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Company Contacts: Investor Relations Contacts:
IMPAX Laboratories, Inc. Lippert/Heilshorn & Associates, Inc.
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Barry R. Edwards, Co-CEO Kim Sutton Golodetz (kgolodetz@lhai.com)
(215) 289-2220 Ext. 371 (212) 838-3777
Larry Hsu, Ph.D. President Bruce Voss (bvoss@lhai.com)
(510) 476-2000 Ext. 1111 (310) 691-7100
Cornel C. Spiegler, CFO www.lhai.com
(215) 289-2220 Ext. 306 -------------
www.impaxlabs.com
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IMPAX REPORTS RECORD REVENUES
IN THE FOURTH QUARTER AND THE YEAR 2002
- Files Four ANDAs in Quarter-
HAYWARD, Calif (February 12, 2003) - IMPAX Laboratories, Inc. (NASDAQ NM: IPXL)
today reported financial results for the three and twelve months ended December
31, 2002.
Revenues for the fourth quarter of 2002 were $8,400,000, up more than 400%
compared with total revenues of $2,025,000 in the prior year's fourth quarter,
and up more than 11% compared with total revenues of $7,538,000 in the third
quarter of 2002. The significant year-over-year increase came on additional
sales of Fludrocortisone Acetate Tablets, introduced at the end of the first
quarter of 2002, Minocycline Hydrochloride Capsules launched in the third
quarter of 2002, Rimantadine Hydrochloride Tablets launched in the fourth
quarter of 2002, higher Lipram sales, and lower product returns.
The net loss for the 2002 fourth quarter was $3,471,000, or $(0.07) per share,
compared with a net loss of $6,854,000, or $(0.15) per share in the prior year
fourth quarter, which included goodwill amortization of approximately $876,000,
or $(0.02) per share. Net loss narrowed due to increased sales, which partially
offset increases in research and development, and operating expenses. Further,
results included a benefit from the reversal of the interest expense on the
refundable deposit from Teva under its strategic alliance agreement, of
approximately $1,595,000, or $(0.03) per share.
For the twelve months ended December 31, 2002, the Company reported total
revenues of $24,515,000, up more than 370%, compared with total revenues of
$6,591,000 in the previous year. The significant year-over-year increase came on
the ramp up of sales of Fludrocortisone Acetate Tablets, introduced at the end
of the first quarter of 2002, Minocycline Hydrochloride Capsules launched in the
third quarter of 2002, Rimantadine Hydrochloride Tablets launched in the fourth
quarter of 2002, Terbutaline Sulfate Tablets introduced since July 2001, higher
Lipram sales, and lower product returns.
The net loss for the twelve months ended December 31, 2002, was $20,040,000, or
$(0.42) per share, compared with a net loss of $25,111,000, or $(0.60) per
share, in the previous year, which included goodwill amortization of $3,504,000,
or $(0.08) per share. Net loss narrowed due to increased sales, which partially
offset increases in research and development, and operating expenses. Further,
results included a benefit from the reversal of the interest expense on the
refundable deposit from Teva of approximately $675,000, or $(0.01) per share.
Cash, cash equivalents and short-term investments were $20.2 million at December
31, 2002, compared with $35.5 million at December 31, 2001. The balance at
December 31, 2002 included $10 million in restricted cash that serves as
collateral for the $25 million revolving credit facility and term loan agreement
signed with Congress Financial in October 2002.
"The fourth quarter continues our sequential quarter improvement," said Barry R.
Edwards, Co- CEO. "We are looking forward to increasing sales throughout 2003,
as we receive U.S. Food and Drug Administration (FDA) marketing approval for new
products."
Larry Hsu, Ph.D., President, added: "We are very pleased that our development
team reached the high end of our goal by filing eight applications in 2002, four
of which were filed in the fourth quarter. This marks the third year in a row
that we have filed eight applications. Once again, for 2003, we expect to be
able to file at least six new applications with the FDA."
IMPAX has 19 applications pending at the FDA, including three tentatively
approved, that address more than $5.8 billion in U.S. branded product sales for
the 12 months ended September 30, 2002. Fourteen of these filings were made
under Paragraph IV of the Hatch-Waxman Amendments.
IMPAX Laboratories, Inc. is a technology based specialty pharmaceutical company
applying its formulation expertise and drug delivery technology to the
development of controlled-release and specialty generics in addition to the
development of branded products. IMPAX markets its generic products through its
Global Pharmaceuticals division and intends to market its branded products
through the IMPAX Pharmaceuticals division. Additionally, where strategically
appropriate, IMPAX has developed marketing partnerships to fully leverage its
technology platform. IMPAX Laboratories is headquartered in Hayward, California,
and has a full range of capabilities in its Hayward and Philadelphia facilities.
For more information, please visit the Company's Web site at: www.impaxlabs.com.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of
1995:
To the extent any statements made in this news release contain information that
is not historical, these statements are forward-looking in nature and express
the beliefs and expectations of management. Such statements are based on current
expectations and involve a number of known and unknown risks and uncertainties
that could cause Impax's future results, performance or achievements to differ
significantly from the results, performance or achievements expressed or implied
by such forward-looking statements. Such risks and uncertainties include, but
are not limited to, Impax's ability to obtain sufficient capital to fund its
operations, the difficulty of predicting FDA filings and approvals, consumer
acceptance and demand for new pharmaceutical products, the impact of competitive
products and pricing, Impax's ability to successfully develop and commercialize
pharmaceutical products, Impax's reliance on key strategic alliances, the
uncertainty of patent litigation, the availability of raw materials, the
regulatory environment, dependence on patent and other protection for innovative
products, exposure to product liability claims, fluctuations in operating
results and other risks detailed from time to time in Impax's filings with the
Securities and Exchange Commission. Forward-looking statements speak only as to
the date on which they are made, and Impax undertakes no obligation to update
publicly or revise any forward-looking statement, regardless of whether new
information becomes available, future developments occur or otherwise.
(Tables to follow)
IMPAX LABORATORIES, INC.
STATEMENTS OF OPERATIONS
(dollars in thousands, except share and per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
(unaudited) (unaudited)
---------------------------- ---------------------------------
2002 2001 2002 2001
---- ---- ---- ----
Net sales $ 7,998 $ 2,025 $ 23,758 $ 6,591
Other revenues 402 - 757 -
----------- ----------- ------------- ------------
Total revenues 8,400 2,025 24,515 6,591
Cost of sales 6,218 3,154 18,492 9,669
----------- ----------- ------------- ------------
Gross profit (loss) 2,182 (1,129) 6,023 (3,078)
Research and development 4,355 2,907 16,254 11,890
Less: Teva reimbursements (219) (219) (705) (918)
----------- ----------- ------------- ------------
Research and development, net 4,136 2,688 15,549 10,972
Selling expenses 835 471 2,836 2,186
General and Administrative(a) 2,203 2,594 8,396 9,258
Other operating income (expense), net 3 100 (36) 164
----------- ----------- ------------- ------------
Net loss from operations (4,989) (6,782) (20,794) (25,330)
Interest income 104 313 644 1,148
Interest expense(b) 1,414 (385) 110 (929)
----------- ----------- ------------- ------------
Net loss $ (3,471) $ (6,854) $ (20,040) $ (25,111)
=========== =========== ============= ============
Net loss per share (basic and diluted) $ (0.07) $ (0.15) $ (0.42) $ (0.60)
=========== =========== ============= ============
Weighted average
common shares outstanding 47,867,379 46,680,047 47,444,364 41,555,818
=========== =========== ============= ============
(a) Includes amortization of goodwill of $876,000 in the quarter ended December
31, 2001 and $3,504,000 in the twelve months ended December 31, 2001. There
was no amortization of goodwill in 2002.
(b) The interest expense for the quarter and twelve months ended December 31,
2002, included the reversal of the interest on the refundable deposit from
Teva, as follows:
Q-4 2002 Year 2002
----------- -----------
Reversal of Interest on Refundable Deposit $ 2,190,000 $ 876,000
Other Interest (181,000) (565,000)
Less: Amounts Previously Capitalized (595,000) (201,000)
----------- ---------
Total Interest Expense $ 1,414,000 $ 110,000
=========== =========
IMPAX LABORATORIES, INC.
CONDENSED BALANCE SHEETS
(in thousands)
December 31, December 31,
2002 2001
(unaudited) (unaudited)
------------- -------------
ASSETS
Cash, cash equivalents and short-term investments $ 10,219 $ 35,466
Restricted cash(a) 10,000 --
Accounts receivable, net 6,524 3,523
Inventory 10,478 3,488
Property, plant and equipment, net 37,065 24,334
Goodwill and intangibles, net 28,337 28,721
Other assets 1,780 2,080
----------- -----------
Total assets $ 104,403 $ 97,612
----------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 23,248 $ 7,803
Long-term debt, net of current portion 9,105 6,868
Refundable deposit and related accrued interest 22,000 22,876
Other liabilities 1,486 117
Mandatorily redeemable convertible preferred stock 7,500 7,500
Stockholders' equity 41,064 52,448
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Total liabilities and stockholders' equity $ 104,403 $ 97,612
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(a) Collateral for the $25 million revolving credit facility and term loan with
Congress Financial.