-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RCeoUdw2MnggT+HXKRLgkkR9L3i5dfvqL7DWJ5xv4mnAnhe2MzOnyxTpC9usRJGR wJCJuFqKRsZWc9jSkUfCFg== 0000950162-01-000185.txt : 20010223 0000950162-01-000185.hdr.sgml : 20010223 ACCESSION NUMBER: 0000950162-01-000185 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20010215 ITEM INFORMATION: FILED AS OF DATE: 20010215 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SHIRE PHARMACEUTICALS GROUP PLC CENTRAL INDEX KEY: 0000936402 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-29630 FILM NUMBER: 1547908 BUSINESS ADDRESS: STREET 1: EAST ANTON ANDOVER STREET 2: HAMPSHIRE ENGLAND CITY: ENGLAND SP10 5RG STATE: X0 BUSINESS PHONE: 1264333455 MAIL ADDRESS: STREET 1: EAST ANTON ANDOVER STREET 2: HAMPSHIRE ENGLAND CITY: ENGLAND SP10 5RG 8-K 1 0001.txt FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of Earliest Event Reported): February 15, 2001 Shire Pharmaceuticals Group plc - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) England and Wales - -------------------------------------------------------------------------------- (State or other jurisdiction of incorporation) 0-29630 N/A - --------------------------- ----------------------------------- (Commission File Number) (IRS Employer Identification No.) East Anton, Andover, Hampshire SP10 5RG England - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code 44-1264-333455 ------------------------------ - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report) -2- Item 7. Financial Statements and Exhibits (c) Exhibits: 99.1 Pro Forma Financial Data -3- SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: February 15, 2001 SHIRE PHARMACEUTICALS GROUP PLC By: /s/ ANGUS RUSSELL ----------------------------------------- Name: Angus Russell Title: Group Finance Director -4- EXHIBIT INDEX Exhibit Number Description 99.1 Pro Forma Financial Data EX-99.1 2 0002.txt SUMMARY UNAUDITED PRO FORMA COMBINED FIN. DATA Exhibit 99.1 Summary Unaudited Pro Forma Combined Financial Data The following unaudited pro forma combined financial statements give effect to the proposed merger of Shire Pharmaceuticals Group plc ("Shire") and BioChem Pharma Inc. ("BioChem") as a pooling of interests under U.S. GAAP. The unaudited pro forma condensed balance sheet presents the combined financial position of Shire and BioChem as of September 30, 2000 assuming that the proposed merger has occurred as of September 30, 2000. The unaudited pro forma statements for the years ended December 31, 1999, 1998 and 1997 and for the nine months ended September 30, 2000 reflect the combination of the historical results of operations of Shire and BioChem, along with certain adjustments necessary to conform accounting policies of the two companies. Such pro forma information is based upon the historical financial statements of Shire and BioChem and has been prepared to illustrate the effects of the merger. In calculating the Shire/BioChem pro forma information, an average ADS trading price in the range $47.20 to $70.80 has been assumed. You should read the pro forma combined financial data in conjunction with the historical financial statements of Shire and BioChem incorporated by reference into Shire's proxy statement prepared in connection with the merger of Shire and BioChem, filed with the SEC on January 17, 2001. The pro forma combined financial data are presented for illustrative purposes only and are not necessarily indicative of any future results of operations or the results that might have occurred if the merger had actually occurred on the indicated dates.
Unaudited Pro Forma Combined Condensed Income Statement Nine months ended September 30, 2000 Shire Bio- Chem Shire BioChem Pro Form ----------- ------------- ------------ ----------- ----------- --------- ---------- Accounting Canadian Canadian U.S. GAAP policy U.S. U.S. GAAP GAAP GAAP adjustments alignments GAAP U.S. GAAP $'000 CAN$'000(1) $'000(2) $'000(3)/(4) $'000(6) $'000 $'000 ----------- ------------- ------------ ----------- ----------- --------- ---------- (In thousands, except per share and per ADS amounts) Total revenue..................... 380,605 230,728 141,568 -- (29,225) 112,343 492,948 Operating expenses................ (312,809) (103,350) (68,407) (3,424) 11 (71,820) (384,629) Operating income/(loss)........... 67,796 127,378 73,161 (3,424) (29,214) 40,523 108,319 Interest income................... 4,264 -- 7,842 -- 1,151 8,993 13,257 Interest expense.................. (8,563) -- (3,100) -- -- (3,100) (11,663) Other income/(expenses), net...... 113 141,220 102,381 4,019 -- 106,400 106,513 Income/(loss) before income taxes. 63,610 268,598 180,284 595 (28,063) 152,816 216,426 Income taxes...................... (25,292) (11,989) (7,224) -- 473 (6,751) (32,043) Share of loss of company subject -- (2,155) -- -- -- -- -- to significant influence.......... Net income/(loss) from continuing operations........................ 38,318 254,454 173,060 595 (27,590) 146,065 184,383 Earnings/(loss) from continuing operations per ordinary share - --basic............................ $0.15 CAN$2.51 -- -- -- $1.44 - --diluted.......................... $0.15 CAN$2.43 -- -- -- $1.42 Weighted average ordinary shares outstanding - --basic............................ 251,191 101,199 -- -- -- 101,199 - --diluted.......................... 259,640 107,946 -- (5,078) -- 102,868 Pro forma information based on exchange ratio of 1.8814 (7), (8) Pro forma earnings/(loss) from continuing operations per ordinary share - --basic............................ $0.42 - --diluted.......................... $0.41 Pro forma weighted average ordinary shares outstanding - --basic............................ 441,586 - --diluted.......................... 453,176 Pro forma information based on exchange ratio of 2.3517 Pro forma earnings/(loss)from continuing operations per ordinary share - --basic............................ $0.38 - --diluted.......................... $0.37 Pro forma weighted average ordinary shares outstanding - --basic............................ 489,180 - --diluted.......................... 501,555 Pro forma information based on exchange ratio of 1.5678 Pro forma earnings/(loss) from continuing operations per ordinary share - --basic............................ $0.45 - --diluted.......................... $0.44 Pro forma weighted average ordinary shares outstanding - --basic............................ 409,850 - --diluted.......................... 420,917
Unaudited Pro Forma Combined Condensed Income Statement Year ended December 31, 1999 Shire Bio- Chem Shire BioChem Pro Form ----------- ------------- ------------ ----------- ----------- --------- ---------- Accounting Canadian Canadian U.S. GAAP policy U.S. U.S. GAAP GAAP GAAP adjustments alignments GAAP U.S. GAAP $'000 CAN$'000(1) $'000(2) $'000(3)/(4) '000(6) $'000 $'000 ----------- ------------- ------------ ----------- ----------- --------- ---------- (in thousands, except per share and per ADS amounts) Total revenue................... 401,532 290,275 185,694 -- (49,973) 135,721 537,253 Operating expenses.............. (477,600) (135,166) (93,179) (3,128) -- (96,307) (573,907) Operating income/(loss)......... (76,068) 155,109 92,515 (3,128) (49,973) 39,414 (36,654) Interest income................. 7,349 -- 5,066 -- 3,542 8,608 15,957 Interest expense................ (9,742) -- (1,902) -- -- (1,902) (11,644) Other income/(expenses), net.... (475) 24,181 23,122 (3,896) -- 19,226 18,751 Income/(loss) before income (78,936) 179,290 118,801 (7,024) (46,431) 65,346 (13,590) taxes........................... Income taxes.................... (16,062) (12,091) (6,500) -- 899 (5,601) (21,663) Net income/(loss) from continuing operations........... (94,998) 167,199 112,301 (7,024) (45,532) 59,745 (35,253) Earnings/(loss) from continuing operations per ordinary share - --basic.......................... $(0.39) CAN$1.59 -- -- -- $0.57 - --diluted........................ $(0.39) CAN$1.57 -- -- -- $0.56 Weighted average ordinary shares outstanding - --basic.......................... 244,699 105,313 -- -- -- 105,313 - --diluted........................ 244,699 111,945 -- (4,971) -- 106,974 Pro forma information based on exchange ratio of 1.8814 (7), (8) Pro forma earnings/(loss) from continuing operations per ordinary share - --basic.......................... $(0.08) - --diluted........................ $(0.08) Pro forma weighted average ordinary shares outstanding - --basic.......................... 442,834 - --diluted........................ 442,834 Pro forma information based on exchange ratio of 2.3517 Pro forma earnings/(loss) from continuing operations per ordinary share - --basic.......................... $(0.07) - --diluted........................ $(0.07) Pro forma weighted average ordinary shares outstanding - --basic.......................... 492,363 - --diluted........................ 492,363 Pro forma information based on exchange ratio of 1.5678 Pro forma earnings/(loss) from continuing operations per ordinary share - --basic.......................... $(0.09) - --diluted........................ $(0.09) Pro forma weighted average ordinary shares outstanding - --basic.......................... 409,808 - --diluted........................ 409,808
Unaudited Pro Forma Combined Condensed Income Statement Year ended December 31, 1998 Shire Bio- Chem Shire BioChem Pro Form ----------- ------------- ------------ ----------- ----------- --------- ---------- Accounting Canadian Canadian U.S. GAAP policy U.S. U.S. GAAP GAAP GAAP adjustments alignments GAAP U.S. GAAP $'000 CAN$'000(1) $'000(2) $'000(3)/(4) $'000(6) $'000 $'000 ----------- ------------- ------------ ----------- ----------- --------- ---------- (In thousands, except per share and per ADS amounts) Total revenue................... 308,984 224,965 141,493 -- (14,572) 126,921 435,905 Operating expenses.............. (285,748) (99,016) (68,054) -- -- (68,054) (353,802) Operating income/(loss)......... 23,236 125,949 73,439 -- (14,572) 58,867 82,103 Interest income................. 6,398 -- 6,654 -- 2,673 9,327 15,725 Interest expense................ (6,511) -- (137) -- -- (137) (6,648) Other income/(expenses), net.... 440 -- 4,661 (85,090) -- (80,429) (79,989) Income/(loss) before income 23,563 125,949 84,617 (85,090) (11,899) (12,372) 11,191 taxes........................... Income taxes.................... (2,991) (9,479) (5,131) -- 457 (4,674) (7,665) Non-controlling interest........ -- 1,428 -- -- -- -- -- Net income/(loss) from continuing operations........... 20,572 117,898 79,486 (85,090) (11,442) (17,046) 3,526 Earnings/(loss) from continuing operations per ordinary share - --basic.......................... $0.09 CAN$1.09 -- -- -- $(0.16) - --diluted(9)..................... $0.08 CAN$1.09 -- -- -- $(0.16) Weighted average ordinary shares outstanding - --basic.......................... 234,045 108,443 -- -- -- 108,443 - --diluted(9)..................... 242,806 115,174 -- -- -- 108,443 Pro forma information based on exchange ratio of 1.8814 (7),(8) Pro forma earnings/(loss) from continuing operations per ordinary share - --basic.......................... $0.01 - --diluted........................ $0.01 Pro forma weighted average ordinary shares outstanding - --basic.......................... 438,069 - --diluted........................ 446,831 Pro forma information based on exchange ratio of 2.3517 Pro forma earnings/(loss) from continuing operations per ordinary share - --basic.......................... $0.01 - --diluted........................ $0.01 Pro forma weighted average ordinary shares outstanding - --basic.......................... 489,069 - --diluted........................ 497,831 Pro forma information based on exchange ratio of 1.5678 Pro forma earnings/(loss) from continuing operations per ordinary share - --basic.......................... $0.01 - --diluted........................ $0.01 Pro forma weighted average ordinary shares outstanding - --basic.......................... 404,061 - --diluted........................ 412,823
Unaudited Pro Forma Combined Condensed Income Statement Year ended December 31, 1997 Shire Bio- Chem Shire BioChem Pro Form ----------- ------------- ------------ ----------- ----------- --------- ---------- Accounting Canadian Canadian U.S. GAAP policy U.S. U.S. GAAP GAAP GAAP adjustments alignments GAAP U.S. GAAP $'000 CAN$'000(1) $'000(2) $'000(3)/(4) $'000(6) $'000 $'000 ----------- ------------- ------------ ----------- ----------- --------- ---------- (In thousands, except per share and per ADS amounts) Total revenue................... 191,554 162,860 107,102 -- -- 107,102 298,656 Operating expenses.............. (277,395) (76,382) (56,922) -- -- (56,922) (334,317) Operating income/(loss)......... (85,841) 86,478 50,180 -- -- 50,180 (35,661) Interest income................. 6,547 -- 7,555 -- -- 7,555 14,102 Interest expense................ (964) -- (370) -- -- (370) (1,334) Other income/(expenses), net.... (2,474) -- 410 -- -- 410 (2,064) Income/(loss) before income (82,732) 86,478 57,775 -- -- 57,775 (24,957) taxes........................... Income taxes.................... (1,420) (4,000) (1,660) -- -- (1,660) (3,080) Non-controlling interest........ -- 1,797 -- -- -- -- -- Share of loss of company subject to -- (6,595) -- -- -- -- -- significant influence........... Net income/(loss) from continuing (84,152) 77,680 56,115 -- -- 56,115 (28,037) operations...................... Earnings/(loss) from continuing operations per ordinary share - --basic.......................... $(0.45) CAN$0.72 -- -- -- $0.52 - --diluted........................ $(0.45) CAN$0.72 -- -- -- $0.51 Weighted average ordinary shares outstanding - --basic.......................... 185,153 108,153 -- -- -- 108,153 - --diluted........................ 185,153 114,229 -- (4,414) -- 109,815 Pro forma information based on exchange ratio of 1.8814 (7), (8) Pro forma earnings/(loss) from continuing operations per ordinary share - --basic.......................... $(0.07) - --diluted........................ $(0.07) Pro forma weighted average ordinary shares outstanding - --basic.......................... 388,632 - --diluted........................ 388,632 Pro forma information based on exchange ratio of 2.3517 Pro forma earnings/(loss) from continuing operations per ordinary share - --basic.......................... $(0.06) - --diluted........................ $(0.06) Pro forma weighted average ordinary shares outstanding - --basic.......................... 439,496 - --diluted........................ 439,496 Pro forma information based on exchange ratio of 1.5678 Pro forma earnings/(loss) from continuing operations per ordinary share - --basic.......................... $(0.08) - --diluted........................ $(0.08) Pro forma weighted average ordinary shares outstanding - --basic.......................... 354,715 - --diluted........................ 354,715
Unaudited Pro Forma Combined Condensed Balance Sheet As at September 30, 2000 Shire Bio- Chem Shire BioChem Pro Form ----------- ------------- ------------ ----------- ----------- --------- ---------- Accounting Canadian Canadian U.S. GAAP policy U.S. U.S. GAAP GAAP GAAP adjustments alignments GAAP U.S. GAAP $'000 CAN$'000(1) $'000(2) $'000(3)/(4) $'000(6) $'000 $'000 ----------- ------------- ------------ ----------- ----------- --------- ---------- ASSETS Current assets: Cash and current investments..... 169,663 403,214 267,571 -- 12,882 280,453 450,116 Accounts receivable, net......... 89,630 79,104 52,552 -- -- 52,552 142,182 Inventories, net................. 38,665 4,117 2,733 -- -- 2,733 41,398 Other current assets............. 22,240 2,505 1,663 -- 2,757 4,420 26,660 Total current assets............. 320,198 488,940 324,519 -- 15,639 340,158 660,356 Property, plant and equipment, 28,649 151,526 82,171 (2,706) -- 79,465 108,114 net.............................. Intangible assets, net........... 538,255 16,585 29,865 (3,722) -- 26,143 564,398 Other assets..................... 29,182 154,559 101,305 -- (5,929) 95,376 124,558 Total assets..................... 916,284 811,610 537,860 (6,428) 9,710 541,142 1,457,426 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current instalments of long term 1,412 120,624 80,042 -- -- 80,042 81,454 debt............................. Accounts payable and accrued 77,828 45,292 30,091 -- 3,792 33,883 111,711 expenses......................... Other current liabilities........ 29,075 -- -- -- -- -- 29,075 Total current liabilities........ 108,315 165,916 110,133 -- 3,792 113,925 222,240 Long term debt, including capital lease obligations........ 126,413 8,550 5,673 -- -- 5,673 132,086 Other long term liabilities...... 422 -- -- -- -- -- 422 Shareholders' equity............. 681,134 637,144 422,054 (6,428) 5,918 421,544 1,102,678 Total liabilities and 916,284 811,610 537,860 (6,428) 9,710 541,142 1,457,426 shareholders' equity.............
- ----------- Notes 1. The Canadian GAAP condensed financial information presented in thousands of Canadian dollars as of and for the nine months ended September 30, 2000 has been derived from the uanaudited consolidated financial statements of BioChem. The Canadian GAAP condensed financial information presented in thousands of Canadian dollars for the years ended December 31, 1997, 1998 and 1999 has been derived from the audited consolidated financial statements of BioChem, incorporated by reference into Shire's proxy statement prepared in connection with the merger of Shire and BioChem, filed with the SEC on January 17, 2001. 2. The Canadian GAAP condensed financial information presented in thousands of Canadian dollars has been translated to U.S. dollars in the following manner: o Assets and liabilities have been translated using exchange rates at the end of each reporting period. o Revenues and expenses were translated at the average exchange rates prevailing during the period. o Share capital balances have been translated at historical rates in effect at the time the capital transactions occurred. o Cumulative translation gains and losses are reported as a separate component of shareholders' equity. All translations were calculated using the following weighted average and period end exchange rates:
Year ended Year ended Year ended Nine months ended U.S. dollars per C$1.00 December 31, 1997 December 31, 1998 December 31, 1999 September 30, 2000 ----------------------- ----------------- ----------------- ----------------- ------------------ --weighted average............. 0.7223 0.6743 0.6730 0.6794 --period end................... 0.6997 0.6534 0.6929 0.6636
- ----------- (i) For the translation of CliniChem, the translation for the period ended December 31, 1998 is 0.6582. 3. Adjustments reflecting the differences between Canadian GAAP and U.S. GAAP are as follows:
Year ended Year ended Year ended Nine months ended December 31, 1997 December 31, 1998 December 31, 1999 September 30, 2000 $'000 $'000 $'000 $'000 ----------------- ----------------- ----------------- ------------------ Deferred charges (a).......... -- -- (3,128) (3,424) Share of loss in a company subject to significant influence(b).................. -- -- (3,496) 3,528 Deferred foreign exchange losses(c)..................... -- (86) (400) 491 Loss on disposal of a long term investment (d)................ -- (85,004) -- -- (85,090) (7,024) 595
(a) Deferred charges Statement of Position 98-5 "Reporting on the Costs of Start-Up Activities" ("SOP 98-5"), issued by the AICPA states that the costs of start-up activities should be expensed as incurred. Pursuant to SOP 98-05, the unamortized deferred charges consisting primarily of start-up costs have been written off in the income statement under the caption "operating expenses". Adjustments (b) through (d) below appear in the pro forma income statements under the caption "other income/(expenses), net". (b) Share of loss in a company subject to significant influence Under U.S. GAAP, the total investment in North American Vaccine Inc. (NAVA) is reduced by $3,128,000 for the year ended December 31, 1999 in accordance with requirements of the Emerging Issues Task Force 98-13 on accounting by an equity method investor for investee losses when the investor has loans to and investments in other securities of the investee. This adjustment was reversed in the nine months ended September 30, 2000 as the investment in NAVA was disposed of. (c) Deferred foreign exchange losses Under Canadian GAAP, unrealized foreign exchange gains and losses arising on the translation of long-term monetary items are deferred and amortized over the life of the item. -2- Under U.S. GAAP, these gains and losses are included in current period earnings as they arise. (d) Loss on disposal of a long-term investment Under U.S.GAAP, the distribution of CliniChem's Class A shares is reduced by $85,004,000 and an equivalent loss on disposal of a long-term investment is recorded. 4. Weighted average shares Under Canadian GAAP, fully diluted earnings per share assumes that all the outstanding options at the end of the year have been exercised at the beginning of the year or at the date granted, if granted during the year, and proceeds from the exercise of options have been used for investments. Under U.S. GAAP, diluted earnings per share is calculated based on the assumption that the options have been exercised at the beginning of the year or at the date granted, if granted during the year, and proceeds from the exercise of options were used at the beginning of the year or at the date granted to acquire common shares of the company at the average market price. 5. Adjustments to expense the accumulated costs of deferred charges as described in 3 (a) and (c) above. 6. Adjustments to reflect the realignment of BioChem's accounting policies to conform with those of Shire under U.S. GAAP. In 1998, BioChem spun-off to its shareholders its investment in CliniChem Development, Inc. In connection with this spin-off, BioChem retained rights in CliniChem, including that BioChem had an option to reacquire all shares in CliniChem at any time. Under EITF 99-16, this transaction would result in CliniChem continuing to be consolidated by BioChem as BioChem would have significant continuing involvement in the operations of CliniChem. However, at the time that CliniChem was spun-off, EITF 99-16 had not been issued and BioChem elected to deconsolidate CliniChem, an acceptable accounting principle at that time. The management of Shire believe that their accounting policies would have required Shire to continue to consolidate CliniChem, also an acceptable accounting alternative at the date of spin-off and a policy that conforms with the later guidance issued under EITF 99-16. The adjustments listed below represent the effects from: (a) consolidating the financial position and results of operations of CliniChem, and (b) eliminating intercompany licensing revenues and costs. -3-
Nine months ended Year ended Year ended Year ended September 30, December 31, 1997 December 31, 1998 December 31, 1999 2000 $'000 $'000 $'000 $'000 ----------------- ----------------- ----------------- ----------------- Total revenue................. -- (14,572) (49,973) (29,225) Operating expenses............ -- -- -- 11 Operating income/(loss)....... -- (14,572) (49,973) (29,214) Interest income............... -- 2,673 3,542 1,151 Income/(loss) before income taxes -- (11,899) (46,431) (28,063) Income taxes.................. -- 457 899 473 Net income/(loss) from continuing operations.................. -- (11,442) (45,532) (27,590)
These adjustments have been derived from the financial results of CliniChem as follows:
U.S. GAAP Canadian GAAP Canadian GAAP Alignments U.S.GAAP Income Statement Data: CAN$'000 $'000 * $'000 $'000 --------------------- ------------- ------------- ---------- ---------- Period ended December 31, 1998 Total revenue....................................... 4,061 2,673 (2,673) -- Operating expenses.................................. (21,379) (14,072) (500) (14,572) Operating (loss).................................... (17,318) (11,399) (3,173) (14,572) Interest income..................................... -- -- 2,673 2,673 (Loss) before income taxes.......................... (17,318) (11,399) (500) (11,899) Income taxes........................................ (66) (43) 500 457 Net (loss).......................................... (17,384) (11,442) -- (11,442) Year ended December 31, 1999 Total revenue....................................... 5,262 3,541 (3,541) -- Operating expenses.................................. (72,917) (49,073) (900) (49,973) Operating (loss).................................... (67,655) (45,532) (4,441) (49,973) Interest income..................................... -- -- 3,542 3,542 (Loss) before income taxes.......................... (67,655) (45,532) (899) (46,431) Income taxes........................................ -- -- 899 899 Net (loss).......................................... (67,655) (45,532) -- (45,532) Nine months ended September 30, 2000 Total revenue....................................... 1,710 1,162 (1,151) 11 Operating expenses.................................. (42,319) (28,752) (473) (29,225) Operating (loss).................................... (40,609) (27,590) (1,624) (29,214) Interest income..................................... -- -- 1,151 1,151 (Loss) before income taxes.......................... (40,609) (27,590) (473) (28,063) Income taxes........................................ -- -- 473 473 Net (loss).......................................... (40,609) (27,590) -- (27,590)
Canadian Canadian Balance Sheet Data: GAAP GAAP U.S. GAAP As at September 30, 2000 CAN$'000 $'000 * $'000 ------------------------ --------- --------- --------- Cash and current investments.................................... 19,413 12,882 12,882 Other current assets............................................ 4,154 2,757 2,757 Accounts payable and accrued expenses........................... 5,714 3,792 3,792 Shareholders' equity............................................ 17,853 11,847 11,847
-4- In addition, as a result of the consolidation of the CliniChem figures stated above, the investment shown in the financial statements of BioChem within the caption "other assets" needs to be reversed. The value of this adjustment is $5,929,000. *Translation of Canadian dollars into U.S. dollars has been performed according to the method set out in note 2 above. 7. Pro forma weighted average ordinary shares have been calculated using the exchange ratios of 1.8814, 2.3517 and 1.5678 which are the mid, highest and lowest number of ordinary shares that can be issued for each BioChem share under the terms of the merger agreement. Earnings per share information is presented under the three scenarios to demonstrate the effect of the exchange ratio on the pro forma results. 8. The exchange ratio of 1.8814 has been calculated by dividing an ADS price per share of $37.00 by $59.00, which represents the mid range price, and multiplying the result by three as per the terms of the merger agreement. 9. The calculation of weighted average number of shares for the years ended December 31, 1999 and 1997 does not include potentially dilutive stock options because their inclusion would be anti-dilutive in a loss making year. 10. The unaudited pro forma combined income statement does not reflect costs expected to be incurred by Shire and BioChem directly related to the merger as these costs will not have a continuing impact on the financial results. The costs attributable to professional fees, UK stamp duty tax levied on the value of the Shire ordinary shares issued under the merger agreement and the distribution of proxy materials are estimated at $100 million. 11. Refinancing of debt has not been reflected in the unaudited pro forma combined income statements and balance sheet. Shire has not yet determined whether to seek consent or to repay the amount outstanding.
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