- 2005 Revenues Reach $50 Million Level NEW YORK, April 3
/PRNewswire-FirstCall/ -- Inyx, Inc. (OTC:IYXI) (BULLETIN BOARD:
IYXI) , a specialty pharmaceutical company focused on niche drug
delivery technologies and products, reported today operating
results for the fourth quarter and year ended December 31, 2005.
Inyx also announced a pending German acquisition and strategic
pan-European collaboration. The company is also updating its
guidance on revenues and operating income for 2006 and issuing
targets for 2007. Inyx will hold a conference call for investors
today at 9:00 a.m. EDT (see further down for conference-call
details). For the fourth quarter of 2005, revenues reached $25.5
million, the highest quarterly level in the company's history and
more than a six-fold increase from the $4.2 million reported in the
2004 closing quarter. The company reported a net loss in the 2005
quarter of $13.6 million, equal to $0.33 per share, compared with a
net loss of $7.0 million, or $0.19 a share, in the year-earlier
period. For the year ended December 31, 2005, revenues more than
tripled to $49.6 million from the $15.7 million reported for 2004.
The net loss in 2005 amounted to $31.0 million, equal to $0.78 per
share, versus a net loss of $16.9 million, or $0.52 a share, in
2004. Detailed financials are presented in the company's Form 10-K
filed March 31, 2006, which can be downloaded from Inyx's website.
Jack Kachkar, M.D., Chairman & CEO of Inyx, Inc., said, "The
strong increase in 2005 fourth- quarter and full-year revenues is
due largely to additional business as a result of two, strategic
acquisitions made last year. The increased net loss in 2005 is due
primarily to higher operating expenses created by those
acquisitions that won't start to be offset until the second half of
2006, as well as $3.0 million in one-time, non-recurring charges
related to the acquisitions and $3.9 million in non-cash charges."
On March 31, 2005, Inyx acquired certain assets and business of
Aventis Pharmaceuticals Puerto Rico Inc. On August 31, 2005, Inyx
acquired Celltech Manufacturing Services Limited, based in the
United Kingdom (and then re-named Ashton Pharmaceuticals Limited).
Pending Acquisition and Strategic Collaboration Inyx reported it
has reached an agreement in principle to acquire a German
pharmaceutical production business from a pan-European specialty
pharmaceutical company, with which it is also entering into a
strategic, 10-year-plus collaboration agreement, whereby Inyx will
become the exclusive manufacturing resource for the European
company's therapeutic products. The acquisition and collaboration
also includes Inyx receiving several product licenses. The
acquisition, which is subject to completion of customary due
diligence, execution of definitive documents and securing financing
for the closing, is expected to be completed by June 30, 2006. The
purchase price was not disclosed. "We are very excited about these
tandem transactions, which represent the two most material to date
in terms of contributions to Inyx's earnings and revenues.
Moreover, both expand Inyx's scope in the international
pharmaceutical industry," said Jack Kachkar, M.D., Chairman and CEO
of Inyx, Inc. Germany is the largest pharmaceutical market in
Europe, and operations there strategically complement Inyx's two
existing subsidiaries in the United Kingdom," Dr. Kachkar
explained. Under the long-term collaboration agreement, Inyx will
become the exclusive manufacturer of both prescription and
over-the-counter pharmaceutical products, which include drugs
marketed to most European countries. Inyx will take over the
production of these products, which will be conducted not only at
the German plant but at Inyx's U.K. sites as appropriate. "In
fact," noted Dr. Kachkar, "our strategic manufacturing
collaboration has already started on some products." Future
Guidance Due to the German acquisition, new business opportunities
as well as this year's schedule of existing contracts, the company
has raised its revenue guidance for 2006 to approaching the $150
million level from the $125-$135 million range previously targeted.
However, because of a longer process and higher expenses than
previously anticipated related to the integration of last year's
strategic U.S. acquisition in Puerto Rico, as well as Inyx now
increasing its investment in the future by raising expenditures for
marketing and business development, plus expanding its operating
and corporate management team, the company does not expect material
full-year earnings until 2007. As a result of this year's increased
expenditures as well as an estimated $2 million in additional
depreciation charges related to the pending German acquisition,
Inyx now expects an EBITDA (earnings before income taxes,
depreciation and amortization) profit margin in the 15% range and a
net profit margin in the 3% range as opposed to earlier 2006
targets of 15%-20% and 10%- 15%, respectively. Inyx expects to
start to begin to achieve material net earnings in the third
quarter of 2006. "In 2006, Inyx is making additional investments to
both produce and manage accelerating future growth," explained Dr.
Kachkar. "We are very excited about the future because, as a result
of Inyx's niche drug delivery expertise and expanding relationships
in the pharmaceutical industry, we expect to have a breakout year
in 2007." Based on the pending acquisition and related strategic
collaboration as well as other new business opportunities, Inyx
also reported guidance for 2007: revenues are targeted to exceed
$250 million with an EBITDA margin approaching 20% and a net margin
in excess of 10%. Inyx expects to also benefit in 2007 from a
full-year's contribution from its initial proprietary products,
which are expected to be ready for commercial marketing later this
year. Inyx's first proprietary product is a wound-care spray
utilizing a barrier-pack technology, which allows a hermetical seal
between the product and the propellant and, in turn, permits
effective spraying from any angle. Inyx is currently testing its
wound-care product in barrier-pack formulation for stability, and
expects it to be ready for commercial launch in Europe in the
second half of 2006. Inyx is also developing both saline and
steroidal nasal sprays for the treatment of allergic and
non-allergic rhinitis, disorders characterized by inflammation of
the mucous membranes lining the nasal passages. The formulation
work on these products has been completed and Inyx is currently
performing pump-spray compatibility studies. Inyx expects to have
these two nasal sprays ready for commercial distribution by the end
of 2006. Other Growth Initiatives "We commenced four strategic
growth initiatives in 2005 that are starting to pay off, and we
must make sure they are managed prudently," he said. In addition to
last year's two acquisitions, Inyx and King Pharmaceuticals, Inc.
announced on September 8, 2005, a strategic collaboration. In 2005,
Inyx also formed a new wholly owned subsidiary, Exaeris, Inc.,
through which the company's marketing and commercial collaborations
will be conducted, complementing its pharmaceutical development and
manufacturing expertise. "We are making a significant investment in
Exaeris, which commenced formal operations this January. Exaeris
should be a major growth driver for Inyx in the future but is not
expected to start to make a material contribution to operating
results until 2007," Dr. Kachkar said. "There are also several
other new business opportunities that we are pursuing and expect to
finalize during 2006. Some of these are additional strategic
initiatives reflecting Inyx's evolution into becoming a vertically
integrated, specialty pharmaceutical company - and which should
contribute to building revenues and earnings starting in 2007,"
stated the Inyx CEO. Investors Conference Call Inyx will conduct a
conference call with investors this morning at 9:00 a.m. Eastern
Daylight Time. Investors in the U.S. should call the following
toll-free number: 877-407-0782. Outside the U.S., investors should
call: 201-689-8567. All callers should phone in by 8:55 a.m. EDT.
The call is also being webcast by Vcall, which can be accessed at
Inyx's website: http://www.inyxgroup.com/ or at
http://www.investorcalendar.com/. For those unable to access live,
a replay will be available to U.S. investors at the following
toll-free number: 877-660-6853; international investors should
call: 201-612-7415. All replay callers must dial-in account number:
286 and conference I.D.: 198099. The replay will be available
approximately two hours after the live call ends and run through
11:59 p.m. EDT on April 7, 2006. The webcast will be archived for
90 days on the two websites listed above. About Inyx Inyx, Inc. is
a specialty pharmaceutical company with niche drug delivery
technologies and products for the treatment of respiratory,
allergy, dermatological, topical and cardiovascular conditions.
Inyx focuses its expertise on both prescription and
over-the-counter pharmaceutical products, and provides specialty
pharmaceutical development and production consulting services. In
addition, Inyx is developing its own proprietary products. The
company's operations are conducted through several wholly owned
subsidiaries: Inyx USA, Ltd., based in Manati, Puerto Rico; Inyx
Pharma Ltd. and Inyx Europe Limited, which owns and operates Ashton
Pharmaceuticals Ltd., all near Manchester, England; Inyx Canada,
Inc. in Toronto; and Exaeris, Inc., based in Exton, Pennsylvania.
Inyx, Inc.'s corporate offices are in New York City. For more
information, please visit: http://www.inyxinc.com/. Safe Harbor
Statements about Inyx's future expectations, including future
revenues and earnings, and all other statements in this press
release other than historical facts, are "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933, Section 21E of the Securities Exchange Act of 1934, and as
that term is defined in the Private Securities Litigation Reform
Act of 1995. The Company intends that such forward-looking
statements be subject to the safe harbors created thereby. Since
these statements involve risks and uncertainties and are subject to
change at any time, the Company's actual results could differ
materially from expected results. INYX, INC. Consolidated Statement
of Operations (expressed in thousands of U.S. dollars, except per
share amounts) For the Three Months Ended December 31, 2005 2004
(Unaudited) Net revenues $25,479 $ 4,150 Gross profit 6,856 226
Total operating expenses 18,336 4,649 Loss from operations before
interest and financing costs and income tax expense (11,480)
(4,423) Interest and financing costs 2,163 896 Income tax expense -
1,726 Net loss $(13,643) $(7,045) Basic and fully diluted loss per
share $(0.33) $(0.19) Weighted average number of shares used in
computing basic and fully diluted loss per share amounts 40,802,851
38,013,000 INYX, INC. Consolidated Statement of Operations
(expressed in thousands of U.S. dollars, except per share amounts)
For the Year Ended December 31, 2005 2004 (Audited) Net revenues
$49,565 $15,699 Gross profit 14,706 1,383 Total operating expenses
35,656 13,622 Loss from operations before interest and financing
costs and income tax expense (20,950) (12,239) Interest and
financing costs 10,059 3,370 Loss before income tax expense
(31,009) (15,609) Income tax expense - 1,333 Net loss $(31,009)
$(16,942) Basic and fully diluted loss per share $(0.78) $(0.52)
Weighted average number of shares used in computing basic and fully
diluted loss per share amounts 39,774,450 32,598,358 For more
information, please contact: Jay M. Green, Executive Vice President
Inyx, Inc. +1-212-838-1111, DATASOURCE: Inyx, Inc. CONTACT: Jay M.
Green, Executive Vice President of Inyx, Inc., +1-212-838-1111, Web
Site: http://www.inyxgroup.com/ http://www.investorcalendar.com/
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