Medicis Reports First Quarter Fiscal 2001 Financial Results
SCOTTSDALE, Ariz.--Oct. 19, 2000--Medicis Pharmaceutical Corporation (NYSE:MRX) today announced first quarter fiscal 2001 revenues of $40.3 million and net income of $12.0 million, or $0.38 per diluted share, compared to first quarter fiscal 2000 revenues of $31.6 million and net income of $9.6 million, or $0.33 per diluted share. Reported fiscal 2001 first quarter results exclude the tax-effected special charge for the research and development expense of $11.5 million relating to the $17.8 million incurred in the collaboration with Corixa Corporation for a novel psoriasis immunotherapeutic product currently under development.
Net revenue increased approximately 27% for the first quarter from the prior year, commensurate with the increase in prescription volumes of the Company's core growth brands, DYNACIN(R), LOPROX(R), LUSTRA(R), TRIAZ(R) and OVIDE(R). The aggregate prescription growth of the Company's core growth brands increased approximately 52% as compared to the first quarter of the prior fiscal year. Additionally, the Company launched during the quarter PLEXION(TM), a novel prescription rosacea cleanser. Medicis reported consistent gross profit margins of approximately 81.4% and consistent net income margins of approximately 29% as a percentage of net revenues. Medicis was able to maintain the high net income margins (excluding the special charge) while increasing promotional spending by approximately 82% as compared to the same quarter in the previous year.
Cash flow from operations for the fiscal 2001 first quarter was $9.3 million. Operational cash was generated during the quarter as a result of net income, an income tax receivable collected during the quarter, reductions in receivables and inventories, and positive cash flow fluctuations in other balance sheet accounts offset by the research and development expenses associated with the Corixa collaboration.
"We are pleased to announce another record quarter driven by continued strong performance of our core growth brands," said Jonah Shacknai, chairman and chief executive officer of Medicis. "We believe the future of Medicis is extremely bright, with growth of our brands, launch of novel products like PLEXION(TM) and our recently announced collaboration with Corixa, which has the potential to yield a breakthrough drug in dermatology. This novel psoriasis product provides a unique glimpse within the Medicis pipeline and represents only one of several exciting projects we are developing. Additionally, we are extremely encouraged by the enthusiastic response by physicians and patients to our newly launched prescription rosacea cleanser, PLEXION(TM)."
Medicis is the leading independent pharmaceutical company in the United States focusing primarily on the treatment of dermatological conditions. Medicis develops and markets leading products for major segments within dermatology including acne, fungal infections, psoriasis, eczema, rosacea, seborrheic dermatitis, head lice and cosmesis (improvement in the texture and appearance of skin). Primary products include the prescription brands DYNACIN(R) (minocycline HCl), TRIAZ(R) (benzoyl peroxide), LUSTRA(R) (hydroquinone), LOPROX(R) (ciclopirox), OVIDE(R) (malathion), PLEXION(TM) (sodium sulfacetamide/sulfur), LIDEX(R) (fluocinonide), SYNALAR(R) (fluocinolone acetonide), TOPICORT(R) (desoximetasone), NOVACET(R) (sodium sulfacetamide/sulfur) and A/T/S(R) (erythromycin); the over-the-counter brand ESOTERICA(R); and BUPHENYL(TM) (sodium phenylbutyrate), a prescription product indicated in the treatment of Urea Cycle Disorder.
Except for historical information, this news release contains certain forward-looking statements that involve risks and uncertainties which may cause actual results to differ materially from the statements made, including the Company's dependence on sales of key products, uncertainty of future financial results and fluctuations in operating results, dependence on the Company's acquisition strategy, new product introductions and other risks described from time to time in the Company's SEC filings. These forward-looking statements represent the judgment of the Company, as of the date of this release, and Medicis disclaims any intent or obligation to update these forward-looking statements.
NOTE: Full prescribing information for any Medicis prescription product is available by contacting the Company.
Medicis Pharmaceutical Corporation
(in thousands, except per share data)
Summary Statements of Operations
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(unaudited)
Three Months Ended
September 30,
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2000 1999
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Revenues $ 40,254 $ 31,644
Cost of sales 7,480 5,786
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Gross profit 32,774 25,858
Operating expenses:
Selling, general and administrative 15,164 9,941
Research and development 19,226(a) 1,596
Depreciation and amortization 1,939 1,693
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Total operating expenses 36,329 13,230
Operating (loss)/income (3,555) 12,628
Interest income, net 4,357 2,645
Income tax expense (285) (5,633)
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Net income $ 517 $ 9,640
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Basic net income per common share $ 0.02 $ 0.34
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Diluted net income per common share $ 0.02 $ 0.33
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Shares used in basic net income per
common share 29,645 28,750
Shares used in diluted net income
per common share 31,624 29,471
Cash flow from operations $ 9,265 $ 10,168
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Absent tax-effected adjustment for special R&D charge of $11,473:
Net income $ 11,991 $ 9,640
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Basic net income per common share $ 0.40 $ 0.34
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Diluted net income per common share $ 0.38 $ 0.33
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(a) Reported R&D expenses include special charge of $17,788 relating
to the Corixa collaboration
Balance Sheets
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At September 30, At June 30,
2000 2000
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(unaudited)
Assets
Cash and short-term investments $304,437 $285,737
Accounts receivable, net 32,199 33,164
Inventory, net 9,189 10,002
Other current assets 16,824 22,385
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Total current assets 362,649 351,288
Property and equipment, net 1,868 1,759
Intangible assets, net 140,444 141,182
Other assets 3,532 1,110
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Total assets $508,493 $495,339
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Liabilities and stockholders' equity
Current liabilities $ 39,014 $ 38,987
Deferred tax liabilities -- 4,000
Long-term obligations 15,360 14,913
Stockholders' equity 454,119 437,439
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Total liabilities and stockholders'
equity $508,493 $495,339
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Working capital $323,635 $312,301
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Contacts: Medicis Pharmaceutical Corporation, Scottsdale Libby Ivy, 602/808-3854 www.medicis.com