Noven Announces 1999 First Quarter Financial Results

Reports Net Income of $.03 Per Share Net Revenues Nearly Triple Over 1998 First Quarter

-- Noven Pharmaceuticals, Inc. (NASDAQ:NOVN) today announced financial results for the quarter ended March 31, 1999.

For the quarter, Noven reported net income of $716,000, or $.03 per share, compared to a net loss of $3,276,000, or $.16 per share, for the first quarter of 1998. Revenues were $7,477,000 compared to $2,548,000 for the same quarter in 1998, an increase of 193%.

"The 1999 first quarter marks Noven’s third consecutive quarter of profitability," said Robert C. Strauss, Noven’s President and Chief Executive Officer. "The substantial increase in revenues over the 1998 first quarter was largely attributable to sales of CombiPatch™, the nation’s only combination estrogen/progestin patch, which was launched by Rhône-Poulenc Rorer in September of 1998. First quarter revenues also reflect stronger Vivelle® sales, as well as initial sales of Vivelle-Dot™ to Vivelle Ventures LLC, which is preparing for the launch of that product in the second quarter of 1999. Assuming that the Vivelle-Dot™ launch is successful, and CombiPatch™ prescriptions continue to increase, Noven remains on track for a strong, profitable year in 1999."

Vivelle-Dot™, approved by the U.S. Food and Drug Administration in January 1999, is the smallest transdermal estrogen patch ever approved. Along with the original Vivelle® product, it is licensed to Vivelle Ventures LLC, a women’s health company jointly owned by Noven and Novartis Pharmaceuticals. Robert Strauss serves as President of Vivelle Ventures, which does business and markets its products under the name Novogyne Pharmaceuticals.

A replay of Noven's teleconference with analysts relating to its 1999 first quarter earnings will be available from May 5 at 2:00 p.m. until May 7 at 11:59 p.m. by dialing 800-475-6701 (in the U.S.) or 320-365-3844 (outside the U.S.) and entering the access code 447692.

Noven Pharmaceuticals, Inc., headquartered in Miami, Florida, is a leader in the development of transdermal and transmucosal drug delivery technologies. Noven’s existing products include advanced estrogen transdermal delivery systems (Vivelle® and Vivelle-Dot™, licensed to Vivelle Ventures LLC, and Menorest®, licensed to Rhône-Poulenc Rorer); combination estrogen/progestin transdermal delivery systems (CombiPatch™ and Estalis®, licensed to Rhône-Poulenc Rorer); and the first transmucosal patch delivery system approved by the FDA (DentiPatch®, developed, marketed and sold by Noven). With a range of additional products in development, Noven is committed to becoming the world’s premier developer, manufacturer and marketer of transdermal and transmucosal drug delivery systems.

Statement of Operations Data

(amounts in thousands except per share amounts)
 
First Quarter Ended
March 31,
Revenues:
1999
1998
Product sales
$7,421
$ 2,489
License revenue
     56
     59
Total revenues
7,477
2,548
Expenses:
  
Cost of products sold
3,244
1,033
  Research and development
1,657
2,000
  Marketing, general and
  administrative
1,903
2,981
  Total expenses
6,804
6,014
Interest income
        52
    190
Income (loss) before taxes
725
(3,276)
Provision for income taxes
        9
      —
Net income (loss)
$    716
$ (3,276)
Net income (loss) per share
$   0.03
$   (0.16)
Weighted average of common shares outstanding:
   Basic
 21,531
20,476
   Diluted
 21,730
20,476


Balance Sheet Data

(amounts in thousands)
March 31, 1999
Cash and short-term equivalents
$  5,511
Working capital
10,276
Net property, plant and equipment 
15,315
Investment in Vivelle Ventures LLC
7,451
Total assets
40,862
Deferred license revenue
5,588
Stockholders' equity
29,370

 

Forward looking statements contained in this release are qualified by and subject to the risks and uncertainties specified by Noven in its most recent filings with the Securities and Exchange Commission, including the risks that future CombiPatch™ orders may be less than expected, and that Vivelle-Dot™ may not be launched successfully or in a timely fashion.