Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - NOVELION THERAPEUTICS INC. | d626516d8k.htm |
Exhibit 99.1
News release
QLT ANNOUNCES THIRD QUARTER 2013 RESULTS
| For Immediate Release | November 7, 2013 |
VANCOUVER, CANADA — QLT Inc. (NASDAQ: QLTI; TSX: QLT) (“QLT” or the “Company”) is a biotechnology company dedicated to the development and commercialization of innovative ocular products that address the unmet medical needs of patients and clinicians worldwide. The Company today reported financial results for the third quarter ended September 30, 2013. Unless specified otherwise, all amounts are in U.S. dollars and in accordance with U.S. GAAP.
2013 THIRD QUARTER FINANCIAL RESULTS
QLT Expenses / Other Income
Research and Development (R&D) expenses relate to QLT’s synthetic retinoid program. During the third quarter of 2013, R&D expense was $5.2 million compared to $5.6 million for the same period in 2012. The $0.4 million decrease was primarily due to savings from the Company’s 2012 R&D workforce reduction.
During the third quarter of 2013, Selling, General and Administrative (SG&A) expense was $1.7 million compared to $2.7 million for the same period in 2012. The $1.0 million decrease was primarily due to savings from the Company’s 2012 restructuring initiatives.
Operating Loss
The operating loss for the third quarter of 2013 was $7.5 million, compared to an operating loss of $19.9 million recorded during the same period in 2012. The $12.4 million improvement in operating results is primarily due to restructuring charges recorded in 2012 and savings related to the 2012 restructuring initiatives.
Income from Discontinued Operations, Net of Income Taxes
During the third quarter of 2013, we earned $0.1 million of income from discontinued operations, net of income taxes, compared to $94.1 million for the same period in 2012. The decrease was primarily due to a pre-tax gain of $101.4 million related to the divestment of the Visudyne® business in the third quarter of 2012.
(Loss) / Income Per Share
Loss per share from continuing operations was $0.15 in the third quarter of 2013 compared to a loss per share from continuing operations of $0.25 in the third quarter of 2012. The improvement was primarily due to restructuring charges recorded in 2012 and savings related to the 2012 restructuring initiatives. These improvements were partially offset by a lower gain from the Fair Value Change in Contingent Consideration in the current period, as well as the 2012 income tax recovery resulting from the recognition of the tax benefit of our operating losses from continuing operations.
Income per share from discontinued operations was negligible in the third quarter of 2013 compared to income per share from discontinued operations of $1.86 in the third quarter of 2012, which was primarily due to the $101.4 million pre-tax gain related to the sale of our Visudyne business.
Cash and Cash Equivalents
As at September 30, 2013, the Company’s consolidated cash balance consisted of $114.1 million of cash and cash equivalents, down from $307.4 million of cash and cash equivalents at the end of 2012. The decrease was largely due to the $200 million special cash distribution to the Company’s shareholders, which was completed in June 2013, partially offset by $7.5 million of funds that were released to us from escrow on September 26, 2013. During the third quarter of 2013, proceeds received in connection with collection of the Eligard Contingent Consideration totaled $9.3 million ($28.2 million collected during the nine months ended September 30, 2013). In addition, we still have up to $48.6 million of Eligard Contingent Consideration remaining to be collected.
Passive Foreign Investment Company
The Company believes that it was classified as a Passive Foreign Investment Company (PFIC) for 2008 – 2012, and that it may be classified as a PFIC in 2013, which could have adverse tax consequences for U.S. shareholders. Please refer to our Annual Report on Form 10-K for additional information.
QLT Inc.—Financial Highlights
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME
In accordance with United States generally accepted accounting principles
(Unaudited)
| Three months ended | Nine months ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (In thousands of U.S. dollars except share and per share information) |
2013 | 2012 | 2013 | 2012 | ||||||||||||
| Expenses |
||||||||||||||||
| Research and development |
$ | 5,243 | $ | 5,639 | $ | 13,715 | $ | 19,621 | ||||||||
| Selling, general and administrative |
1,676 | 2,669 | 5,568 | 12,648 | ||||||||||||
| Depreciation |
230 | 238 | 717 | 927 | ||||||||||||
| Restructuring charges |
354 | 11,402 | 1,847 | 11,402 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| 7,503 | 19,948 | 21,847 | 44,598 | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating loss |
(7,503 | ) | (19,948 | ) | (21,847 | ) | (44,598 | ) | ||||||||
| Investment and other income |
||||||||||||||||
| Net foreign exchange gains (losses) |
(54 | ) | 65 | (36 | ) | (84 | ) | |||||||||
| Interest income |
39 | 59 | 175 | 147 | ||||||||||||
| Fair value change in contingent consideration |
71 | 2,840 | 1,904 | 6,432 | ||||||||||||
| Other gains |
64 | 21 | 100 | 102 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| 120 | 2,985 | 2,143 | 6,597 | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Loss from continuing operations before income taxes |
(7,383 | ) | (16,963 | ) | (19,704 | ) | (38,001 | ) | ||||||||
| (Provision for) Recovery of income taxes |
(109 | ) | 4,345 | (434 | ) | 3,798 | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Loss from continuing operations |
(7,492 | ) | (12,618 | ) | (20,138 | ) | (34,203 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income from discontinued operations, net of income taxes |
96 | 94,078 | 116 | 89,082 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net (loss) income and comprehensive (loss) income |
($7,396 | ) | $ | 81,460 | ($20,022 | ) | $ | 54,879 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Basic and diluted net (loss) income per common share |
||||||||||||||||
| Continuing operations |
($0.15 | ) | ($0.25 | ) | ($0.40 | ) | ($0.69 | ) | ||||||||
| Discontinued operations |
$ | 0.00 | $ | 1.86 | $ | 0.00 | $ | 1.80 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net (loss) income per common share |
($0.14 | ) | $ | 1.61 | ($0.39 | ) | $ | 1.11 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Weighted average number of common shares outstanding (thousands) |
||||||||||||||||
| Basic and diluted |
51,082 | 50,600 | 50,851 | 49,592 | ||||||||||||
QLT Inc.—Financial Highlights
CONDENSED CONSOLIDATED BALANCE SHEETS
In accordance with United States generally accepted accounting principles
(Unaudited)
| (In thousands of U.S. dollars) |
September 30, 2013 | December 31, 2012 | ||||||
| ASSETS |
||||||||
| Current assets |
||||||||
| Cash and cash equivalents |
$ | 114,086 | $ | 307,384 | ||||
| Restricted cash |
— | 7,500 | ||||||
| Accounts receivable |
755 | 3,960 | ||||||
| Contingent consideration—current |
40,557 | 41,255 | ||||||
| Income taxes receivable |
404 | 554 | ||||||
| Deferred income tax assets—current |
316 | 644 | ||||||
| Assets held for sale |
— | 300 | ||||||
| Prepaid and other |
1,705 | 1,442 | ||||||
|
|
|
|
|
|||||
| Total current assets |
157,823 | 363,039 | ||||||
| Property, plant and equipment |
2,180 | 2,655 | ||||||
| Deferred income tax assets—non-current |
195 | 370 | ||||||
| Contingent consideration—non-current |
9,569 | 35,154 | ||||||
|
|
|
|
|
|||||
| Total assets |
169,767 | 401,218 | ||||||
|
|
|
|
|
|||||
| LIABILITIES |
||||||||
| Current liabilities |
||||||||
| Accounts payable |
3,924 | $ | 6,121 | |||||
| Accrued liabilities |
1,407 | 2,515 | ||||||
| Accrued restructuring charge |
249 | 1,933 | ||||||
| Deferred income |
— | 456 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
5,580 | 11,025 | ||||||
| Uncertain tax position liabilities |
1,874 | 1,875 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
7,454 | 12,900 | ||||||
|
|
|
|
|
|||||
| SHAREHOLDERS’ EQUITY |
||||||||
| Share capital |
||||||||
| Authorized |
||||||||
| 500,000,000 common shares without par value |
||||||||
| 5,000,000 first preference shares without par value, issuable in series |
||||||||
| Issued and outstanding |
466,229 | 471,712 | ||||||
| Common shares |
||||||||
| September 30, 2013 – 51,081,878 shares |
||||||||
| December 31, 2012 – 51,589,405 shares |
||||||||
| Additional paid-in capital |
95,524 | 296,024 | ||||||
| Accumulated deficit |
(502,409 | ) | (482,387 | ) | ||||
| Accumulated other comprehensive income |
102,969 | 102,969 | ||||||
|
|
|
|
|
|||||
| Total shareholders’ equity |
162,313 | 388,318 | ||||||
|
|
|
|
|
|||||
| Total shareholders’ equity and liabilities |
$ | 169,767 | $ | 401,218 | ||||
|
|
|
|
|
|||||
About QLT
QLT is a biotechnology company dedicated to the development and commercialization of innovative ocular products that address the unmet medical needs of patients and clinicians worldwide. We are focused on developing our synthetic retinoid program for the treatment of certain inherited retinal diseases.
QLT’s head office is based in Vancouver, Canada and the Company is publicly traded on NASDAQ Stock Market (symbol: QLTI) and the Toronto Stock Exchange (symbol: QLT). For more information about the Company’s products and developments, please visit our web site at www.qltinc.com.
QLT Inc. Contacts:
Investor & Media Relations
Andrea Rabney or David Pitts
Argot Partners
212-600-1902
andrea@argotpartners.com
david@argotpartners.com
Visudyne® is a registered trademark of Novartis AG
Eligard® is a registered trademark of Sanofi S.A.
Certain statements in this press release constitute “forward-looking statements” of QLT within the meaning of the Private Securities Litigation Reform Act of 1995 and constitute “forward-looking information” within the meaning of applicable Canadian securities laws. Forward-looking statements include, but are not limited to: statements concerning our PFIC status; and statements which contain language such as: “assuming,” “prospects,” “goal,” “future,” “projects,” “potential,” “believes,” “expects,” “hopes,” and “outlook.” Forward-looking statements are predictions only which involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from those expressed in such statements. Many such risks, uncertainties and other factors are taken into account as part of our assumptions underlying these forward-looking statements and include, among others, the following: the Company’s future operating results are uncertain and likely to fluctuate; currency fluctuations; the risk that sales of Visudyne or Eligard may be less than expected thereby impacting our contingent consideration; the risk that we may not receive any or as much additional contingent consideration as we might expect under our agreements with respect to the sale of Visudyne, Eligard and the PPDS Technology; risks and uncertainties concerning the impacts that QLT’s strategic initiatives will have on the market price of our securities; risks resulting from recent changes in personnel; uncertainties relating to our development plans, timing and results of the clinical development and commercialization of our products and technologies; assumptions related to continued enrollment trends, efforts and success, and the associated costs of these programs; outcomes for our clinical trials may not be favorable or may be less favorable than interim/preliminary results and/or previous trials; there may be varying interpretations of data produced by one or more of our clinical trials; risks and uncertainties associated with the safety and effectiveness of our technology; the timing, expense and uncertainty associated with the regulatory approval process for products to advance through development stages; risks and uncertainties related to the scope, validity, and enforceability of our intellectual property rights and the impact of patents and other intellectual property of third parties; and general economic conditions and other factors described in detail in QLT’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other filings with the U.S. Securities and Exchange Commission and Canadian securities regulatory authorities. Forward-looking statements are based on the current expectations of QLT and QLT does not assume any obligation to update such information to reflect later events or developments except as required by law.
This press release also contains “forward looking information” that constitutes “financial outlooks” within the meaning of applicable Canadian securities laws. This information is provided to give investors general guidance on management’s current expectations of certain factors affecting our business, including our financial results. Given the uncertainties, assumptions and risk factors associated with this type of information, including those described above, investors are cautioned that the information may not be appropriate for other purposes.