InSite Vision Reports 2003 Fourth Quarter and Full Year Financial Results
ALAMEDA, Calif., March 30 /PRNewswire-FirstCall/ -- InSite Vision Incorporated
-- an ophthalmic therapeutics, diagnostics and drug-delivery company -- today
reported financial results for the three months and year ended December 31,
2003.
InSite Vision reported a net loss for the 2003 fourth quarter of $1.3 million,
or $0.05 per share, compared with a net loss for the 2002 fourth quarter of $2.3
million, or $0.09 per share. The Company reported a net loss for 2003 of $7.0
million, or $0.27 per share, compared with a net loss for 2002 of $11.0 million,
or $0.44 per share.
Research and development (R&D) expenses for the fourth quarter of 2003 decreased
to $970,000, compared with $1.4 million for the fourth quarter of 2002, and
full-year 2003 R&D expenses declined to $4.4 million from $7.1 million for 2002. The decrease in R&D expenses reflects cost containment actions taken in the
second quarter of 2003 and the reduction in support for external research taken
in the first quarter of 2003.
Selling, general and administrative (SG&A) expenses increased to $1.0 million
from $942,000 for the fourth quarters of 2003 and 2002, respectively, and
decreased to $3.0 million from $4.0 million for 2003 and 2002, respectively.
The decrease in SG&A costs primarily reflect the reduction in selling expenses
related to the initial market introduction of the OcuGene(R) glaucoma genetic
test and other cost containment activities, partially offset by legal costs
related to fundraising efforts and by higher insurance premiums. In the 2003
fourth quarter, the Company reported a gain on sale of asset of $1.2 million,
reflecting the sale of the ISV-403 product candidate to Bausch & Lomb in
December 2003.
InSite Vision had cash and cash equivalents of $1.0 million at December 31,
2003, compared with cash and cash equivalents of $1.2 million at December 31,
2002. On March 29, 2004, the Company announced binding subscription agreements
for an equity financing expected to raise $16.5 million, before transaction fees
and expenses. The Company has received approximately $2 million of the
subscriptions in the initial closing, which will be reported on the Company's
balance sheet at March 31, 2004. Proceeds from the remaining $14.5 million will
be received upon receipt of stockholder approval to issue the shares offered to
investors and satisfaction of various conditions contained in the subscription
agreements. If completed, these proceeds will be reported on the June 30, 2004
balance sheet.
"If we are able to successfully complete the final closing of the financing
announced yesterday, we believe we will be in an excellent position to move
forward with development of our ISV-401 drug candidate," said S. Kumar
Chandrasekaran, Ph.D., chief executive officer. "We are currently preparing to
initiate Phase 3 clinical trials with the intention of commercializing ISV-401
in 2006.
"We plan to continue discussions with potential corporate partners for the
development, marketing and distribution of ISV-401 and to investigate merger and
acquisition opportunities that are in the best interest of the Company and our
shareholders," added Dr. Chandrasekaran.
InSite Vision is an ophthalmic products company focused on ocular infections,
glaucoma and retinal diseases. In the area of glaucoma, the Company conducts
genomic research using TIGR and other genes. A portion of this research has
been incorporated into the Company's OcuGene(R) glaucoma genetic test for
disease management, as well as ISV-205, its novel glaucoma therapeutic. ISV-205
uses InSite Vision's proprietary DuraSite drug-delivery technology, which also
is incorporated into the ocular infection product ISV-401, and InSite Vision's
retinal disease program. Additional information can be found at
http://www.insitevision.com/.
This press release may contain, among other things, certain statements of a
forward-looking nature relating to future events or the future business
performance of InSite Vision. Such statements entail a number of risks and
uncertainties, including but not limited to: InSite Vision's ability to obtain
shareholder approval and satisfy the other conditions to closing on the final
tranche of itsrecently announced equity financing, InSite Vision's immediate
need for significant additional funding to continue its operations in the event
that it does not consummate the final closing, the effects of its expense
control activities on its operations and product development; its ability to
obtain regulatory approval and market acceptance of its products, OcuGene(R)
glaucoma genetic test, ISV-401 and ISV-205; InSite Vision's ability to maintain
and develop additional collaborations and commercial agreements with corporate
partners, including those with respect to ISV-401 and ISV-205; its reliance on
third parties for the development, marketing and sale of its products; the
initiation and results of preclinical and clinical studies; its ability to
adequately protect its intellectual property; and determinations by the U.S. Food and Drug Administration, including those with respect to OcuGene, ISV-401
and ISV-205. Reference is made to the discussion of risk factors detailed in
InSite Vision's filings with the Securities and Exchange Commission, including
its annual report on Form 10-K for the 2002 fiscal year and Quarterly Report on
Form 10-Q for the fiscal quarter ended September 30, 2003. Any projections in
this release are based on limitedinformation currently available to InSite
Vision, which is subject to change. Although any such projections and the
factors influencing them will likely change, InSite Vision undertakes no
obligation to update the information. Such information speaks only as of the
date of this release. Actual events or results could differ materially and no
reader of this release should assume later that the information provided today
is still valid.
Note to Editors: OcuGene is written with a "small cap" G; if doing so is not
possible, please use an upper case G. InSite Vision Incorporated, InSite
Vision, DuraSite and OcuGene are trademarks of InSite Vision Incorporated. Other
trademarks that may be mentioned in this release are the intellectual property
of their respective owners.
For further information please contact: S. Kumar Chandrasekaran, CEO, or Sandra
Heine, Director of Finance, both of InSite Vision Incorporated, +1-510-865-8800;
or investors, Bruce Voss, , or Jody Cain, , both of Lippert/Heilshorn &
Associates, Inc., +1-310-691-7100, or media, Chenoa Taitt, , or Michael Hopkins,
, both of Lippert/Heilshorn & Associates, Inc., +1-212-838-3777, all for InSite
Vision Incorporated.
InSite Vision Incorporated Condensed Consolidated Statements of Operations
For the Three Months and Year Ended December 31, 2003 and 2002
(in thousands, except per share amounts; unaudited) Three months ended Year ended
December 31, December 31,
2003 2002 2003 2002 Revenues, net $125 $10 $134 $36
Cost of Goods 3 58 20 114
Operating expenses:
Research and
development 970 1,391 4,436 7,077
Cost reimbursement -- 100 -- 166
Research and
development, net970 1,291 4,436 6,911
Selling, general and
administrative 1,000 942 3,021 4,022
Total 1,970 2,233 7,457 10,933
Loss from operations (1,848)(2,280) (7,343) (11,011)
Gain on Sale of Assets 1,153 -- 1,153 --
Interest and other
income, net (555) 9 (561) 62
Net loss (1,250) (2,271) (6,751) (10,949)
Non-cash preferred
dividends 60 30 221 48
Net loss applicable to
common stockholders $(1,310) $(2,301) $(6,972) $(10,997) Net loss per share
applicable to
common stockholders,
basic and diluted $(0.05) (0.09) (0.27) (0.44) Shares used to
calculate net loss
per share, basic and
diluted 26,166 25,109 25,767 24,997
Condensed Consolidated Balance Sheets
At December 31, 2003 and 2002
(in thousands; unaudited)
December 31,
2003 2002 Assets:
Cash and cash equivalents $1,045 $1,179
Prepaid expenses and other assets 110 143
Property and equipment, net 249 544
Deferred Debt Issuance Cost 1 --
Total assets $1,405
$1,866 Liabilities and stockholders' equity:
Current liabilities $7,589 $969
Convertible note payable 16 --
Long-term liabilities -- 10
Stockholders' equity (deficit) (6,200) 887
Total liabilities and stockholders'
equity (deficit) $1,405 $1,866
DATASOURCE: InSite Vision Incorporated CONTACT: S. Kumar Chandrasekaran, CEO, or Sandra Heine, Director of Finance, both of InSite Vision Incorporated, +1-510-865-8800; or investors, Bruce Voss, , or Jody Cain, , both of Lippert/Heilshorn & Associates, Inc., +1-310-691-7100, or media, Chenoa Taitt, , or Michael Hopkins, , both of Lippert/Heilshorn & Associates, Inc., +1-212-838-3777, all for InSite Vision Incorporated Web site: http://www.insitevision.com/
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