SAN DIEGO, April 13 /PRNewswire/ -- Dura Pharmaceuticals, Inc. (Dura)
(Nasdaq: DURA) today reported record revenues of $71.2 million for the first
quarter of 1999, an increase of 46% over the same period last year. Net
income for the quarter totaled $7.8 million, or $0.17 per diluted share
compared to net income of $7.2 million, or $0.15 per diluted share, in the
first quarter of 1998.
The revenue growth was due to an increase in both pharmaceutical sales and
contract revenue. Pharmaceutical sales totaled $55.1 million in the first
quarter of 1999, an increase of 53% over the first quarter of 1998. Dura
stated that the increase was principally attributed to the productivity of its
expanded sales force, which has continued to grow market share of key
respiratory brands, Ceclor(R) CD (cefaclor extended release tablets) and
Nasarel(R) and Nasalide(R) (flunisolide) Nasal Solutions 0.025%, and to the
impact of newly acquired products, Maxipime(R) (cefepime) for Injection and
Azactam(R) (aztreonam) for Injection. Contract revenue increased 26% over the
first quarter of last year to $16.2 million, due primarily to increased
Spiros(R) product development activity on behalf of both Spiros Development
Corporation II, Inc. (Nasdaq: SDCOZ) and Eli Lilly and Company (Lilly)
(NYSE: LLY).
"We are very pleased with our sales performance this quarter, particularly
as it is a reflection of the investment we made in our sales force expansion
last year," stated Cam L. Garner, Dura's Chairman and CEO. "During the
quarter, we benefited from the heightened productivity of the maturing sales
organization and from a strong and extended respiratory season, each of which
contributed to our ability to grow market share and new prescription volume
for our key respiratory brands. For the first quarter of 1999, Ceclor CD held
7.0% share of the 2nd and 3rd generation cephalosporin market, with new
prescription volume 51% above levels recorded during the same period last
year. In the intranasal steroid market, Nasarel and Nasalide have a combined
market share of 3.3%, with new prescription volume up 44% over the first
quarter of 1998."
"We are also very excited to be marketing our new hospital products,
Maxipime and Azactam, through our co-promotion agreement with Bristol-Myers
Squibb Company," noted Mr. Garner. "We are actively building our acute care
sales organization and have successfully appointed the senior sales and
marketing management team this quarter. Our plan is to have approximately
120 acute care sales people in position before year-end. We believe the
growth potential of these drugs is considerable, and we are on track to
achieve our goal of $65 million in combined sales this year."
"In the first quarter, we laid a solid foundation for executing our growth
strategy in 1999," Mr. Garner continued. "Sales from our proprietary
respiratory and hospital products are tracking well against our goals. Our
financial position is strong, with over $275 million in cash available to
pursue additional product and/or company acquisitions that fit our primary
care or hospital marketing channels. We remain very focused on advancing the
development of the Spiros respiratory products, with the goal of initiating
clinical trials for both beclomethasone and albuterol in the fourth quarter.
In addition, we look forward to continued advancement of inhaled insulin,
which we are developing in our Spiros technology in collaboration with Lilly.
By building on our fundamental strengths and opportunities, we believe we are
well positioned to achieve our goal of 35% earnings growth in the
1999-2000 timeframe. The successful introduction of new Spiros respiratory
products, pending FDA approval, in 2001 and beyond should facilitate sustained
growth well into our extended planning horizon."
Dura Pharmaceuticals, Inc. is a San Diego based developer and marketer of
prescription pharmaceutical products for the treatment of allergies, asthma,
pneumonia and related respiratory conditions. Dura has focused on the U.S.
respiratory market because of its size and growth opportunities through two
major strategies: (1) acquiring prescription pharmaceuticals and/or
businesses developing or marketing such pharmaceuticals to support its
marketing presence in high-prescribing respiratory physicians' offices and/or
the hospital market, and (2) developing Spiros(R), a pulmonary drug delivery
system for both topical and systemic delivery of medications.
Except for the historical and factual information contained herein, the
matters discussed in this press release may contain forward-looking statements
which involve risks and uncertainties, including the timely development and
FDA approval of Spiros(R), if at all, the competitiveness of the
pharmaceutical industry, dependence on third parties for manufacturing and
development, the timely establishment of a hospital sales force and marketing
capability, and other risks detailed from time to time in Dura's filings with
the Securities and Exchange Commission. Actual results may differ materially
from those projected. Any forward-looking statements represent Dura's
judgment as of the date of this release. Dura disclaims, however, any intent
or obligation to update these forward-looking statements.
News releases from Dura Pharmaceuticals are available at no charge on
Dura's website at http://www.durapharm.com and through PR Newswire's On-Call fax
service by calling (800) 758-5804, extension 197051.
Financial Information to Follow
CONSOLIDATED STATEMENTS OF OPERATIONS DATA
(In thousands, except per share data)
(unaudited)
Three Months Ended
March 31,
1998 1999
REVENUES:
Sales $35,885 $55,081
Contract 12,881 16,166
Total Revenues 48,766 71,247
OPERATING COSTS AND EXPENSES:
Cost of Sales 8,093 10,491
Clinical, Development and Regulatory 9,590 11,491
Selling, General and Administrative 22,514 37,290
Total Operating Costs and Expenses 40,197 59,272
OPERATING INCOME 8,569 11,975
OTHER INCOME - net 2,288 11
INCOME BEFORE INCOME TAXES 10,857 11,986
PROVISION FOR INCOME TAXES 3,693 4,220
NET INCOME $7,164 $7,766
NET INCOME PER SHARE - diluted $0.15 $0.17
WEIGHTED AVERAGE NUMBER OF COMMON
AND COMMON EQUIVALENT SHARES - diluted 48,523 45,686
CONSOLIDATED BALANCE SHEET DATA
(unaudited)
December 31, March 31,
1998 1999
CASH AND SHORT-TERM INVESTMENTS $269,412 $276,195
OTHER CURRENT ASSETS 33,633 45,443
LICENSE AGREEMENTS, PRODUCT RIGHTS,
AND OTHER 522,414 519,941
TOTAL ASSETS $825,459 $841,579
CURRENT LIABILITIES $62,248 $72,344
LONG-TERM LIABILITIES 352,839 350,362
SHAREHOLDERS' EQUITY 410,372 418,873
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $825,459 $841,579
SOURCE Dura Pharmaceuticals, Inc.
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CONTACT:
Michael T. Borer, Sr. Vice President and
Chief Financial Officer of Dura Pharmaceuticals, Inc.,
619-457-2553
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