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Monday July 26, 10:19 am Eastern Time
Company Press Release
CollaGenex Pharmaceuticals Reports Second Quarter 1999 Revenues of $3.4 Million and 66% Increase in Periostat Prescriptions
NEWTOWN, Pa.--(BUSINESS WIRE)--July 26, 1999--CollaGenex Pharmaceuticals, Inc. (NASDAQ:CGPI - news) today announced total net revenues of $3.4 million in the second quarter of 1999 compared to $4,000 in total net revenues during the second quarter of 1998.
Total net revenues in the first half of 1999 were $5.9 million compared to $7,000 in the first half of 1998.
The most recent quarter's revenues included $3.2 million in net sales of Periostat®, the Company's lead drug for the treatment of adult periodontitis, which reflected a 33% increase over first quarter Periostat sales. Periostat first became available for prescription in November 1998 and was formally launched by the company's 125-member sales force in January 1999.
Revenues in the second quarter of 1999 also included $128,000 in contract revenues from the Company's co-promotion of Denavir, a SmithKline Beecham product, and $100,000 in license revenues relating to the recent execution of a distribution agreement for Periostat in Canada.
According to prescription data tracked by NDC/Source, total Periostat prescriptions filled during the second quarter of 1999 increased by 66% to approximately 100,000 from approximately 60,000 in the first quarter of 1999.
The lower reported growth in sales of Periostat between the first and second quarters of 1999 compared to the growth in the number of Periostat prescriptions reflects net reductions in wholesaler and retailer inventories previously stocked by the Company.
The Company continued to invest in planned sales and marketing activities relating to Periostat during the first half. As a result, the net losses allocable to common stockholders for the second quarter and first half of 1999 were $4.4 million and $9.5 million respectively, or $0.51 and $1.10, respectively, per basic and fully diluted share.
The second quarter and first half losses included $235,000 in dividends declared on the Series D Cumulative Convertible Preferred Stock issued by the Company on May 12, 1999. The losses reported during the second quarter and first half of 1998 were $2.5 million and $4.6 million, respectively, or $0.29 and $0.54, respectively, per basic and fully diluted share.
''Periostat sales continued to exceed expectations in the second quarter,'' said Brian M. Gallagher, PhD, president and chief executive officer of CollaGenex, ''and our expenses were in line with budget. We continue to be pleased by the market acceptance for this new therapy by the dental community. More than half of our target market of periodontists and dentists have prescribed Periostat.''
Total operating expenses, consisting of cost of product sales (for 1999 only), research and development expenses and selling, general and administrative expenses, were $7.7 million for the second quarter of 1999 compared to $2.8 million for the second quarter of 1998. Research and development expenses were $1.3 million for the three month period ended June 30, 1999 and June 30, 1998.
In the second quarter of 1999, research and development expenses consisted primarily of ongoing manufacturing and formulation development work for Periostat, research and development activities funded by the Company at the State University of New York at Stony Brook and costs associated with clinical trials intended to support future marketing activities of Periostat.
Selling, general and administrative expenses were $5.7 million in the second quarter of 1999 compared to $1.5 million in the second quarter of 1998. The increase in these expenses was due primarily to higher sales and marketing costs relating to the launch of Periostat.
The Company's cash, cash equivalents and short term investments at June 30, 1999 were $21.6 million compared to $10.3 million at December 31, 1998. The increase was due primarily to $18.5 million in net proceeds from the issuance of the Company's Series D Cumulative Convertible Preferred Stock on May 12, 1999, offset by the Company's cash loss from operations during the six months ended June 30, 1999.
A conference call for the financial community will be held today at 11:00 a.m. EST. The conference call will be simulcast over the Internet. To listen to the live call, please go to the Web site at vcall.com at least fifteen minutes early to register, download, and install any necessary audio software.
For those who cannot listen to the live broadcast, a replay will be available shortly after the call on the Vcall site.
CollaGenex Pharmaceuticals, Inc. is a specialty pharmaceutical company focused on providing innovative medical therapies to the dental market. The Company's lead product, Periostat, was approved by the FDA in September 1998 and is the first and only pharmaceutical to treat periodontal disease by inhibiting the enzymes that destroy periodontal support tissues.
Periostat is marketed to the dental community through the Company's professional pharmaceutical sales force comprised of approximately 130 sales representatives and managers. Currently, the Company's dental sales force is also marketing Denavir, a prescription cold sore medication, under an exclusive co-marketing agreement with SmithKline Beecham.
Research has shown that the enzyme-suppression technology underlying Periostat may also be applicable to other diseases involving destruction of the body's connective tissues, including cancer metastasis and inflammatory diseases. The Company intends to pursue the research and development of these other applications primarily through partnerships with third parties.
To receive additional information on the Company, please visit our web site at www.collagenex.com, which is not a part of this press release.
Summary Financial Data
(Unaudited)
(In thousands, except share amounts)
Three Months Ended June 30,
---------------------------
1999 1998
---- ----
Statement of Operations Data
----------------------------
Revenues:
Product sales 3,210 -
Contract revenues 128 4
License revenues 100 -
----- -----
3,438 4
Operating Expenses:
Cost of Product Sales 710 -
Research and development 1,291 1,320
Selling, general and
administrative 5,677 1,474
----- -----
Total operating expenses 7,678 2,794
Other Income (Expense):
Interest income 245 270
Interest expense (145) -
Other income (expense) (2) 1
----- -----
Net loss (4,142) (2,519)
======= =======
Preferred Stock Dividend 235 -
----- -----
Net loss allocable to common
stockholders (4,377) (2,519)
======= =======
Net loss per share allocable to
common stockholders
Basic (.51) (.29)
Diluted (.51) (.29)
===== =====
Shares used in computing net loss
allocable to common stockholders
Basic 8,589,704 8,574,115
Diluted 8,589,704 8,574,115
Six Months Ended June 30,
-------------------------
1999 1998
---- ----
Statement of Operations Data
----------------------------
Revenues:
Product sales 5,620 -
Contract revenues 136 7
License revenues 100 -
----- -----
5,856 7
Operating Expenses:
Cost of Product Sales 1,253 -
Research and development 2,229 2,271
Selling, general and
administrative 11,772 2,936
------ -----
Total operating expenses 15,254 5,207
Other Income (Expense):
Interest income 359 573
Interest expense (189) -
Other income (expense) (2) 1
----- -----
Net loss (9,230) (4,626)
======= =======
Preferred Stock Dividend 235 -
----- -----
Net loss allocable to common
stockholders (9,465) (4,626)
======= =======
Net loss per share allocable to
common stockholders
Basic (1.10) (.54)
Diluted (1.10) (.54)
====== =====
Shares used in computing net loss
allocable to common stockholders
Basic 8,589,371 8,571,139
Diluted 8,589,371 8,571,139
Balance Sheet Data: June 30, 1999 December 31, 1998
------------------- ------------- -----------------
Cash, cash equivalents and
short-term investments 21,640 10,250
Total assets 24,698 14,740
Total stockholders' equity 18,612 9,281 |
