<PAGE>
[NPS PHARMACEUTICALS LOGO]
For Immediate Release Contact: David L. Clark
Vice President, Operations
NPS Pharmaceuticals, Inc.
(801) 583-4939
NPS PHARMACEUTICALS REPORTS THIRD-QUARTER
AND NINE-MONTH OPERATING RESULTS
Salt Lake City, Utah - November 7, 2000 -- NPS Pharmaceuticals, Inc.
(Nasdaq: NPSP), today announced its consolidated operating results for the third
quarter and nine-month period ended September 30, 2000. The net loss for the
third quarter was $7.38 million, or $0.30 per share, compared to a net loss of
$4.67 million, or $0.37 per share, for the same period in 1999. The net loss
for the current nine-month period was $25.90 million, or $1.14 per share,
compared to a net loss of $15.44 million, or $1.22 per share, for the same
period in 1999. The weighted numbers of shares outstanding for the third quarter
and nine-month period ended September 30, 2000 were 24.90 and 22.79 million,
respectively, and 12.70 and 12.67 million, respectively, for the same periods in
1999. The increases in losses from 1999 to 2000 arise primarily from clinical
development activities with two product candidates acquired in the purchase of
NPS Allelix Corp.
The Company's revenues for the three months ended September 30, 2000 were
$1.65 million compared to $915,000 for the same period last year. Revenues for
the nine-month period ended September 30, 2000 were $5.31 million compared to
$2.75 million for the same period in 1999. The increases in revenues for the
third quarter and nine-month period are primarily due to revenue from license
agreements acquired in the purchase of NPS Allelix Corp.
Research and development expenses increased to $6.44 million for the third
quarter of 2000 from $4.60 million for the third quarter of 1999. For the nine-
month period, research and development expenses increased to $20.40 million
compared to $15.00 million for the comparable period in 1999. The increases in
research and development expenses in 2000 are primarily due to costs associated
with a pivotal Phase III clinical trial with ALX1-11 being studied for treating
osteoporosis and a pilot Phase II trial with ALX-0600 being studied for treating
short bowel syndrome. These two product candidates were acquired in the
purchase of NPS Allelix Corp.
General and administrative expenses increased to $2.95 million for the
quarter ended September 30, 2000, compared to $1.34 million for the same quarter
in 1999, and to $9.75 million for the nine-month period compared to $4.44
million in 1999. The increases in general and administrative expenses are
primarily the result of increased costs of operating NPS and its recently
acquired subsidiary, NPS Allelix Corp.
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NPS is engaged in the discovery and development of small molecule drugs and
recombinant proteins that address a variety of important diseases.
NOTE: Statements included within this press release, which are not
historical in nature, constitute forward-looking statements for purposes of the
safe harbor provided by the Private Securities Litigation Reform Act of 1995.
Such statements involve risks and uncertainties that could cause actual results
to differ materially from those described herein. There can be no assurance that
NPS drug candidates will prove to be safe and/or efficacious or successfully
marketed and sold. Careful consideration should be given to cautionary
statements made in NPS documents filed with the SEC, in particular the Company's
Form 10-K.
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NPS PHARMACEUTICALS, INC.
(A Development Stage Company)
Consolidated Statements of Operational Data
(in thousands, except per share data)
(Unaudited)
<TABLE>
<CAPTION>
October 22,
1986
(inception)
through
Three Months Ended September 30, Nine Months Ended September 30, September
------------------------------------------------------------------------ 30,
2000 1999 2000 1999 2000
--------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Revenues from research and
license agreements $ 1,654 $ 915 $ 5,308 $ 2,745 $ 60,822
Operating expenses:
Research and development 6,442 4,598 20,403 15,002 111,971
General and administrative 2,954 1,341 9,746 4,440 44,762
Amortization of goodwill
and acquired intangibles 874 - 2,694 - 2,694
In-process research and
development acquired - - - - 17,760
---------- --------- --------- --------- ---------
Total operating expenses 10,270 5,939 32,843 19,442 177,187
---------- --------- --------- --------- ---------
Operating loss (8,616) (5,024) (27,535) (16,697) (116,365)
Other income, net 1,233 353 1,633 1,262 12,558
---------- --------- --------- --------- ---------
Loss before taxes (7,383) (4,671) (25,902) (15,435) (103,807)
Income tax expense - - - - 1,018
---------- --------- --------- --------- ---------
Net loss $(7,383) $(4,671) $(25,902) $ (15,435) $(104,825)
========== ========= ========= ========= =========
Net loss per common and common-
equivalent share -
basic and diluted $(0.30) $(0.37) $(1.14) $(1.22)
========== ========= ========= =========
Weighted average common and common-
equivalent shares outstanding -
basic and diluted 24,903 12,696 22,791 12,665
========== ========= ========= =========
</TABLE>
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
September 30, December 31,
2000 1999
-------------- --------------
<S> <C> <C>
Cash, cash equivalents and
marketable investment securities $ 72,774 $ 35,679
Other current assets 1,746 1,300
Plant and equipment, net of accumulated
depreciation and amortization 5,472 8,077
Other assets, net of accumulated
amortization 16,553 19,910
-------------- --------------
Total assets $ 96,545 $ 64,966
============== ==============
Current liabilities $ 4,834 $ 4,447
Long-term portion of capital leases and
long-term debt 1,623 1,940
-------------- --------------
Total liabilities 6,457 6,387
Minority interest - 2,500
Paid-in capital and common stock 196,908 135,056
Deferred compensation (1,295) -
Accumulated other comprehensive
income (loss):
Net unrealized gain (loss) on marketable
investment securities 65 (54)
Foreign currency translation (765) -
Deficit accumulated during development stage (104,825) (78,923)
-------------- --------------
Net stockholders' equity 90,088 56,079
-------------- --------------
Total liabilities and stockholders' equity $ 96,545 $ 64,966
============== ==============
</TABLE>
