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
OCTOBER 21, 1999
Date of Report (Date of Earliest Event Reported)
U.S. BIOSCIENCE, INC.
(Exact name of Registrant as specified in its charter)
DELAWARE 1-10392 23-2460100
(State or Other Jurisdiction of (Commision File Number) (IRS Employer
Incorporation or Organization) Identification No.)
ONE TOWER BRIDGE
100 FRONT STREET
WEST CONSHOHOCKEN, PENNSYLVANIA 19428
(Address of Principal Executive Office) (Zip Code)
(610) 832-0570
(Registrant's telephone number, including area code)
NOT APPLICABLE
(Former Name or Former Address, if Changed Since Last Report)
ITEM 5. OTHER EVENTS.
On October 21, 1999, U.S. Bioscience, Inc. issued a press
release announcing its third quarter results. A copy of the press
release is filed as Exhibit 99.1 to this report and is incorporated
herein by reference.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
99.1 Press release of U.S. Bioscience, Inc. issued October 21, 1999.
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.
U.S. BIOSCIENCE, INC.
By: /s/ Robert I. Kriebel
-------------------------------
Name: Robert I. Kriebel
Title: Executive Vice President and
Chief Financial Officer
Date: October 21, 1999
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION PAGE NO.
99.1 Press release of U.S. Bioscience, Inc. issued
October 21,1999.
FOR IMMEDIATE RELEASE
Contacts: Robert I. Kriebel Jonathan Nugent
U.S. Bioscience Burns McClellan
(800) 898-4404 (212) 213-0006
U.S. BIOSCIENCE ANNOUNCES THIRD QUARTER RESULTS
WITH RECORD SALES OF ETHYOL(R)
WEST CONSHOHOCKEN, PA, OCTOBER 21, 1999 -- U.S. BIOSCIENCE, INC. (AMEX:
UBS) today reported a loss of $3,635,500 or $0.13 loss per common share
outstanding for the third quarter of 1999, compared to a loss of $2,456,000
or $0.10 loss per common share in the corresponding 1998 quarter. The
increased loss for the third quarter of 1999 reflects the expansion of the
company's sales organization and increased research expenditures, even
though revenues increased 11% over the prior year quarter.
Product sales for the third quarter of 1999 increased 10% over the prior
year. Ethyol(R) (amifostine) sales rose in the third quarter due to
significantly higher than expected sales revenue from ALZA Corporation, the
company's distribution partner in the United States, and revenues received
from increased trade sales of Ethyol in Europe by Schering-Plough. Combined
sales of NeuTrexin(R) (trimetrexate glucuronate) and Hexalen(R)
(altretamine) were below the year ago quarter, but up over the 1999 second
quarter. The company believes that sales of these products in the second
and third quarters may have been influenced by transitional factors
relating to the assumption of full responsibility for promotion of
NeuTrexin and Hexalen in the United States by U.S. Bioscience, which
occurred at the end of the second quarter.
End-market sales of Ethyol in the United Sales, which are recorded by ALZA,
rose by 85% over the prior year quarter to $17.7 million and to $34.8
million for the year to date, 48% higher than the corresponding 1998 nine
month period.
Operating expenses in the third quarter of 1999 increased from prior year
levels due principally to increased research and development expenses and
higher selling and marketing costs. These increases were partly offset by
an improved gross margin resulting from an increase in revenues received
from ALZA Corporation on their purchases of Ethyol from the company, lower
product manufacturing costs and trade price increases for Hexalen and
NeuTrexin. Research and development expenses rose due to increased costs
for the company's Phase II study of lodenosine (FddA) (a trial recently
suspended), its Phase III clinical trials investigating the use of Ethyol
in radiation therapy and various chemotherapeutic regimens, and its Phase
III clinical trials investigating the use of NeuTrexin as an additional
agent in the treatment of colorectal cancer. Sales and marketing costs
increased in the third quarter due to the continued expansion of the
company's sales force as a result of the company regaining full promotional
responsibility for NeuTrexin and Hexalen at the end of the second quarter.
Cash and investments were approximately $51.9 million at September 30,
1999.
U.S. Bioscience, Inc. (http://www.usbio.com), based in West Conshohocken, Pa.,
is a pharmaceutical company specializing in the development and
commercialization of products for patients with cancer and AIDS.
This release contains forward-looking statements which reflect management's
current views of future events and operations. These forward-looking
statements involve risks and uncertainties, including clinical trials,
regulatory submissions and approvals, patent matters, market conditions,
manufacturing and supply conditions, and other factors that could cause
actual results to differ materially from those anticipated in any
forward-looking statement. Additional information on factors that could
cause such changes is contained in the company's Securities and Exchange
Commission filings, copies of which are available from the company without
charge.
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U.S. BIOSCIENCE, INC. - FINANCIAL HIGHLIGHTS
_____________________________________________________________________________________________________________________________
THREE MONTHS ENDED NINE MONTHS ENDED
CONSOLIDATED STATEMENTS OF OPERATIONS SEPTEMBER 30 SEPTEMBER 30
(Unaudited) 1999 1998 1999 1998
_____________________________________________________________________________________________________________________________
Revenues
<S> <C> <C> <C> <C>
Net sales $ 6,460,600 $ 5,890,800 $ 18,050,500 $ 14,312,900
Net investment income 736,400 669,500 2,119,300 2,116,200
Licensing, royalty and other income 318,300 213,400 3,851,200 5,797,500
------------ ------------ ------------ -------------
7,515,300 6,773,700 24,021,000 22,226,600
Expenses
Cost of sales 1,487,900 1,649,900 4,048,300 4,231,600
Selling, general and administrative costs 3,931,200 3,106,600 11,077,300 10,136,400
Research and development costs 5,709,300 4,435,200 17,396,200 13,467,200
Interest expense 22,400 38,000 76,000 119,900
------------ ------------ ------------ -------------
11,150,800 9,229,700 32,597,800 27,955,100
______________________________________________________________________________________________________________________________
Net loss $ (3,635,500) $ (2,456,000) $ (8,576,800) $ (5,728,500)
Net loss per common share
Basic and Diluted $ (0.13) $ (0.10) $ (0.32) $ (0.24)
_____________________________________________________________________________________________________________________________
Weighted average number of common shares
outstanding Basic and Diluted 27,416,300 24,335,200 26,922,700 24,290,200
_____________________________________________________________________________________________________________________________
CONDENSED CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 1999 DECEMBER 31,
(UNAUDITED) 1998
_____________________________________________________________________________________________________________________________
Current assets
Cash and investments $ 20,288,700 $ 24,885,200
Other assets 9,156,100 5,339,300
------------- ---------------
Total current assets 29,444,800 30,224,500
Investment in long-term securities 31,579,700 17,063,700
_____________________________________________________________________________________________________________________________
Property, plant and equipment 5,162,200 5,433,700
Total assets $ 66,186,700 $ 52,721,900
_____________________________________________________________________________________________________________________________
Current liabilities $ 11,767,200 $ 11,544,500
Long-term liabilities 2,288,400 2,444,200
Total liabilities 14,055,600 13,988,700
Stockholders' equity 52,131,100 38,733,200
Total liabilities and stockholders'
equity $ 66,186,700 $ 52,721,900
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