<PAGE> 1
UNITED STATES
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): FEBRUARY 7, 2000
IOMED, INC.
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
<TABLE>
<CAPTION>
UTAH 0-37159 87-0441272
<S> <C> <C>
(State or other jurisdiction of (Commission (I.R.S. Employer
Incorporation or organization) File Number) Identification No.)
</TABLE>
<TABLE>
<S> <C>
3385 WEST 1820 SOUTH, SALT LAKE CITY, UTAH 84104
(Address of principal executive offices) (Zip Code)
</TABLE>
(801) 975-1191
(Registrant's telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
<PAGE> 2
<TABLE>
Items 1- 4.
<S> <C>
Not Applicable.
Item 5. Other Events
On February 2, 2000, Iomed, Inc. issued a press release announcing
fiscal year 2000 second quarter results and the appointments of
James R. Weersing to President and Chief Executive Officer and Peter
J. Wardle to Chairman. A copy of the press release is attached
hereto as Exhibit 99.1 and incorporated herein by reference.
Item 6. Resignations of Registrant's Directors
Not Applicable.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(a) Not Applicable.
(b) Not Applicable.
(c) Exhibits.
</TABLE>
The following exhibits are filed with this Current Report on Form 8-K:
<TABLE>
<CAPTION>
Exhibit
Number Description
------- -----------
<S> <C>
99.1 Press Release Dated February 3, 2000.
</TABLE>
<TABLE>
<S> <C>
Item 8. Change in Fiscal Year
Not Applicable.
Item 9. Sales of Equity Securities Pursuant to Regulation S
Not Applicable.
</TABLE>
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.
Iomed, Inc.
By: /s/ Robert J. Lollini
---------------------------
Robert J. Lollini
Vice President, Finance and
Chief Financial Officer
Page 2 of 5
<PAGE> 3
EXHIBIT 99.1
[IOMED LOGO]
COMPANY CONTACT: INVESTOR RELATIONS CONTACTS:
IOMED, Inc. LIPPERT/HEILSHORN & ASSOCIATES
Robert Lollini Kim Sutton Golodetz ([email protected])
Chief Financial Of (212) 838-3777
(801) 975-1191 Bruce Voss ([email protected])
www.iomed.com (310) 575-4848
www.lhai.com
IOMED REPORTS FISCAL 2000 SECOND QUARTER RESULTS
-APPOINTS JAMES R. WEERSING PRESIDENT AND CEO, AND PETER J. WARDLE CHAIRMAN-
SALT LAKE CITY (FEBRUARY 2, 2000) - IOMED, INC. (AMEX: IOX) today reported
financial results for the three and six months ended December 31, 1999.
Product sales in the second quarter of fiscal 2000 increased 8% to $2,643,000
from $2,440,000 reported in the second quarter of fiscal 1999. New products and
expanded distribution into the rehabilitation and sports medicine markets
contributed to the increase in sales of the Company's iontophoretic drug
delivery products for the treatment of acute local inflammation. Total revenues
for the fiscal 2000 second quarter were $2,671,000, down from $2,810,000 in the
prior year's second quarter, when the Company received contract research revenue
from Novartis under a research and development program that was concluded at the
end of December 1998.
Gross margins improved substantially to 66% during the current quarter, compared
to 57% in the prior-year quarter. Increased sales, combined with a favorable
product mix and improved operating efficiencies accounted for this improvement.
Selling, general and administrative expenses decreased 6% to $1,342,000 from the
previous year, when the Company incurred costs associated with the restructuring
of the Company's field sales force.
The Company continued to enroll patients in its Phase III clinical studies for
the iontophoretic administration of IontoDex(TM) (a formulation of
dexamethasone) for the treatment of acute local inflammatory conditions. As a
result, research and development expenses were up 87% to $848,000, compared with
$452,000 last year. These expenses are expected to remain at this level as the
Company continues these studies. In addition, the Company plans to internally
fund initial phases of other research and product development programs,
particularly in the area of ophthalmics, physical medicine and pain control.
The Company posted a fiscal 2000 second quarter net loss of $174,000, or $0.03
per share, compared with a net income of $105,000, or $0.01 per share in the
prior-year quarter. The Company's cash and equivalents were $16.6 million at
December 31, 1999.
-more-
Page 3 of 5
<PAGE> 4
Total product sales for the six months ended December 31, 1999, were $5,175,000,
up 13% over $4,595,000 in the prior year's period. The Company reported a net
loss of $265,000, or $0.04 per share in the six months ended December 31, 1999,
compared with net income of $151,000, or $0.02 per share in the six months ended
December 31, 1998.
The Company has also announced that James R. Weersing has been appointed
President and Chief Executive Officer, positions he has held on an interim
basis. Mr. Weersing has stepped down as Chairman, and Peter J. Wardle, a
Director of the Company since 1987, has been named Chairman.
Commenting on the quarter, James Weersing said, "Our initiative to improve
operating efficiency and increased sales with a favorable product mix have
resulted in excellent margin improvement. We were able to lower our total cost
of products sold by 13%, while at the same time increasing sales. Our Phase III
studies for IontoDex are proceeding well with a total of 97 patients enrolled to
date. We are on track to complete the studies and file an NDA (New Drug
Application) with the U.S. Food and Drug Administration (FDA) in the third
quarter of calendar year 2000. We believe that approval of IontoDex will give
IOMED access to a potential $540 million market in the U.S."
IOMED, Inc. is a leader in the research, development and manufacture of
iontophoretic drug delivery systems, which are marketed to healthcare providers
worldwide. Iontophoretic drug delivery involves the transport of water-soluble
ionic drugs into and through the skin using a low-level electrical current.
IOMED also conducts advanced research for local and systemic delivery of ionic
pharmaceutical compounds to treat various medical conditions.
The statements contained in this news release that are not purely historical are
forward-looking statements, as defined in Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934, and include IOMED's
beliefs, expectations or intentions regarding its future operations and
financial condition. All forward-looking statements included in this news
release are made as of the date hereof and are based upon information available
to IOMED as of such date. IOMED assumes no obligation to update any
forward-looking statement. It is important to note that actual outcomes could
differ materially from those in such forward-looking statements. Readers should
also refer to the risk factors and other disclosures set forth in IOMED's
filings with the Securities and Exchange Commission on Form 10-K for its fiscal
year ended June 30, 1999.
(Financial Tables to Follow)
Page 4 of 5
<PAGE> 5
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
December 31 December 31
----------------------------------------------------------------
1999 1998 1999 1998
----------------------------------------------------------------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Revenues:
Product sales $ 2,643,000 $ 2,440,000 $ 5,175,000 $ 4,595,000
Contract research revenue,
royalties and license fees 28,000 370,000 73,000 798,000
----------- ----------- ----------- -----------
Total revenues 2,671,000 2,810,000 5,248,000 5,393,000
Operating costs and expenses:
Cost of products sold 905,000 1,040,000 1,829,000 1,987,000
Research and development 848,000 452,000 1,509,000 867,000
Selling, general and
administrative 1,342,000 1,433,000 2,646,000 2,830,000
----------- ----------- ----------- -----------
Total costs and expenses 3,095,000 2,925,000 5,984,000 5,684,000
----------- ----------- ----------- -----------
Loss from operations (424,000) (115,000) (736,000) (291,000)
Interest expense 4,000 4,000 8,000 10,000
Other income, net 254,000 224,000 479,000 452,000
----------- ----------- ----------- -----------
Net income (loss) $ (174,000) $ 105,000 $ (265,000) $ 151,000
=========== =========== =========== ===========
Basic and diluted net income
(loss) per share
$ (0.03) $ 0.01 $ (0.04) $ 0.02
=========== =========== =========== ===========
Shares used in the computation
of income (loss) per share 6,508,000 7,404,000 6,508,000 7,443,000
</TABLE>
CONDENSED CONSOLIDATED BALANCE
SHEET DATA
<TABLE>
<CAPTION>
December 31, June 30,
1999 1999
------------------ --------------
(unaudited) (audited)
<S> <C> <C>
Cash and cash equivalents $16,620,000 $17,263,000
Working capital, net $17,983,000 $18,146,000
Total assets $19,904,000 $20,154,000
Long-term obligations $220,000 $129,000
Accumulated deficit ($22,768,000) ($22,503,000)
Shareholders' equity $18,526,000 $18,791,000
</TABLE>
Page 5 of 5
