The Quigley Corporation Reports First Quarter 2009 Results
The decrease in net sales for the first quarter of 2009 reflects a market-wide decrease in consumer purchases of cold remedy products as reported by Information Resources Inc., (“IRI”) data, general economic weakness and lower incidence of colds by consumers.
Net sales for the first quarter of 2009 reflect the benefits of the Kids-EEZE(R) Chest Relief product line, which was launched in
The loss from continuing operations for the first quarter ended
Net loss for the first quarter ended
The Company continued to invest in Quigley Pharma, a wholly owned Ethical Pharmaceutical subsidiary developing natural-source potential prescription and other products. Research and development costs associated with Quigley Pharma for the first quarter of 2009 were
No tax provision or benefits to reduce losses are provided for the first quarter of 2009 and 2008, as the Company is in a net operating loss carry-forward position for which a valuation has been established.
The Company continued to invest in pharmaceutical research and development including QR448(a), a veterinary anti-viral compound against Infectious Bronchitis Virus (IBV) in poultry, and QR-333, an investigational new formulation for treating conditions associated with Diabetic Peripheral Neuropathy.
The research by the Company is part of its strategic initiatives to generate future growth. These initiatives include capitalizing on the growth potential of Quigley Pharma by developing natural-source potential prescription products particularly for Diabetic Peripheral Neuropathy, avian flu in animals and for protection against ionizing radiation.
Ongoing Quigley Pharma research and development initiatives include investing in its key pharmaceutical formulations, QR-333. The last subject in the Phase IIb study completed treatment at the end
The Phase IIb study was designed to evaluate the safety and efficacy of QR-333, a unique topical formulation designed to offer physicians and patients an effective, easy to administer, safe treatment for Diabetic Peripheral Neuropathy with little to no side effects. To date there is no fully effective treatment for diabetic neuropathy. Current treatment options are limited to products such as NSAIDs, analgesics, anticonvulsants, antidepressants, etc., which are often not well tolerated by patients.
As announced by the Company on
These findings necessitate a change in the potential outlook for this investigational new drug. The Diabetic Peripheral Neuropathy market has significant unmet need for rational, mechanism-based drugs. These clinically significant findings suggest disease modification in this (12 week) phase II b study. The Company is aware that this is a finding in a subset of the patient population. Since the observations obtained from the study relate to positive effect on nerve functioning, the Company may, in the future, be focusing on a broader therapeutic area.
The World Health Organization estimates, more than 171 million people have diabetes worldwide. It is also estimated that 20 million people, representing approximately 7% of
The Quigley Corporation makes no representation that the US Food and Drug Administration or any other regulatory agency will allow this Investigational New Drug to be marketed. Furthermore, no claim is made that potential medicine discussed herein is safe, effective, or approved by the Food and Drug Administration.
Additionally, data that demonstrates activity or effectiveness in animals or in vitro tests do not necessarily mean the formula test compound; referenced herein will be effective in humans. Safety and effectiveness in humans will have to be demonstrated by means of adequate and well-controlled clinical studies before the clinical significance of the formula test compound is known. Readers should carefully review the risk factors described in filings the Company files from time to time with the Securities and Exchange Commission.
About The Quigley Corporation
The Quigley Corporation (Nasdaq: QGLY, http://www.Quigleyco.com) is a diversified natural health medical science company. Its Cold Remedy segment is a leading marketer and manufacturer of the COLD-EEZE(R) family of lozenges, gums and sugar free tablets clinically proven to cut the common cold nearly in half. COLD-EEZE customers include leading national wholesalers and distributors, as well as independent and chain food, drug and mass merchandise stores and pharmacies. The Quigley Corporation has several wholly owned subsidiaries; Quigley Manufacturing Inc. consists of two FDA approved facilities to manufacture COLD-EEZE(R) lozenges as well as fulfill other contract manufacturing opportunities. Quigley Pharma Inc. (http://www.QuigleyPharma.com) conducts research in order to develop and commercialize a pipeline of patented botanical and naturally derived potential prescription drugs.
Certain statements in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and involve known and unknown risk, uncertainties and other factors that may cause the Company’s actual performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward-looking statement. Factors that impact such forward-looking statements include, among others, changes in worldwide general economic conditions, changes in interest rates, government regulations, and worldwide competition.
Important Additional Information
The Quigley Corporation (“Quigley” or the “Company”) filed a definitive proxy statement with the Securities and Exchange Commission (the “SEC”) on
In addition, copies of the Company’s proxy materials may be requested at no charge by contacting MacKenzie Partners, Inc. at 1-800-322-2885 or via email at firstname.lastname@example.org Detailed information regarding the names, affiliations and interests of individuals who are participants in the solicitation of proxies of Quigley’s stockholders is available in Quigley’s definitive proxy statement filed with SEC on
Consolidated Statements of Operations (Unaudited)
The following represents condensed financial data (in thousands) except per share data: Three-Months Three-Months Ended Ended March 31, 2009 March 31, 2008 ($) ($) Net Sales 3,987 5,305 Gross profit 2,352 3,570 Sales & marketing expenses 2,024 2,232 Administrative expenses 2,290 2,508 Research & development 248 1,411 Income taxes (benefit) - - (Loss) Income from: Continuing operations (2,199) (2,445) Discontinued operations - 876 Net Loss (2,199) (1,569) Diluted income (loss) per share: Continuing operations ($0.17) ($0.19) Income from discontinued operations - 0.07 Net loss ($0.17) ($0.12) Diluted weighted average common shares outstanding: 12,908,383 12,859,433
Consolidated Balance Sheets (Unaudited)
The following represents condensed financial data (in thousands) at March 31, 2009 and December 31, 2008: 2009 2008 ($) ($) Cash & cash equivalents 12,244 11,957 Accounts receivable, net 1,796 4,524 Inventory 3,246 3,001 Total current assets 18,019 20,666 Total assets 21,635 24,369 Total current liabilities 6,060 6,595 Total stockholders' equity 15,575 17,774
CONTACT: Gerard M. Gleeson Carl Hymans Vice President, CFO G.S. Schwartz & Co. (215) 345-0919 (212) 725-4500 email@example.com
SOURCE The Quigley Corporation