Message #47 From:
NewsBot Date: January 8, 2007 06:24:00 AM
OSCI News Oscient Pharmaceuticals Provides Preliminary Revenue Results for Fourth Quarter and Fiscal Year 2006
WALTHAM, Mass.--(BUSINESS WIRE)--Oscient Pharmaceuticals Corporation (Nasdaq: OSCI) today announced
preliminary revenue results for the fourth quarter and fiscal year ended
December 31, 2006. The Company expects to record total fourth quarter
revenues of approximately $18 million, with approximately $12 million
from ANTARA(R) (fenofibrate) capsules and approximately $6 million in
revenues related to FACTIVE(R)(gemifloxacin
mesylate) tablets. These results reflect the first full quarter of sales
for ANTARA, which was acquired by Oscient during the third quarter of
2006, and compare with $9.4 million in total revenues in the fourth
quarter of 2005.
For fiscal year 2006, Oscient expects to record approximately $46
million in total revenues, an increase of approximately 100% from $23.6
million in total revenues generated by the Company in 2005. In 2006,
approximately $22 million in revenue was derived from FACTIVE,
approximately $17 million in revenue from ANTARA, which was part of the
Company’s portfolio during the final 19 weeks
of the year, and approximately $7 million in revenue was derived from
co-promotion activities. The Company expects its total cash, including
restricted cash and cash equivalents, as of December 31, 2006, to be
approximately $44 million.
“The fourth quarter results illustrate the
revenue growth acceleration created by the ANTARA acquisition. The
response to ANTARA from our target physicians has been very positive and
we will continue to make the growth of that brand through 2007 a top
priority for our commercial team,” stated
Steven M. Rauscher, President and Chief Executive Officer of Oscient
Pharmaceuticals. “We have also seen FACTIVE
prescriptions continue to increase week-over-week as the respiratory
tract infection season has intensified and as our sales force has
increased promotional efforts for FACTIVE.”
During the fourth quarter of 2006, more than 110,200 prescriptions for
ANTARA were filled and the four-week rolling average for ANTARA weekly
scripts increased 9% from 8,250 at the end of the third quarter to
nearly 9,000 by year end. For FACTIVE, prescriptions in 2006 reached
311,770, an increase of 50% over 2005 levels. In the fourth quarter of
2006, approximately 72,000 prescriptions for FACTIVE were filled.
Projections for 2007
The Company expects revenue for fiscal year 2007 to increase by at least
80 percent from fiscal year 2006 revenue levels, with approximately
two-thirds of those revenues derived from sales of the higher gross
margin product ANTARA. The Company expects a net decrease in cash and
cash equivalents of approximately $4 million per month on average during
the first half of 2007 and expects net cash utilization to decrease in
the second half of 2007 as revenues increase.
“We expect to reach a sustainable commercial
breakeven point in the fourth quarter of 2007,”
added Mr. Rauscher. “This important milestone
reflects the point at which our revenues from product sales exceed our
cost of goods sold (excluding amortization of intangibles), selling and
marketing expenses and the Paul Capital royalty obligations. At
commercial breakeven, our commercial organization becomes a net source
of cash and begins to cover other operating costs as we progress toward
positive net income.”
“One of our highest priorities for the coming
year is to identify another product for our sales force to begin
selling. As we review candidates, we are looking at those with the best
overlap with our target physicians and that leverage our existing
commercial organization in a way that would make any product acquisition
accretive to our financial results.”
The Company plans to announce complete financial results and host a
conference call with investors in February.
About Oscient Pharmaceuticals
Oscient Pharmaceuticals Corporation is a commercial-stage
biopharmaceutical company marketing two FDA-approved products with its
national primary care sales force. ANTARA(R) (fenofibrate) capsules is
indicated for the adjunct treatment of hypercholesterolemia (high blood
cholesterol) and hypertriglyceridemia (high triglycerides) in
combination with diet. FACTIVE(R) (gemifloxacin mesylate) tablets is an
antibiotic approved for the treatment of acute bacterial exacerbations
of chronic bronchitis and community-acquired pneumonia of mild to
moderate severity. Oscient also has a novel, late-stage antibiotic
candidate, Ramoplanin, under investigation for the treatment of
Clostridium difficile-associated disease (CDAD).
For important information regarding the safety and use of ANTARA and
FACTIVE, please see the full prescribing information available at www.antararx.com
and www.factive.com.
Forward-Looking Statement
This news release contains forward-looking statements made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995, including statements with regard to (i) preliminary 2006
year-end financial results and preliminary 2006 fourth quarter financial
results, (ii) the Company’s anticipated
revenue increases for the fiscal year ending December 31, 2007, (iii)
the Company’s anticipated monthly cash
utilization for the first half of 2007, (iv) the Company’s
cash balances as of December 31, 2006, (v) the relative contribution to
revenue of the Company’s products, and (vi)
the Company’s goal to add an additional
product to its portfolio. Forward-looking statements represent our
management’s judgment regarding future
events. Forward-looking statements typically are identified by use of
terms such as “may,”“will,”“should,”“plan,”“expect,”“intend,”“anticipate,”“estimate,” and
similar words, although some forward-looking statements are expressed
differently. We do not plan to update these forward-looking statements.
You should be aware that our actual results could differ materially from
those contained in the forward-looking statements due to a number of
risks affecting our business. These risks include, but are not limited
to (a) our ability to successfully commercialize and market ANTARA or
FACTIVE due to: the limitations on our resources and experience in the
commercialization of products; lack of acceptance by physicians,
patients and third party payors; unanticipated safety, product
liability, efficacy, or other regulatory issues; delays in recruiting
and training sales personnel; problems relating to manufacturing or
supply; delays in the supply of products by the third party
manufacturers and suppliers on which we rely; inadequate distribution of
the products by wholesalers, pharmacies, hospitals and other customers;
and competition from other products; (b) our ability to integrate ANTARA
into our business; (c) whether we will be able to expand the indications
for which FACTIVE is approved;(d) the delay in or inability to obtain
additional regulatory approvals of our products and product candidates
due to negative, inconclusive or insufficient results in ongoing or
future clinical trials, the FDA requiring additional information or
data, delays in the progress of ongoing clinical trials, safety concerns
arising with respect to our products or product candidates and disputes
with the third parties from whom we license our products or product
candidate; (e) delays by the FDA; (f) the Company’s
inability to raise additional capital on favorable terms or at all and
(g) claims against us by third parties, including claims relating to our
intellectual property position. Additional factors that could cause
actual results to differ materially from those projected or suggested in
any forward-looking statements are described under the heading “Risk
Factors” in the Company’s
Quarterly Report on Form 10-Q for the quarter ending September 30, 2006
and in other filings that we may make with the Securities and Exchange
Commission from time to time.
