[AIS seems to be another cash-poor biotech with perhaps too many programs for its own good. AIS owns the European rights to LibiGel for female hypoactive sexual desire disorder, the product that BPA is developing the U.S.]
>> Antares Pharma, Inc. Reports Third Quarter 2004 Results
Monday November 15, 4:22 pm ET
Progress in Product Development, New Management and Cost Controls Highlight Quarter
EXTON, Pa., Nov. 15 /PRNewswire-FirstCall/ -- Antares Pharma, Inc. (Amex: AIS - News), a specialty pharmaceutical company focused on the growing lifestyle products sector, today announced financial results for the third quarter 2004.
Third Quarter 2004 and Recent Operational Highlights
-- Positive results in Phase II study of ATD(TM) testosterone gel (LibiGel(TM)) announced by North American licensee [BPA]: The Company's transdermal ATD(TM) testosterone gel significantly increases sexual activity in surgically menopausal women suffering from female sexual dysfunction (FSD).
-- Phase III clinical trial update on estradiol ATD(TM) gel (Bio-E-Gel(TM)) announced by North American licensee: Phase III trial for treatment of moderate-to-severe hot flashes and vaginal atrophy is on track to enroll all subjects by year-end 2004 and planned to be completed by first quarter 2005.
-- Company approved for listing on American Stock Exchange: The Company's common stock began trading on Amex(R) on September 23, 2004, under the symbol "AIS".
-- Key management change and board additions: Mr. Jack E. Stover appointed to position of President, Chief Executive Officer and Director. Dr. Paul K. Wotton, President and CEO of Topigen Pharmaceuticals, Inc., appointed to Board of Directors.
-- European patent received for Easy Tec(TM) fast-melt technology.
Total operating expenses for the three months ended September 30, 2004, totaled $2.6 million, as compared to $2.8 million for the same period in 2003. Research and development expenses increased 32% to $879,000. Total revenues for the quarter decreased to $613,000 from $1,040,000 in the same quarter in 2003. In the 2003 quarter, we experienced an increase in revenue as a major customer was preparing for the launch of our Medi-Jector VISION® device. Gross margin percentage increased in the third quarter of 2004 to 56.7% from 47.9% in the comparable quarter of 2003 due primarily to favorable results of outsourcing assembly operations.
At September 30, 2004, the Company had $11.1 million in cash, cash equivalents and short-term investments, compared to $1.9 million at December 31, 2003. The September 30, 2004, cash balance includes net proceeds of $15.1 million from the Company's stock offering that closed in the first quarter of 2004.
Other income and expense decreased significantly from $21.0 million of expense to approximately $7,000 of income. Primarily this is attributable to the comparable 2003 quarter period containing non-cash debt conversion and extinguishment expenses of approximately $20.7 million.
Net loss per common share decreased from $1.40 per share to $0.06 per share due primarily to the absence of non-cash debt conversion and extinguishment charges in the current quarter, an increase in average common shares outstanding of 15,120,000 shares resulting from the $15.1 million stock offering, and reduced operating costs in the quarter as compared to the comparable quarter of 2003.
Commenting on the events of the third quarter, Jack E. Stover, President and Chief Executive Officer of Antares Pharma, said, "We are excited about the progress we are making as a specialty pharmaceutical company while managing our costs at a lower level in 2004 than 2003. Since coming on board in September, I continue to be pleased with the progress we are making, and I believe we are on the right track to deliver improved results on all fronts."
Year-to-Date Results
For the first nine months of the year, worldwide revenue decreased 29% to $2.03 million compared with revenue for the same period in 2003, due primarily to the 2003 launch of our Medi-Jector VISION® device by a major European customer. Gross margin as a percent of total revenue increased 6.5 percentage points from 43.6% to 50.1%. Operating expenses decreased approximately $475,000, or 6.5%, due primarily to decreases in payroll and investor relations expenses, partially offset by increases in R&D and sales and marketing expenses. Net loss per common share decreased from $2.23 per share to $0.17 per share due primarily to the absence of non-cash debt conversion and extinguishment charges in the current period and an increase in average common shares outstanding of 12,677,880 shares resulting from the $15.1 million stock offering in the first quarter 2004.
About Antares Pharma
Antares Pharma is a specialty pharma company focused on the growing lifestyle products sector and committed to leveraging its multiple drug delivery platforms to add value to existing drugs and to create new products and devices. The Company's current technology platforms include transdermal (Advanced Transdermal Delivery ATD(TM)) gels, disposable mini-needle injection systems (Vibex(TM)), reusable needle-free injection systems (VISION® and Valeo(TM)), and fast-melt oral (Easy Tec(TM)) tablets. The Company currently has active partnering programs with several pharmaceutical and distribution companies for a number of indications and applications, including diabetes, growth disorders, obesity, female sexual dysfunction and other hormone therapy.
Antares Pharma currently distributes its needle-free injector systems in more than 20 countries and markets the same technology for use with human growth hormone through licensees in most major regions of the world. Licensees also market an ibuprofen gel using Antares Pharma's ATD(TM) technology in several major European countries. In addition, Antares Pharma is undertaking development or is conducting research on several product opportunities that will form the basis of its specialty pharma program. Antares Pharma's corporate headquarters is in Exton, Pennsylvania, with subsidiaries performing research, development, manufacturing and product commercialization activities in Minneapolis, Minnesota and Basel, Switzerland.
[Financial tables omitted –see link in message prologue.] <<
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