AzaSite® Royalties Up 75 Percent over First Quarter 2009
ALAMEDA, Calif.--(BUSINESS WIRE)-- InSite Vision Incorporated (OTCBB: INSV) today reported financial results for the first quarter ended March 31, 2010.
First Quarter 2010 Results Summary
Royalty revenues increased by $1.0 million to $2.3 million for the first quarter 2010 over 2009. Royalties were primarily from Inspire Pharmaceuticals for sales of AzaSite (azithromycin ophthalmic solution) 1%. The year-over-year increase in royalties was driven by a 41 percent growth in AzaSite revenues and an increase in the royalty rate from 20 percent to 25 percent beginning in August 2009. The amortization of the upfront and milestones payments from international license fee payments for AzaSite was $1.0 million in the first quarter of 2009.
Research and Development (R&D) expenses for the first quarter 2010 were $1.1 million compared to $2.2 million in the first quarter 2009. The decrease in R&D expenses was primarily driven by a corporate restructuring in March 2009. General and Administrative (G&A) expenses were $1.2 million in the first quarter 2010 compared to $1.7 million in the first quarter 2009. G&A expenses in 2010 were lower due to a corporate structuring in March 2009.
Net loss for the quarter ended March 31, 2010 was $2.9 million, or $0.03 per share, compared to a net loss of $5.4 million, or $0.06 per share, in the same quarter of 2009.
InSite Vision had cash, cash equivalents and short-term investments of $22.3 million at March 31, 2010.
Recent Accomplishments and Events
“In 2010, investors can expect InSite Vision to continue to build value in our pipeline products while carefully managing our resources,” said Louis Drapeau, InSite Vision’s Chief Executive Officer. “Underpinning our strategy are the growing royalty revenues we receive from the sales of commercial products utilizing our core DuraSite technology. I’m pleased to note that AzaSite revenues are up from last year through the efforts of our partner Inspire Pharmaceuticals. Additionally, this quarter we started receiving royalties from Bausch & Lomb for Besivance.”
Conference Call Today
InSite Vision will host a conference call today beginning at 4:30 p.m. Eastern Time to discuss the company's first quarter results.
Analysts and investors can listen to the conference call by dialing (877) 407-8035 for domestic callers and (201) 689-8035 for international callers. A telephone replay will be available following the conclusion of the call by dialing (877) 660-6853 for domestic callers and (201) 612-7415 for international callers. All callers will need to enter the account number 286 and conference ID 350172.
The live conference call will also be webcast and available on the Investor Relations page of the company's website at http://www.insitevision.com. A copy of this press release will be furnished to the Securities and Exchange Commission on a Form 8-K and posted on the company’s website prior to the call.
About InSite Vision
InSite Vision is committed to advancing new and superior ophthalmologic products for unmet eye care needs. InSite Vision is recognized for the discovery and development of novel ocular pharmaceutical products based on its DuraSite® bioadhesive polymer core technology, an innovative platform that extends the duration of drug delivery on the eye’s surface, thereby reducing frequency of treatment and improving the efficacy of topically delivered drugs. The DuraSite platform is currently leveraged in two commercial products for the treatment of bacterial eye infections, AzaSite® (azithromycin ophthalmic solution) 1% and Besivance™ (besifloxacin ophthalmic suspension) 0.6%. AzaSite is approved in the United States and Canada and currently marketed by InSite Vision’s partner, Inspire Pharmaceuticals, in the United States. InSite Vision has formed multiple strategic licensing and distribution agreements with qualified partners to market AzaSite in select countries in Asia and South America upon regulatory approval in those regions. Besivance was approved by the U.S. Food and Drug Administration in the second quarter 2009 and is being marketed by Bausch & Lomb and Pfizer Inc.
InSite Vision’s ophthalmic product development pipeline also includes ISV-502 and additional product candidates leveraging the company’s core technologies. For further information on InSite Vision, please visit www.insitevision.com.
This news release contains certain statements of a forward-looking nature relating to future events, including InSite’s clinical plans for ISV-502 and ISV-303, Inspire’s clinical plans for AzaSite for the treatment of blepharitis, InSite's plans to advance its AzaSite family of products, InSite's corporate goals, including for fiscal 2010 and the statements in the quote from our Chief Executive Officer set forth above. Such statements entail a number of risks and uncertainties, including but not limited to: InSite's reliance on third parties for the commercialization of its products including Inspire, Pfizer and Bausch & Lomb; the timing of the completion of Inspire’s blepharitis trials and the results of such trials; the ability of InSite to enter into corporate collaborations for its product candidates; InSite’s ability to effectively pursue its strategic options and to negotiate favorable terms with respect thereto; InSite’s ability to effectively design and conduct clinical trials for ISV-502 and ISV-303 and the results thereof; InSite's ability to expand its technology platform to include additional indications; InSite's ability to compete effectively, either alone or through its partners, with other companies offering competing products or treatments; InSite's ability to maintain and develop additional collaborations and commercial agreements with corporate partners, including those with respect to AzaSite; InSite's ability and willingness to commence additional clinical trials with respect to ISV-502 and InSite's various other product candidates and the results of such trials; its ability to adequately protect its intellectual property and to be free to operate with regard to the intellectual property of others and determinations of the U.S. Patent and Trademark Office regarding same; and determinations by the U.S. Food and Drug Administration. Reference is made to the discussion of these and other risk factors detailed in InSite Vision's filings with the Securities and Exchange Commission, including its annual report on Form 10-K and its quarterly reports on Form 10-Q, under the caption "Risk Factors" and elsewhere in such reports. Any forward-looking statements or projections are based on the limited information currently available to InSite Vision, which is subject to change. Although any such forward-looking statements or 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 its release. Actual events or results could differ materially and one should not assume that the information provided in this release is still valid at any later date.
|InSite Vision Incorporated|
|Condensed Consolidated Statements of Operations|
|For the Three Months March 31, 2010 and 2009|
|(in thousands, except per share amounts; unaudited)|
|Three months ended|
|Research and development||1,144||2,241|
|General and administrative||1,219||1,673|
|Cost of revenues, principally royalties to third parties||303||216|
|Loss from operations||(384)||(2,862)|
|Interest expense and other, net||(2,555)||(2,495)|
|Net loss per share:|
|Shares used to calculate net loss per share:|
|Condensed Consolidated Balance Sheets|
|At March 31, 2010 and December 31, 2009|
|(in thousands; unaudited)|
|March 31,||December 31,|
|Cash, cash equivalents and short-term investments||$||22,287||$||24,721|
|Receivables, prepaid expenses and other current assets||2,475||3,294|
|Property and equipment, net||245||309|
|Debt issuance costs, net||3,819||3,922|
|Liabilities and stockholders' deficit:|
|Accounts payable and accrued expenses||$||1,873||$||2,266|
|Long-term secured notes payable||60,000||60,000|
|Total liabilities and stockholders' deficit||$||28,826||$||32,246|
Louis Drapeau, Chief Executive Officer, 510-747-1220
Michelle Corral, 415-794-8662 (Media Inquiries)
KEYWORDS: United States North America California
INDUSTRY KEYWORDS: Health Biotechnology Optical Pharmaceutical