Press Releases
Flamel Technologies Announces First Quarter Revenues of $14.4 Million, Earnings of $0.20 Per Share
Lyon, France, April 29, 2004 – Flamel Technologies S.A. (NASDAQ: FLML) today announced its financial results for the first quarter of 2004.
For the first quarter, Flamel reported total revenues of $14.4 million, compared to $3.1 million in the first quarter of 2003. Expenses increased to $10.6 million, from $6.0 million in the first quarter of 2003, largely as a result of increased research and development and clinical studies as well as the 16% increase in the value of the Euro against the U.S. dollar versus the year-ago period.
Net income in the first quarter of 2004 was $4.3 million, compared to a net loss of $1.7 million in the first quarter of last year. Net income per share (basic) for the first quarter of 2004 was $0.20, compared to a net loss per share (basic) in the year-ago period of ($0.10). Net income per share (fully diluted) for the first quarter of 2004 was $0.18. Cash on hand at the end of the first quarter was $105.4 million, versus $14.3 million at the end of the first quarter a year ago.
Flamel's 2004 first quarter revenues included license and research revenues of $13.3 million, which included revenues from research contracts as well as a $5 million milestone payment from Bristol-Myers Squibb. License and research revenues in the first quarter of 2003 totaled $2.0 million. Revenues from product sales and services during the quarter declined to $0.9 million, compared to $1.0 million in the first quarter of 2003, reflecting diminished services to Corning and the planned transition away from contract manufacturing activities. Other revenues declined from $0.2 million in the year-ago period to $0.1 million. Costs and expenses of Flamel's research and development increased to $7.9 million, from $3.8 million in the year-ago quarter. This increase was largely as a result of increased clinical and preclinical study work, related to projects developed internally and also with our partners, as well as the increase of 16% in the value of the Euro against the U.S. dollar versus the year-ago period. Cost of goods and services sold decreased to $0.8 million, compared to $1.1 million a year ago, largely in conjunction with decreasing revenues in this category. SG&A increased to $1.3 million from $1.0 million, mainly due to increase of the Euro against the U.S. dollar.
"We are very pleased to receive this quarter the first milestone payment from BMS on the Basulin® project," said Dr. Gerard Soula, founder, president and chief executive officer of Flamel Technologies S.A. "More generally, we are very excited by the development of our entire pipeline with Medusa® and Micropump®."
Stephen Willard, chief financial officer of Flamel, commented: "Our research and development income increased substantially compared to a year ago as we perform work for a variety of partners under license. Expenses increased year-over-year as we have increased our budget for research and development and preclinical studies to reflect work on a number of new projects."
Mr. Willard also noted: "Our cash position remains high and allows us both development of additional internal projects and the flexibility to negotiate new partnership agreements for our technology platforms from a position of strength."
A conference call to discuss earnings is scheduled for 8:30 AM EDT April 30, 2004. The dial-in number (for investors in the U.S. and Canada) is 800-374-1498; the conference ID number is 1354187. International investors are invited to dial 1-706-634-7261.
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® technology is designed to deliver controlled-release formulations of therapeutic proteins. Micropump® is a controlled release and taste-masking technology for the oral administration of small molecule drugs.
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, 2003.
FLAMEL TECHNOLOGIES S.A.
CONSOLIDATED STATEMENT OF OPERATIONS
(Amounts in thousands, except per share
data)
|
|
Three months ended
|
| March
31 2003 US $ |
March
31 2004 US $ | |
| Revenues | ||
|
Licence and research revenue |
1,962 |
13,301 |
|
Product sales and services |
1,037 |
949 |
|
Other revenue |
158 |
103 |
| Total revenues | 3,157 | 14,353 |
| Costs and expenses | ||
|
Cost of goods and services sold |
(1,094) |
(837) |
|
Research and development |
(3,843) |
(7,872) |
|
Selling, general and administrative |
(1,009) |
(1,287) |
|
Stock compensation expense |
(4) |
(573) |
|
Total costs and
expenses |
(5,950) |
(10,569) |
|
Profit/(Loss) from
operations |
(2,793) |
3,784 |
|
Interest income/(expense), net |
80 |
492 |
|
Foreign exchange gain/(loss) |
(83) |
(13) |
|
Other income |
1,123 |
57 |
|
Income/(Loss) before income taxes |
(1,673) |
4,320 |
| Income tax benefit/(expenses) | - | (23) |
| Net profit/(loss) | (1,673) |
4,297 |
| Basic Earnings/(loss) per ordinary share | $(0.10) | $0.20 |
| Diluted Earnings/(loss) per ordinary share | $(0.10) | $0.18 |
| Weighted average number of ordinary shares outstanding (in thousands) | ||
|
Basic |
16,198 |
21,404 |
|
Diluted |
16,198 |
23,999 |
