SAN DIEGO, Dec. 22 /PRNewswire/ -- Dura Pharmaceuticals, Inc.
(Nasdaq: DURA) (Dura) today announced that, based on its recent positive sales
growth trends on Ceclor(R) CD (cefaclor extended release tablets) and
Nasarel(R) (flunisolide) Nasal Solution 0.025% it expects fourth quarter and
year-end 1998 earnings to be in line with expectations, subject to DJ Pharma
(DJ) successfully completing a private equity placement to secure independent
financing by December 31, 1998. If the DJ financing is not completed by the
end of 1998, Dura will be required to consolidate DJ's selling, general and
administrative expenses incurred in the promotion of the pharmaceutical
products licensed and acquired from Dura, and take a charge related to a loan
to DJ, resulting in a reduction earnings for both the quarter and the year by
approximately $0.08-$0.12 per share. Additionally, if DJ does not complete
its financing by year-end and the previously executed product license
agreement is terminated, all DJ product rights will be subject to
reacquisition by Dura. As a result, Dura would also record in the fourth
quarter 1998 a one-time non-cash pre-tax charge of approximately $28 million
to write-down the carrying value of the Rondec(R) product line.
"We are disappointed that the prevailing market for private placements has
made completion of this financing at an acceptable valuation to Dura more
difficult than expected," stated Cam L. Garner, Dura's Chairman and CEO. "DJ
is working diligently with its investment banking firm to complete the
financing, but there can be no assurance that it will close by year-end. If
the financing is not accomplished in that time frame, our earnings for the
fourth quarter will be below current expectations solely as a result of
consolidating DJ's operations with Dura." Added Garner, "If Dura reacquires
the DJ products, a one-time non-cash write-down of the Rondec(R) product line
will be necessary, but we would expect that the performance of the products,
after this charge, would be neutral to our current earnings estimates in 1999
and 2000."
DJ Pharma, Inc. is a private pharmaceutical company organized to market
and sell patented and branded generic prescription products to a highly
targeted prescriber base through a dedicated field sales force. In July 1998,
DJ entered into an agreement with Dura for the co-promotion of Dura's cough,
cold and allergy line of products, the Rondec(R) product line and Keftab(R)
(cephalexin hydrochloride). In addition, Dura granted to DJ an option to
acquire all such products, which DJ exercised in October, pending completion
of DJ's private placement.
Dura Pharmaceuticals, Inc. is a San Diego-based developer and marketer of
prescription pharmaceutical products for the treatment of allergies, asthma,
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 respiratory prescription pharmaceuticals and/or
businesses developing or marketing such pharmaceuticals targeted at
high-prescribing respiratory physicians, and (2) developing Spiros(R), a
proprietary 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. Forward-looking statements represent the Company's judgment
as of the date of this release. Dura disclaims, however, any intent or
obligation to update any forward-looking statements.
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 Garner, Chairman and Chief Executive
Officer of Dura Pharmaceuticals, Inc., 619-457-2553
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