<PAGE>
EXHIBIT 99.1
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NEWS RELEASE
FOR IMMEDIATE RELEASE CONTACT:
July 19, 2000 Bill Brown
Chief Financial Officer
(952) 346-4723 or
[email protected]
MGI PHARMA REPORTS SECOND QUARTER RESULTS
-- Sales of Salagen(R) Tablets were Strong --
Minneapolis, Minnesota (July 19, 2000) - MGI PHARMA, INC. (Nasdaq:
MOGN), a pharmaceutical company, today reported net income of $1.2 million, or
$0.07 per diluted share, in the second quarter of 2000 compared to net income of
$0.6 million, or $0.04 per diluted share, in the second quarter of last year.
Total revenues increased 32 percent to $8.0 million in the 2000 second quarter
from $6.0 million in the 1999 second quarter. Total costs and expenses increased
30 percent to $7.3 million in the 2000 second quarter from $5.6 million in the
1999 second quarter.
"During the second quarter we implemented growth initiatives in all
aspects of our business," observed Chuck Blitzer, President and CEO of MGI
PHARMA. "We completed the previously announced expansion of our sales
organization to 50 highly experienced associates; irofulven garnered substantial
interest at the two premier oncology meetings, AACR and ASCO; we initiated the
exclusive license arrangement with CIBA Vision for Salagen(R) Tablets in Europe;
and we added capital through a follow-on stock offering. And in recognition of
the increased market capitalization that these and other initiatives have
brought to our shareholders, MGI PHARMA became part of the Russell 2000(R)
Index."
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MGI PHARMA, INC.
2000 Second Quarter Earnings
Page 2
Product sales in the 2000 second quarter totaled $6.1 million, a 29
percent increase from the year-earlier quarter. U.S. sales of MGI PHARMA's
primary commercial product, Salagen(R) Tablets (pilocarpine hydrochloride), also
increased 29 percent to $5.9 million during those periods. This increase in
sales revenue benefited from an estimated $800,000 of accelerated product sales
before the end of the 2000 second quarter as wholesalers purchased Salagen
Tablets in advance of a price increase. Sales of Salagen Tablets also began to
benefit from full implementation of the field sales force expansion. Within MGI
PHARMA's 50 person sales organization, all 41 sales representatives were fully
trained and active in their sales territories, as of May 1, 2000. Expansion of
MGI PHARMA's commercial capacity and expanded development of irofulven were the
primary reasons total costs and expenses increased 30 percent in the 2000 second
quarter over the 1999 second quarter.
Included in licensing income in the 2000 second quarter was $750,000 of
licensing income related to initiation of the exclusive license agreement with
CIBA Vision, the eye care unit of Novartis AG. Immediate recognition of this
payment is consistent with MGI PHARMA's accounting policy for irrevocable
license payments. Under a pending accounting pronouncement, Staff Accounting
Bulletin 101, accounting for this payment may require reversal, deferral and
subsequent amortization over a yet to be estimated expected period of benefit.
Implementation of this proposed accounting treatment has been deferred by the
Securities and Exchange Commission until the 2000 fourth quarter.
In the first six months of 2000, MGI PHARMA's revenues increased 17
percent to $13.5 million from $11.5 million in the corresponding 1999 period.
Net income in the first half of 2000 was $1.5 million, or $0.09 per diluted
share, compared to $1.3 million, or $0.08 per diluted share in the corresponding
1999 period. Total costs and expenses increased 23 percent to $12.9 million from
$10.5 in the corresponding 1999 period.
At June 30, 2000, MGI PHARMA's assets totaled $50.5 million, including
cash and investments of $43.8 million. These balances reflect receipt of $16.4
million of net proceeds from a follow-on stock offering concluded in May 2000.
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MGI PHARMA, INC.
2000 Second Quarter Earnings
Page 3
Irofulven Update
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Development of irofulven, the lead product candidate in MGI PHARMA's proprietary
family of cancer therapy compounds called acylfulvenes, has continued through a
series of Phase 1 and 2 clinical trials in cancer patients. Interim results in
certain of these studies were reported at the two premier oncology conferences
during the 2000 second quarter. At the annual meeting of the American
Association for Cancer Research (AACR) in April 2000 and at the annual meeting
of the American Society of Clinical Oncology (ASCO) in May 2000, evidence of
tumor activity was reported from studies of irofulven use in refractory
pancreatic, ovarian and prostate cancer patients.
Side effects from irofulven are within the range of those seen with marketed
chemotherapies and include bone marrow suppression (decreases in platelets or
white blood cell counts) malaise, fatigue, and mild to modest nausea and
vomiting. Irofulven (also known as MGI 114, hydroxymethylacylfulvene, or HMAF),
is the first product candidate being developed by MGI PHARMA from its family of
proprietary anti-cancer compounds called acylfulvenes. MGI PHARMA plans to
initiate its first pivotal trial with irofulven near the end the 2000. That
trial is expected to become part of the basis of a new drug application to the
Food and Drug Administration.
Other News
----------
MGI PHARMA was recently added to the Russell 3000(R) U.S. Equity Index and the
small capitalization portion of that index known as the Russell 2000(R) Index,
which has become the standard index for smaller-capitalization companies. The
Russell 3000(R) Index is comprised of the 3000 largest publicly traded companies
(as determined by market capitalization). The largest
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MGI PHARMA, INC.
2000 Second Quarter Earnings
Page 4
1000 companies comprise the Russell 1000(R) Index and the next 2000 companies
comprise the Russell 2000(R) Index.
MGI PHARMA, INC. is a pharmaceutical company focused on the
acquisition, development and commercialization of drugs primarily for the
treatment of cancer and rheumatology disorders. MGI PHARMA focuses its sales
efforts solely in the United States and creates partnerships with other
pharmaceutical or biotechnology companies for commercialization of its products
in international markets.
This news release contains forward-looking statements that may include
statements regarding intent, belief or current expectations of the company and
its management. These forward-looking statements are not guarantees of future
performance and involve a number of risks and uncertainties that may cause the
company's actual results to differ materially from the results discussed in
these statements. Factors that might affect MGI PHARMA's results include, but
are not limited to the ability of irofulven to be proven safe and effective in
humans as a chemotherapy agent and to ultimately compete successfully with other
therapies, continued growth in sales of Salagen(R) Tablets, development or
acquisition of additional products, reliance on contract manufacturing, changes
in strategic alliances, and other risks and uncertainties detailed from time to
time in the company's filings with the Securities and Exchange Commission. MGI
PHARMA does not intend to update any of the forward-looking statements after the
date of this news release to conform them to actual results.
...more...
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MGI PHARMA, INC.
2000 Second Quarter Earnings
Page 5
MGI PHARMA, INC.
Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
----------------------------------- ------------------------------------
1999 2000 1999 2000
-------------- ---------------- --------------- -----------------
<S> <C> <C> <C> <C>
Revenues:
Sales $4,754,179 $ 6,134,082 $ 9,257,122 $ 10,700,377
Promotion 250,000 269,874 375,000 519,874
Licensing 1,037,067 1,573,802 1,908,783 2,327,472
-------------- ---------------- --------------- -----------------
6,041,246 7,977,758 11,540,905 13,547,723
-------------- ---------------- --------------- -----------------
Costs and Expenses:
Cost of sales 254,681 393,142 562,559 697,213
Selling, general & administrative 3,569,703 4,639,718 6,743,199 8,160,302
Research and development 1,746,720 2,225,347 3,207,625 4,029,565
-------------- ---------------- --------------- -----------------
5,571,104 7,258,207 10,513,383 12,887,080
-------------- ---------------- --------------- -----------------
Income before interest and taxes 470,142 719,551 1,027,522 660,643
Interest income 210,766 539,680 405,289 912,526
-------------- ---------------- --------------- -----------------
Income before taxes 680,908 1,259,231 1,432,811 1,573,169
-------------- ---------------- --------------- -----------------
Provision for income taxes 69,718 35,184 138,656 96,463
-------------- ---------------- --------------- -----------------
Net income $ 611,190 $ 1,224,047 $ 1,294,155 $ 1,476,706
============== ================ =============== =================
Net income per share:
Basic $ 0.04 $ 0.08 $ 0.09 $ 0.10
Assuming dilution $ 0.04 $ 0.07 $ 0.08 $ 0.09
Weighted average number of common shares:
Basic 14,647,411 15,812,118 14,611,370 15,514,659
Assuming dilution 15,549,121 17,160,856 15,512,507 16,996,090
</TABLE>
Balance Sheet Data
(Unaudited)
<TABLE>
<CAPTION>
December 31, June 30,
1999 2000
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<S> <C> <C>
Cash and investments $24,150,573 $43,833,094
Total assets 28,973,736 50,500,709
Total stockholders' equity 24,644,379 46,523,761
</TABLE>
