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Press Releases
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| QLT Announces Q1 Results for 2002 and Updates Guidance |
FIRST QUARTER EPS OF $0.08 IN LINE WITH ANALYST'S EXPECTATIONS
FOR IMMEDIATE RELEASE APRIL 23, 2002
VANCOUVER, CANADA—QLT Inc. (NASDAQ: QLTI; TSE: QLT) today reported financial results for the first quarter ended March 31, 2002, and updated guidance for 2002. Unless specified otherwise all amounts are in Canadian dollars.
Q1 2002 Visudyne® Sales
For the three months ended March 31, 2002, total Visudyne sales were US$68.4 million (CAD$109.0 million). This represents an increase of 42.5% over sales in the first quarter of 2001. Visudyne sales in the U.S. for the quarter were approximately US$43.0 million (CAD$68.6 million), representing 62.9% of total sales for the quarter. This represents an increase of 38.7% over US sales in the first quarter of 2001. The remaining US$25.4 million (CAD$40.4 million) relates to sales in the rest of the world.
Q1 2002 Earnings per Share (EPS)
Pro forma EPS in the first quarter of 2002 reached $0.08 compared to $0.04 in the prior year first quarter. The 100% increase in EPS in the first quarter 2002 compared to the same period last year was driven primarily by the continued growth in Visudyne sales. GAAP EPS exceeded Pro forma EPS in the quarter by $0.02 as a result of interest income and a small foreign exchange gain.
2002 Annual Guidance
The company is reiterating its annual Visudyne sales guidance in the range of US$275-300 million or growth over 2001 in the 25% to 35% range. Pro Forma EPS for 2002 is expected to range from $0.35 to $0.40. Adjusting for the below-trend spending levels in the fourth quarter of 2001 (which translates to a comparable EPS for 2001 of $0.25), these estimated earnings levels represent year over year gains of 40% to 60%.
“We are pleased with the growth of Visudyne through this quarter and we are clearly on track to be within the guidance provided for 2002 Visudyne sales,” said President and Chief Executive Officer, Paul Hastings. “Our focus continues to be to expand the Visudyne franchise, to demonstrate progress with our clinical development programs and to make every effort to ensure continued EPS growth through 2003 and beyond.”
Q1 Results
Revenues
The company’s Revenues reached $38.5 million in the first quarter, growing by 69.2% from the prior year. Revenues from Visudyne comprised $35.7 million of this total, up 61.8% from the same period in 2001. QLT’s share of Visudyne net profit (excluding the recovery of manufacturing and other costs) for the first quarter was 23.3% of Visudyne sales. The alliance profit share rate in Q1 was lower than the still expected full year rate of 26% to 28% of Visudyne sales due to heavy promotional expenses in the first quarter.
Research and Development
Expenditures for Research & Development of $12.8 million were 67.2% higher for the three months ended March 31, 2002 than for the same period in 2001. The increase is due mainly to increased spending in the tariquidar and multiple basal cell carcinoma (MBCC) development programs.
SG&A
For the first quarter of 2002, SG&A expenditures were $6.5 million representing an increase of $1.4 million or 26.5% over the first quarter of 2001. A primary contributor to this increase is legal expenses.
Cash
The company’s cash reserves rose from $260 million to $278 million during the first quarter of 2002. Cash reserves are expected to comfortably exceed $300 million by the end of the year.
About Visudyne
Visudyne therapy was approved in the U.S. in April 2000, and in Europe in July 2000, for the treatment of predominantly classic subfoveal choroidal neovascularization (CNV) due to age-related macular degeneration (AMD), the leading cause of severe vision loss in patients over 50. The treatment has now been approved in 62 countries with extended approvals in 40 countries. QLT’s revenue from Visudyne sales consists of 50% of the Visudyne profits of the Visudyne alliance with Novartis Ophthalmics, the eye health unit of Novartis AG and reimbursement for manufacturing and other costs.
QLT Inc. is a world leader in photodynamic therapy, a field of medicine utilizing light-activated drugs in the treatment of disease. QLT’s innovative science has developed and commercialized breakthrough treatments utilizing this technology for applications in ophthalmology and oncology and is exploring the potential in other diseases. QLT is expanding its business both within and beyond photodynamic therapy to develop innovative therapies to treat large, unmet medical needs.
QLT Inc. will hold an analyst and institutional investor conference call to discuss first quarter results on Tuesday, April 23, at 4:30 p.m. EST (1:30 p.m. PST). The call will be broadcast live via the Internet at www.qltinc.com. A replay of the call will be available via the Internet and also via telephone at (416) 626-4100, access code 20517322.
Visudyne is a registered trademark of Novartis AG.
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QLT Contacts:
Therese Crozier or Tamara Hicks
Corporate Communications
t 604.707.7000 or 1.800.663.5486
f 604.707.7001
QLT Inc. is listed on the Nasdaq Stock Market under the trading symbol "QLTI" and on the Toronto Stock Exchange under the trading symbol "QLT."
Certain statements in this press release constitute "forward-looking statements" of QLT within the meaning of the Private Securities Litigation Reform Act of 1995, which involve known and unknown risks, uncertainties and other factors that may cause our actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. Forward-looking statements include, but are not limited to, those with respect to anticipated levels of sales of Visudyne®, estimates of our share of Visudyne net profits and net income, opportunities to expand the market for Visudyne, opportunities for growth beyond QLT's core product and ability to manage operations and cost structures appropriately. These statements are only predictions and actual events or results may differ materially. Factors that could cause such actual events or results expressed or implied by such forward-looking statements to differ materially from any future results express or implied by such statements include, but are not limited to: the risk that future sales of Visudyne may be less than expected, our future operating results are uncertain and likely to fluctuate, currency fluctuations in our primary markets may impact our financial results, uncertainty of and timing of pricing and reimbursement may limit the future sales of Visudyne, the outcome of the pending patent and securities litigation against us may be unfavorable and have an adverse impact on our financial results, we are dependent on third-parties to commercialize Visudyne and other factors described in detail in QLT's Annual Information Form on Form 10-K, forthcoming quarterly reports on Form 10-Q and other filings with the U.S. Securities and Exchange Commission and Canadian securities regulatory authorities. Forward-looking statements, are based on our current expectations and QLT is not obligated to update such information to reflect later events or developments. |
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