EXHIBIT 99.1
ACCESS NEWS
Contact: Company Contact: Investor Relations
Kerry P. Gray Donald C. Weinberger
President & CEO Wolfe Axelrod
214) 905-5100 (212) 370-4500
ACCESS PHARMACEUTICALS, INC. ANNOUNCES
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FIRST QUARTER FINANCIAL RESULTS
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- Projects Break Even Cash Flow in the Current Quarter -
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DALLAS, TEXAS, May 15, 2003, ACCESS PHARMACEUTICALS, INC. (AMEX : AKC)
today reported results for the first quarter ended March 31, 2003.
The Company reported a net loss of $2,411,000 or $0.18 per share, for
the first quarter, as compared to a net loss of $1,866,000, or $0.14 per
share, for the corresponding quarter in 2002.
Revenue for the first quarter of 2003 was $393,000 compared to $116,000
for the comparable quarter in 2002. This increase reflects product sales of
Aphthasol(R) in the United States of $303,000, offset by a reduction in
licensing payments of $30,000. Operating expenses including cost of
product sales increased $708,000. Research and development accounted for
$474,000 of this increase, also contributing to the increase was
additional depreciation and amortization of licenses and patents ($87,000),
cost of product sales ($109,000) and increased administrative
expenses principally additional patent costs ($38,000). The increase in
research and development expenses reflects incremental clinical cost
associated with the OraDisc(TM) A development and AP5280 and AP5346
clinical studies.
Commenting on the results, Kerry P. Gray, President and CEO of Access,
stated, With the exception of a Zindaclin (R) licensing payment which was
previously anticipated to be received in the quarter, and which now will
be received in the second quarter, our results were in line with our
operating plan. In the second quarter we are anticipating a significant
increase in revenues. It is projected that the company will be cash
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flow break-even for the second quarter as a result of an expected material
one time non-operating income item and incremental licensing revenue."
During the first quarter progress continued in the advancement of the
company's priority activities, including:
- - Completion of the 700 patient Phase III OraDisc(TM) A study
- - Completion of the 100 patient 28 day OraDisc(TM) A safety study
- - Initiation of the AP5346 Phase I clinical study
- - Determination of the weekly clinical dose of AP5280 for the Phase II study
- - Advancement of the preclinical development of our nanoparticle aggregate
technology and our vitamin mediated targeted technology
- - Advancement and expansion of strategic alliance discussions for several
of our products and technologies
Mr. Gray continued, "I am very pleased with the progress that is being made
both commercially and scientifically. Our stated objective has been to
achieve, as rapidly as possible, an ongoing positive cash flow. I believe
that significant progress is being made to achieve this objective."
Access Pharmaceuticals, Inc. is an emerging pharmaceutical company focused
on developing both novel low development risk product candidates and
technologies with longer-term major product opportunities. Access markets
Aphthasol(R), the only FDA-approved product for the treatment of
canker sores, and is developing products for mucositis and other
dermatological indications. Access is also developing unique polymer
platinates for use in the treatment of cancer and has developed, in
conjunction with its partner Strakan, Ltd., the marketed product
Zindaclin(R), which utilizes ResiDerm(R), our topical zinc delivery
system that provides rapid delivery and reservoir of a drug in the skin.
This press release contains certain statements that are forward-looking
and that involve risks and uncertainties, including but not limited to
statements made relating to the uncertainties associated with research
and development activities, clinical trials, our ability to raise
capital, the integration of acquired companies and technologies, the
timing of and our ability to achieve regulatory approvals, dependence
on others to market our licensed products, collaborations, future cash
flow, the timing and receipt of licensing and milestone revenues, projected
future revenue growth and our ability to generate near term revenues, the
future success of the Company's marketed products Aphthasol(R) and products
in development including polymer platinate, OraDisc(TM) and our Mucositis
technology, our ability to develop products from our platform technologies,
our ability to manufacture amlexanox products in commercial quantities,
our sales projections and the sales projections of our licensing partners,
our ability to achieve licensing milestones and other risks detailed in
the Company's Annual Report on Form 10-K for the year ended December 31,
2002, and other reports filed by us with the Securities and Exchange
Commission.
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Access Pharmaceuticals, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months ended March 31,
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2003 2002
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Revenues
Licensing revenues $ 86,000 $ 116,000
Product sales 303,000 -
Royalty income 4,000 -
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Total revenues 393,000 116,000
Expenses
Research and development 1,797,000 1,323,000
Cost of product sales 109,000 -
General and administrative 537,000 499,000
Depreciation and amortization 144,000 57,000
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Total expenses 2,587,000 1,879,000
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Loss from operations (2,194,000) (1,763,000)
Other income (expense)
Interest and miscellaneous income 98,000 214,000
Interest expense (315,000) (317,000)
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(217,000) (103,000)
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Net loss $(2,411,000) $(1,866,000)
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Basic and diluted loss per common share $(0.18) $(0.14)
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Weighted average basic and diluted
common shares outstanding 13,199,900 12,934,263
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BALANCE SHEET DATA
March 31, 2003 December 31, 2002
(unaudited)
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Cash and cash equivalents $ 3,223,000 $ 1,444,000
Short-term investments and
certificates of deposit 4,153,000 8,332,000
Accounts receivable and inventory 1,658,000 1,645,000
Total assets 16,743,000 19,487,000
Working capital 5,149,000 7,594,000
Convertible notes and other obligations 14,568,000 15,019,000
Accumulated deficit (49,703,000) (47,292,000)
Total stockholders equity (deficit) (1,876,000) 489,000
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