Antares Pharma, Inc. (AMEX:AIS) reported financial and operating results for the three and six months ended June 30, 2007.
Total revenue reached $1.8 million for the second quarter of 2007, a year-over-year increase of 110% compared to $859,000 for the second quarter of 2006. For the six months ended June 30, 2007, total revenues were approximately $4.65 million compared to $1.50 million in 2006. The increase in the quarter was due primarily to increases in product sales to Antares’ major European customer and due to increases in development revenue. The increase in the six month period was due primarily to a payment of $1.75 million under a license agreement with BioSante Pharmaceuticals, Inc, which was triggered by the December 2006 FDA approval of Elestrin®, along with increases in product revenue and development revenue. The product gross margin percentage also increased in the second quarter of 2007 to 53% from 44% in the same quarter of 2006 and increased to 49% in the six month period of 2007 from 40% in the same period of 2006.
Commenting on the second quarter and first half of 2007, Jack E. Stover, President and Chief Executive Officer of Antares Pharma said, “Our revenues in the second quarter and first half of this year were at record levels and are attributable to increases in both product and licensing revenues. In late May, we initiated a Phase I Study on a low-dose contraceptive with our partner, the Population Council, utilizing our ATD gel system. And in June, our marketing partner Bradley Pharmaceuticals launched Elestrin™ for the treatment of menopausal symptoms, another ATD based product. We also recently reached agreement with the FDA on a Special Protocol Assessment for ANTUROL™, our proprietary oxybutynin based product for overactive bladder, which is also delivered via our ATD gel system. We are now ready to initiate our pivotal clinical trial for ANTUROL™ with confidence.”
Total operating expenses were approximately $3.4 million and $3.0 million for the three months ended June 30, 2007 and 2006, respectively, and were approximately $6.3 million and $5.6 million for the six months ended June 30, 2007, and 2006 respectively. The increases were due primarily to activity conducted in anticipation of initiating a pivotal study of ANTUROLTM for the treatment of overactive bladder. Net loss was approximately $2.3 million and $2.5 million for the three-month periods ended June 30, 2007 and 2006, respectively, and was approximately $2.7 million and $4.8 million for the six-month periods ended June 30, 2007 and 2006, respectively. Net loss per common share decreased to $0.04 for the second quarter of 2007 from $0.05 in 2006 and decreased in the six-month period of 2007 to $0.05 from $0.10 in 2006, primarily due to the reduction in net loss in 2007.
At June 30, 2007, cash, cash equivalents and short-term investments totaled approximately $12.3 million, compared to approximately $7.7 million at December 31, 2006. The increase was primarily due to gross proceeds of $5.0 million received under a credit agreement and $2.3 million in proceeds from warrant exercises. In July 2007 the Company raised an additional $16 million of gross proceeds through a private placement of common stock and warrants.
Mr. Stover added, “Our operating and financial progress has resulted in the Company now being in our strongest cash position ever.”
About Antares Pharma
Antares Pharma is a specialized pharma product development company committed to improving pharmaceuticals through its patented drug delivery systems. Antares has three validated drug delivery platforms: the ATDTM Advanced Transdermal Delivery system, subcutaneous injection technology platforms including both VibexTM disposable mini-needle injection device and ValeoTM/Vision® reusable needle-free injection devices; and Easy TecTM oral fast-melt technology. Two of the platforms have generated FDA approved products. Antares Pharma leverages its multiple drug delivery platforms to add value to existing drugs and to create new pharmaceutical products and injectable devices. The Company’s products are engineered to improve safety and efficacy profiles by minimizing dosing and reducing side effects while enabling improved patient compliance. Antares Pharma has corporate headquarters in Ewing, New Jersey, with subsidiaries performing research, development, manufacturing and product commercialization activities in Minneapolis, Minnesota and Basel, Switzerland.
Safe Harbor Statement
This press release contains forward-looking statements, within the meaning of the "Safe Harbor" provisions of The Private Securities Litigation Reform Act of 1995, that involve significant risks and uncertainties, including those discussed in this release and others that can be found in the “Risk Factors” section of Antares’ Annual Report on Form 10-K for the year ended December 31, 2006 and in Antares’ periodic reports on Form 10-Q and other filings made with the Securities and Exchange Commission. Antares is providing this information as of the date of this release and does not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.
The Company cautions investors not to place undue reliance on the forward-looking statements contained in this press release. No forward-looking statement can be guaranteed and actual events and results may differ materially from those projected. Forward-looking statements, including statements regarding the timing of product sales, market estimates and market potential provide Antares' current expectation or forecasts of future events. Antares' results could differ materially from those reflected in these forward-looking statements due to decisions of regulatory authorities, Antares' ability to execute on its development plans and general financial, economic, regulatory and political conditions affecting the pharmaceutical industry generally.
|ANTARES PHARMA, INC.|
|CONSOLIDATED CONDENSED BALANCE SHEETS|
|(amounts in thousands)|
|June 30,||December 31,|
|Cash and investments||$||12,308||$||7,659|
|Liabilities and Stockholders’ Equity|
|Accounts payable and accrued expenses||$||2,189||$||1,884|
|Notes payable and capital lease||4,772||-|
|Total Liabilities and Stockholders’ Equity||$||16,514||$||11,534|
|ANTARES PHARMA, INC.|
|CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS|
|(amounts in thousands except share amounts)|
Three Months Ended
Six Months Ended
|Cost of revenue||567||431||1,035||753|
|Research and development||1,522||1,040||2,345||1,969|
|Sales, marketing and business development||430||348||816||708|
|General and administrative||1,485||1,608||3,116||2,960|
|Total Operating Expenses||3,437||2,996||6,277||5,637|
|Other income and expenses||(99||)||111||(65||)||133|
|Deemed dividend to warrant holders|
|Net loss applicable to common shares||$||(2,297||)||$||(2,457||)||$||(2,727||)||$||(4,861||)|
Basic and diluted net loss per common share
|Basic and diluted weighted average common shares outstanding|