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 SECOND QUARTER
FINANCIAL RESULTS
HIGHLIGHTS:
o NET SALES AND ROYALTIES INCREASE 207% OVER 2Q 2002
o TOTAL QUARTERLY REVENUE INCREASES TO OVER $12 MILLION
o QUARTERLY LOSS NARROWS TO $0.04 PER SHARE
FORT COLLINS, CO (JULY 30, 2003) -- ATRIX LABORATORIES, INC. (NASDAQ NM: ATRX)
today announced consolidated financial results for the second quarter and six
months ended June 30, 2003.
Total revenue increased 89 percent to $12.3 million compared to total revenue of
$6.5 million for the quarter ended June 30, 2002. The net loss applicable to
common stock for the second quarter of 2003 narrowed 85 percent to $0.7 million
or $0.04 per share compared to a net loss applicable to common stock for the
second quarter of 2002 of $4.6 million or $0.23 per share.
For the second quarter ended June 30, 2003, net sales and royalty revenue
increased 207 percent to $4.6 million compared to $1.5 million in second quarter
2002. This increase was primarily due to the recognition of $3.1 million in
sales and royalties from the Eligard(R) (leuprolide acetate for injectable
suspension) prostate cancer franchise.
"This quarter represents the first full quarter of sales for all three Eligard
dosage forms resulting in a 65 percent increase in Eligard revenue compared to
first quarter of this year," said David R. Bethune, Atrix's chairman and chief
executive officer. "We expect the results of the sales force efforts to continue
in the third quarter when we will begin to see the benefit of the additional
field sales representatives that were added by Sanofi-Synthelabo during second
quarter."
Bethune continued, "Also in the second quarter we reported progress across
various broad development efforts, including positive preclinical results for
the Pfizer bone growth product formulated in Atrigel(R) that is currently in
Phase I clinical testing, successful completion of enrollment of the
Atrisone(TM) (5% dapsone) Phase III pivotal studies for the treatment of acne
and good interim results for the Eligard 45mg six-month product, which is also
in Phase III clinical testing. Additionally, due to development efforts in the
second quarter, we plan to submit an Investigational New Drug application (IND)
for an Atrigel formulation of octreotide for treatment of symptoms of carcinoid
tumors in the third quarter."
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Contract research and development revenue increased 63 percent to $5.7 million
for the quarter compared to $3.5 million for the same period last year. This
increase was due to reimbursement from strategic partners for large Phase III
clinical trials currently being conducted for Eligard 45mg six-month prostate
cancer product and Atrisone for the treatment of acne.
Research and development expenses increased 24 percent to $9.3 million for the
period compared to $7.5 million for the six months ended June 30, 2002.
Development partners, including Sanofi-Synthelabo Inc., Fujisawa Healthcare Inc.
and the Novartis-company, Geneva Pharmaceuticals, Inc., reimbursed approximately
60 percent of total R&D expenses in the current quarter.
For the six months ended June 30, 2003, total revenue increased 90 percent to
$21.8 million compared to total revenue of $11.5 million for the quarter ended
June 30, 2002. The net loss for the first six months of 2003 narrowed to $3.7
million or $0.19 per share applicable to common stock compared to a net loss for
the first six months of 2002 of $9.4 million or $0.47 per share applicable to
common stock.
CONFERENCE CALL INFORMATION
Atrix management will host a conference call on July 30, 2003 at 11:00 a.m.,
EDT. The conference will be available by telephone at 800-245-3043 with the ID:
ATRIX. A replay of the call will be available for one week after the event at
800-938-2796. The conference call will also be simultaneously webcast over the
Internet. The link for the webcast can be found at Atrix's homepage at
http://www.atrixlabs.com.
ABOUT ATRIX LABORATORIES
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 improve existing products.
Additional information is available on the Atrix Laboratories, Inc. website at
http://www.atrixlabs.com.
This press release contains 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 and the company's expectation of Sanofi-Synthelabo Inc. to successfully
market Eligard; its expectation of receiving royalties on sales of Eligard and
its plan to manufacture Eligard at its facility in Fort Collins, Colorado. 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, pricing, market
acceptance of its current and proposed products, the expectation for an IND
submission for Atrigel-octreotide in the third quarter, changing economic
conditions, risks in product and technology development 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 June 30, 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.
Eligard is a registered trademark of Sanofi-Synthelabo, Inc.
(Tables follow)
ATRIX LABORATORIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
(UNAUDITED)
<Table>
<Caption>
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
June 30, 2003 June 30, 2002 June 30, 2003 June 30, 2002
------------- ------------- ------------- -------------
REVENUES:
Net sales and royalties $ 4,563 $ 1,474 $ 7,783 $ 2,632
Contract research and development revenue 5,689 3,513 9,999 6,008
Licensing, marketing rights and milestone revenue 2,091 1,497 4,022 2,859
------------- ------------- ------------- -------------
Total revenues 12,343 6,484 21,804 11,499
------------- ------------- ------------- -------------
OPERATING EXPENSES:
Cost of sales 1,862 792 3,290 1,303
Research and development 9,277 7,512 17,969 14,074
Administrative and marketing 2,636 2,407 5,491 4,230
Administrative - stock option compensation -- -- 22 1,256
Gain on extinguished debt -- (44) -- (30)
------------- ------------- ------------- -------------
Total operating expenses 13,775 10,667 26,772 20,833
------------- ------------- ------------- -------------
LOSS FROM OPERATIONS (1,432) (4,183) (4,968) (9,334)
------------- ------------- ------------- -------------
OTHER INCOME (EXPENSE):
Equity in loss of joint venture (4) (335) (77) (745)
Investment income and expense, net 681 1,154 1,420 2,380
Gain (loss) on sale and write-down of marketable
securities(1) 309 (1,005) 428 (1,076)
Debt conversion expense -- -- -- (125)
Other (17) (6) (16) (5)
------------- ------------- ------------- -------------
Net other income (expense) 969 (192) 1,755 429
------------- ------------- ------------- -------------
NET LOSS (463) (4,375) (3,213) (8,905)
Accretion of dividends on preferred stock (249) (233) (494) (461)
------------- ------------- ------------- -------------
NET LOSS APPLICABLE TO COMMON STOCK $ (712) $ (4,608) $ (3,707) $ (9,366)
============= ============= ============= =============
Basic and diluted loss per common share:
Net loss $ (.02) $ (.22) $ (.16) $ (.45)
Accretion of dividends on preferred stock (.02) (.01) (.03) (.02)
------------- ------------- ------------- -------------
Net loss applicable to common stock $ (.04) $ (.23) $ (.19) $ (.47)
============= ============= ============= =============
Basic and diluted weighted average common shares
outstanding 19,773,194 20,229,830 19,757,480 20,079,496
============= ============= ============= =============
</Table>
(1) Write-down of WorldCom senior notes following
bankruptcy filing in 2002
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BALANCE SHEET DATA
(IN THOUSANDS)
<Table>
<Caption>
JUNE 30, 2003 DECEMBER 31, 2002
------------------ ------------------
Working capital $ 106,694 $ 114,039
Total assets 145,632 150,025
Deferred revenue 37,400 37,064
Series A convertible exchangeable preferred stock 15,008 14,514
Shareholders' equity 79,678 82,255
</Table>
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