Quarter Highlighted by Record Revenues and Litigation Progress
April 30, 2003 -- IMPAX Laboratories, Inc. (Nasdaq NM: IPXL)
today reported financial results for the three months ended March 31, 2003.
Revenues for the first quarter of 2003 were $11,425,000, up more than 232% compared with revenues of $3,432,000 in the prior year's first quarter, and up more than 36% over total revenues of $8,400,000 in the fourth quarter of 2002. The significant year-over-year increases came primarily on Claritin-D® 12-hour over-the-counter (OTC) Tablets shipped to Schering-Plough during the first quarter of 2003; higher sales of Fludrocortisone Acetate Tablets, introduced at the end of the first quarter of 2002; higher Lipram sales; sales of Minocycline Hydrochloride Capsules launched in the third quarter of 2002; and lower product returns.
The net loss for the 2003 first quarter was $3,213,000, or $(0.07) per share, compared with a net loss of $5,421,000, or $(0.12) per share, in the prior year first quarter. Net loss narrowed due to increased sales, which was partially offset by increases in research and development expenses.
Cash, cash equivalents and short-term investments (unrestricted) were $11.2 million at March 31, 2003, compared to $10.2 million at December 31, 2002.
"We continue our rapid sequential quarter improvement as we execute on our commercial strategy," commented Barry R. Edwards, Co-Chief Executive Officer of IMPAX Laboratories. "In addition, we have made progress in resolving much of the outstanding patent litigation which stood in the way of obtaining final FDA approval for two of our products. We recently prevailed in Abbott's patent infringement lawsuit regarding our ANDA filing for generic Tricor® capsules, and Merck withdrew its lawsuit related to our ANDA filing for generic Sinemet® CR tablets."
IMPAX has 19 applications pending at the FDA, including three tentatively approved, that address approximately $6.0 billion in U.S. branded product sales for the twelve months ended December 31, 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.
As previously announced, the Company has scheduled a conference call to discuss this announcement beginning at 8:00 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 10:00 a.m. Eastern Time April 30, 2003 through midnight Eastern Time May 2, 2003, by dialing (800) 642-1687 in the U.S. or (706) 645-9291 for international callers, and entering access code 9890648. 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 April 30, 2003.
IMPAX LABORATORIES, INC.
STATEMENTS OF OPERATIONS
(dollars in thousands, except share and per share data)
Three Months Ended
March 31,
2003 2002
Net sales $ 11,066 $ 3,432
Other revenues 359 --
Total revenues 11,425 3,432
Cost of sales 8,147 3,139
Gross margin 3,278 293
Research and development 3,755 2,890
Less: Teva payments (132) (166)
Research and development, net 3,623 2,724
Selling expenses 568 658
General and administrative expenses 2,122 2,170
Other operating income (expense), net 11 (30)
Net loss from operations (3,024) (5,289)
Interest income 42 235
Interest expense (231) (367)
Net loss $ (3,213) $ (5,421)
Net loss per share (basic and diluted) $ (0.07) $ (0.12)
Weighted average common shares outstanding 47,876,830 46,812,977
IMPAX LABORATORIES, INC.
CONDENSED BALANCE SHEET
(in thousands)
March 31, December 31,
2003 2002
(unaudited) (unaudited)
ASSETS
Cash, cash equivalents and short-term
investments $ 11,224 $ 10,219
Restricted cash(a) 10,000 10,000
Accounts receivable, net 5,734 6,524
Inventory 12,788 10,478
Property, plant and equipment, net 36,974 37,065
Goodwill and intangibles, net 28,241 28,337
Other assets 1,730 1,780
Total assets $ 106,691 $ 104,403
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 27,144 $ 23,248
Long-term debt, net of current portion 9,643 9,105
Refundable deposit 22,000 22,000
Deferred revenues and other liabilities 2,419 1,486
Mandatory redeemable convertible preferred stock 7,500 7,500
Stockholders' equity 37,985 41,064
Total liabilities and stockholders' equity $ 106,691 $ 104,403
(a) Represents cash held as collateral for the $25 million revolving
credit facility and term loan with Congress Financial.