Collagenex Pharmaceuticals Inc · 8-K · For 7/22/03 · EX-99

Filed On 7/22/03 8:55am ET   ·   SEC File 0-28308   ·   Accession Number 903100-3-222

Current Report   ·   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                         4     11K 
 2: EX-99       Press Release                                          7     31K 

EX-99   ·   Press Release

EX-99
1st Page of 7
TOC
Top
Previous
Next
Bottom
Just 1st

                                                                    Exhibit 99.1

For Immediate Release:                               Company Contact:           
---------------------                                ---------------            
July 22, 2003                                        Nancy C. Broadbent         
                                                 Chief Financial Officer
                                        (215) 579-7388

                                             Investor Relations:
                                            ------------------
                                        Lisa M. Wilson
                                                In-Site Communications
                                        (212) 759-3929

 COLLAGENEX PHARMACEUTICALS REPORTS RECORD REVENUES AND EARNINGS
 IN THE SECOND QUARTER OF 2003

Net Income Allocable to Common Stockholders was $0.10 per Share 
on Revenues of $12.7 Million

Newtown,  PA, July 22, 2003 - CollaGenex  Pharmaceuticals,  Inc. (Nasdaq:  CGPI)
today  reported  financial  results for the second  quarter ended June 30, 2003.
Total revenues  increased 16% to $12.7 million  compared to $11.0 million in the
second  quarter of 2002.  Net  product  sales  were $11.8  million in the second
quarter of 2003, a 13% increase over net product sales of $10.4 million recorded
in the second quarter of 2002.                                                  

     During the second quarter of 2003, net income was $1.6 million  compared to
a net loss of $385,000  during the second quarter of 2002. Net income  allocable
to common stockholders for the second quarter of 2003 was $1.2 million, or $0.10
per basic and diluted  share,  compared to a net loss of $794,000,  or $0.07 per
basic and diluted share, in the second quarter of 2002.                         

     "We  are  pleased  to have  reported  our  fourth  consecutive  quarter  of
increased  profitability.  Our  continued  ability  to deliver  solid  operating
results is a testament to the ongoing market  penetration by our sales force and
acceptance of our dental and dermatology  products,"  stated Brian M. Gallagher,
PhD,  chairman,  president  and chief  executive  officer  of  CollaGenex.  "The
introduction of the AVAR product line has significantly enhanced the standing of
our representatives in the dermatologist's office and we anticipate solid growth
in our dermatology sales as we move into the second half of the year."          

     "We  continue to pursue  dermatological  indications  for  Periostat in the
clinic, and I am pleased to note that a Phase 3                                 

EX-99
2nd Page of 7
TOC
1st
Previous
Next
Bottom
Just 2nd

study  evaluating  Periostat  in the  treatment  of  rosacea  is  close  to full
enrollment," Dr. Gallagher  continued.  "We expect this trial to be completed by
the end of 2003.  The  publication  of new data on the use of  Periostat  in the
treatment   of  acne  and  rosacea  has  greatly   increased   awareness   among
dermatologists  of our development  efforts in this field. In addition,  we have
identified an optimized  formulation for a once-a-day version of Periostat,  and
we are rapidly moving ahead to carry out definitive  clinical  studies with this
formulation  ahead of schedule in the second  half of 2003.  We look  forward to
continued execution on our stated goals of investing in the future of CollaGenex
while increasing our revenues and profitability."                               

     "During the second  quarter of 2003,  we increased our net product sales by
13%, or $1.4 million,  compared to a year ago while reducing our SG&A expense by
14%, or about $1.3 million, over the same period in the prior year," added Nancy
C. Broadbent,  chief financial officer of CollaGenex. "We continued to invest in
our pipeline  during the quarter,  increasing our R&D spending by about $883,000
over the same period in the prior year,  which reflects  expenses related to our
ongoing clinical trials of Periostat in dermatology and other  indications,  our
once-a-day,  sustained  release  formulation of Periostat and the development of
products based on our Restoraderm platform technology."                         

     During  the  second  quarter  of 2003,  CollaGenex  announced  a number  of
additional  important  achievements  related to marketed  products  and those in
clinical development.                                                           

     o    Periostat  received  final  approval for  marketing in two  additional
          countries. Periostat will be marketed in Switzerland by Karr Dental AG
and in Canada by Pharmascience Inc.                         

     o    Positive  outcomes  of a Phase 2 clinical  trial of  Periostat  in the
          treatment  of  moderate  facial  acne were  reported in the April 2003
Archives of Dermatology.                                    

     o    In  rosacea,  data  from a Phase  II  study  evaluating  Periostat  in
          combination  with  MetroLotion   demonstrated  that  Periostat  offers
significant benefits for rosacea.                           

     o    An independent  experience trial that  demonstrated  favorable results
          from the use of Periostat as a monotherapy in the treatment of rosacea
          was published in the July/August  issue of the  peer-reviewed  journal
Skin Med.                                                   

EX-99
3rd Page of 7
TOC
1st
Previous
Next
Bottom
Just 3rd

     As previously announced, CollaGenex will hold a conference call on Tuesday,
July 22, 2003,  at 11:00 a.m.  Eastern  Daylight  Time to discuss the  Company's
second  quarter  2003  operating  and  financial  results.  Investors  and other
interested parties can access the conference call by dialing 800-695-6803 or via
a live Internet broadcast on the Company's website at www.collagenex.com.       

     For  those  who  cannot  listen  to the live  broadcast,  a replay  will be
available  shortly after the call on the Company's  website,  www.collagenex.com
for 90 days. A dial-in replay of the call will be available  until 11:59 p.m. on
August 5, 2003 by dialing 800-642-1687 and entering access code 1367663.        

     CollaGenex  Pharmaceuticals,  Inc.  is a specialty  pharmaceutical  company
currently  focused on providing  innovative  medical therapies to the dental and
dermatology markets.  Currently,  the Company's  115-person  professional dental
pharmaceutical  sales  force  markets  Periostat(R),  which is  indicated  as an
adjunct to scaling and root planing for the  treatment  of adult  periodontitis.
Periostat is the first and only  pharmaceutical to treat periodontal  disease by
inhibiting  the  enzymes  that  destroy  periodontal  support  tissues,  and  by
enhancing bone protein synthesis.                                               

     The sales force also promotes Vioxx(R),  a Merck & Co. drug that CollaGenex
co-promotes for the treatment of acute dental pain; Denavir(R), a Novartis Group
prescription  anti-viral  medication  for the  treatment  of cold sores;  Sirius
Laboratories'  AVAR(TM)  product line for the topical  control of acne vulgaris,
rosacea and seborrheic dermatitis; and Atridox(R),  Atrisorb(R) FreeFlow(TM) and
Atrisorb-D  FreeFlow,  Atrix  Laboratories  Inc.'s products for the treatment of
adult periodontitis.                                                            

     Research  has shown that certain  unique  properties  of the  tetracyclines
discovered  during the  development  of  Periostat  may be  applicable  to other
diseases  involving  inflammation  and/or  destruction of the body's  connective
tissues,  including acne,  rosacea,  meibomianitis and cancer metastasis,  among
others. CollaGenex is further evaluating Periostat, as well as the new IMPACS(R)
compounds,  to assess whether they are safe and effective in these applications.
In addition,  CollaGenex has licensed the Restoraderm(TM)  technology, a unique,
proprietary  dermal drug delivery system, in order to develop a range of topical
dermatological products with enhanced pharmacologic and cosmetic properties.    

EX-99
4th Page of 7
TOC
1st
Previous
Next
Bottom
Just 4th

     To receive additional information on the Company, please visit our Web site
at www.collagenex.com, which does not form part of this press release.          

Periostat(R),   IMPACS(R)  and  Metastat(R)  are  registered   trademarks,   and
Restoraderm(TM) is a trademark, of CollaGenex Pharmaceuticals, Inc.             

All other trade  names,  trademarks  or service  marks are the property of their
respective owners and are not the property of CollaGenex  Pharmaceuticals,  Inc.
or any of our subsidiaries.                                                     

Pandel(R) is a trademark of Taisho Pharmaceuticals.                             

VIOXX(R) is a trademark of Merck & Co., Inc.                                    

Denavir(R) is a registered trademark of Novartis Consumer Health, Inc.          

AVAR(TM) is a trademark of Sirius Laboratories, Inc.                            

Atridox(R) and  Atrisorb(R)  are registered  trademarks,  and  FreeFlow(TM) is a
trademark, of Atrix Laboratories, Inc.                                          

 (Financial Tables Follow)

EX-99
5th Page of 7
TOC
1st
Previous
Next
Bottom
Just 5th

                                                        [Enlarge/Download Table]


                             Summary Financial Data                                                           
                                   (Unaudited)                                                                
                      (In thousands, except share amounts)                                                    

                                                                                 Three Months Ended June 30,  
                                                                                 ---------------------------  
                                                                                  2003                 2002   
                                                                                  ----                 ----   

Consolidated Statement of Operations:                                                                         
Revenues:                                                                                                     
                                                                                                              
         Net Product sales                                                   $  11,750            $  10,377   
         Contract revenues                                                         503                  555   
         License revenues                                                          433                   35   
                                                                                ------               ------   
                  Total revenues                                                12,686               10,967   

Operating Expenses:                                                                                           
         Cost of product sales                                                   1,738                1,598   
         Research and development                                                1,654                  771   
         SG&A, Other                                                             7,718                8,998   
                                                                                ------               ------   
                  Total operating expenses                                      11,110               11,367   

Other Income (Expense):                                                                                       
         Interest income                                                            25                   15   
         Interest expense                                                            -                   (1)  
         Other income (expense)                                                     (4)                   1   
                                                                                ------               ------   
Net income (loss)                                                                1,597                 (385)  
         Preferred stock dividend                                                  400                  409   
                                                                                ------               ------   
Net income (loss) allocable to common stockholders                           $   1,197            $    (794)  
                                                                                ======               =======  

Net income (loss) per basic share allocable to common stockholders           $    0.10            $   (0.07)  

Weighted  average  shares  used in  computing  net income (loss) per basic  11,427,420             11,163,585 
share allocable to common stockholders                                                             ===========

Net income (loss) per diluted share allocable to common stockholders         $    0.10            $   (0.07)  
                                                                                ======               =======  

Weighted average shares used in computing net income (loss) per diluted                                       
share allocable to common stockholders                                       12,369,971           11,163,585  
                                                                             ==========           ==========  

EX-99
6th Page of 7
TOC
1st
Previous
Next
Bottom
Just 6th

                                                        [Enlarge/Download Table]


                                                                             Six Months Ended June 30,   
                                                                             ------------------------    
                                                                             2003                 2002   
                                                                             ----                 ----   

Consolidated Statement of Operations:                                                                    
Revenues:                                                                                                
                                                                                                         
         Net Product sales                                               $  23,120            $  20,258  
         Contract revenues                                                   1,053                1,347  
         License revenues                                                      670                  122  
                                                                            ------               ------  
                  Total revenues                                            24,843               21,727  

Operating Expenses:                                                                                      
         Cost of product sales                                               3,652                3,178  
         Research and development                                            2,621                1,580  
         SG&A, Other                                                        15,540               17,946  
         SG&A, Stock Compensation Charge                                       251                    -  
                                                                            ------               ------  
                  Total operating expenses                                  22,064               22,704  

Other Income (Expense):                                                                                  
         Interest income                                                        56                   37  
         Interest expense                                                        -                  (2)  
         Other expense                                                         (10)                  -   
                                                                            ------              ------   
Net income (loss)                                                            2,825                 (942) 
                                                                            ------               ------  
         Preferred stock dividend                                              800                  829  
                                                                            ------               ------  
Net income (loss) allocable to common stockholders                       $   2,025            $  (1,771) 
                                                                            ======               ======= 

Net income (loss) per basic share allocable to common stockholders       $    0.18            $   (0.16) 

Weighted average shares used in computing net income (loss) per basic                                    
share allocable to common stockholders                                   11,410,914           11,122,041 
                                                                         ==========           ========== 

Net income (loss) per diluted share allocable to common stockholders      $    0.17            $   (0.16)
                                                                             ======              ======= 

Weighted average shares used in computing net income (loss) per diluted                                  
share allocable to common stockholders                                   12,252,893           11,122,041 
                                                                         ==========           ========== 

EX-99
Last Page of 7
TOC
1st
Previous
Next
Bottom
Just 7th

Consolidated Selected                                                           
---------------------                                                           
Balance Sheet Data:                                June 30,        December 31, 
-------------------                                -------         ------------ 
                                                2003              2002
                                                ----              ----

Cash, cash equivalents and                                                      
short-term investments                          $ 11,455         $  10,112  

Total current assets                                16,880            15,299    
Total assets                                        18,994            17,634    

Total current liabilities                            6,518             8,721    
Long-term liabilities                                  342               561    
                                                ------            ------
     Total liabilities                           6,860             9,282

Total stockholders' equity                          12,134             8,352    

     This press release contains  forward-looking  statements within the meaning
of Section 21E of the Securities and Exchange Act of 1934, as amended. Investors
are cautioned that  forward-looking  statements involve risks and uncertainties,
which may affect the Company's business and prospects. The Company's business of
selling, marketing and developing pharmaceutical products is subject to a number
of significant  risks,  including  risks relating to the  implementation  of the
Company's sales and marketing plans for Periostat(R) and other products that the
Company markets,  the outcome and consequences of the patent litigation  against
West-ward  and Mutual and the outcome of litigation  initiated by Mutual,  risks
that the FDA will approve  generic  products,  such as  West-ward's  or Mutual's
products,  that will  compete  with and limit the  market for  Periostat,  risks
inherent  in  research  and  development   activities,   risks  associated  with
conducting business in a highly regulated  environment and uncertainty  relating
to clinical  trails of  products  under  development,  all as  discussed  in the
Company's periodic filings with the U.S. Securities and Exchange Commission.    

 ###

Dates Referenced Herein   and   Documents Incorporated By Reference

				Referenced-On Page
This 8-K Filing		Date		First		Last			Other Filings
		6/30/03		1					10-Q, 4
Filed On / Filed As Of / For The Period Ended		7/22/03		1		3
		8/5/03		3
Top									List All Filings