Press Releases
Flamel Technologies Announces First Quarter Results, Showing Net Profit of $0.07 per share.
Lyon, France, April 29, 2002 – Flamel Technologies S.A. (NASDAQ: FLML) today announced its financial results for the first quarter of 2002.
For the first quarter, Flamel reported total revenues of $5.2 million, compared to $3.5 million in the first quarter of 2001. Expenses increased slightly to $4.3 million, from $4.2 million in the first quarter of 2001. Net income the first quarter of 2002 was $1.0 million, compared to a loss of $0.8 million in the first quarter of last year. Net profit per share for the first quarter of 2002 was $0.07, compared to a net loss per share in the first quarter of 2001 of ($0.05). Cash on hand at the end of the quarter was $8.7 million, with an additional $4.0 million in accounts receivable.
Flamel's first quarter revenues included license and research revenues of $2.4 million, which was equivalent to those booked by Flamel in the same quarter of last year. Product sales and services declined to $0.2 million, compared to $0.8 million for the year-ago period, reflecting reduced sales of polymer to Corning as Corning reduces its existing inventories. Royalties to Flamel on sales of Corning's Sunsensor® products remained constant against the first quarter of last year. Revenues also included a payment to Flamel of $2.3 million by the Welcome Foundation in settlement of litigation regarding Flamel's long-acting acyclovir product, Genvir®.
Costs and expenses of Flamel's research and development increased to $3.0 million, from $2.7 million in the first quarter of 2001, largely as a result of termination costs relating to reductions in Flamel's personnel. SG&A remained constant at $0.9 million, while costs of goods and services sold declined to $0.3 million, from $0.7 million, in reflection of reduced sales to Corning during the period.
"We believe that we have made important continuing progress this quarter in the development of our existing and potential new relationships with major pharmaceutical partners," commented Gerard Soula, president and chief executive officer of Flamel. "We believe our Micropump® technology has gained increasing acceptance as a platform of choice for the controlled release of antivirals, antidiabetics, antibiotics and cardiovascular drugs as a result of our successful human studies in each of these important areas. We are currently in active negotiations with a number of major pharmaceutical companies for potential licensing agreements for compounds in several of these classes. Also, our work with our Medusa® technology is proceeding positively and we are actively exploring a number of possible partnerships."
"This quarter's financial results were positively affected by the one-time litigation settlement," noted Stephen Willard, chief financial officer of Flamel. "We are pleased to have this litigation behind us and hope that it will make new opportunities possible for the Company. We are also pleased to note that our cash position improved year-over-year from $7.1 million in cash and $3.1 million in accounts receivable in Q1 2001 to $8.7 million in cash and $4.0 million in accounts receivable at the end of the first quarter this year. We intend to continue to focus on the preservation of our cash position as we move forward as a company."
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, 2000.
FLAMEL TECHNOLOGIES S.A.
CONSOLIDATED STATEMENT OF OPERATIONS
(Amounts in thousands, except per share
data)
|
|
Three months ended
|
| March
31 2002 US $ |
March
31 2001 US $ | |
| Revenues | ||
|
Licence and research revenue |
2,366 |
2,390 |
|
Product sales and services |
220 |
750 |
|
Royalties and other income |
2,609 |
328 |
| Total revenues | 5,195 | 3,468 |
| Costs and expenses | ||
|
Cost of goods and services |
(300) |
(737) |
|
Research and development |
(2,954) |
(2,666) |
|
Selling, general and administrative |
(931) |
(921) |
|
Stock compensation expense |
(5) |
(6) |
|
Total costs and
expenses | (4,190) |
(4,330) |
|
Profit, (Loss) from
operations |
1,005 |
(862) |
|
Interest income (expense), net |
17 |
70 |
|
Foreign exchange gain(loss) |
5 |
23 |
|
Profit, (Loss) from operations before income taxes |
1,027 |
(769) |
| Income tax benefit | - | - |
| Net profit, (loss) | 1,027 |
(769) |
| Net profit, (loss) per ordinary share | $ 0.07 | $(0.05) |
| Weighted average number of ordinary shares outstanding | 16,198 | 16,198 |
