Napro Biotherapeutics (NASDAQ:NPRO)
Historical Stock Chart
From Jul 2019 to Jul 2024
NaPro Reports Fourth Quarter and Full-Year 2003 Results
BOULDER, Colo., March 11 /PRNewswire-FirstCall/ -- NaPro BioTherapeutics, Inc.
today announced the results of operations for the fourth quarter and year ended
December 31, 2003.
The net income for the fourth quarter of 2003 was $49.1 million, or $1.59 basic
income per share, and $1.56 diluted income per share, including a one-time gain
from the sale of the generic injectable paclitaxel business of $54.6 million.
This compares to a net lossof $1.1 million, or $0.04 basic and diluted loss per
share for the fourth quarter of 2002. After tax income from discontinued
operations was $55.5 million in the fourth quarter of 2003, compared with $3.9
million in income from discontinued operationsin the fourth quarter of 2002.
For the year ended December 31, 2003, NaPro reported net income of $38.1
million, or $1.24 basic income per share, and $1.23 diluted income per share,
including a one-time gain of $54.6 million from the sale of its generic
injectable paclitaxel business. This compares to a net loss of $8.7 million for
year ended December 31, 2002, or $0.29 basic and diluted loss per share. NaPro
recognized after tax income from its discontinued operations of $60.0 million in
2003, compared to income of $11.5 million in 2002.
As of December 31, 2003, NaPro had $50.8 million in cash, cash equivalents and
marketable securities.
"Calendar year 2003 was a pivotal year for NaPro BioTherapeutics," stated
Leonard P. Shaykin, NaPro's Chairman and Chief Executive Officer. "With the
sale of our paclitaxel business we changed the fundamental direction of the
company. With the proceeds from this important sale we have begun to fund the
pre-clinical development of our new proprietary therapeutic programs in both
cancer and hereditary disease. We look forward, subject to regulatory
clearance, to advancing two of these therapeutic candidates into human clinical
trials this calendar year," continued Mr. Shaykin.
2003 Highlights
Focus on Proprietary Therapeutics Development
-- Two Sales Reposition NaPro
Sale of the Worldwide Paclitaxel Business. In December 2003,
NaPro completed the sale of its worldwide generic injectable
paclitaxel business to Mayne Pharma (USA) Inc., a subsidiary of
Mayne Group Ltd., for $71.7 million in cash minus an inventory
adjustment of $4.6 million. From the proceeds of the sale, NaPro
retired $21.9 million in debt (including accrued interest)and
payables arising from its development relationship with Abbott
Laboratories and entered calendar year 2004 with over $50 million
dollars in cash and cash equivalents.
Sale of Technical and Analytical Services Group. In April 2003,
NaPro sold its technical and analytical services group to
privately held ChromaDex, Inc., a leading supplier of
phytochemical reference standards to the nutraceutical, dietary
supplement, and functional food industries. NaPro transferred
employees, specific physical assets, and real estate leases to the
company, and in return, acquired an approximate 15% equity stake
in ChromaDex, Inc.
With the sales mentioned above, NaPro is re-positioned to support the ongoing
development of its new proprietary therapeutic products in the areas of oncology
and hereditary disease. NaPro currently has four pre-clinical oncology
candidates, two of which are anticipated to enter human clinical trials this
year. The Company also has two hereditary disease programs in pre-clinical
development, one for the treatment of Huntington's Disease and the other for the
treatment of Sickle Cell Disease.
-- Mylan Litigation
On October 6, 2003, the Federal District Court in the Western District
of Pennsylvania made a number of rulings in favor of the Company in
its patent infringement lawsuit against Mylan Laboratories, Inc.
("Mylan") regarding certainpaclitaxel formulation patents. The
District Court ruled that Mylan infringes NaPro patents related to
both stabilized formulations of paclitaxel and as well as methods for
making stable formulations. The court also ruled that the inventors
listed on the NaPro patents were the first to invent the compositions
and methods claimed in such patents. The District Court also adopted
NaPro's interpretations of the patent claims asserted against Mylan in
this case.
On December 23, 2003, the District Court ruled again in NaPro's favor
that NaPro's patents were valid and that Mylan's claims that the
patents were procured through inequitable conduct and fraud on the
patent office were neither true nor justified.
In February 2004, the Federal Circuit appellate court stayed the
District Court's injunction order, which would have prevented Mylan
from selling the infringing products, pending a ruling on Mylan's
appealto the Federal Circuit. A trial to resolve any issues which
may be remanded to the District Court as a result of Mylan's appeal,
as well as determining any damages owed by Mylan in this case, has
been set for February 2005.
The patents, which are the subject of this litigation, were part of
the sale of the paclitaxel business to Mayne Pharma. The terms of the
sale provide that NaPro will be entitled to a portion of any cash
award received with respect to the final adjudication or settlement of
this litigation. Mayne Pharma, however, is in full control of the
litigation, is responsible for the full cost of prosecuting it, and
may direct it, or settle it, upon any terms it chooses.
About NaPro BioTherapeutics
NaPro BioTherapeutics, Inc. is a life science company focused on the development
of therapies for the treatment of cancer and hereditary disease.
For more information about NaPro and its technologies, visit NaPro's web site at
http://www.naprobio.com/ .
Forward Looking Statement
The statements in this press release and on the Company's web site that are not
historical facts are forward-looking statements that represent management's
beliefs and assumptions as of the date of this presentation, based on currently
available information. Forward-looking statements can be identified by the use
of words such as "believes," "intends," "estimates," "may," "will," "should,"
"anticipates," "expected" or comparable terminology orby discussions of
strategy. Although the Company believes that the expectations reflected in such
forward-looking statements are reasonable, it cannot assure that these
expectations will prove to be correct. Such statements involve risks and
uncertainties including those factors identified under the captions "Risk
Factors," "Special Note Regarding Forward Looking Statements" or "Cautionary
Note Regarding Forward Looking Statements" in the Company's documents filed from
time to time with the SEC, including the Company's Current Report on Form 8-K/A,
dated February 11, 2004. Should one or more of these risks materialize (or the
consequences of such a development worsen), or should the underlying assumptions
prove incorrect, actual results could differ materially from those forecasted or
expected. The Company disclaims any intention or obligation to update publicly
or revise such statements whether as a result of new information, future events
or otherwise.
For further information, please contact L. Robert Cohen, Vice President,
Investor Relations of NaPro BioTherapeutics, Inc., +1-212-218-8715.
NaPro BioTherapeutics, Inc.
Balance Sheets
(In thousands)
December 31, December 31,
2003 2002
(Unaudited) (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $40,785 $6,762
Short-term investments 9,997 --
Accounts receivable 1,495 --
Prepaid expense and other current assets 596 1,003
Assets held for sale 205 33,463
Total current assets 53,078 41,228
Property, plant and equipment, net 1,156 2,042
Other assets 3,532 2,058
Total assets $57,766 $45,328
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities $6,025 $7,633
Notes payable - long term 41 19,861
Deferred income - long term -- 5,887
Convertible debentures 5,702 5,151
Total stockholders' equity 45,998 6,796
Total liabilities and stockholders' equity $57,766 $45,328
NaPro BioTherapeutics, Inc.
Statements of Operations
(In thousands, except per sharedata)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
2003 2002 2003 2002
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Operating Expenses:
Research and
development $3,071 $2,456 $9,890 $10,192
General and
administrative 3,133 2,443 11,256 9,519
Operating loss 6,204 4,899 21,146 19,711
Other income (expense):
Interest income 46 42 110 267
Interest expense (223) (205) (878) (723)
Net loss from
continuing
operations (6,381) (5,062) (21,914) (20,167)
Discontinued Operations:
Income from discontinued
operations (including
gain on sale of
$54,553 in 2003) 56,096 3,949 60,686 11,502
Provision for federal
income tax (644) -- (644) --
Net income (loss) $49,071 $(1,113) $38,128 $(8,665)
Basic and diluted loss
per share from
continuing operations $(0.21) $(0.17) $(0.71) $(0.68)
Basic income (loss) per
share from discontinued
operations $1.80 $0.13 $1.95 $0.39
Diluted income (loss)
per share from
discontinued operations $1.76 $0.13 $1.94 $0.37
Basic income (loss)
per share $1.59 $(0.04) $1.24 $(0.29)
Diluted income (loss)
per share $1.56 $(0.04) $1.23 $(0.29)
Basic weighted average
shares outstanding 30,842 29,826 30,801 29,606
Diluted weighted average
shares outstanding
relating to discontinued
operations 31,483 29,943 30,955 31,268
Diluted weighted average
shares outstanding 31,483 29,826 30,955 29,606
DATASOURCE: NaPro BioTherapeutics, Inc.
CONTACT: L. Robert Cohen, Vice President, Investor Relations, of NaPro
BioTherapeutics, Inc., +1-212-218-8715; or Investors, Lilian Stern of Stern
Investor Relations, Inc., +1-212-362-1200; or Media, Peter Steinerman,
+1-516-374-3031, both for NaPro BioTherapeutics, Inc.
Web site: http://www.naprobio.com/