Press Releases
FLAMEL TECHNOLOGIES REPORTS 1997 FINANCIAL RESULTS
LYON, France, March 17, 1998 – Flamel Technologies S.A. (NASDAQ: FLML) today announced its financial results for the fourth quarter and year ended December 31, 1997.
For the quarter, the Company reported overall revenue of $3.3 million, up from $1.2 million reported in the same period last year. The increased revenue was primarily the result of a licensing fee received from Monsanto Company relating to a research and licensing agreement for the Company’s Agsome™ technology, as well as contract manufacturing product sales. Total costs for the quarter increased to $4.2 million, compared to $3.9 million for the comparable quarter in 1996. In total, the Company reported a small gain for the quarter of $15,000, due to the combination of increased revenues and the recognition of an increased research and development tax credit related to the year’s operations. In the fourth quarter of 1996, the Company had reported a net loss of $1,554,000 or $0.15 per share.
For the fiscal year ended December 31, 1997, Flamel reported total revenues of $8.1 million, up 64% from $4.9 million for the fiscal year ended the December 31, 1996. The increased revenue in 1997 was the result of contract manufacturing product sales related to the Company’s acquisition of a pharmaceutical manufacturing facility in France, as well as the licensing fee from Monsanto Company. The Company continued to invest heavily in research and development, increasing spending by 27% to $10.1 million in 1997 from $7.9 million in 1996. On December 31, 1997, the Company employed 65 research and development personnel (including 21 Ph.D.s or equivalents), of a corporate staff of 126. In total, the Company reported a net loss for the year of $6.8 million, or $0.65 per share, compared to $6.9 million for 1996, or $0.80 per share. The Company ended the year with $10.5 million in cash and short-term investments, compared to $23.2 million in cash and investments for the year ended December 31, 1996.
Dr. Gérard Soula, President and Chief Executive Officer of Flamel Technologies, commented: "1997 has been a pivotal year for Flamel. Our continued investment in research and development has resulted in advances in our different technology platforms and in the products which stem from them. 1997 has brought regulatory progress in our Asacard™ cardiovascular aspirin product, resulting in the recent UK approval of the product, the start of a Phase III study on our controlled-release acyclovir, the licensing of our Agsome™ technology for delivery of agrochemical active ingredients to Monsanto Company, and promising preclinical results on Basulin™, a long-acting controlled-release formulation of insulin using our Medusa® protein delivery technology. We have also advanced the development and scale-up of a new material for photochromic ophthalmic lenses with our partner Corning Inc. Finally, the acquisition of a pharmaceutical manufacturing plant at the beginning of 1997 marked the recognition of Flamel’s transformation from a research boutique into a broader commercial enterprise. Building on our record of technical innovation, we at Flamel are committed to continue our growth into a multidimensional, financially successful organization."
Flamel Technologies is engaged in the development of advanced polymer technologies for unique drug delivery and biomaterial applications. The Company is building on its principal technology platforms - the delivery of active ingredients with its Micropump® and Medusa® drug delivery systems, its Agsome™ delivery system for agrochemical active ingredients, its Colcys biomaterial-based medical devices, and photochromic materials for ophthalmic lens products - to meet important unmet medical needs and develop other commercially valuable products.
NOTE : This press release contains
statements which may constitute forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These statements are
subject to the risks and uncertainties, including but not limited to, the risk
associated with the Company’s limited history of operations and historic and
future losses, the risk that products in the development stage may not achieve
scientific objectives or milestones or meet regulatory requirements,
uncertainties regarding market acceptance of products in development, the impact
of competitive products and pricing, reliance on outside parties including the
risks associated with key strategic alliances, and other risks detailed in the
Company’s filings with the Securities and Exchange Commission.
FLAMEL TECHNOLOGIES
S.A
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
|
Three months ended |
Year Ended | |||
|
1997 |
1996 |
1997 |
1996 | |
| REVENUES | ||||
| License and research revenue |
$ 1,891 |
$ 774 |
$ 3,064 |
$ 3,903 |
| Product Sales |
1,283 |
306 |
4,109 |
733 |
| Laboratory analysis services |
175 |
124 |
434 |
280 |
| Other revenues |
2 |
--- |
447 |
5 |
| Total Revenues |
3,351 |
1,204 |
8,054 |
4,921 |
| COSTS and EXPENSES | ||||
| Cost of laboratory analysis services |
(135) |
(59) |
(289) |
(159) |
| Cost of goods sold |
(787) |
(600) |
(3,274) |
(1,100) |
| Research and development |
(2,442) |
(2,180) |
(10,101) |
(7,923) |
| Selling, general and administrative |
(812) |
(975) |
(3,030) |
(2,878) |
| Stock compensation expense |
(52) |
(70) |
(199) |
(1,767) |
| Total Costs and expenses |
(4,228) |
(3,884) |
16,893 |
(13,827) |
| LOSS FROM OPERATIONS |
(877) |
(2,680) |
(8,839) |
(8,906) |
| Interest income (expense), net |
167 |
225 |
593 |
505 |
| Foreign exchange gain (loss) |
6 |
(12) |
34 |
64 |
| Loss before income taxes |
(704) |
2,467 |
(8,212) |
(8,337) |
| Income tax benefit |
719 |
913 |
1,371 |
1,486 |
| Net Income (loss) |
$ 15 |
$(1,554) |
$ 6,841 |
$(6,851) |
| NET LOSS PER ORDINARY SHARE |
$ 0.00 |
$ (0.15) |
$ (0.65) |
$ (0.80) |
| Weighted average number of
ordinary and ordinary equivalent shares outstanding |
10,834 |
10,049 |
10,558 |
8,514 |
