News Releases - Noven announces 1998 fourth quarter and full year financial results

NOVEN ANNOUNCES 1998 FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS

Reports 1998 Fourth Quarter Net Income of $.03 Per Share 1998 Net Revenues Increase 53% Over 1997.

MIAMI, FL., March 9, 1999 - Noven Pharmaceuticals, Inc. (NASDAQ:NOVN) today announced financial results for the quarter and year ended December 31, 1998.

For the fourth quarter of 1998, Noven reported net income of $615,000, or $.03 per share, compared to a net loss of $4,764,000, or $.23 per share, for the fourth quarter of 1997.

Revenues for the 1998 fourth quarter were $7,881,000, compared to $3,143,000 for the same quarter in 1997. For the year ended December 31, 1998, Noven reported a net loss of $4,079,000, or $.19 per share, compared to a net loss of $9,557,000, or $.47 per share, for 1997. Revenues for full-year 1998 were $21,842,000, compared to $14,267,000 for full-year 1997.

"We are pleased to report our second consecutive quarter of profits, as well as improved net revenues that reflect the launch and initial sales of CombiPatch™," said Robert C. Strauss, Noven's President and Chief Executive Officer. "CombiPatch™, developed by Noven and marketed by Rhône-Poulenc Rorer, is the nation's first and only combination estrogen/ progestogen patch, and should contribute to the growth that we hope to achieve in 1999. That growth should be further enhanced by our second generation estrogen patch, which is less than one-half the size of any other estrogen patch on the U.S. market. Already approved by the FDA, we expect to launch the second generation patch in the U.S. through Vivelle Ventures in mid-1999."

Vivelle Ventures LLC is a women's health products company jointly owned by Noven and Novartis Pharmaceuticals.

Noven Pharmaceuticals, Inc., headquartered in Miami Florida, is a leader in the development of advanced drug delivery technologies. Noven's existing products include: advanced estrogen transdermal delivery systems (Vivelle®, licensed to Vivelle Ventures LLC, and Menorest^®, licensed to Rhône-Poulenc Rorer); combination estrogen/progestogen 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)
	Fourth Quarter Ended December 31,		Year Ended December 31,
Revenues:	1998	1997	1998	1997
Product sales	$7,325	$ 3,087	$20,114	$12,395
License revenue	556	56	1,728	1,872
Total revenues	7,881	3,143	21,842	14,267
Expenses: Cost of products sold	3,644	1,170	9,447	5,180
Research and development	1,474	3,539	6,808	9,723
Marketing, general and administrative	2,225	3,424	10,105	9,845
Total expenses	7,343	8,133	26,360	24,748
Interest income	77	226	439	893
Other income	—	—	—	31
Net income (loss)	$ 615	$ (4,764)	$ (4,079)	$ (9,557)
Net income (loss) per share	$ 0.03	$ (0.23)	$ (0.19)	$ (0.47)
Weighted average of common shares outstanding: Basic	21,482	20,443	21,013	20,159
Diluted	21,635	20,443	21,013	20,159

Balance Sheet Data

(amounts in thousands)	Year End December 31,
Current Assets:	1998	1997
Cash and short term equivalents	$ 5,573	$ 17,148
Working capital	9,073	18,683
Net property, plant and equipment	15,517	15,243
Investment in Vivelle Ventures LLC	7,500	—
Total Assets	40,156	38,224
Deferred license revenue	5,644	5,870
Stockholders' equity	28,325	29,881

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 risk that CombiPatch™ orders may be less than expected, and that the second generation estrogen patch may not be launched successfully or in a timely fashion.

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