Press Releases
Flamel Technologies Announces Fourth Quarter and Year-End Results ; 2001 Loss Per Share Narrows to $(0.18) Per Share
Lyon, France, March 12, 2002 –
2001 marks third year of reduced net loss per share.
Cash and account
receivable increase year over year.
Flamel Technologies (Nasdaq:FLML) today
announced its financial results for the fourth quarter and year ended December
31, 2001.
Flamel’s Fourth Quarter
2001 :
For the fourth
quarter of 2001, Flamel reported total revenues of $4.6 million, compared to
$2.5 million in the fourth quarter of 2000, including $1.4 million of income
previously deferred from the initial payment Flamel received upon execution of a
collaborative agreement with Novo Nordisk.
Products sales and services
revenues in the fourth quarter, consisting largely of contract manufacturing
income, were approximately $0.5 million, compared to $0.9 million in the fourth
quarter of last year. Oter income totaled approximately $0.4 million, compared
to $0.3 million.
Costs and expenses were $4.7 million in the quarter, compared to $4.1 million in the fourth quarter of the prior year. These results reflected an increase in research and development costs, while all other expenses categories declined in relation to the fourth quarter of 2000. Net loss was $(0.1) million for the fourth quarter of 2001, compared to $(1.6) million in the fourth quarter of 2000. On a per share basis, the net loss per odrinary share was $(0.00), compared with $(0.10) in the fourth quarter of 2000.
Flamel’s Calendar
Year 2001 Results :
For the calendar year 2001, Flamel reported that its revenue grew to $13.1 million, an increase of 20% compared to revenues of $10.9 million in 2000. In 2001, license and research revenues totaled $9.9 million compared to $6.6 million in 2000. License and research revenues in 2001 included revenues from Novo Nordisk, Servier, Merck and Corning, as well as from other undisclosed partners. Revenues also included the recognition of $1.4 million of initial payments from Novo Nordisk which had previously been deferred and were recognized in the fourth quarter of 2001 upon termination of the licensing agreement between the two companies. Product sales and services for 2001 totaled $2.0 million, compared to $3.0 million in 2000. This revenue is the combined result of sales of photochromic materials to Corning and certain contract manufacturing for various parties, and reflected use of existing inventories of polymer dye by corning rather than the purchase of additional supplies. Other revenues in 2001 totaled $1.2 million, compared to $1.2 million reported in 2000. This largely reflects continuing royalties from Corning.
Total costs and expenses for the year were $16.2 million, compared to $16.1 million reported for the year ended December 31, 2000. Research and development expenses increased as Flamel obtained a number of new partnerships during the year and also began self-funded work on controlled-release formulations of a number of new proteins. Lower costs of goods sold related to the lower manufacturing volumes for Corning. Selling, general and administrative expenses remained constant at $3.4 million.
For the year ended December 31, 2001, the net resulting loss from operations was $2.9 million, compared to a loss from operations $4.9 million reported for the year ended December 31, 2000. In 2000, the company also recognized an accounting charge of $4.6 million ($0.30 per share) specifically related to a change in accounting principles regarding the initial payment received in December 1999 on signing a collaborative agreement with Novo Nordisk.
Net loss for Flamel in 2001 was $2.9 million, or $(0.18) per share, compared to a net loss of $9.5 million in 2000, or $(0.62) per share after accounting changes.
Cash on hand and accounts receivable totaled $12.9 million ($5.3 million and $7.6 million respectively), compared to $12.7 million at year end 2000 ($10.1 million and $2.6 million, respectively).
“We are pleased that we have ended 2001 with cash and accounts receivable at a level slightly higher than at the end of the previous year,” noted Stephen Willard, Chief Financial Officer. “We are reporting a 19% increase in revenues while holding expenses relatively constant. Our net operating loss for the year also declined 41% versus 2000, and marked the third year of decline in net loss. We remain committed to preserving a strong cash position as we exploit the results of our maturing technologies.”
“The year 2001 saw important progress with our core technologies,” reported Dr. Gerard Soula, Flamel's President and Chief Executive Officer. “With our Micropump® technology, we announced significant licensing deals with Merck & Co., Inc. and Servier, and partnerships with two other major pharmaceutical companies which remain undisclosed. We completed human proof of concept studies for a controlled-release antibiotic, a controlled-release antidiabetic (metformin) and a controlled-release ACE inhibitor, which has been licensed to Servier. Together with our controlled-release antiviral, Genvir™, we believe that we have a rich portfolioof proven applications for Micropump® which we will seek to license aggressively. With our controlled-release protein technology, Medusa®, we have completed an improved formulations of insulin which is ready for clinical trials and we have six other products in development either in partnership or in house. Together, we believe that our core technologies have wide potential applications and are becoming widely recognized among major worldwide pharmaceutical companies. We believe that this will ultimately result in potential benefits for our company and its stockholders.”
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(R)
nano-encapsulation technology is designed to deliver therapeutic proteins.
Micropump(R) is a controlled release and taste-masking 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(TM).
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 |
Twelve months ended | |||
|
2001 |
2000 |
2001 |
2000 | |
|
REVENUES |
||||
|
License and research revenue |
3,629 |
1,345 |
9,858 |
6,619 |
|
Product sales and services |
516 |
859 |
2,009 |
3,034 |
|
Other revenues |
406 |
271 |
1,220 |
1,249 |
|
Total Revenues |
4,561 |
2,475 |
13,087 |
10,902 |
|
COSTS and EXPENSES |
||||
|
Cost of goods and services |
(644) |
(712) |
(2,166) |
(2,863) |
|
Research and development |
(3,055) |
(2,375) |
(10,662) |
(9,789) |
|
Selling, general and administrative |
(957) |
(980) |
(3,391) |
(3,435) |
|
Stock compensation expense |
(5) |
(8) |
(23) |
(20) |
|
Total Costs and expenses |
(4,661) |
(4,075) |
(16,242) |
(16,107) |
|
PROFIT / (LOSS) FROM OPERATIONS |
(100) |
(1,600) |
(3,155) |
(5,205) |
|
Interest income, net |
27 |
30 |
240 |
322 |
|
Foreign exchange gain(loss) |
8 |
26 |
55 |
49 |
|
Profit /(Loss) before income taxes |
(65) |
(1,544) |
(2,860) |
(4,834) |
|
Income tax benefit (expense) |
(14) |
(50) |
(14) |
(50) |
| Cumulative effect of prior years (to December 31, 1999) of changing method of revenue recognition |
- |
- |
- |
(4,577) |
|
NET INCOME / LOSS |
(79) |
(1,594) |
(2,874) |
(9,461) |
| NET INCOME / (LOSS) PER ORDINARY SHARE before cumulative effect of change in accounting principle |
$ (0,00) |
$ (0.10) |
$ (0.18) |
$ (0.32) |
| Cumulative effect per share of prior years of changin method of revenue recognition |
- |
- |
- |
$ (0.30) |
|
NET INCOME / (LOSS) PER ORDINARY SHARE |
$ (0,00) |
$ (0.10) |
$ (0.18) |
$ (0.62) |
|
Weighted average number of ordinary shares outstanding |
16,198 |
16,198 |
16,198 |
15,331 |
