Press Releases
Flamel Technologies Reports First Quarter 1999 Financial Results
LYON, FRANCE, April 27, 1999 – Flamel Technologies S.A. (Nasdaq: FLML) today announced financial results for the first quarter ended March 31, l999.
Total revenue for the quarter was $1.3 million, or Euros 1.2 million, compared to $2.2 million in the first quarter of 1998. License and research revenues in the first quarter of 1999 were of approximately $0.7 million, or Euros 0.6 million. in the quarte These included research payments from Flamel’s ongoing collaborative efforts with MonsantoCompany and Corning related to the Company’s two ongoing collaborative efforts with these Companies.and, also, Also included was funding in the form of a grant from the French government related to the Company’s Medusa® technology. License and research revenues in the first quarter of 1998was were approximately $0.5 million excluding the non-recurring $0.5 million milestone payment related to the U.K. approval of Asacard™ that was received last year. Product sales and services revenues in the quarter were $0.6 million, or Euros 0.6 million, in 1999 as compared to $1.3 million in the first quarter of 1998. These lower sales were expected and are consistent with the Company’s three-year declining volume manufacturing contract with SmithKline Beecham.
Commenting on the Company’s partnership activities in the first quarter, Dr. Gerard Soula, Flamel’s founder and Chief Executive Officer said, "After validating our technology in greenhouse tests and filing seven new patent applications in 1998, Flamel is now into our second year of collaboration with Monsanto to improve the efficiency of Roundup®, the world’s leading herbicide. We are very pleased both with these achievements and the overall progress of the project." With regard to Flamel’s partnership with Corning, Dr. Soula said, "As announced in January, we have now entered into a new, long-term research and development collaboration with Corning that solidifies this technology platform."
Total costs and expenses for the quarter were $4.3 million, or Euros 3.9 million, compared to $4.9 million for the same period last year. The lower costs this year, as compared to the first quarter in 1998, were primarily due to a decrease in external clinical development spending and lower costs of goods resulting from the decreased volume of production. For the quarter, the Company reported a net loss of $2.9 million ($0.22 per share), or Euros 2.6 million (Euro 0.20 per share), compared to a net loss of $2.4 million ($0.22 per share) in the first quarter of 1998.
As of March 31, 1999, the Company had $9.9 million, or Euros 9.3 million, in cash and short-term investments.
Commenting on the Company’s activities in the second quarter, Dr. Gerard Soula, Flamel’s founder and Chief Executive Officer said, "Flamel is now well into our second year of collaboration with Monsanto Company and our sixth year of collaboration with Corning. I am pleased to report that our innovative technical work with these companies, as well as our internally-funded project work, is proceeding well."
Flamel Technologies is engaged in the development of advanced polymer technologies for unique life science applications. To meet important medical needs and develop commercially valuable products, the Company is building on its principal technology platforms: the controlled release of therapeutic drugs and proteins with its Medusa® and Micropump® systems; the efficient delivery of agrochemical active ingredients with its Agsome™ system; ColCys™ biomaterial-based medical devices; and photochromic materials.
Asacard™, Agsome™, Basulin™ and ColCys™ are trademarks, and Medusa®and Micropump® are registered trademarks of Flamel Technologies.
Roundup® is a registered trademark of Monsanto Company.
This document contains a number of matters, particularly as related to the status of various research projects and technology platforms, that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The presentation reflects the current views of Flamel’s management with respect to future events and is subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements. These risks include risks that products in the development stage may not achieve scientific objectives or milestones or meet stringent regulatory requirements, uncertainties regarding market acceptance of products in development, the impact of competitive products and pricing, and the risks associated with Flamel’s reliance on outside parties. These and other risks are described more fully in Flamel’s Form 20-F dated December 31, 1998.
FLAMEL TECHNOLOGIES
S.A.
CONSOLIDATED STATEMENT OF OPERATIONS
(Amounts in thousands, except per share data)
|
Three months ended |
| 1999 US $ |
1999 Euros |
1998 US $ | |
| Revenues | |||
|
675 | 601 | 985 |
|
623 | 555 | 1,235 |
| Total revenues | 1,298 | 1,156 | 2,220 |
| Costs and expenses | |||
|
(721) | (642) | (1,265) |
|
(2,730) | (2,430) | (2,821) |
|
(878) | (782) | (840) |
|
(19) | (17) | (20) |
| Total costs and expenses | (4,348) | (3,871) | (4,946) |
| Loss from operations | (3,050) | (2,715) | (2,726) |
|
121 | 108 | 149 |
|
52 | 46 | - |
|
(2,877) | (2,561) | (2,577) |
|
- | - | 156 |
| Net income(loss) | (2,877) | (2,561) | (2,421) |
| Net loss per ordinary share | $ (0.22) | (0.20) | $ (0.22) |
| Weighted average number of ordinary shares outstanding | 12,939 | 12,939 | 10,924 |
