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PHARMANETICS CONTACTS:
John Funkhouser, President, CEO
Mike Riddle, Executive Vice President
or
James A. McGowan
Chief Financial Officer
(919) 582-2600
www.unispheremag.com
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FOR IMMEDIATE RELEASE
April 30, 2001
PHARMANETICS ANNOUNCES FIRST QUARTER RESULTS
Bayer Investment Sets Tone for Exciting Year
Highlights:
- Theranostic revolution continues
- Bayer invests $17.4 million
- Company moves to new, 60,000-square foot, state-of-the-art manufacturing facility
- Multiple test initiatives
- Launch of RapidPoint™ Accent
- Exclusive licensing agreement with PAION GmBH
RALEIGH, N.C. (April 30, 2001) - PharmaNetics, Inc. (NASDAQ /NM: PHAR) , a leading company specializing in theranostic management of various therapeutics affecting coagulation, announced today results for the first quarter ended March 31, 2001.
John P. Funkhouser, president and chief executive officer of PharmaNetics, said, "We are excited about the year 2001 and the Bayer investment of $17.4 million setting the stage for accelerating momentum in the emerging new field of medicine called theranostics. Bayer's investment validates the promise of theranostics as a unique opportunity for physicians to benefit from the matching of diagnostic tests with specific drugs, leading to rapid and informed therapeutic decisions."
Financial performance for the quarter was in-line with the Company's internal expectations and slightly ahead of market expectations. Revenues for the first quarter ended March 31, 2001, were $802,000, a decrease compared with revenues of $1,488,000 in the same period in 2000. However, this decrease was mainly attributable to Bayer building its inventory levels in the first half of 2000. Due to the lower sales and slightly higher operating expenses, the 2001 net loss before preferred stock dividends was $1,761,000, or $0.22 per share, compared with $1,031,000, or $0.14 per share, in 2000.
Mr. Funkhouser continued, "2001 is a year of preparation in anticipation of launching our theranostic tests in the fourth quarter. Last week, PharmaNetics moved into its newly constructed 60,000-square foot facility bordering the Research Triangle Park. With this facility, the Company has increased capacity, efficient operating design, improved networking systems and state-of-the-art laboratories. The move represents a corporate milestone as we prepare for commercialization of our theranostic tests."
PharmaNetics' primary strategic goal this year is to develop and validate a theranostic financial model that integrates rapid diagnostics and therapeutic practice to improve patient outcomes. Toward this goal, Bayer has invested $17.4 million and increased its ownership position in PharmaNetics to almost 20%. More importantly, Bayer is committing the necessary distribution, administrative and technical support to co-promote theranostic tests as part of Bayer's product offerings. To help co-ordinate this effort, Bayer's worldwide coagulation marketing manager will be located in PharmaNetics' facility.
Mike Riddle, executive vice president, sales and marketing, commented, "We hope to complete development of the enoxaparin test by this summer and are in the process of preparing our launch plans. This will represent the first in our pipeline of theranostic tests to be commercialized utilizing our own sales and technical service team. Our strategy for these tests will be to utilize the combined Bayer and PharmaNetics infrastructure to drive the selling process to the hospitals and, where applicable, utilize our pharmaceutical partners to co-promote the tests to physicians. The combination of the three parties co-promoting the test and the drug together is the essence of the theranostic model."
In closing, Mr. Funkhouser added, "We have a tremendous potential opportunity to validate theranostics, and our ultimate success will probably not be determined by our technology or partners, but rather our ability to manufacture, understand the depth of our technology and leverage operating systems. Planning and preparation are keys to successful launch strategies, and that's our focus over the next three quarters."
PharmaNetics, Inc., a leading biotech company, conceived the term "theranostics," defining an emerging new field of medicine that enables physicians to therapeutically manage coagulation parameters of their patients in the treatment of angina, myocardial infarction (heart attack), stroke, and pulmonary and arterial emboli. The Company's proprietary diagnostic platform generates rapid feedback on blood clot formulation and dissolution. The Company's technology platform is the primary driver of existing collaborations with a number of major pharmaceutical companies, including Aventis Pharmaceuticals, AstraZeneca and Knoll BASF, to develop theranostic tests for specific compounds and disease indications being developed by these corporations.
A listen-only simulcast and 48-hour replay of PharmaNetics' first quarter conference call will be available online at the Company's web site at www.unispheremag.com or at www.streetevents.com on April 30, 2001, beginning at 11:00 a.m. Eastern time.
This press release contains forward-looking statements regarding future events and the future performance of PharmaNetics that involve risks and uncertainties such as risks related to market acceptance, clinical trials and dependence on third-party distributors and collaborative partners that could cause actual results to differ materially form those projected in the forward-looking statements. Information concerning these and other of the factors that could cause results to differ materially from those in the forward-looking statements is contained in the Company's filings with the Securities and Exchange Commission, including Form 10-K, Form 10-Q and Form 8-K reports.
PHARMANETICS, INC.
SELECTED FINANCIAL INFORMATION
(IN THOUSANDS, EXCEPT PER SHARE DATA)
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Three Months Ended
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| CONSOLIDATED INCOME (LOSS) STATEMENTS |
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March 31, 2001
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March 31, 2000
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| Net revenue |
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802 |
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1,488 |
| Cost of goods sold |
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746
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908
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| Gross profit |
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56
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580
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| Operating expenses |
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1,922
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1,732
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| Loss from operations |
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(1,866)
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(1,152)
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| Other income, net |
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105
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121
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| Net loss |
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($1,761)
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($1,031)
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Dividends on preferred stock
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147
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71
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| Amortization of beneficial conversion feature of Series A Convertible Preferred Stock |
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-
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377
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| Net loss applicable to common shareholders |
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($1,908)
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($1,479)
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Net loss per basic and diluted share
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($0.22) |
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($0.14) |
Preferred stock charges per basic and diluted share
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($0.02) |
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($0.06) |
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Net loss applicable to common shareholders per basic and diluted share
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($0.24)
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($0.20)
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| Weighted average shares outstanding |
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7,852
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7,503
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CONSOLIDATED BALANCE SHEETS
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March 31, 2001
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Dec 31, 2000
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| Cash and investments |
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$4,120 |
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$9,248 |
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| Other current assets |
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2,783 |
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1,867 |
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| Total assets |
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16,003 |
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18,314 |
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| Current liabilities |
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221 |
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2,700 |
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| Total liabilities |
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3,079 |
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3,632 |
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| Shareholders' equity & Series A Preferred Stock |
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12,924 |
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14,682 |
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| Total liabilities and shareholders' equity |
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16,003 |
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18,314 |
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