6
S E C U R I T I E S A N D E X C H A N G E
C O M M I S S I O N
Washington, D. C. 20549
F O R M 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): July 28, 1995
T H E L I P O S O M E C O M P A N Y, I N C.
(Exact name of registrant as specified in its charter)
Delaware 0-14887 22-2370691
(State or other juris- (Commission File No) (I.R.S. Employer
diciton of incorpora- Identification No.)
One Research Way, Princeton Forrestal Center, Princeton,
New Jersey, 08540
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code:(609) 452-7060
None
(Former name or former address, if changed since last report.)
Item 5. Other Events.
On July 28, 1995, The Liposome Company, Inc. (the "Company") released a
press release, a copy of which is attached hereto as Exhibit 5a with respect to
the Company's reporting of operating results for the three and six month periods
ended June 30, 1995.
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.
THE LIPOSOME COMPANY, INC.
Dated: July 28, 1995 By: /s/ Brooks Boveroux
Brooks Boveroux
Vice President, Finance,
Chief Financial Officer
and Treasurer
EXHIBIT INDEX
Exhibit Page No.
5a -Copy of the Company's press release of July 28, 1995 5
relating to the Company's reporting of operating results
for the three and six month periods ended June 30, 1995.
Exhibit 5a
THE LIPOSOME COMPANY, INC. REPORTS
SECOND QUARTER RESULTS
Princeton, NJ -- August 1, 1995 -- The Liposome Company, Inc. (Nasdaq: LIPO &
LIPOZ) today reported financial results for the second quarter ended June 30,
1995. Revenues were $3,717,000 compared to $2,941,000 in the comparable 1994
quarter. Total expenses for the 1995 quarter were $12,544,000 compared to
$11,084,000 in the second quarter of 1994. The net loss applicable to Common
Stock for the quarter was $10,164,000 or $0.38 per share of Common Stock,
compared to a loss of $9,480,000 or $0.40 per share for the second quarter of
1994. At June 30, 1995, the Company had $80,435,000 in cash and marketable
securities.
"The Liposome Company continues to be both financially and operationally sound,"
commented Charles A. Baker, Chairman and Chief Executive Officer. "Our
financial position is very strong, and sales of Abelcet, which is approved for
sale in the U.K. are proceeding in line with expectations. We look forward to
receiving additional approvals throughout the remainder of 1995."
Total revenues for the second quarter increased due primarily to revenues from
product sales in Europe. Interest income decreased compared to the same quarter
of 1994 principally due to the reduction in cash balances available for
investment. During the second quarter, the Company raised capital through the
sale of equity securities resulting in proceeds of approximately $29,000,000,
net of all fees and expenses. In July, the Company also announced the sale of
Common Stock to an institutional investor that would result in additional net
proceeds of $14,400,000.
Research and development expense increased slightly over the prior year's
quarter due primarily to higher internal and clinical grant costs incurred to
support the Company's three products in clinical trials. General and
administrative expenses increased slightly over the comparable 1994 quarter due
to costs associated with the continued development of international sales and
marketing operations to support European sales and expected additional market
approvals for Abelcet.
For the six month period ended June 30, 1995, the Company reported a net loss
applicable to Common Stock of $21,834,000, or $0.87 per share, on revenues of
$5,570,000. These results compare to a net loss applicable to Common Stock of
$17,655,000, or $0.74 per share, on revenues of $5,977,000 reported in the
comparable prior year period. Research and development expenses increased 11%
reflecting the Company's emphasis on product development, particularly increased
clinical trial grant and support costs and manufacturing expenses. General and
administrative expenses increased 40% in order to support the Company's
international sales and marketing operations.
The Liposome Company, Inc. is a leading biotechnology company dedicated to the
development and commercialization of proprietary lipid and liposome-based
pharmaceuticals for the treatment, prevention and diagnosis of inadequately
treated, life-threatening diseases such as severe, systemic fungal infections,
metastatic breast and other cancers, and inflammatory and vaso-occlusive
diseases.
####
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT PER SHARE FIGURES)
(UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
Collaborative research
and development revenues
and other $2,213 $1,653 $3,713 $3,233
Product sales 843 --- 843
Interest income. 661 1,288 1,014 2,744
Total revenues 3,717 2,941 5,570 5,977
Cost of goods sold 340 --- 340 ---
Research and development
expenses: 9,038 8,956 18,254 16,533
Selling, general and
administrative expenses: 3,093 2,047 5,979 4,269
Interest expense 73 81 157 156
Total expenses 12,544 11,084 24,730 20,958
Net loss (8,827) (8,143) (19,160) (14,981)
Preferred Stock dividends (1,337) (1,337) (2,674) (2,674)
Net loss applicable
to Common Stock $(10,164)$(9,480) $(21,834) $(17,655)
Net loss per share
applicable to Common Stock $ (0.38)$ (0.40)$ (.87)$ (.74)
Weighted average number
of common shares outstanding. 26,407 23,812 25,228 23,763
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS - UNAUDITED)
June 30, 1995 December 31, 1994
Cash and short-term investments $ 71,557 $ 57,856
Other current assets 5,971 2,816
Long-term investments 2,798 9,421
Property and equipment, net 18,139 17,686
Restricted cash 6,080 4,880
Other assets, net 509 537
Total assets $105,054 $ 93,196
Current liabilities $ 10,420 $ 8,926
Other liabilities 5,015 5,917
Stockholders' equity 89,619 78,353
Total liabilities
and stockholders' equity $105,054 $ 93,196
