<PAGE>
Exhibit No. 99.1
InKine Pharmaceutical Company, Inc.
YEAR-END RESULTS
IMMEDIATE RELEASE
InKine Pharmaceutical Marks Milestone Year
Building Staff, Resources for Product Commercialization
Fiscal 2000 Highlights
o Continuing progress towards commercialization of Diacol, a tablet bowel
cleansing product for procedures including colonoscopies; NDA currently
undergoing FDA review.
o CBP-1011 enters clinic for treatment of Crohn's disease and ulcerative
colitis.
o Patent filed for Angiocidin, a novel soluble protein that inhibits
angiogenesis.
o Alan D. Schreiber, M.D., Chairman of InKine's Scientific Advisory Board, was
issued a US patent for his invention relating to the discovery of new methods
for combating serious infection and/or modulating autoimmune disease.
o James Bergey, Ph.D., named Senior Vice President of Business Development.
o Monroe I. Klein, Ph.D., named Vice President, Regulatory Affairs.
o Judith Heyer Murphy, M.D., appointed Executive Director, Clinical Affairs.
o Jeffrey S. Arcara appointed Director of Marketing.
o Board authorizes changing fiscal year-end from June 30 to Dec. 31.
Blue Bell, PA, Aug. 9, 2000 - InKine Pharmaceutical Company, Inc.
(NASDAQ: INKP) today announced its financial results for the year and fourth
quarter ended June 30, 2000. Net loss for the year ended June 30, 2000 was
$9,712,000 or $(0.36) per share, as compared to a net loss of $9,633,000 or
$(0.42) per share for 1999. The Company's net loss for the quarter ended June
30, 2000 was $1,969,000 or $(0.06) per share, versus a net loss of $3,335,000 or
$(0.14) per share for the same quarter a year earlier.
InKine Chief Financial Officer Robert Apple said, "the results for the
year and fourth quarter were in line with expectations."
Mr. Apple added: "The past year was one in which we continued to make
encouraging progress towards the commercialization phase of Diacol, a tablet
bowel cleansing product for procedures including colonoscopies, and on our
i
<PAGE>
various other technology platforms. We also added personnel essential to both
the commercial and scientific sides of our business."
The Company reported that research and development expenses decreased
for the three month period ended June 30, 2000, as compared to the same period a
year ago, as a result of decreased clinical development costs associated with
Diacol. Research and development costs decreased for the year ended June 30,
2000, as compared to the same period a year ago due to the reduction in clinical
development costs being partially offset by increases in costs associated with
manufacturing development and NDA costs for Diacol.
General and administrative expenses decreased approximately $87,000 and
$29,000 for the year and three month periods ended June 30, 2000 respectively as
compared to the same periods a year ago principally due to a reduced charge for
amortization of options. Included in general and administrative expenses is
amortization of options, previously granted to certain executive officers of
$1,273,000 and $275,000 for the year and three months, respectively ended June
30, 2000, as compared to $1,616,000 and $404,000 for the same periods a year
ago. These decreases were offset by an increase in marketing costs and an
increase in office headcount.
In addition to its financial results, InKine announced that its Board
of Directors has approved a resolution to change the Company's fiscal year-end
from June 30 to a calendar year-end of December 31. Accordingly, InKine's
quarterly reporting periods will end on March 31, June 30 and September 30. The
Company will file a Transition Report on Form 10-K for the interim period (July
1, 2000 through December 31, 2000). In addition, the Company will file a
Quarterly Report on Form 10-Q for the three month period ending September 30,
2000.
"Moving InKine's fiscal year to a calendar basis brings the Company
into alignment with most other pharmaceutical and biotechnology companies," Mr.
Apple said.
Leonard S. Jacob, M.D., Ph.D., Chairman and Chief Executive Officer of
InKine, today described fiscal 2000 as a year in which the Company made
substantial progress on its scientific platforms and began preparing itself for
the commercialization phase of Diacol and other potential products.
"All our staff additions are people who are among the best in their
respective fields," Dr. Jacob declared and, we are fortunate to have attracted
such experienced individuals at this critical juncture."
Mr. Apple said " the company is well capitalized for the next phase of
its development. InKine's cash and investment balance at June 30, 2000 was $16.0
million, reflecting the proceeds of a private placement of common stock of
approximately $10.8 million during the fourth quarter."
InKine Pharmaceutical Company, Inc. is a publicly traded biopharmaceutical
company focused on the diagnosis and treatment of cancer and autoimmune
diseases. The Company's development strategy is to acquire late-stage drug
candidates with short time lines to commercialization. Support of early-stage
product opportunities comes through its university-based sponsored research.
ii
<PAGE>
InKine's portfolio includes two late-stage clinical compounds: Diacol(TM), a
tablet bowel cleansing product for procedures including colonoscopies undergoing
FDA review; and CBP-1011, a steroid molecule in Phase III trials for the
treatment of idiopathic thrombocytopenic purpura and Phase II trials for the
treatment of inflammatory bowel disease. In addition, the Company is developing
preclinical compounds including Angiocidin, a potent and specific angiogenesis
inhibitor for potential use in cancer patients.
This announcement contains certain forward-looking statements that are subject
to risks and uncertainties. Actual results could differ materially from those
currently anticipated as a result of a number of factors, including, but not
limited to, the risks and uncertainties discussed under "Other Factors to be
Considered" and "Management's Discussion and Analysis of Financial Condition and
Results of Operations" in the Company's Annual Report on Form 10-K for the
fiscal year ended June 30, 1999, as filed with the Securities and Exchange
Commission.
Contacts: For Investors:
Robert Apple Anne McBride
CFO, InKine CEO, The Anne McBride Company
610-260-9364 212-983-1702
FINANCIAL TABLES FOLLOW
iii
<PAGE>
InKine Pharmaceutical Company, Inc.
(a development stage company)
CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
(amounts in thousands, except per share amounts)
<TABLE>
<CAPTION>
Year Ended Three Months Ended
June 30, June 30,
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Research & development expenses $ 5,731 $ 6,565 $ 1,236 $ 2,513
General and administrative expenses 3,506 3,593 887 916
Separation agreement and accelerated
vesting of options 835 -- -- --
-------- -------- ------- -------
Loss from operations (10,072) (10,158) (2,123) (3,429)
Interest income 399 525 170 94
Interest expense (39) -- (16) --
-------- -------- ------- -------
Net loss $ (9,712) $(9,633) $(1,969) $(3,335)
======== ======== ======= =======
Net loss per share $ (0.36) $ (0.42) $ (0.06) $ (0.14)
Weighted average shares outstanding 27,300 22,762 31,581 22,893
</TABLE>
CONDENSED BALANCE SHEETS
(unaudited)
(amounts in thousands)
<TABLE>
<CAPTION>
June 30, 2000 June 30, 1999
------------- -------------
<S> <C> <C>
Current assets:
Cash and investments $ 16,025 $ 6,862
Prepaid expenses & other current assets 78 100
Fixed assets, net 332 200
-------- -------
Total assets $ 16,435 $ 7,162
======== =======
Current liabilities:
Accounts payable & accrued expenses 540 1,449
Line of credit 1,021 --
Stockholders' equity 14,874 5,713
-------- -------
Total liabilities & stockholders' equity $ 16,435 $ 7,162
======== =======
</TABLE>
iv
