-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PWqgR3697e6HYSFfWfpou6Y2XP+J12E0sGeI91TsZK0plypSND1bUPWBaV8xOxWG l8ZWxfINnE2lulvYV5XsiA== 0000903100-03-000222.txt : 20030722 0000903100-03-000222.hdr.sgml : 20030722 20030722085524 ACCESSION NUMBER: 0000903100-03-000222 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030722 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030722 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLLAGENEX PHARMACEUTICALS INC CENTRAL INDEX KEY: 0001012270 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 521758016 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-28308 FILM NUMBER: 03795423 BUSINESS ADDRESS: STREET 1: 41 UNIVERSITY DRIVE CITY: NEWTON STATE: PA ZIP: 18940 BUSINESS PHONE: 2155797388 MAIL ADDRESS: STREET 1: 41 UNIVERSITY DRIVE CITY: NEWTON STATE: PA ZIP: 18940 8-K 1 form8k_72203.txt FORM 8-K 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 Date of report (Date of earliest event reported) July 22, 2003 ------------- CollaGenex Pharmaceuticals, Inc. -------------------------------- (Exact Name of Registrant as Specified in Charter) Delaware 0-28308 52-1758016 - -------------------------------------------------------------------------------- (State or Other Jurisdiction (Commission File Number) (IRS Employer of Incorporation) Identification No.) 41 University Drive, Newtown, Pennsylvania 18940 - ------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) (215) 579-7388 ------------------------------------------------ (Registrant's telephone number, including area code) ---------------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) ITEM 9. REGULATION FD DISCLOSURE (INFORMATION FURNISHED PURSUANT TO ITEM 12, "DISCLOSURE OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION"). On July 22, 2003, CollaGenex Pharmaceuticals, Inc., a Delaware corporation (the "Company"), announced its financial results for the quarter ended June 30, 2003. The full text of the press release issued in connection with the announcement is attached as Exhibit 99.1 to this Current Report on Form 8-K. In accordance with the procedural guidance in SEC Release No. 33-8216, the information in this Form 8-K and the Exhibit attached hereto is being furnished under "Item 9. Regulation FD Disclosure" rather than under "Item 12. Disclosure of Results of Operations and Financial Condition." The information shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing. -2- SIGNATURES 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. COLLAGENEX PHARMACEUTICALS, INC. By: /s/ Nancy C. Broadbent -------------------------------------------- Nancy C. Broadbent Chief Financial Officer (Principal Financial Officer) Date: July 22, 2003 EXHIBIT INDEX Exhibit No. Description - ---------- ------------ 99.1 Press release of CollaGenex Pharmaceuticals, Inc., dated July 22, 2003 EX-99 3 form8k_72203exh99-1.txt PRESS RELEASE Exhibit 99.1 For Immediate Release: Company Contact: - --------------------- --------------- July 22, 2003 Nancy C. Broadbent Chief Financial Officer (215) 579-7388 Investor Relations: ------------------ Lisa M. Wilson In-Site Communications (212) 759-3929 COLLAGENEX PHARMACEUTICALS REPORTS RECORD REVENUES AND EARNINGS IN THE SECOND QUARTER OF 2003 Net Income Allocable to Common Stockholders was $0.10 per Share on Revenues of $12.7 Million Newtown, PA, July 22, 2003 - CollaGenex Pharmaceuticals, Inc. (Nasdaq: CGPI) today reported financial results for the second quarter ended June 30, 2003. Total revenues increased 16% to $12.7 million compared to $11.0 million in the second quarter of 2002. Net product sales were $11.8 million in the second quarter of 2003, a 13% increase over net product sales of $10.4 million recorded in the second quarter of 2002. During the second quarter of 2003, net income was $1.6 million compared to a net loss of $385,000 during the second quarter of 2002. Net income allocable to common stockholders for the second quarter of 2003 was $1.2 million, or $0.10 per basic and diluted share, compared to a net loss of $794,000, or $0.07 per basic and diluted share, in the second quarter of 2002. "We are pleased to have reported our fourth consecutive quarter of increased profitability. Our continued ability to deliver solid operating results is a testament to the ongoing market penetration by our sales force and acceptance of our dental and dermatology products," stated Brian M. Gallagher, PhD, chairman, president and chief executive officer of CollaGenex. "The introduction of the AVAR product line has significantly enhanced the standing of our representatives in the dermatologist's office and we anticipate solid growth in our dermatology sales as we move into the second half of the year." "We continue to pursue dermatological indications for Periostat in the clinic, and I am pleased to note that a Phase 3 study evaluating Periostat in the treatment of rosacea is close to full enrollment," Dr. Gallagher continued. "We expect this trial to be completed by the end of 2003. The publication of new data on the use of Periostat in the treatment of acne and rosacea has greatly increased awareness among dermatologists of our development efforts in this field. In addition, we have identified an optimized formulation for a once-a-day version of Periostat, and we are rapidly moving ahead to carry out definitive clinical studies with this formulation ahead of schedule in the second half of 2003. We look forward to continued execution on our stated goals of investing in the future of CollaGenex while increasing our revenues and profitability." "During the second quarter of 2003, we increased our net product sales by 13%, or $1.4 million, compared to a year ago while reducing our SG&A expense by 14%, or about $1.3 million, over the same period in the prior year," added Nancy C. Broadbent, chief financial officer of CollaGenex. "We continued to invest in our pipeline during the quarter, increasing our R&D spending by about $883,000 over the same period in the prior year, which reflects expenses related to our ongoing clinical trials of Periostat in dermatology and other indications, our once-a-day, sustained release formulation of Periostat and the development of products based on our Restoraderm platform technology." During the second quarter of 2003, CollaGenex announced a number of additional important achievements related to marketed products and those in clinical development. o Periostat received final approval for marketing in two additional countries. Periostat will be marketed in Switzerland by Karr Dental AG and in Canada by Pharmascience Inc. o Positive outcomes of a Phase 2 clinical trial of Periostat in the treatment of moderate facial acne were reported in the April 2003 Archives of Dermatology. o In rosacea, data from a Phase II study evaluating Periostat in combination with MetroLotion demonstrated that Periostat offers significant benefits for rosacea. o An independent experience trial that demonstrated favorable results from the use of Periostat as a monotherapy in the treatment of rosacea was published in the July/August issue of the peer-reviewed journal Skin Med. As previously announced, CollaGenex will hold a conference call on Tuesday, July 22, 2003, at 11:00 a.m. Eastern Daylight Time to discuss the Company's second quarter 2003 operating and financial results. Investors and other interested parties can access the conference call by dialing 800-695-6803 or via a live Internet broadcast on the Company's website at www.collagenex.com. For those who cannot listen to the live broadcast, a replay will be available shortly after the call on the Company's website, www.collagenex.com for 90 days. A dial-in replay of the call will be available until 11:59 p.m. on August 5, 2003 by dialing 800-642-1687 and entering access code 1367663. CollaGenex Pharmaceuticals, Inc. is a specialty pharmaceutical company currently focused on providing innovative medical therapies to the dental and dermatology markets. Currently, the Company's 115-person professional dental pharmaceutical sales force markets Periostat(R), which is indicated as an adjunct to scaling and root planing for the treatment of adult periodontitis. Periostat is the first and only pharmaceutical to treat periodontal disease by inhibiting the enzymes that destroy periodontal support tissues, and by enhancing bone protein synthesis. The sales force also promotes Vioxx(R), a Merck & Co. drug that CollaGenex co-promotes for the treatment of acute dental pain; Denavir(R), a Novartis Group prescription anti-viral medication for the treatment of cold sores; Sirius Laboratories' AVAR(TM) product line for the topical control of acne vulgaris, rosacea and seborrheic dermatitis; and Atridox(R), Atrisorb(R) FreeFlow(TM) and Atrisorb-D FreeFlow, Atrix Laboratories Inc.'s products for the treatment of adult periodontitis. Research has shown that certain unique properties of the tetracyclines discovered during the development of Periostat may be applicable to other diseases involving inflammation and/or destruction of the body's connective tissues, including acne, rosacea, meibomianitis and cancer metastasis, among others. CollaGenex is further evaluating Periostat, as well as the new IMPACS(R) compounds, to assess whether they are safe and effective in these applications. In addition, CollaGenex has licensed the Restoraderm(TM) technology, a unique, proprietary dermal drug delivery system, in order to develop a range of topical dermatological products with enhanced pharmacologic and cosmetic properties. To receive additional information on the Company, please visit our Web site at www.collagenex.com, which does not form part of this press release. Periostat(R), IMPACS(R) and Metastat(R) are registered trademarks, and Restoraderm(TM) is a trademark, of CollaGenex Pharmaceuticals, Inc. All other trade names, trademarks or service marks are the property of their respective owners and are not the property of CollaGenex Pharmaceuticals, Inc. or any of our subsidiaries. Pandel(R) is a trademark of Taisho Pharmaceuticals. VIOXX(R) is a trademark of Merck & Co., Inc. Denavir(R) is a registered trademark of Novartis Consumer Health, Inc. AVAR(TM) is a trademark of Sirius Laboratories, Inc. Atridox(R) and Atrisorb(R) are registered trademarks, and FreeFlow(TM) is a trademark, of Atrix Laboratories, Inc. (Financial Tables Follow)
Summary Financial Data (Unaudited) (In thousands, except share amounts) Three Months Ended June 30, --------------------------- 2003 2002 ---- ---- Consolidated Statement of Operations: Revenues: Net Product sales $ 11,750 $ 10,377 Contract revenues 503 555 License revenues 433 35 ------ ------ Total revenues 12,686 10,967 Operating Expenses: Cost of product sales 1,738 1,598 Research and development 1,654 771 SG&A, Other 7,718 8,998 ------ ------ Total operating expenses 11,110 11,367 Other Income (Expense): Interest income 25 15 Interest expense - (1) Other income (expense) (4) 1 ------ ------ Net income (loss) 1,597 (385) Preferred stock dividend 400 409 ------ ------ Net income (loss) allocable to common stockholders $ 1,197 $ (794) ====== ======= Net income (loss) per basic share allocable to common stockholders $ 0.10 $ (0.07) Weighted average shares used in computing net income (loss) per basic 11,427,420 11,163,585 share allocable to common stockholders =========== Net income (loss) per diluted share allocable to common stockholders $ 0.10 $ (0.07) ====== ======= Weighted average shares used in computing net income (loss) per diluted share allocable to common stockholders 12,369,971 11,163,585 ========== ==========
Six Months Ended June 30, ------------------------ 2003 2002 ---- ---- Consolidated Statement of Operations: Revenues: Net Product sales $ 23,120 $ 20,258 Contract revenues 1,053 1,347 License revenues 670 122 ------ ------ Total revenues 24,843 21,727 Operating Expenses: Cost of product sales 3,652 3,178 Research and development 2,621 1,580 SG&A, Other 15,540 17,946 SG&A, Stock Compensation Charge 251 - ------ ------ Total operating expenses 22,064 22,704 Other Income (Expense): Interest income 56 37 Interest expense - (2) Other expense (10) - ------ ------ Net income (loss) 2,825 (942) ------ ------ Preferred stock dividend 800 829 ------ ------ Net income (loss) allocable to common stockholders $ 2,025 $ (1,771) ====== ======= Net income (loss) per basic share allocable to common stockholders $ 0.18 $ (0.16) Weighted average shares used in computing net income (loss) per basic share allocable to common stockholders 11,410,914 11,122,041 ========== ========== Net income (loss) per diluted share allocable to common stockholders $ 0.17 $ (0.16) ====== ======= Weighted average shares used in computing net income (loss) per diluted share allocable to common stockholders 12,252,893 11,122,041 ========== ==========
Consolidated Selected - --------------------- Balance Sheet Data: June 30, December 31, - ------------------- ------- ------------ 2003 2002 ---- ---- Cash, cash equivalents and short-term investments $ 11,455 $ 10,112 Total current assets 16,880 15,299 Total assets 18,994 17,634 Total current liabilities 6,518 8,721 Long-term liabilities 342 561 ------ ------ Total liabilities 6,860 9,282 Total stockholders' equity 12,134 8,352 This press release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended. Investors are cautioned that forward-looking statements involve risks and uncertainties, which may affect the Company's business and prospects. The Company's business of selling, marketing and developing pharmaceutical products is subject to a number of significant risks, including risks relating to the implementation of the Company's sales and marketing plans for Periostat(R) and other products that the Company markets, the outcome and consequences of the patent litigation against West-ward and Mutual and the outcome of litigation initiated by Mutual, risks that the FDA will approve generic products, such as West-ward's or Mutual's products, that will compete with and limit the market for Periostat, risks inherent in research and development activities, risks associated with conducting business in a highly regulated environment and uncertainty relating to clinical trails of products under development, all as discussed in the Company's periodic filings with the U.S. Securities and Exchange Commission. ### -----END PRIVACY-ENHANCED MESSAGE-----