SAN DIEGO, July 14 /PRNewswire/ -- Dura Pharmaceuticals, Inc.
(Nasdaq: DURA) today announced that revenues totaled $51.9 million for the
second quarter and $100.7 million for the first six months of 1998, a 19%
increase over the respective periods for last year. Net income totaled $8.2
million, or $0.17 per diluted share, for the second quarter of 1998 and $15.3
million, or $0.32 per diluted share for the six months year-to-date, compared
to last year's net income of $9.3 million, or $0.20 per diluted share, for the
second quarter and $18.1 million, or $0.38 per diluted share, for the first
six months of 1997. The relative declines in net income and per share
earnings are due largely to the Company's continuing investment in the
expansion of its field sales force, planned to increase by nearly 70% to
approximately 450 representatives by year-end. At the close of second
quarter, the Company had 355 sales representatives in the field.
Revenue from the sale of pharmaceuticals totaled $34.9 million for the
second quarter and $70.8 million for the first half of 1998, compared to $35.4
million and $69.3 million in the respective periods last year. Contract
revenue increased to $17.0 million for second quarter 1998 compared to $8.2
million in second quarter 1997, and totaled $29.9 million in the first six
months of 1998, compared to $15.2 million in the respective period last year.
This revenue growth was due to increased Spiros(R) product development
activity conducted on behalf of Spiros Development Corporation II, Inc.
(Spiros Corp. II) (Nasdaq: SDCOZ) and other pharmaceutical company partners.
Commenting on the results for the quarter, Dura Chairman and Chief
Executive Officer Cam L. Garner stated, "The expansion of the sales force is
proceeding according to plan, with an additional forty-three sales
representatives due to graduate from training by the end of July, bringing our
total to nearly 400. We believe productivity of the sales force in second
quarter was temporarily affected as a result of the expansion, as promotion of
many of our top representatives to management and realignment of many sales
territories were necessary early in the quarter. We expect to begin to
realize incremental productivity later this year, which will help to offset
the recent weakness we've seen in pharmaceutical revenues."
"We've made significant progress during the quarter on several Spiros(R)
development projects," noted Mr. Garner. "On behalf of Spiros Corp. II, we
completed the one-year open label trial for our first Spiros(R) product,
Albuterol Spiros(TM) and reached full patient enrollment in the Beclomethasone
Spiros(TM) pivotal clinical trial. We also successfully completed the FDA's
pre-approval field inspection of our manufacturing plant, which brings us a
step closer in seeking regulatory approval for Albuterol Spiros(TM),
anticipated by year-end. Additionally, development work is underway on both
budesonide and ipratropium Spiros(R) products. Apart from Spiros Corp. II,
Dura has other Spiros(R) development projects underway that are sponsored by
pharmaceutical partners and have contributed to contract revenue in the
quarter. We are very excited to see multiple projects underway, as we believe
they will be key drivers of the Company's future growth."
Dura's financial position remains strong, with a cash balance of over $410
million at the end of the quarter. "We expect to put our cash to work by
acquiring additional products and/or companies. We are confident in our
ability to continue to execute on our product acquisition strategy, as we are
aggressively pursuing several opportunities."
Dura Pharmaceuticals is a San Diego-based developer and marketer of
prescription pharmaceutical products for the treatment of allergies, asthma
and related respiratory conditions, and is developing a pulmonary drug
delivery system. Dura's mission is to be the leading pharmaceutical company
with a focus in the high-growth U.S. respiratory market. The Company is
pursuing that goal through two major strategies: (1) acquiring late-stage
prescription pharmaceuticals and/or companies with rights to such
pharmaceuticals for marketing to high-prescribing respiratory physicians and
(2) developing Spiros(R), a proprietary dry powder pulmonary drug delivery
system.
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 of
Spiros(R) products, uncertainties in the regulatory process, competitive
products and pricing, the ability of the Company to acquire products and/or
companies, the ability of the Company to add qualified sales representatives
in a timely manner, the Company's limited manufacturing experience,
seasonality, and other risks detailed from time to time in the Company's
filings with the Securities and Exchange Commission. Actual results may
differ materially from those projected. These forward-looking statements
represent the Company's judgment as of the date of this release. The Company
disclaims, however, any intent or obligation to update these forward-looking
statements.
(Financial Information Follows)
CONSOLIDATED STATEMENTS OF OPERATIONS DATA
(In thousands, except per share data) (unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1997 1998 1997 1998
REVENUES:
Sales $35,404 $34,912 $69,339 $70,798
Contract 8,227 17,026 15,184 29,906
Total Revenues 43,631 51,938 84,523 100,704
OPERATING COSTS AND EXPENSES:
Cost of Sales 7,976 7,457 15,946 15,550
Clinical, Development and Regulatory 6,593 11,488 12,353 21,077
Selling, General and Administrative 16,760 22,946 32,752 45,461
Total Operating Costs and Expenses 31,329 41,891 61,051 82,088
OPERATING INCOME 12,302 10,047 23,472 18,616
OTHER INCOME - net 2,867 2,349 6,101 4,638
INCOME BEFORE INCOME TAXES 15,169 12,396 29,573 23,254
PROVISION FOR INCOME TAXES 5,887 4,219 11,504 7,913
NET INCOME $9,282 $8,177 $18,069 $15,341
NET INCOME PER SHARE - diluted $0.20 $0.17 $0.38 $0.32
WEIGHTED AVERAGE NUMBER
OF COMMON AND COMMON
EQUIVALENT SHARES - diluted 47,327 48,073 47,285 48,321
CONSOLIDATED BALANCE SHEET DATA (unaudited)
December 31, 1997 June 30, 1998
CASH AND SHORT-TERM INVESTMENTS $385,221 $410,362
OTHER CURRENT ASSETS 56,188 48,623
LICENSE AGREEMENTS, PRODUCT RIGHTS, AND OTHER 333,471 344,755
TOTAL ASSETS $774,880 $803,740
CURRENT LIABILITIES $48,539 $56,816
LONG-TERM LIABILITIES 297,064 297,444
SHAREHOLDERS' EQUITY 429,277 449,480
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $774,880 $803,740
SOURCE Dura Pharmaceuticals, Inc.
 back to top
Related links:
http://www.durapharm.com
Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 197051
CONTACT:
Cam L. Garner, Chairman and CEO of Dura
Pharmaceuticals, Inc., 619-457-2553
|
