Bone Care International, Inc. Reports Third Quarter FY 2005 Financial Results

Bone Care International, Inc. Reports Third Quarter FY 2005
Financial Results
- Quarterly Hectorol(R) Sales of $22.0 Million, 89% Increase -




MIDDLETON, Wis., April 26  /PRNewswire-FirstCall/ -- Bone Care International,
Inc. (NASDAQ:BCII) today announced financial results for its third fiscal
quarter and for the nine months ended March 31, 2005.  The company reported
quarterly sales for Hectorol(R) (doxercalciferol) of $22.0 million, compared to
$11.6 million for the third quarter of fiscal 2004, representing an 89 percent
increase.  The company achieved its fifth consecutive quarter of increasing
profitability with net income of  $2.5 million, or $0.12 per share, compared
with a net profit of $302,000, or $0.02 per share, in the third quarter of
fiscal 2004.  For the nine months ended March 31, 2005, Hectorol(R) sales were
$59.0 million, an increase of $30.1 million, or 104 percent, from the same
period in 2004.  Net income was $5.6 million, or $0.27 per share, for the first
nine months ended March 31, 2005, compared with a net loss of $2.3 million, or
$0.16 per share, for the same period in 2004.  The company ended the quarter
with $119 million in cash and investments.

"Bone Care again delivered a strong performance during the third quarter," said
Paul L. Berns, President and Chief Executive Officer of Bone Care
International.  "We continued to advance our Hectorol(R) brand as evidenced by
the first quarter in the history of the company where sales exceeded $20
million.  In addition to increasing sales revenues in the quarter, we continued
to execute strong fiscal management represented by our fifth consecutive
quarter of increasing profitability. At the same time, we continue to make
investments necessary to serve patients' needs and to generate long- term
growth."

Gross margins on sales of Hectorol(R) were 74 percent and 75 percent, for the
third quarter and for the nine months ended March 31, 2005, respectively.

Research and development expense was $3.1 million in the third quarter ended
March 31, 2005, an increase of $0.3 million, or 12 percent, from the third
quarter of 2004.  For the nine months ended March 31, 2005, research and
development expense was $8.9 million, an increase of $2.3 million, or 35
percent, from the same period in 2004. These increases were primarily
attributed to a higher level of pre-clinical and clinical study activities.

Selling, general and administrative expense was $11.2 million in the third
quarter, an increase of $5.4 million, or 93 percent, from the third quarter of
2004. For the nine months ended March 31, 2005, selling, general and
administrative expense was $31.7 million, an increase of $14.2 million, or 82
percent, from the first nine months of fiscal 2004. Most of the increases in
both the third quarter and nine months ended March 31, 2005 were related to the
planned expansion of our sales organization, marketing and co-promotion
expenses related to the sales of Hectorol(R) (doxercalciferol) 0.5 mcg Capsules
and professional fees related to legal activities and Sarbanes Oxley
compliance.

"The outstanding performance by our organization has allowed us to increase our
sales guidance for fiscal 2005," said Mr. Berns.  "We are increasing our
current sales range of $77 to $80 million to a range of $82 to $83 million for
fiscal 2005.  Our continued momentum is a direct reflection of the high level
of execution by our commercial organization and the dedication and support of
the entire company."

  Key events to note in the fourth fiscal quarter:
  * In April, the company announced the appointment of Charles W. Bishop,
    Ph.D., as Executive Vice President and Chief Scientific Officer.
  * The company is scheduled to present at both the Deutsche Bank Healthcare
    Conference in Baltimore and the R.W. Baird Growth Stock Conference in
    Chicago in May.
  * The company will be represented at the National Kidney Foundation
    meeting in Washington, D.C. in May. Six posters and abstracts will be
    presented covering a wide range of topics related to Hectorol(R) and D
    hormone treatment.  Additionally, the company will be supporting,
    through an educational grant, a symposia related to the essential role
    of Vitamin D hormone in managing secondary hyperparathyroidism in early
    chronic kidney disease.



Management will host a conference call on Wednesday, April 27, 2005, at 9:00
a.m. CDT.  The toll-free number within North America is 800-938-0653; the
dial-in number for international participants is 973-321-1100.  The call is
available for playback until midnight on April 30, 2005 at 877-519-4471 within
North America and at 973-341-3080 for international callers.  The playback pass
code is 5909260.  The call can also be accessed via webcast and will be
archived for playback at http://www.bonecare.com/conferencecall.

About Bone Care International

Bone Care International (http://www.bonecare.com/) is a specialty
pharmaceutical company engaged in the discovery, development and
commercialization of innovative therapeutic products to treat the unmet medical
needs of patients with debilitating conditions and life-threatening diseases.
Our current commercial and therapeutic focus is in nephrology, utilizing
Hectorol(R), a novel vitamin D hormone therapy, to treat secondary
hyperparathyroidism in patients with moderate to severe chronic kidney disease
and end-stage renal disease. In addition to chronic kidney disease, the company
is developing vitamin D hormone therapies to treat hyperproliferative disorders
such as cancer and psoriasis.

   Contact:
   Bone Care International, Inc.
   Brian J. Hayden
   Chief Financial Officer
   [phone]



This press release contains forward-looking statements. Statements relating to
future sales, costs of sales, other expenses, profitability, financial
resources, or products and production schedules, or statements that predict or
indicate future events and trends and which do not relate solely to historical
matters identify forward-looking statements. Forward-looking statements are
made pursuant to the safe harbor provisions of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are
based on management's beliefs as well as assumptions made by and information
currently available to management. Accordingly, the Company's actual results
may differ materially from those expressed or implied in such forward-looking
statements due to known and unknown risks and uncertainties that exist in the
Company's operations and business environment, including, among other factors,
the ability of the Company and each of its suppliers of doxercalciferol,
Hectorol(R) Injection and Hectorol(R) Capsules to meet the Company's
anticipated production schedules, technical risks associated with the
development of new products, regulatory policies in the United States and other
countries, risks associated with our ability to avoid or minimize delays in/or
interruption of the manufacture and supply of our products, including the
approvals of regulatory authorities in connection therewith, reimbursement
policies of public and private health care payors, introduction and acceptance
of new drug therapies, competition from existing products and from new products
or technologies, the failure by the Company to produce anticipated cost savings
or improve productivity, the timing and magnitude of capital expenditures and
acquisitions, currency exchange risks, economic and market conditions in the
United States, Europe and the rest of the world, and other risks associated
with the Company's operations. The Company disclaims any obligation to update
any such factors or to publicly announce any revisions to any of the
forward-looking statements contained herein to reflect future events or
developments.

                      BONE CARE INTERNATIONAL, INC.
                    CONDENSED STATEMENTS OF OPERATIONS
                               (unaudited)

                   For the Three Months Ended   For the Nine Months Ended
                             March 31,                  March 31,
                        2005          2004         2005          2004

  PRODUCT SALES     $21,989,005   $11,617,323  $58,955,861    $28,857,850

  COST AND
   OPERATING
   EXPENSES:
    Cost of product
     sales            5,743,386     2,744,371   14,448,524      7,227,293
    Research and
     development      3,133,790     2,794,542    8,902,450      6,606,760
    Selling, general
     and
     administrative  11,234,852     5,803,602   31,735,003     17,431,151
                     20,112,028    11,342,515   55,085,977     31,265,204
    Income (loss)
     from
     operations       1,876,977       274,808    3,869,884     (2,407,354)

  INTEREST INCOME,
   net                  667,150        27,324    1,720,727        129,409
  NET INCOME
   (LOSS)            $2,544,127      $302,132   $5,590,611    $(2,277,945)

  Net income/(loss)
   per common share
   - basic                $0.13         $0.02        $0.28         $(0.16)
  Net income/(loss)
   per common share
   - diluted              $0.12         $0.02        $0.27         $(0.16)
  Shares used in
   computing basic
   net income/(loss)
   per common share  20,034,545    14,329,963   19,630,778     14,290,162
  Shares used in
   computing diluted
   net income/(loss)
   per share         21,113,361    16,555,748   20,978,178     14,290,162

  Certain prior period amounts in the financial statements have been
  reclassified to conform to the fiscal 2005 presentation.


                      BONE CARE INTERNATIONAL, INC.
                         CONDENSED BALANCE SHEETS
                               (Unaudited)

                                            March 31, 2005  June 30, 2004
                ASSETS
  CURRENT ASSETS:
   Cash and cash equivalents                   $78,751,817    $45,325,671
   Marketable securities                        40,248,991     68,776,698
   Accounts receivable, net                     10,634,176      4,732,698
   Inventory                                     8,114,473      6,785,288
   Other current assets                          3,037,476      2,336,362
     Total current assets                      140,786,933    127,956,717
  Marketable securities - non current                    -        908,376
  Property, plant and equipment, net             2,573,550      1,526,638
  Patent fees, net                               1,969,488      1,785,045
  Goodwill                                         359,165        359,165
                                              $145,689,136   $132,535,941

                LIABILITIES AND SHAREHOLDERS' EQUITY
  CURRENT LIABILITIES:
   Accounts payable                              9,839,937      6,490,488
   Accrued compensation payable                  1,905,810      2,890,728
   Accrued clinical study and research costs       554,525      1,001,818
   Deferred revenues                               395,607              -
   Allowance for sales returns                      90,419        100,000
   Other accrued liabilities                       173,115        214,010
     Total current liabilities                  12,959,413     10,697,044

  Long-term liabilities                             61,168        100,388
  SHAREHOLDERS' EQUITY:
   Preferred stock                                       -              -
   Common stock                                183,621,987    178,868,933
   Unearned compensation                        (1,803,854)    (2,411,054)
   Accumulated other comprehensive loss            (20,819)             -
   Accumulated deficit                         (49,128,759)   (54,719,370)
     Total shareholders' equity                132,668,555    121,738,509
                                              $145,689,136   $132,535,941


DATASOURCE: Bone Care International, Inc.



CONTACT:  Brian J. Hayden, Chief Financial Officer of Bone Care

International, Inc., [phone]



Web site:  http://www.bonecare.com/

http://www.bonecare.com/conferencecall 

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