Antares Pharma, Inc. Reports Third Quarter 2005 Results

EXTON, Pa., Nov. 14 /PRNewswire-FirstCall/ -- Antares Pharma, Inc. today announced results for the third quarter 2005.

Operational Highlights -- Initiated Phase II clinical trial for overactive bladder transdermal gel product, Anturol(TM). The fourth product to enter Phase II clinical trials based on Antares ATD(TM) technology. -- Signed ATD(TM) gel technology agreement with company specializing in central nervous systems disorders products. The ATD(TM) gel platform will be used to reformulate an active compound contained in an oral product for systemic action, marketed worldwide. -- Announced evaluation agreement with major Japanese pharmaceutical company for Antares’ Vibex(TM) mini-needle injector technology. Rights granted to novel injector device for use with a proprietary biopharmaceutical in Japan. -- Announced successful results from clinical study of Medi-Jector Vision(R) with rapid-acting insulin Lispro. Results show no significant differences between needle-free and syringe delivery of insulin Lispro. -- Company Chairman provides line of credit. Up to $4 million of financing available on favorable terms. Financial Results

Net loss per common share decreased to $0.05 in the third quarter 2005 from $0.06 in the third quarter 2004 due to the smaller net loss of approximately $235,000 in 2005 from that in 2004, and by an increase in average common shares outstanding of 3,345,792 to 42,171,329 from 38,825,537.

Operating losses decreased approximately $235,000, or 11%, to $2.0 million, from $2.2 million for the three-month periods ended September 30, 2005 and 2004, respectively. Total operating expenses decreased approximately $439,000, or 17%, to $2.1 million in the third quarter 2005, from $2.6 million in the same period in 2004 due primarily to decreased administrative costs while, at the same time, increasing commercial development activities. Total revenues for the quarter decreased 28% to approximately $444,000 from approximately $613,000 for the same quarter in 2004. The reduction in early stage developmental revenues continued as Antares is concentrating on developing products for commercial applications, rather than licensing technology at early stages. Gross margin percentage decreased in the third quarter of 2005 to 32% from 57% in the comparable quarter of 2004 as the cost of development revenues fluctuate between quarters depending on development activities and due to the timing of receipt and/or recognition of license fees and development fees.

Net cash used in operating activities decreased in the third quarter of 2005 to approximately $1.5 million from approximately $2.2 million in the second quarter and approximately $2.6 million in the first quarter.

At September 30, 2005, Antares had approximately $3.3 million in cash and cash equivalents. Additionally, on October 19, 2005, the Company’s Chairman and largest stockholder entered into an agreement to provide Antares with a line of credit of up to $4 million on favorable terms.

At the current stage of Antares’ development, quarterly revenues and expenses are principally a function of various development agreements and the activities of our development projects, all of which may fluctuate from quarter to quarter and, therefore, do not necessarily reflect the progress Antares is making in working with its agreement partners or our internal projects in the effort to bring important new products to market.

Jack E. Stover, Antares Chief Executive Officer, commented, “I am proud of the advances that we are making on the commercial front. Business development activities have expanded significantly in both the U.S. and Europe. Typically, this is a good leading indicator. Additionally, we are excited about the progress we are making with our lead gel product Anturol(TM) for overactive bladder. I am pleased that we have been able to manage our burn rate reflective of both cost controls and cash infusions from new agreements.”

About Antares Pharma

Antares Pharma is a specialized pharma product development company with patented drug delivery systems and injectable device engineering capabilities. Antares’ current technology platforms include its ATD(TM) Advanced Transdermal Delivery system, Easy Tec(TM) oral fast-melt technology, and subcutaneous injection technology platforms including both Vibex(TM) disposable mini-needle injection device and Valeo(TM)/Vision(R) reusable needle-free injection devices. Antares Pharma is committed to leveraging its multiple drug delivery platforms to add value to existing drugs and to create new pharmaceutical products and injectable devices. Overall, Antares’ product pipeline will address unmet medical needs by reducing side effect profiles, improving safety, increasing effectiveness, and improving patient compliance and convenience.

Antares has active partnering programs with several pharmaceutical and distribution companies for a number of indications and applications, including diabetes, growth disorders, obesity, female sexual dysfunction and other hormone therapy. Its needle-free injector system is distributed in more than 30 countries for the administration of insulin and is marketed for use with human growth hormone through licensees in most major regions of the world. Licensees also market an ibuprofen gel in several major European countries. In addition, Antares Pharma is undertaking development or is conducting research on several product opportunities that it expects will form the basis of its specialized pharma program.

Antares Pharma has corporate headquarters in Exton, Pennsylvania, with subsidiaries performing research, development, manufacturing and product commercialization activities in Minneapolis, Minnesota and Basel, Switzerland.

Statements included in this press release that are not historical in nature are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The Company cautions readers that forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially and which are identified from time to time in the Company’s reports filed with the U.S. Securities and Exchange Commission. Antares Pharma claims the protection of the Safe Harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

For more information, please contact: Steve Chizzik / Ira Weingarten, Equity Communications: 973.912.0980 Jack E. Stover, President and CEO: 610.458.6200 Lawrence M. Christian, CFO and Vice President, Finance: 610.458.6200

Additional information is available online at http://www.antarespharma.com. Information included on the Company’s websites is not incorporated herein by reference or otherwise.

FINANCIALS TO FOLLOW ANTARES PHARMA, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) September 30, December 31, 2005 2004 Assets Current Assets: Cash and cash equivalents $3,264,559 $1,652,408 Short-term investments - 7,971,625 Accounts receivable, net of allowances of $21,000 and $22,500, respectively 209,955 277,606 Other receivables 75,137 64,359 Inventories 50,309 92,344 Prepaid expenses and other assets 288,962 81,009 Total current assets 3,888,922 10,139,351 Equipment, furniture and fixtures, net 496,319 611,920 Patent rights, net 819,430 947,459 Goodwill 1,095,355 1,095,355 Other assets 361,327 383,518 Total Assets $6,661,353 $13,177,603 Liabilities and Stockholders’ Equity Current Liabilities: Accounts payable $563,549 $476,509 Accrued expenses and other liabilities 524,103 626,583 Deferred revenue 718,197 547,006 Total current liabilities 1,805,849 1,650,098 Deferred revenue - long term 2,884,701 3,338,666 Total liabilities 4,690,550 4,988,764 Stockholders’ Equity: Series A Convertible Preferred Stock: $0.01 par; authorized 10,000 shares; 1,500 issued and outstanding at December 31, 2004 - 15 Series D Convertible Preferred Stock: $0.01 par; authorized 245,000 shares; 63,588 issued and outstanding at December 31, 2004 - 636 Common Stock: $0.01 par; authorized 100,000,000 shares; 42,379,486 and 40,418,406 issued and outstanding at September 30, 2005 and December 31, 2004, respectively 423,795 404,184 Additional paid-in capital 94,398,610 94,479,402 Prepaid license discount (2,551,240) (2,698,427) Accumulated deficit (89,202,381) (82,575,151) Deferred compensation (502,166) (759,342) Accumulated other comprehensive loss (595,815) (662,478) 1,970,803 8,188,839 Total Liabilities and Stockholders’ Equity $6,661,353 $13,177,603 ANTARES PHARMA, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) For the For the Three Months Ended Nine Months Ended September 30, September 30, 2005 2004 2005 2004 Revenues: Product sales $358,001 $417,846 $1,151,236 $1,324,202 Development revenue 13,490 35,706 96,106 180,668 Licensing fees 66,275 135,307 203,282 464,472 Royalties 6,212 24,316 40,164 61,034 Total revenues 443,978 613,175 1,490,788 2,030,376 Cost of revenues: Cost of product sales 265,289 255,939 809,826 960,030 Cost of development revenue 34,593 9,734 65,869 53,926 Total cost of revenues 299,882 265,673 875,695 1,013,956 Gross profit 144,096 347,502 615,093 1,016,420 Operating expenses: Research and development 922,178 879,297 2,971,764 2,147,260 Sales, marketing and business development 262,201 216,469 903,203 450,802 General and administrative 950,478 1,477,672 3,378,419 4,180,110 2,134,857 2,573,438 7,253,386 6,778,172 Operating loss (1,990,761) (2,225,936) (6,638,293) (5,761,752) Other income (expense): Interest income 28,783 34,739 108,077 80,351 Interest expense - (21,875) - (100,959) Foreign exchange losses (6,250) (2,727) (36,004) (13,467) Other, net (8,401) (3,386) (11,010) (8,371) 14,132 6,751 61,063 (42,446) Net loss (1,976,629) (2,219,185) (6,577,230) (5,804,198) Preferred stock dividends - - (50,000) (71,429) Net loss applicable to common shares $(1,976,629) $(2,219,185) $(6,627,230) $(5,875,627) Basic and diluted net loss per common share $(0.05) $(0.06) $(0.16) $(0.17) Basic and diluted weighted average common shares outstanding 42,171,329 38,825,537 41,062,589 35,145,638

Antares Pharma, Inc.

CONTACT: Steve Chizzik or Ira Weingarten, Equity Communications,+1-973-912-0980; or Jack E. Stover, President and CEO, +1-610-458-6200, orLawrence M. Christian, CFO and Vice President, Finance, +1-610-458-6200,both of Antares Pharma, Inc.

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