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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 23, 1999
PATHOGENESIS CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 0-27150 91-1542150
(State or other (Commission (IRS Employer
jurisdiction of File No.) Identification No.)
incorporation)
201 Elliott Avenue West, Seattle, Washington 98119
(Address of principal executive offices)
(206) 467-8100
(Registrant's telephone number, including area code)
Not applicable
(Former name or former address, if changes since last report)
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Item 5. Other Events
Attached hereto as Exhibit 99 is a copy of a press release issued by
PathoGenesis on March 22, 1999 announcing anticipated first quarter 1999
results.
Item 7. Exhibits
Number Description
99 Press Release dated March 22, 1999
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: March 23, 1999
PATHOGENESIS CORPORATION
By: /s/ Alan R. Meyer
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Alan R. Meyer
Chief Finanicial Officer
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Exhibit 99
[LOGO]
NEWS RELEASE
PATHOGENESIS CORPORATION 201 ELLIOTT AVENUE WEST, SEATTLE, WASHINGTON 98119
(206) 467-8100
FOR IMMEDIATE RELEASE
Contacts: Alan Meyer Maryellen Thielen
(206) 467-8100 (847) 583-5424
PATHOGENESIS CORP. ANNOUNCES
ANTICIPATED FIRST QUARTER RESULTS
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SEATTLE, March 22, 1999 PathoGenesis Corp. (Nasdaq: PGNS) announced today
that first quarter 1999 sales will be lower than originally expected due to
fluctuations in ordering patterns for TOBI(R) (tobramycin solution for
inhalation), the company's drug for managing pseudomonal lung infections in
cystic fibrosis patients.
Based on current sales levels and patient demand indicators, first quarter sales
of TOBI are expected to be about $10 million. As a result, the company expects
to report a net loss of about $4.9 million or 30 cents per share in the first
quarter, versus the First Call consensus estimate of 20 cents in earnings per
diluted share. Accordingly, 1999 sales are expected to be in the $62 million to
$63 million range and the net loss for 1999 would be about $3.3 million to $4.1
million, or 20 cents to 25 cents per share.
"Fourth quarter 1998 sales reflected stronger than normal purchases of TOBI,"
said Wilbur H. Gantz, chairman and chief executive officer. "Our current
analysis suggests that some first quarter 1999 sales were accelerated into the
fourth quarter of 1998 as patients and wholesalers increased their normal
orders. As a result, first quarter 1999 sales will not meet our earlier
expectations.
"We firmly believe TOBI's sales potential remains highly promising, because the
drug has been proven to work extremely well," Gantz added. "In particular, our
data on TOBI showed improvement in all cystic fibrosis patient subgroups, with
the strongest benefit in teenagers and females. However, now think it will take
longer to further penetrate the U.S. cystic fibrosis market and achieve the full
sales potential for TOBI.
"Our task is to convince more doctors that their patients will significantly
benefit from the chronic use of TOBI," Gantz said. To continue doing this,
PathoGenesis added seven sales people to its 24-person sales force in the first
quarter. Gantz said they will focus on convincing doctors to prescribe TOBI for
more patients and on increasing the number of prescriptions written for chronic
TOBI use -- 28 days on drug, 28 days off drug as specified in the TOBI label.
"We expect to launch TOBI in several countries this year, including Canada in
the second quarter," Gantz added. "Moreover, our data indicate equally promising
opportunities in other indications outside cystic fibrosis. To take advantage of
these opportunities, we intend to pursue
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a Phase III clinical trial in bronchiectasis and additional clinical work in
severe chronic bronchitis and ventilator-dependent patients."
For the first quarter of 1998, PathoGenesis reported net income of $985,000, or
six cents per diluted share. Net revenues were $14.7 million, including TOBI
sales of $14.5 million in its first quarter on the market. For 1998,
PathoGenesis reported net earnings of $1.9 million, or 11 cents per diluted
share, and net revenues of $61.1 million, including TOBI sales of $60.7 million.
Seattle-based PathoGenesis Corp. is a pharmaceutical company that develops drugs
to treat chronic infectious diseases -- lung infections, in particular -- where
there is a significant need for improved therapy. The company markets TOBI, an
inhaled antibiotic, in the U.S. for management of Pseudomonas aeruginosa
infections in patients with cystic fibrosis. In addition, PathoGenesis is
developing other drug candidates to treat serious chronic lung infections,
including those common in cystic fibrosis, bronchiectasis and tuberculosis
patients. PathoGenesis' stock is traded on the Nasdaq National Market System
under the symbol PGNS. The company's Web site is located at
www.pathogenesis.com.
Note: This news release contains "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to known and unknown risks, uncertainties or other
factors that may cause the company's actual results to be materially different
from historical results or any results expressed or implied by such forward-
looking statements. Factors that might cause such a difference include, but are
not limited to, uncertainties related to the fact that PathoGenesis began
commercial operations only recently, its dependence on TOBI, third party
reimbursement and product pricing, government regulation, drug development and
clinical trials, competition and alternative therapies, and other factors
described in PathoGenesis' filings with the Securities and Exchange Commission.
