EX-99.1 3 w94536exv99w1.htm EXHIBIT 99.1 exv99w1
 

For Immediate Release
For Further Information Contact:
Andrew Fisher at (301) 608-9292
Email: Afisher@unither.com

UNITED THERAPEUTICS REPORTS 2003 ANNUAL FINANCIAL RESULTS

Total Annual Revenues Grew 77% to $53.3 Million

Annual Loss Fell 58% to $10.0 Million

Silver Spring, MD, February 24, 2004: United Therapeutics Corporation (NASDAQ: UTHR) today announced financial results for the fourth quarter and year ended December 31, 2003.

“We are pleased to report that United Therapeutics’ revenues for the year ended December 31, 2003 totaled $53.3 million, representing a 77% increase over 2002. Our net loss for 2003 fell to $10.0 million, a 58% reduction from the 2002 level,” said Martine Rothblatt, Ph.D., United Therapeutics’ Chairman and Chief Executive Officer.

Annual Results

Revenues grew to $53.3 million in 2003, as compared to $30.1 million in 2002. Gross margins from sales were $46.6 million or 87% in 2003, as compared to $24.7 million or 82% in 2002. This 77% increase in revenues and 5% improvement in gross margin resulted primarily from expanded sales of Remodulin®.

The net loss fell 58% to $10.0 million or $0.47 per share in 2003, as compared to $23.7 million or $1.15 per share in 2002.

Research and development expenses were $35.4 million in 2003, as compared to $26.8 million in 2002. The increase was due primarily to increased expenses related to the Remodulin and OvaRex® programs. Selling, general and administrative expenses were $22.7 million in 2003, as compared to $15.9 million in 2002. The increase was due primarily to increased salaries and related expenses for expanded sales and marketing activities, increased professional fees and increased office overhead expenses.

Interest income was $2.4 million in 2003, as compared to $5.0 million in 2002. This decrease was attributable to lower yields and less cash available for investing during 2003.

There were no losses on marketable investments in 2003, as compared to $7.4 million in 2002 resulting from the sale of all marketable debt investments in July 2002 below cost and their reinvestment in money market funds, commercial paper and federal agency issues. A $2.9 million write-down of United Therapeutics’ investment in its affiliate

 


 

AltaRex Corp. was also recorded in 2002 to adjust its carrying value to fair market value.

Fourth Quarter Results

Revenues grew to $13.6 million in 2003, as compared to $12.0 million in 2002. Gross margins from sales were $12.3 million or 91% in 2003, as compared to $10.5 million or 88% in 2002. These increases in revenues and gross margins resulted primarily from expanded sales of Remodulin.

The net loss was $3.2 million or $0.15 per share in 2003, as compared to $2.6 million or $0.12 per share in 2002.

Research and development expenses were $9.8 million in 2003, as compared to $8.4 million in 2002. The increase was due primarily to expenses related to the Remodulin and OvaRex programs. Selling, general and administrative expenses were $6.1 million in 2003, as compared to $5.3 million in 2002. The increase was due primarily to increased marketing activities.

Conference Call

United Therapeutics will host a teleconference on Tuesday, February 24, 2004 at 9:00 a.m. Eastern Time. The teleconference is accessible by dialing 1-800-915-4836, with international dialers calling 1-973-317-5319. A rebroadcast of the teleconference will be available for one week following the teleconference by dialing 1-800-428-6051 from the US, or by dialing 1-973-709-2089 internationally, and using access code 338594.

United Therapeutics is a biotechnology company focused on combating chronic and life-threatening cardiovascular, infectious and oncological diseases with unique therapeutic products.

 


 

UNITED THERAPEUTICS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS DATA

(In thousands, except share and per share data)

                                 
    Three months ended December 31,
  Year ended December 31,
    2003
  2002
  2003
  2002
Revenues:
                               
Product sales
  $ 12,721     $ 11,078     $ 49,715     $ 26,677  
Service sales
    869       944       3,626       3,443  
 
   
 
     
 
     
 
     
 
 
Total revenue
    13,590       12,022       53,341       30,120  
 
                               
Operating expenses:
                               
Research and development
    9,773       8,355       35,417       26,778  
Selling, general and
                               
administrative
    6,060       5,282       22,667       15,889  
Cost of product sales
    867       1,033       4,994       3,757  
Cost of service sales
    413       465       1,789       1,699  
 
   
 
     
 
     
 
     
 
 
Total operating expenses
    17,113       15,135       64,867       48,123  
   
                               
Loss from operations
    (3,523 )     (3,113 )     (11,526 )     (18,003 )
   
                               
Other income (expense):
                               
Interest income
    591       558       2,435       4,954  
Interest expense
    (18 )     (27 )     (112 )     (117 )
Equity loss in affiliate
    (325 )     (58 )     (953 )     (209 )
Other, net
    55       35       187       45  
Write-down of investment
                      (2,893 )
 
                               
Loss on marketable investments
                      (7,428 )
 
   
     
     
     
 
Total other income (expense)
    303       508       1,557       (5,648 )
                                 
Loss before income tax
    (3,220 )     (2,605 )     (9,969 )     (23,651 )
Income tax
                       
     
     
     
     
 
Net loss
  $ (3,220 )   $ (2,605 )   $ (9,969 )   $ (23,651 )
 
   
 
     
 
     
 
     
 
 
   
                               
Net loss per common share — basic and diluted
  $ (0.15 )   $ (0.12 )   $ (0.47 )   $ (1.15 )
 
   
 
     
 
     
 
     
 
 
   
                               
Weighted average number of common shares outstanding — basic and diluted
    21,296,907       20,921,257       21,134,607       20,644,308  
 
   
 
     
 
     
 
     
 
 

CONSOLIDATED BALANCE SHEET DATA
As of December 31,

(In thousands)

                 
    2003
  2002
Cash, cash equivalents and marketable investments
  $ 117,337     $ 132,655  
Total assets
  $ 179,502     $ 184,566  
Total liabilities
  $ 11,736     $ 12,908  
Total stockholders’ equity
  $ 167,766     $ 171,658