Exhibit 99.1
For Immediate Release
For Further Information Contact:
Andrew Fisher at (301) 608-9292
Email: Afisher@unither.com
UNITED THERAPEUTICS REPORTS FIRST QUARTER
2004 FINANCIAL RESULTS
Conference Call Scheduled for Thursday, May 6, 2004 at 9:00 a.m. E.T.
Quarterly Highlights:
| | |
| [ ] | Reimbursable patients grew by 70 to approximately 625 |
| [ ] | Total patients on Remodulin® grew to approximately 740 worldwide |
| [ ] | Total revenues grew 27% to $13.7 million |
| [ ] | Net loss fell 39% |
Silver Spring, MD, May 6, 2004: United Therapeutics Corporation (NASDAQ: UTHR) today announced financial results for the first quarter ended March 31, 2004.
“We are pleased to report that United Therapeutics’ consolidated revenues for the quarter ended March 31, 2004 totaled $13.7 million, representing a 27% increase over the first quarter of 2003. Our net loss for the quarter fell to $1.8 million or $0.09 per share, a 39% reduction from the 2003 level,” said Martine Rothblatt, Ph.D., United Therapeutics’ Chairman and Chief Executive Officer. “Additionally, the number of reimbursable patients on Remodulin grew by approximately 70, on a net basis, during the quarter.”
Financial Results
Revenues grew to $13.7 million in the first quarter of 2004, as compared to $10.7 million in the first quarter of 2003. Gross margins from sales were $11.9 million or 87% in the first quarter of 2004, as compared to $9.0 million or 84% in the first quarter of 2003. This 27% increase in revenues and improvement in gross margins resulted primarily from expanded sales of Remodulin.
The net loss fell 39% to $1.8 million or $0.09 per share in the first quarter of 2004, as compared to $3.0 million or $0.14 per share in the first quarter of 2003.
Research and development expenses were $8.5 million in the first quarter of 2004, as compared to $7.5 million in the first quarter of 2003. The increase was due primarily to increased expenses related to Remodulin development, offset by a reduction in expenses related to other research and development programs. Selling, general and administrative expenses were $5.8 million in the first quarter of 2004, as compared to $5.0 million in the first quarter of 2003. The increase was due primarily to increased salaries and related expenses for expanded sales and marketing activities.
Interest income was $649,000 in the first quarter of 2004, which is comparable to $547,000 in the first quarter of 2003.
Conference Call
United Therapeutics will host a teleconference on Thursday, May 6, 2004 at 9:00 a.m. Eastern Time. The teleconference is accessible by dialing 1-800-915-4836, with international dialers calling 1-973-317-5319. A rebroadcast of the teleconference will be available for one week following the teleconference by dialing 1-800-428-6051 from the US, or by dialing 1-973-709-2089 internationally, and using access code 353700.
United Therapeutics is a biotechnology company focused on combating chronic and life-threatening cardiovascular, infectious and oncological diseases with unique therapeutic products.
UNITED THERAPEUTICS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS DATA
(In thousands, except share and per share data)
| | | | | | | | | |
| | | Three Months Ended March 31,
|
| | | 2004
| | 2003
|
| Revenues: | | | | | | | | |
| Net product sales | | $ | 12,646 | | | $ | 9,760 | |
| Service sales | | | 1,037 | | | | 979 | |
| | | |
| | | |
| |
| Total revenue | | | 13,683 | | | | 10,739 | |
| | | | | | | | | |
| Operating expenses: | | | | | | | | |
| Research and development | | | 8,452 | | | | 7,452 | |
| Selling, general and administrative | | | 5,809 | | | | 4,989 | |
| Cost of product sales | | | 1,339 | | | | 1,271 | |
| Cost of service sales | | | 456 | | | | 459 | |
| | | |
| | | |
| |
| Total operating expenses | | | 16,056 | | | | 14,171 | |
| | | | | | | | | |
| Loss from operations | | | (2,373 | ) | | | (3,432 | ) |
| | | | | | | | | |
| Other income (expense): | | | | | | | | |
| Interest income | | | 649 | | | | 547 | |
| Interest expense | | | (2 | ) | | | (31 | ) |
| Equity loss in affiliate | | | (127 | ) | | | (195 | ) |
| Other, net | | | 6 | | | | 87 | |
| | | |
| | | |
| |
| Total other income | | | 526 | | | | 408 | |
| | | | | | | | | |
| Loss before income tax | | | (1,847 | ) | | | (3,024 | ) |
| | | | | | | | | |
| Income tax | | | — | | | | — | |
| | | |
| | | |
| |
| Net loss | | $ | (1,847 | ) | | $ | (3,024 | ) |
| | | |
| | | |
| |
| Net loss per common share — basic and diluted | | $ | (0.09 | ) | | $ | (0.14 | ) |
| | | |
| | | |
| |
| Weighted average number of common shares outstanding — basic and diluted | | | 21,329,473 | | | | 20,923,217 | |
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| | | |
| |
CONSOLIDATED BALANCE SHEET DATA
As of March 31, 2004
(In thousands)
| | | | | |
| Cash, cash equivalents and marketable investments | | $ | 117,134 | |
| Total assets | | $ | 176,040 | |
| Total liabilities | | $ | 10,986 | |
| Total stockholders’ equity | | $ | 165,054 | |
