[IMPAX LOGO]
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. 1771 (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. 1706 ------------
www.impaxlabs.com
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IMPAX REPORTS SECOND QUARTER FINANCIAL RESULTS
Quarter Highlighted by Record Revenues and Operating Results Improvement
HAYWARD, Calif (July 28, 2003) - IMPAX Laboratories, Inc. (NASDAQ NM: IPXL)
today reported financial results for the three months and six months ended June
30, 2003.
Revenues for the second quarter of 2003 were $14,067,000, up more than 173%
compared with revenues of $5,145,000 in the prior year's second quarter, and up
more than 23% over total revenues of $11,425,000 in the first quarter of 2003.
The significant year-over-year increases came primarily on over-the-counter
(OTC) Loratadine and Pseudoephedrine Sulfate Extended Release 12-hour Tablets
shipped to Schering-Plough and Wyeth during the second quarter of 2003; sales of
Minocycline Hydrochloride Capsules launched in the third quarter of 2002; higher
sales of Fludrocortisone Acetate Tablets, introduced at the end of the first
quarter of 2002; higher Lipram sales; revenue from our strategic OTC agreements;
and lower product returns.
The net loss for the 2003 second quarter was $2,284,000, or $(0.05) per share,
compared with a net loss of $5,938,000, or $(0.13) per share, in the prior year
second quarter. The net loss narrowed due to increased sales and improved plant
capacity utilization.
For the six months ended June 30, 2003, the Company reported revenues of
$25,492,000 compared with $8,577,000 in the comparable period of the previous
year. The net loss for the first half of 2003 was $5,497,000 or $(0.11) per
share. This compares with a net loss of $11,359,000 or $(0.24) per share for the
first half of 2002.
Unrestricted cash, cash equivalents and short-term investments were $26.8
million at June 30, 2003, compared to $10.2 million at December 31, 2002. The
increase in the cash balance was primarily due to the May 2003 $25 million
private placement.
"The second quarter's results reflect the momentum we have been building in
developing our products, moving them through the regulatory and legal pathways
and then bringing them to market," said Barry R. Edwards, Co-Chief Executive
Officer of IMPAX. "We are comfortable that we will be able to maintain this
momentum going forward," Mr. Edwards continued.
IMPAX has 20 applications pending at the FDA, including three tentatively
approved that address approximately $6.2 billion in U.S. branded product sales
for the twelve months ended April 30, 2003. Fifteen 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.
As previously announced, the Company has scheduled a conference call to discuss
this announcement beginning at 8:30 a.m. Eastern Time today. To participate in
the call, a few minutes prior to the start time, please dial (888) 803-7396 in
the U.S. or (706) 634-1052 for international callers. Those unable to
participate are invited to listen to a recording of the call and Question and
Answer session from 9:30 a.m. Eastern Time July 28, 2003 through 11:59 p.m.
Eastern Time July 30, 2003, by dialing (800) 642-1687 in the U.S. or (706)
645-9291 for international callers, and entering reservation code 1824737.
Alternatively, individuals may listen to the call by visiting the investor
relations section of the Company's website at www.impaxlabs.com. To listen to
the live call, please go to the website 15 minutes prior to its start to
register, download, and install the necessary audio software. A recording of the
call will be available for 14 days on the site beginning on July 28, 2003.
"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 Six Months Ended
June 30, June 30,
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2003 2002 2003 2002
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Net sales $ 13,460 $ 5,145 $ 24,526 $ 8,577
Other revenues 607 0 966 0
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Total revenues 14,067 5,145 25,492 8,577
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Cost of sales 9,321 3,982 17,468 7,121
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Gross margin 4,746 1,163 8,024 1,456
Research and development 4,347 4,476 8,102 7,366
Less: Teva payments (22) (138) (154) (304)
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Research and development, net 4,325 4,338 7,948 7,062
Selling expenses 438 646 1,006 1,304
General and administrative expenses 2,083 1,939 4,205 4,109
Other operating income (expense), net 10 21 21 (9)
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Net loss from operations (2,090) (5,739) (5,114) (11,028)
Interest income 70 167 112 402
Interest expense (264) (366) (495) (733)
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Net loss $ (2,284) $ (5,938) $ (5,497) $ (11,359)
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Net loss per share (basic and diluted) $ (0.05) $ (0.13) $ (0.11) $ (0.24)
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Weighted average
common shares outstanding 50,608,445 47,306,741 49,250,049 47,061,223
========== ========== =========== ==========
IMPAX LABORATORIES, INC.
CONDENSED BALANCE SHEET
(in thousands)
June 30, December 31,
2003 2002
(unaudited) (unaudited)
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ASSETS
Cash, cash equivalents and short-term investments $ 26,793 $ 10,219
Restricted cash (a) 10,000 10,000
Accounts receivable, net 8,584 6,524
Inventory 15,042 10,478
Property, plant and equipment, net 36,600 37,065
Goodwill and intangibles, net 28,145 28,337
Other assets 1,907 1,780
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Total assets $ 127,071 $ 104,403
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 25,843 $ 23,248
Long-term debt, net of current portion 9,394 9,105
Refundable deposit (b) 22,000 22,000
Deferred revenues and other liabilities 2,737 1,486
Mandatory redeemable convertible preferred stock 7,500 7,500
Stockholders' equity 59,597 41,064
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Total liabilities and stockholders' equity $ 127,071 $ 104,403
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(a) Represents cash held as collateral for the $25 million revolving credit
facility and term loan with Congress Financial.
(b) As of the date of this press release, we expect to pay the refundable
deposit to Teva in IMPAX common stock.