BioSpecifics Technologies Corporation Reports Fourth Quarter and Full Year 2011 Financial Results

LYNBROOK, N.Y., March 9, 2012 /PRNewswire/ -- BioSpecifics Technologies Corp. (NASDAQ: BSTC), a biopharmaceutical company developing first in class collagenase-based products marketed as XIAFLEX® in the U.S. and XIAPEX® in Europe and Eurasia, today announced its financial results for the fourth quarter and full year ended December 31, 2011 and provided a corporate update.

"We are eagerly awaiting the Peyronie's disease Phase III top-line results which are expected late in the second quarter of 2012. We believe there is strong commercial potential for XIAFLEX for this debilitating disease and, if approved, we expect to see an improvement in global sales progress for XIAFLEX," reflected Thomas L. Wegman, President of BioSpecifics. "We look forward to initiating our internal human and canine lipoma trials during the first half of 2012, as well as continued revenue growth for XIAFLEX for Dupuytren's contracture and Actelion's commercialization in the rest-of-world markets."

Financial Results

BioSpecifics reported net income of $71,326 for the quarter ended December 31, 2011, or $0.01 per basic and diluted share, compared to net income of $140,169, or $0.02 per basic and diluted common share for the same period in 2010. For the full year ended December 31, 2011, the Company reported net income of $6.6 million, or $1.04 per share on a basic and $0.95 on a fully diluted basis, compared to a net loss of $1.5 million, or $0.24 per share on a basic and fully diluted basis in the same period in 2010.

Total revenue for the fourth quarter of 2011 was $2.6 million, compared to $1.1 million for the same period in 2010. For the full year ended December 31, 2011, total revenue was $11.4 million, compared to $5.7 million in 2010. Total royalty, mark-up on cost of goods sold and earn-out revenues for the year ended December 31, 2011 increased to $6.3 million due to higher net sales of XIAFLEX and Santyl® reported to BioSpecifics by its partners Auxilium Pharmaceuticals, Inc. (Auxilium) and DFB Biotech, Inc. (DFB) and their affiliates as compared to $2.3 million in the same period in 2010.

Total licensing fees consisting of licensing and sublicensing fees and milestones were $5.0 million compared to $3.0 million in the 2010 period. Licensing fees recognized from Auxilium for the full year 2011 were $0.4 million, compared to $0.8 million for the same period in 2010. These licensing revenues related to cash payments received in prior years and amortized over the expected development period. Sublicensing fees recognized in 2011 were $0.75 million compared to zero in the same period in 2010. BioSpecifics recognized $0.75 million of the $15.0 million paid to Auxilium by Asahi Kasei Pharma Corporation (Asahi) for the rights to commercialize XIAFLEX for the treatment of Dupuytren's contracture and Peyronie's disease in Japan. Milestone revenue recognized for the year ended December 31, 2011 was $3.825 million compared to $2.275 million in the 2010 period. In the 2011 period, the Company recognized three milestones related to the first sale of XIAFLEX in the United Kingdom, Germany and Spain by Pfizer, Inc. (Pfizer) for Dupuytren's contracture. In the 2010 period, BioSpecifics recognized two milestone payments of which $1.275 million was related to the scientific/technical review procedure of Pfizer's Marketing Authorization Application for XIAFLEX for Dupuytren's contracture in Europe and $1.0 million was related to the approval of XIAFLEX for Dupuytren's contracture by the FDA in February 2010.