EXHIBIT 99.1
COMPANY CONTACT:
Danette R.M. Meyer, Ph.D. (Dmeyer@atrixlabs.com)
Director of Investor Relations
ATRIX LABORATORIES, INC.
(970) 482-5868
HTTP://WWW.ATRIXLABS.COM
ATRIX LABORATORIES REPORTS 2003 FIRST QUARTER
FINANCIAL RESULTS
HIGHLIGHTS:
o HIGHEST QUARTERLY SALES REVENUE TO DATE
o NET SALES AND ROYALTIES INCREASES 167% OVER 1Q 2002
o TOTAL QUARTERLY REVENUE INCREASES TO OVER $9 MILLION
FORT COLLINS, CO (APRIL 25, 2003) -- ATRIX LABORATORIES, INC. (NASDAQ NM: ATRX)
today announced consolidated financial results for the first quarter ended March
31, 2003.
For the quarter ending March 31, 2003, net sales and royalty revenue increased
167 percent to $3.2 million compared to $1.2 million in first quarter 2002. This
increase was primarily due to the recognition of $1.8 million in sales and
royalties from the Eligard(R) (leuprolide acetate for injectable suspension)
franchise as well as $0.5 million increase in sales of Atridox(R) (8.5%
doxycline) in Europe. The Eligard revenue included a full quarter of sales of
Eligard 7.5mg and Eligard 22.5mg and one month of sales of Eligard 30mg.
Total revenue increased 90 percent to $9.5 million compared to total revenue of
$5.0 million for the period ending March 31, 2002. Research and development
expenses increased 32 percent to $8.7 million for the period compared to $6.6
million for the three months ended March 31, 2002. The company continues to
focus on Phase III clinical studies for Eligard 45mg and Atrisone. Development
partners, including Fujisawa Healthcare Inc. and Sanofi-Synthelabo Inc.,
reimbursed approximately half of total R&D expenses. The net loss for the first
quarter 2003 was $3.0 million or $0.15 per share compared to a net loss for the
first quarter 2002 of $4.8 million or $0.24 per share.
"This quarter was marked by the approval and launch of the Eligard four-month
prostate cancer product, which now offers the entire Eligard product line the
opportunity to compete in the total market," said David R. Bethune, chairman and
chief executive officer at Atrix. Sanofi-Synthelabo has stated that they are
pleased with the uptake since the four-month product came on the market. We
expect Eligard sales to continue to exhibit strong growth in the second quarter
when we will have a full quarter of sales of all three strengths. Currently,
over 90 representatives are promoting Eligard. We are pleased that
Sanofi-Synthelabo continues to add resources to expand the number of urology
sales representatives."
Bethune continued, "We have made significant progress this quarter in the Phase
III studies for Atrisone(R) (5% dapsone) and the six-month Eligard product. In
fact, we are ahead of schedule
(more)
on the clinical studies for Eligard 45mg and working hard to make an earlier
than planned New Drug Application submission of this unique dosage form."
Atrix Laboratories, Inc. is an emerging specialty pharmaceutical company focused
on advanced drug delivery. With five unique patented technologies, Atrix is
currently developing a diverse portfolio of proprietary products, including
oncology, pain management, and dermatology products. The company also partners
with large pharmaceutical and biotechnology companies to apply its proprietary
technologies to new chemical entities or to extend the patent life of existing
products. Additional information is available on the Atrix Laboratories, Inc.
website at http://www.atrixlabs.com.
Statements made in this press release may contain statements that qualify as
"forward-looking statements" under the Private Securities Litigation Reform Act
of 1995, including statements about the following topics: the company's
expectations for Eligard, Atrisone, and other products in development; the
company's expectation that their marketing partners will be able to successfully
market any products developed and/or approved; and its hopes for the future of
its business. The company is subject to certain risk factors that may cause
actual results to differ materially from anticipated results. Those risks
include, but are not limited to, the following: risks associated with product
demand, particularly the company's expectation of strong Eligard sales growth in
the second quarter; pricing, market acceptance of its current and proposed
products, changing economic conditions, risks in product and technology
development, the risk that a New Drug Application for Eligard 45mg might not be
submitted earlier than expected, and competition from other products and
treatments. For additional information about risk factors, please see the
reports filed by the company with the SEC, including the company's Annual Report
on Form 10-K for the year ended December 31, 2002 and the company's Quarterly
Report on Form 10-Q for the quarter ended March 31, 2003. The statements in this
press release are made as of today, based on information currently known to
management, and the company disclaims any duty to update such statements.
(TABLES FOLLOW)
ATRIX LABORATORIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
(UNAUDITED)
3 Months Ended 3 Months Ended
March 31, 2003 March 31, 2002
-------------- --------------
REVENUE:
Net sales and royalties $ 3,219 $ 1,159
Contract research and development revenue 4,310 2,495
Licensing, marketing rights and milestone revenue 1,931 1,363
------------ ------------
Total revenue 9,460 5,017
------------ ------------
OPERATING EXPENSE:
Cost of sales 1,428 530
Research and development 8,692 6,561
Administrative and marketing 2,855 1,823
Administrative - stock and stock option compensation 22 1,257
Extraordinary loss on extinguished debt -- 14
------------ ------------
Total operating expense 12,997 10,185
------------ ------------
LOSS FROM OPERATIONS (3,537) (5,168)
------------ ------------
OTHER INCOME (EXPENSE):
Equity in loss of joint venture (74) (410)
Investment income 739 1,354
Gain (loss) on sale of marketable securities 120 (71)
Interest expense -- (129)
Debt conversion expense -- (125)
Other 1 2
------------ ------------
Net other income 786 621
NET LOSS (2,751) (4,547)
Accretion of dividends on preferred stock (244) (228)
------------ ------------
NET LOSS APPLICABLE TO COMMON STOCK $ (2,995) $ (4,775)
============ ============
Basic and diluted earnings per common share:
Net loss $ (.14) $ (.23)
Accretion of dividends on preferred stock (.01) (.01)
------------ ------------
Net loss applicable to common stock $ (.15) $ (.24)
============ ============
Basic and diluted weighted average common shares
outstanding 19,741,591 19,928,654
============ ============
BALANCE SHEET DATA
(IN THOUSANDS)
(UNAUDITED)
MARCH 31, 2003 DECEMBER 31, 2002
-------------- -----------------
Working capital $108,536 $114,039
Total assets 145,066 150,025
Deferred revenue 40,820 37,064
Series A convertible exchangeable preferred stock 14,759 14,514
Shareholders' equity 76,663 82,255
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