To all our friends north of the border, this news release should be of
interest. Highlights:
(1) Draxis Health sold a generic version of Eldepryl to the company's
strategic partner, Novopharm Ltd., and the inclusion of their product on the
Ontario Drug Benefit Formulary on Sept. 1, 1995
(2) On Oct. 18, 1995, the company received regulatory approval from
the Health Protection Branch to market a liquid formulation of
Eldepryl for Parkinson's disease in Canada.
(3) A new drug called Anipryl (selegiline hydrochloride) for threatment of
canine Cushing's disease
Here is the rest of the story:
Mississauga, ONTARIO--(BUSINESS WIRE)--Oct. 30, 1995--Draxis
Health Inc. (TSE:DAX;NASDAQ:DRAXF) Monday reported earnings of
$311,687 or $0.02 per share for the three month period ended
Sept. 30, 1995.
Pharmaceutical revenues during this same three month period were
$4,521,949; an increase of 14% over the three month period ended June
30, 1995. Pharmaceutical operations and certain working capital
changes increased the company's cash position by $1,367,981 to
$11,701,684 in the third quarter.
CANADIAN OPERATIONS
Neurology Division
Neurology revenue was down 39% as a result of the sale of a
generic version of Eldepryl by the company's strategic partner,
Novopharm Ltd., and the inclusion of their product on the Ontario
Drug Benefit Formulary on Sept. 1, 1995. The full impact thereof
was partially offset by the company's profit sharing agreement with
Novopharm.
On Oct. 18, 1995, the company received regulatory approval from
the Health Protection Branch to market a liquid formulation of
Eldepryl for Parkinson's disease in Canada.
The company will start selling the drug in the first quarter of
1996. There is no generic version of the liquid formulation.
The progress of the clinical trial with Modafinil remains on time
and on budget. The company expects these phase III results to be
available by the middle of next year. Dermatology Division Losses
within this division continued their decline in the third quarter,
reporting a loss of $306,415; down $135,657 or 31% for the same
period one year ago. The company is proceeding with the introduction
of its Lipopharm podiatry and skin care products into the much larger
United States market and is exploring out-licensing opportunities for
LipoTECA and other products in Europe.
UNITED STATES OPERATIONS
Health Care Division
Innovative Health Systems (`IHS'), the company's 50% owned
network marketing company, relaunched its complete product line
during a recent two day meeting of distributors in Indianapolis. The
company plans to introduce a `Skin Care' line early in the new year,
currently being developed by Lipopharm, as well as several other new
products. Podiatry
Draxis Podiatry division will commence shipping products to
United States podiatrists on Nov. 15, 1995.
FINANCIAL POSITION
-- Cash and treasury bills increased to $11.7 million at
Sept. 30, 1995, an increase of $1.5 million over
June 30, 1995.
-- Working capital increased to $13.8 million at Sept. 30, 1995;
an increase of $1.2 million over June 30, 1995.
-- Shareholders' equity at Sept. 30, 1995 was $27,759,051.
DEPRENYL ANIMAL HEALTH INC. ("DAHI")
On Oct. 2, 1995, DAHI announced that it had received regulatory
approval to market its drug Anipryl (selegiline hydrochloride) for
the treatment of canine Cushing's disease in Canada. Anipryl is the
only drug approved in the world for this disorder.
On Sept. 28, 1995, DAHI announced it had filed the final report
from its Phase III equivalent clinical trials studies with the Food
and Drug Administration to obtain regulatory approval to market
Anipryl for the treatment of canine Cushing's disease in the United
States.
As at June 30, 1995, the company's share of equity losses of DAHI
had fully absorbed the cost of its investment. Accordingly, the
company did not have to equity account for the losses of DAHI in the
third quarter.
DUSA PHARMACEUTICALS INC. ("DUSA")
The company absorbed $302,813 or $0.02 per share as its equity
share of DUSA losses in the quarter which, while not impacting cash
flow, did have a negative effect on earnings. DUSA continues to
develop ALA PDT for the treatment of actinic keratoses, psoriasis,
acne, hair removal and endometrial ablation.
OUTLOOK
Neurology division revenues are expected to decline in the fourth
quarter and into next year as a result of the listing of Novo-
Selegiline on the Ontario Drug Formulary effective Sept. 1, 1995.
In the new year, the company expects this decline to be offset by
sales within the podiatry line and expanding sales of Innovative
Health Systems including the introduction of a Skin Care line into
the much larger United States market.
Draxis Health Inc. is a Canadian pharmaceutical company. In
addition to its Canadian pharmaceutical marketing operations, it
operates a dermatology research division (Lipopharm) and has
significant interest in two development stage, publicly traded
affiliates. It holds approximately 20% of the common shares of DUSA
Pharmaceuticals Inc. (with options to increase to approximately 42%)
(TSE:DSP;NASDAQ/NMS: DUSA). It holds approximately 36% of the common
shares of Deprenyl Animal Health Inc. (with options to increase its
holdings to 45%) (TSE:DAH;NASDAQ OTC - Bulletin Board: DAHI).
-0-
HIGHLIGHTS FROM STATEMENT OF OPERATIONS
For the three For the nine
month period ended month period ended
Sept. 30, Sept. 30,
1995 1994 1995 1994
PHARMACEUTICAL REVENUES 4,521,949 3,957,145 12,032,602 12,237,022
INCOME (LOSS) FROM
PHARMACEUTICAL
OPERATIONS
Neurology Division 754,668 1,220,585 2,945,680 4,576,908
Dermatology Division (306,415) (442,072) (967,687) (1,555,279)
Health Care Division (129,762) -- (448,122) --
318,501 778,513 1,529,871 3,021,629
Equity share of net
development stage costs
of affiliated companies (302,813) (504,991) (1,328,619)(1,588,189)
NET INCOME $311,687 $177,907 $327,550 $951,868
AFTER TAX EARNINGS
PER SHARE $0.02 $0.01 $0.02 $0.05
BALANCE SHEET
HIGHLIGHTS
Sept. 30,
1995 1994
CASH AND TREASURY BILLS $11,701,684 $9,699,897
WORKING CAPITAL $13,831,526 $12,576,444
*T
NOTE: The following is a re-submission of Draxis Health's quarterly
earnings, originally released Friday, Oct. 27. For complete
financial information, call Robert Kneeley, RKC Communications.
CONTACT:
Draxis Health Inc., Mississauga
Edward L. Foster, CA Vice President
and Chief Financial Officer
Kendall McAlister, Coordinator, Investor Relations
TEL: 905/677-5500 FAX: 905/677-5502
or
U.S. Investor Relations
RKC Communications, Fort Lauderdale
Robert Kneeley,
TEL: 305/739-7121 FAX: 305/739-7034
Regards,
Alan
