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CONTACT: Michael T. Borer
Sr. Vice President and Chief Financial Officer
Dura Pharmaceuticals, Inc.
(858) 457-2553
DURA PHARMACEUTICALS ANNOUNCES A 24% INCREASE
IN YEAR-OVER-YEAR EARNINGS FOR THE SECOND QUARTER OF 2000
San Diego, CA - July 24, 2000 - Dura Pharmaceuticals, Inc. (Dura) (Nasdaq
NNM:DURA) today reported total revenues of $81.5 million for the second quarter
and $167.3 million for the first six months of 2000, increases of 20% over the
second quarter and first six months of 1999. Net income totaled $9.4 million, or
$0.21 per diluted share, for the second quarter of 2000, increases of 24% over
the results for the same period in 1999. For the first six months of 2000, net
income was $21.9 million, compared to $15.3 million for the first six months of
1999. Earnings per diluted share for the first six months of 2000 were $0.48 per
diluted share, increasing 41% over the $0.34 per diluted share reported for the
first six months of 1999.
Pharmaceutical sales totaled $60.9 million for the second quarter
and $128.2 million for the first six months of 2000, representing increases
of 19% and 20% over the respective periods last year. The increase in
pharmaceutical sales was principally attributed to the growth in the sales of
Dura's hospital-based products, Maxipime-Registered Trademark- (cefepime) for
Injection and Azactam-Registered Trademark- (aztreonam) for Injection, which
were up a combined 42% over the second quarter of 1999. Contract revenue
generated primarily from development activity of Spiros-Registered Trademark-
products on behalf of both Spiros Development Corporation II, Inc. (Nasdaq:
SDCO) and Eli Lilly & Company (NYSE: LLY), totaled $20.6 million for the
second quarter and $39.1 million for the first six months of 2000, compared
to $16.7 million for the second quarter and $32.9 million for the first six
months of 1999. The Company's pending acquisition of Spiros Development
Corporation II, Inc., expected to be completed in the third quarter of 2000,
will significantly reduce future period contract revenues. The Company ended
the second quarter of 2000 with approximately $295 million in cash and
short-term investments and generated strong cash flows from operations of
$22.0 million and $50.3 million during the second quarter and first six
months of 2000, respectively.
"We are pleased overall with the quarter's results as they demonstrate
that we are making steady progress at growing our key promoted brands," said Cam
L. Garner, Dura's Chairman and CEO. "Maxipime-Registered Trademark- sales have
increased substantially on a year-over-year basis and are tracking toward our
sales expectations for 2000. Azactam-Registered Trademark- is performing very
well and sales are tracking ahead of our
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expectations for 2000. Ceclor-Registered Trademark- CD has underperformed this
year, due to the weak flu season in the first quarter and its effect on the
second quarter, and we are adjusting our mid $50 million target for 2000 to the
mid-to-upper $40 million range. However, we are optimistic that
Ceclor-Registered Trademark- CD market growth will grow as it has with the onset
of the flu seasons the past two years. Nasarel-Registered Trademark- line sales
are tracking toward our annual sales goal even though the overall allergy market
growth of intranasal steroids is not growing as fast as it did in 1999. Our new
agreement with Allergan, Inc. (NYSE: AGN) and the resulting addition of
Alocril-TM- and Ocuflox-Registered Trademark- this spring represent great
complementary products for our field sales force and will enhance profitability
by leveraging calls on our currently targeted office-based physicians."
Dura will have a conference call at 8:30 a.m. Eastern Time on Tuesday, July
25, 2000. To access the webcast replay, available one hour after the call,
please visit StreetFusion at http://www.streetfusion.com/marketing/public/
replay.asp? aptab=live and enter our ticker symbol, DURA.
Dura Pharmaceuticals, Inc. is a San Diego based specialty pharmaceutical
company that markets and sells prescription products that treat infectious
and respiratory diseases. Dura focuses on products and transactions that
leverage its sales and marketing organization. Also, through the use of
collaborative relationships, Dura intends to develop the Spiros-Registered
Trademark- blisterdisk and Spiros-Registered Trademark- S2 pulmonary drug
delivery systems for the local and systemic delivery of a wide range of
medications.
Except for the historical and factual information contained herein, the
matters discussed in this press release may contain forward-looking statements
which involve risks and uncertainties, including the effectiveness of Dura's
sales forces in promoting products, Dura's ability to acquire marketed products,
risks associated with the successful development and commercialization of the
inhaled insulin product candidate and Dura's Spiros-Registered Trademark- S2
technology, Dura's dependence on third parties for manufacturing and
development, the competitiveness of the pharmaceutical industry, the successful
completion of the merger with Spiros Development Corporation II, Inc. and other
risks detailed from time to time in Dura's filings with the Securities and
Exchange Commission. Actual results may differ materially from those projected,
including future growth in product sales and earnings. Any forward-looking
statements represent Dura's judgment as of the time and date of this release.
Dura disclaims, however, any intent or obligation to update any such
forward-looking statements. Further information about Dura Pharmaceuticals, Inc.
can be found at www.durapharm.com.
Financial Information to Follow
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CONSOLIDATED STATEMENTS OF OPERATIONS DATA
(In thousands, except per share data) (unaudited)
Three Months Ended Six Months Ended
------------------ ----------------
June 30, June 30,
-------- --------
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
REVENUES:
Sales $ 60,881 $ 51,321 $ 128,206 $ 106,402
Contract 20,649 16,685 39,103 32,850
-------- -------- --------- ---------
Total revenues 81,530 68,006 167,309 139,252
-------- -------- --------- ---------
OPERATING COSTS AND EXPENSES:
Cost of sales 11,905 10,379 26,076 20,870
Clinical, development and regulatory 16,475 12,474 30,811 23,965
Selling, general and administrative 34,978 28,654 72,956 61,068
Product rights amortization 5,526 4,933 10,916 9,809
-------- -------- --------- ---------
Total operating costs and expenses 68,884 56,440 140,759 115,712
-------- -------- --------- ---------
OPERATING INCOME 12,646 11,566 26,550 23,540
OTHER INCOME (LOSS) - net 827 (78) 4,721 (67)
-------- -------- --------- ---------
INCOME BEFORE INCOME TAXES 13,473 11,488 31,271 23,473
PROVISION FOR INCOME TAXES 4,033 3,905 9,373 8,125
-------- -------- --------- ---------
NET INCOME $ 9,440 $ 7,583 $ 21,898 $ 15,348
======== ======== ========= =========
NET INCOME PER SHARE - diluted $ 0.21 $ 0.17 $ 0.48 $ 0.34
WEIGHTED AVERAGE NUMBER OF COMMON
AND COMMON EQUIVALENT SHARES - diluted 45,776 45,085 46,002 45,329
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<CAPTION>
CONSOLIDATED BALANCE SHEET DATA (unaudited)
June 30, December 31,
-------- ------------
2000 1999
---- ----
<S> <C> <C>
CASH AND SHORT-TERM INVESTMENTS $ 295,082 $ 274,413
OTHER CURRENT ASSETS 68,208 69,093
LICENSE AGREEMENTS, PRODUCT RIGHTS, AND OTHER 562,952 539,968
--------- ---------
TOTAL ASSETS $ 926,242 $ 883,474
========= =========
CURRENT LIABILITIES $ 103,237 $ 87,581
LONG-TERM LIABILITIES 355,788 354,154
STOCKHOLDERS' EQUITY 467,217 441,739
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 926,242 $ 883,474
========= =========
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News releases from Dura Pharmaceuticals are available at no charge on Dura's web
site at www.durapharm.com and through PR Newswire's On-Call fax service
by calling (800) 758-5804, extension 197051.
A separate press release was issued today entitled,
"Dura Pharmaceuticals Refocuses its Strategy for Future Growth"
