Flamel Technologies
Announces Third Quarter Results, Loss per Share of $ (0.04).
Lyon, France, October
30, 2001 - Flamel Technologies (NASDAQ:FLML) announced today its financial results for its
third quarter ended September 30, 2001. On a per share basis, the Company's loss
for the third quarter of 2001 was $(0.04) and the absolute amount of the third
quarter loss was $666,000, compared to an operating loss of $659,000, or $(0.04)
per share in the third quarter of 2000. For the nine months ended September 30,
2001, the Company's losses were $2.8 million, $(0.17) per share, compared to an
operating loss of $3.3 million, $(0.22) per share, for the first nine months of
2000. Cash on hands as of September 30, 2001 was $7.0 million, compared to $7.5
million at the end of June 2001.
Total revenues for the quarter was $2.6 million, compared
to $3.2 million reported for the third quarter of 2000. Revenues for the
nine-months period were $8.5 million in 2001, compared to $8.4 million in the
correspinding nine-month period of 2000. Expenses were $3.4 million in the third
quarter of 2001 ($11.6 million for the nine month period), compared to $4.0
million for the third quarter of 2000 and $12.0 million for the nine months
ended September 30, 2000. Revenues from license and research revenues for the
third quarter of 2001 were relatively constant compared to the third quarter of
2000, while product sales and services revenues, and the expenses related to
these revenues, declined in comparison with the third quarter of the prior year.
Net loss for the first nine months of 2001 was $3.0 million, compared to $3.6
million for the first nine months of 2000
“This has been a very productive and exciting quarter for Flamel
Technologies, with the signing of two agreements with major pharmaceutical
partners and receipt of positive human data on two other fully-funded Micropump®
projects” said Dr. Gerard Soula, president and chief executive officer of Flamel
Technologies. “During the quarter, we announced a licensing agreement with Merck
for our Micropump technology and a new study with a major partner for our
Medusa® technology, targeting the controlled release of proteins.”
“We are pleased with our financial results for the third quarter,” said
Stephen Willard, chief financial officer of Flamel. “We continue to focus
actively on the preservation of cash and the development of our core
technologies.”
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.
FLAMEL TECHNOLOGIES S.A.
CONSOLIDATED
STATEMENT OF OPERATIONS
(Amounts in thousands, except per share data)
| |
Three months
ended |
Nine months
ended |
| |
September 30,
2001
US $ |
September
30, 2000
US $ |
September
30, 2001
US $ |
September 30,
2000
US $ |
| Revenues |
|
|
|
|
|
Licence and research
revenue |
1, 995 |
2,085 |
6,219 |
5,274 |
|
Product sales and
services |
354 |
848 |
1, 493 |
2,175 |
|
Royalties and other
income |
276 |
267 |
814 |
978 |
| Total
revenues |
2,645 |
3,200 |
8,526 |
8,427 |
| |
|
|
|
|
| Costs and
expenses |
|
|
|
|
|
Cost of goods and
services |
(286) |
(749) |
(1,522) |
(2,151) |
|
Research and
development |
(2,320) |
(2,308) |
(7,607) |
( 7,414) |
|
Selling, general and
administrative |
(746) |
(963) |
(2,434) |
(2,455) |
|
Stock compensation
expense |
(5) |
(1) |
(18) |
(12) |
| Total costs and
expenses |
(3,357) |
(4,021) |
(11,581) |
(12,032) |
| |
|
|
|
|
| Loss from
operations |
(732) |
(821) |
(3,055) |
(3,605) |
| |
|
|
|
|
|
Interest income,
net |
75 |
149 |
213 |
292 |
|
Foreign exchange
gain |
(9) |
13 |
47 |
23 |
|
|
|
|
|
|
|
Loss from operations
before income taxes and the cumulative effect of a change in accounting
principle |
(666) |
(659) |
(2,795) |
(3,290) |
|
Income tax
benefit |
- |
- |
- |
- |
|
|
|
|
|
| Net loss from operations before
cumulative effect of a change in accounting principle |
(666) |
(659) |
(2,795) |
(3,290) |
| |
|
|
|
|
| Cumulative effect on prior years (to
December 31, 1999) of changing method of revenue recognition, net of tax |
- |
- |
- |
(4,577) |
|
|
|
|
|
| Net
loss |
(666) |
(659) |
(2,795) |
(7,867) |
|
|
|
|
|
| Loss per share before cumulative
effect of a change in accounting principle |
$ (0.04) |
$ (0.04) |
$(0.17) |
$(0.22) |
| Cumulative effect per share on prior
years of changing method of revenue recognition |
- |
- |
- |
$ (0.30) |
| Net loss per ordinary
share |
$(0.04) |
$(0.04) |
$(0.17) |
$(0.52) |
| |
|
|
|
|
| Weighted average number of
ordinary shares outstanding |
16,198 |
16,198 |
16,198 |
15,042 |
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.
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