Exhibit 99.1
ARTICLE I FOR IMMEDIATE RELEASE Contact: Jamie E. Levey
May 14, 2004 Investor Relations
(888) 319-6962
Integrated BioPharma Reports Third Quarter Financial Results
Hillside, N.J., May 14, 2004--Integrated BioPharma, Inc. (AMEX:INB) announced
its financial results for the third quarter ended March 31, 2004.
Third quarter revenues decreased approximately 2% to $6,560,784 from $6,670,254
for the same period a year ago. Net operating loss for the quarter was
$(1,236,532) or $(0.12) per share on 10,635,924 shares outstanding compared to
net income of $217,754 or $0.02 per share on 10,076,809 shares outstanding for
the same quarter last year. The reduction in net income is attributable to
start-up expenses at Paxis Pharmaceuticals, Inc. in the amount of $1,557,100.
For the nine months ended March 31, 2004, revenues increased approximately 5% to
$18,390,616 from $17,464,163 for the same period last year. The growth in
revenue is primarily attributed to the change in product mix. Net loss for the
nine months ended March 31, 2004 was $(2,549,578) or $(.24) per share on
10,487,202 shares outstanding as compared to net income of $731,086 or $.09 per
share on 8,212,210 shares outstanding for the nine months ended March 31, 2003.
The reduction in net income is attributable to one-time only transactional
expenses, to the inclusion of Paxis Pharmaceuticals, Inc. start-up expenses of
$3,228,454 and to the accretion of preferred stock dividends in the amount of
$285,000.
"We made significant progress this past quarter," stated E.Gerald Kay, CEO of
Integrated BioPharma, Inc. "Paclitaxel production has begun at the Paxis
Pharmaceuticals facility in Boulder, Colorado. Paxis Pharmaceuticals will ship
its first GMP API paclitaxel to fill existing orders in June 2004. Paxis is
producing paclitaxel Active Pharmaceutical Intermediate (API) under current Good
Manufacturing Practices (cGMP) and is in the final stages of process and
facilities validation at the newly completed Boulder plant. Paxis expects to
submit a paclitaxel Drug Master File (DMF) to the FDA in June of 2004. The
plant, which is currently scaled for production at the rate of 50 kgs of
paclitaxel API per year, is expected to scale up to a capability of more than
200 kgs per year during the next six months. This past quarter, we also
completed a $13.5 million private placement. We have a healthy cash position
that allows us to selectively acquire companies and develop new products
according to our expansion strategy."
For the Three Months Ended
March 31, 2004 March 31, 2003
-------------- --------------
Total Revenue $ 6,560,784 $ 6,670,254
Cost of Sales 4,982,793 5,290,233
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Gross Profit 1,577,991 1,380,021
------------------- ------------------
Paxis Pharmaceuticals, Inc. Start Up Expenses 1,557,100 --
Selling and Administrative Expenses 1,192,466 1,088,029
------------------- ------------------
Total Selling and Administrative Expenses 2,749,566 1,088,029
------------------- ------------------
Operating (Loss) Income (1,171,575) 291,992
Other Income 42,948 107,633
------------------- ------------------
(Loss) Income Before Income Taxes (1,128,627) 399,625
Provision for Income Taxes 12,905 181,871
------------------- ------------------
Net (Loss) Income (1,141,532) 217,754
Accretion of Preferred Stock Dividends 95,000 --
Net (Loss) Income applicable to
common shareholders $ (1,236,532) $ 217,754
=================== ==================
Diluted EPS $ (0.12) $ 0.02
=================== ==================
Average Common Shares
Outstanding-fully diluted 10,635,924 10,076,809
=================== ==================
For the Nine Months Ended
March 31, 2004 March 31, 2003
-------------- --------------
Total Revenue $ 18,390,616 $ 17,464,163
Cost of Sales 13,924,860 13,642,093
------------------- ------------------
Gross Profit 4,465,756 3,822,070
------------------- ------------------
Paxis Pharmaceuticals, Inc. Start Up Expenses 3,228,454 --
Selling and Administrative Expenses 3,702,091 2,791,001
------------------- ------------------
Total Selling and Administrative Expenses 6,930,545 2,791,001
------------------- ------------------
Operating (Loss) Income (2,464,789) 1,031,069
Other Income 287,241 285,478
------------------- ------------------
(Loss) Income before Income Taxes (2,177,548) 1,316,547
Provision for Income Taxes 87,030 585,461
------------------- ------------------
Net (Loss) Income (2,264,578) 731,086
Accretion of Preferred Stock Dividends 285,000 --
------------------- ------------------
Net (Loss) Income applicable $
to common shareholders $ (2,549,578) 731,086
=================== ==================
Diluted EPS $ (0.24) $ 0.09
=================== ==================
Average Common Shares
Outstanding-fully diluted 10,487,202 8,212,210
=================== ==================
INB serves the pharmaceutical, biotech and nutraceutical industries. Through
several wholly owned subsidiaries, INB develops, manufactures and distributes
more than 130 products worldwide. Its subsidiary, Paxis Pharmaceuticals, Inc.,
develops and operates a state-of-the-art GMP facility for the production and
sale of paclitaxel and related drugs. Through its biotech subsidiary, NuCycle
Therapy, Inc., INB is developing human therapeutics and preventive cancer
compounds in transgenic plants. Further information is available at
www.iBioPharma.com.
ARTICLE II Statements included in this release may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995. Such statements involve a number of risks and uncertainties such as
competitive factors, technological development, market demand, and the company's
ability to obtain new contracts and accurately estimate net revenues due to
variability in size, scope and duration of projects, and internal issues in the
sponsoring client. Further information on potential risk factors that could
affect the company's financial results can be found in the company's Reports
filed with the Securities and Exchange Commission.