Advancis Pharmaceutical Corporation Announces Preliminary 2006 Product Sales And Year-End Cash Position
GERMANTOWN, Md., Jan. 12 /PRNewswire-FirstCall/ -- Advancis Pharmaceutical Corporation , a pharmaceutical company focused on developing and commercializing novel anti-infective products, today provided preliminary net product sales and cash position for the fiscal year ended December 31, 2006.
Total revenue for 2006 from sales of Keflex products was approximately $5 million, lower than prior expectations of $7 million to $10 million. Net revenue from product sales in 2006 consists of a full year of sales of Keflex 250mg and 500mg capsules, and approximately five months of sales for the Company's new Keflex 750mg product. Keflex revenue for the year was recognized as products were delivered to customers, primarily wholesalers of pharmaceutical products.
During the third and fourth quarters of 2006, Advancis implemented a retail pharmacy stocking program, delivering significantly discounted Keflex 750 capsules to select pharmacies in the United States in order to expand product availability beyond the initial launch distribution. The Company believes that approximately 25,000 pharmacies were stocked with Keflex 750 capsules at the end of 2006.
Cash, cash equivalents, and marketable securities at the end of 2006 were approximately $15 million, including the effect of net proceeds received from the Company's private placement of common stock completed in December 2006.
"Since its launch only five months ago, there have been approximately 50,000 prescriptions written and filled for Keflex 750 capsules, and we believe its message of patient convenience and potentially increased compliance has been well-received by our target physician audience." said Dr. Edward Rudnic, Advancis president and CEO. "While our Keflex 750 product sales have continued to increase month-over-month, we did not experience the rapid sales uptake in late 2006 that we previously anticipated. However, Keflex 750 commercialization efforts have helped to build our sales force as we plan for the anticipated launch of our first PULSYS product, Amoxicillin PULSYS, assuming FDA approval of our recently-filed NDA."
Advancis currently expects to report complete fourth quarter and fiscal year 2006 financial results in February 2007.
About Keflex:
Keflex(R) Capsules (Cephalexin, USP) is a first-generation cephalosporin antibiotic shown to be active against strains of both gram-positive and gram- negative aerobes in vitro and in clinical infections. Keflex is indicated for treatment of the following infections: respiratory tract infections, otitis media, skin and skin structure infections, bone infections, and genitourinary tract infections. Keflex is currently available in 250mg capsules, 500mg capsules, 750mg capsules, and powder for oral suspension. Keflex is contraindicated in patients with known allergy to the cephalosporin group of antibiotics. Before therapy with cephalexin is instituted, careful inquiry should be made to determine whether the patient has had previous hypersensitivity reactions to cephalexin, cephalosporins, penicillins, or other drugs. Keflex should be administered with caution in the presence of markedly impaired renal function or a history of gastrointestinal disease, particularly colitis. More information on Keflex and prescribing information are available at http://www.keflex.com.
About Advancis Pharmaceutical Corporation:
Advancis Pharmaceutical Corporation is a pharmaceutical company focused on the development and commercialization of pulsatile drug products that fulfill substantial unmet medical needs in the treatment of infectious disease. The Company is developing anti-infective drugs based on its novel biological finding that bacteria exposed to antibiotics in front- loaded staccato bursts, or "pulses," are killed more efficiently than those under standard treatment regimens. Based on this finding, Advancis has developed a proprietary, once-a-day pulsatile delivery technology called PULSYSTM. By examining the resistance patterns of bacteria and applying its delivery technologies, Advancis has the potential to redefine infectious disease therapy and significantly improve drug efficacy, shorten length of therapy, and reduce drug resistance versus currently available antibacterial products. For more on Advancis, please visit http://www.advancispharm.com.
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on Advancis' current expectations and assumptions. These statements are not guarantees of future performance and are subject to a number of risks and uncertainties that would cause actual results to differ materially from those anticipated. The words, "believe," "expect," "intend," "anticipate," and variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward- looking. Statements in this announcement that are forward-looking include, but are not limited to, statements about the Company's future development plans, clinical trials, potential commercial success, and any financial forecasts included in this announcement.
The actual results realized by Advancis could differ materially from these forward-looking statements, depending in particular upon the risks and uncertainties described in the Company's filings with the Securities and Exchange Commission. These include, without limitation, risks and uncertainties relating to the Company's financial results and the ability of the Company to (1) reach profitability, (2) prove that the preliminary findings for its product candidates are valid, (3) receive required regulatory approvals, (4) successfully conduct clinical trials in a timely manner with favorable results, (5) establish its competitive position for its products, (6) develop and commercialize products that are superior to existing or newly developed competitor products, (7) develop products without any defects, (8) have sufficient capital resources to fund its operations, (9) protect its intellectual property rights and patents, (10) implement its sales and marketing strategy, (11) successfully attract and retain collaborative partners, (12) successfully commercialize and gain market acceptance for its Keflex products, and (13) retain its senior management and other personnel. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of today's date. Advancis undertakes no obligation to update or revise the information in this announcement, whether as a result of new information, future events or circumstances or otherwise.
Advancis Pharmaceutical CorporationCONTACT: Robert Bannon, Vice President, Investor Relations & CorporateCommunications of Advancis Pharmaceutical Corp., +1-301-944-6710,ir@advancispharm.com