0.57) $(0.56) $(1.82)
===== ======= ======= =======
Diluted $0.03 $(0.57) $(0.56) $(1.82)
===== ======= ======= =======
Weighted Average
Common Shares
used in Computing
Net Income (Loss)
per Common Share
Basic 11,263,484 10,307,576 11,298,478 8,270,676
Diluted 11,810,230 10,307,576 11,298,478 8,270,676
CONSOLIDATED BALANCE SHEETS
September 30, 1998
------------------
(Unaudited)
Current Assets $60,388,422
Fixed Assets (Net) 711,271
Other Assets (Net) 1,815,936
----------
Total Assets $62,915,629
===========
Accounts Payable and
Accrued Liabilities $3,741,619
Notes Payable 5,031
Shareholder's Equity 59,168,979
----------
Total Liabilities and
Shareholder's Equity $62,915,629
===========
*T
CONTACT: Zonagen Inc., The Woodlands (Investor Relations)
Jean Anne Mire, 281/367-5892
or
Sciens WorldWide (Media)
Russell LaMontagne, 212/771-5512
KEYWORD: TEXAS
INDUSTRY KEYWORD: MEDICINE PHARMACEUTICAL BIOTECHNOLOGY EARNINGS
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