Press Releases
Flamel Technologies Announces First Quarter Results, Reducing Loss Per Share to $(0.05) on Higher Revenues.
Lyon, France, April 30, 2001 – Flamel Technologies S.A. (NASDAQ: FLML) today announced its financial results for its first quarter ended March 31, 2001. On a per share basis, the Company's loss per share for the first quarter of 2001 was $(0.05) and the absolute amount of the first quarter loss was $769,000, compared to an operating loss of $2,064,000 ($0.16) per share in the first quarter of 2000.
Total revenue for the quarter was $3.5 million, compared reported to $ 2.0 million reported for the first quarter of 2000. The increase in total revenues in the first quarter of 2001 was primarily the result of increased revenues from Novo Nordisk related to the development of the controlled-release insulin product, research and development revenues from new partners, and revenues from Corning Inc. related to the photochromic lens product.
Total costs and expenses increased slightly to $4.3 million, from $ 4.0 million reported in the first quarter of 2000. The company's net loss from operations in the first quarter of 2001 was $769,000, compared to an operating loss of $ 2.0 million ($ 0.16 per share) reported in the first quarter of 2000.
After extraordinary accounting charges booked in the first quarter of last year, net loss for the first quarter of 2000 was $6.3 million ($ 0.49 per share). On a per share basis, the loss for the first quarter of 2001 is equivalent to $(0.05) per share."Our financial results demonstrate our dedication to existing partners and projects, and our partners’ financial commitment to Flamel, even as we continue to actively search for new revenue sources and partnerships," said Gerard SOULA, C.E.O of Flamel Technologies. "Increasing our revenues while controlling costs remains our first priority."
Flamel Technologies S.A. is a biopharmaceutical company principally engaged in the development of two unique polymer-based delivery technologies for medical applications. Flamel’s Medusa® nano-encapsulation technology is designed to deliver therapeutic proteins. Micropump® is a controlled release technology for the oral administration of small molecule drugs. Flamel’s expertise in polymer science has also been instrumental in the development of a photochromic eyeglass lens product now marketed by Corning Inc. Additionally, Flamel has developed new herbicide delivery systems now being tested by Monsanto and has patented a biomaterial, ColCys™.
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 view of 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 and key strategic alliances. These and other risks are described more fully in Flamel’s Annual Report on the Securities and Exchange Commission Form 20-F for the year ended December 31, 1999.
FLAMEL TECHNOLOGIES S.A.
CONSOLIDATED STATEMENT OF OPERATIONS
(Amounts in thousands, except per share
data)
|
|
Three months ended
|
| March
31 2001 US $ |
March
31 2000 US $ | |
| Revenues | ||
|
Licence and research revenue |
2,390 |
1,183 |
|
Product sales and services |
750 |
424 |
|
Royalties and other income |
328 |
375 |
| Total revenues | 3,468 | 1,982 |
| Costs and expenses | ||
|
Cost of goods and services |
(737) |
(614) |
|
Research and development |
(2,666) |
(2,640) |
|
Selling, general and administrative |
(921) |
(784) |
|
Stock compensation expense |
(6) |
(8) |
|
Total costs and
expenses | (4,330) |
(2,064) |
|
Loss from operations |
(862) |
(2,064) |
|
Interest income (expense), net |
70 |
16 |
|
Foreign exchange gain(loss) |
23 |
4 |
|
Loss from operations before income taxes and the cumulative effect of a change in accounting principle |
(769) |
(2,044) |
| Income tax benefit | - | - |
|
Net loss from operations before cumulative effect of a change in
accounting principle |
(769) | (2,044) |
| Cumulative effect on prior years (to December 31, 1999) of changing method of revenue recognition, net of tax | - | (4,304) |
| Net loss | (769) |
(6,348) |
| Loss per share before cumulative effect of a change in accounting principle | $(0.05) | $(0.16) |
| Cumulative effect per share on prior years of changing method of revenue recognition | - | $(0.33) |
| Net loss per ordinary share | $(0.05) | $(0.49) |
| Weighted average number of ordinary shares outstanding | 16,198 | 12,947 |
