SAN DIEGO, Oct. 14 /PRNewswire/ -- Dura Pharmaceuticals, Inc.
(Nasdaq: DURA) today announced that revenues totaled $43.4 million for the
third quarter 1998, unchanged from the same period last year, and $144.1
million for the first nine months of 1998, an increase of 13% over the first
nine months of 1997. Revenue from the sale of pharmaceuticals totaled $25.0
million for the third quarter and $95.8 million for the first nine months of
1998, compared with $36.1 million and $105.4 million in the respective periods
last year. Contract revenue totaled $18.4 million for the third quarter and
$48.3 million year-to-date, representing increases of 154% and 115% over the
respective periods last year, due primarily to increased Spiros(R) product
development activity on behalf of Spiros Development Corporation II, Inc.
(Spiros Corp. II) (Nasdaq: SDCOZ) and activity in collaboration with Eli Lilly
and Company (Lilly) (NYSE: LLY) in the development of inhaled insulin. Dura's
net income totaled $2.4 million and earnings per diluted share were $0.05 for
the quarter, and $17.8 million, or $0.37 per diluted share for the first nine
months of 1998, compared to last year's net income of $11.3 million, or $0.24
per diluted share, for the third quarter and $29.4 million, or $0.62 per
diluted share, for the first nine months of 1997.
Commenting on the quarter, Cam L. Garner, Dura's Chairman and Chief
Executive Officer, stated, "Pharmaceutical revenues and earnings are in line
with our revised guidance provided last month and we believe the
accomplishments of this quarter will prove to be critical to our growth
prospects going forward. During the period, we significantly strengthened our
field sales organization by continuing our aggressive territory expansion
program, hiring experienced district sales managers and regional sales
directors, and completing training programs involving the entire sales force.
We currently have 400 field sales representatives actively promoting Dura
products. We have implemented both improved physician targeting techniques
and a progressive resource deployment strategy to maximize impact on Ceclor(R)
CD (cefaclor extended release tablets). In recent weeks we have seen steady
week-to-week growth in Ceclor(R) CD market share, which has reached an
all-time high of 30.1% of the oral solid cefaclor market. We believe these
gains reflect the impact from the recent sales force expansion and we
anticipate that we will continue to post solid gains as the sales force
matures. Additionally this quarter, wholesaler inventories of our products
have normalized, which should result in a better correlation between
prescription demand and ex-factory sales going forward. So far this year,
actual demand for Ceclor(R) CD through August 1998 was up 34% compared to the
same period last year, as measured by monthly new prescriptions."
"We are excited about the prospects for application of our proprietary
Spiros(R) dry powder drug delivery technology to both the respiratory market
and to macromolecule opportunities, highlighted by the recent announcement of
our partnership to develop inhaled insulin with Lilly," said Mr. Garner. "Our
experience with our family of Spiros(R) respiratory products is expected to
enhance the prospects for successful development of the inhaled insulin
product, currently in progress."
The Company's cash position remains strong, totaling nearly $370 million,
most of which is targeted primarily for the acquisition of products and/or
companies designed to fuel future growth. "In the present market climate,"
noted Mr. Garner, "our cash has become an increasingly valuable tool which
will facilitate the achievement of many goals. Our cash position is
sufficiently strong to allow us to implement our recently announced stock
repurchase program in addition to acquisitions."
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 market conditions,
competitive products and pricing, seasonality, Dura's ability to add
additional people to support activities, the timely development of the
Spiros(R) system, the timely receipt of FDA approval, if at all, Dura's
limited manufacturing experience, dependency upon third parties and their
successful development efforts and other risks detailed from time to time in
the Company's filings with the SEC. 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.
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.
CONSOLIDATED STATEMENTS OF OPERATIONS DATA
(In thousands, except per share data) (unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1998 1997 1998
REVENUES:
Sales $36,098 $24,961 $105,437 $95,759
Contract 7,245 18,402 22,430 48,308
Total Revenues 43,343 43,363 127,867 144,067
OPERATING COSTS AND EXPENSES:
Cost of Sales 7,426 5,798 23,373 21,348
Clinical, Development and
Regulatory 5,807 11,298 18,160 32,375
Selling, General and
Administrative 16,733 25,224 49,485 70,685
Total Operating Costs
and Expenses 29,966 42,320 91,018 124,408
OPERATING INCOME 13,377 1,043 36,849 19,659
OTHER INCOME - net 2,802 2,634 8,903 7,272
INCOME BEFORE INCOME
TAXES 16,179 3,677 45,752 26,931
PROVISION FOR INCOME
TAXES 4,854 1,253 16,357 9,166
NET INCOME $11,325 $2,424 $29,395 $17,765
NET INCOME PER
SHARE - diluted $0.24 $0.05 $0.62 $0.37
WEIGHTED AVERAGE NUMBER
OF COMMON AND
COMMON EQUIVALENT
SHARES - diluted 47,606 47,578 47,392 47,647
CONSOLIDATED BALANCE SHEET DATA (unaudited)
December 31, 1997 September 30, 1998
CASH AND SHORT-TERM
INVESTMENTS $385,221 $368,432
OTHER CURRENT ASSETS 56,188 39,827
LICENSE AGREEMENTS,
PRODUCT RIGHTS, AND OTHER 333,471 404,446
TOTAL ASSETS $774,880 $812,705
CURRENT LIABILITIES $48,539 $58,313
LONG-TERM LIABILITIES 297,064 300,926
SHAREHOLDERS' EQUITY 429,277 453,466
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $774,880 $812,705
SOURCE Dura Pharmaceuticals, Inc.
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Company News On-Call:
http://www.prnewswire.com/comp/197051.html or fax,
800-758-5804, ext. 197051
CONTACT:
Cam L. Garner, Chairman and Chief Executive
Officer of Dura Pharmaceuticals, Inc., 619-457-2553
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