CONTACT:
David K. Waldman/John W. Heilshorn Carl Fonash
Lippert Heilshorn & Associates The Quigley Corporation
(212) 838-3777 (267) 880-1111
dwaldman@lhai.com
QUIGLEY REPORTS FIRST QUARTER RESULTS
AND PROVIDES UPDATES ON PHARMACEUTICAL SEGMENT
DOYLESTOWN, PA. - APRIL 29, 2004 - THE QUIGLEY CORPORATION (NASDAQ: QGLY) today
reported net sales of $9.6 million for the first quarter of 2004, a 17.3%
increase over the $8.2 million reported for the same period in 2003.
The increase in net sales for the first quarter of 2004 reflects a 26.3%
increase in the Company's Cold Remedy segment and a 11.3% increase in the Health
and Wellness segment. The Company's Cold Remedy net sales continue to increase
as a result of strategic advertising, marketing initiatives, and new products.
The Company's Health and Wellness revenues have increased as distribution
continues to expand internationally.
The Company also provided the following updates regarding its Ethical
Pharmaceutical segment:
- - Quigley Pharma held its pre-IND meeting with the United States Food and
Drug Administration regarding QR-333, the Company's patented formula for
the topical treatment of diabetic peripheral neuropathy. The Company has
received the necessary input from the United States Food and Drug
Administration advising it as to the steps to be taken to progress towards
pivotal phase III clinical trials.
- - Quigley Pharma demonstrated that its patent-applied-for formulation,
QR-336, was protective against the effects of a lethal, whole body ionizing
(nuclear) radiation dose, in a pre-clinical mouse model study. Based upon
the findings of the pre-clinical radiation study of QR-336 in mice, the
Company is preparing the necessary protocols to proceed to a GLP `Good
Laboratory Practice' controlled animal study.
- - Quigley Pharma demonstrated the virucidal and virustatic activity of QR-435
against the strain 3B of the Human Immunodeficiency Virus (HIV) Type 1 in
an in-vitro study. Previous in-vitro and in-vivo studies have suggested
that QR-435 also has broad anti-viral properties for applications such as
Influenza A&B, SARS, and Herpes Simplex 1. Given the broad anti-viral
properties of QR-435, the Company intends to embark on the FDA regulatory
path for approval.
Guy J. Quigley, Chairman, President and Chief Executive Officer stated, "Both
our Cold Remedy and Health and Wellness segments continue to generate strong
results, which helps offset the costs associated with our pharmaceutical
research and development. We are encouraged by the improved sales of
COLD-EEZE(R), especially within several large retail chains, as well as the
strong performance of our honey lemon COLD-EEZE. Looking ahead, we plan to begin
delivery of our new COLD-EEZE bubble gum and COLD-EEZE `green-tea with lemon'
lozenges to retail stores during the third quarter."
Loss from continuing operations for the first quarter of 2004 was $782,000, or
($0.07) per share, compared to a loss from continuing operations of $892,000, or
($0.08) per share, for the same period last year. Net loss for the first quarter
ended March 31, 2004 was $724,000, or ($0.06) per share, compared to a net loss
of $947,000, or ($0.08) per share, for the same period last year.
Loss from continuing operations for the quarter ended March 31, 2004 improved as
compared with the same period last year, driven by gross profit gains, which
were partially offset by increases in marketing, administrative, and research
and development costs associated with Quigley Pharma and other clinical studies.
No tax benefits to reduce losses are provided for the quarters ended March 31,
2004 and 2003, since the Company is in a net operating loss carry-forward
position, which is from the cumulative effect of deductions attributed to
options, warrants and unrestricted stock from previous year's taxable income.
In January 2003, the company completed the sale of its 60% equity interest in
Caribbean Pacific Natural Products, Inc. to Suncoast Naturals, Inc. by
exchanging its 60% controlling interest in Caribbean Pacific Natural Products,
Inc. for 750,000 Shares of Common Stock and 100,000 Shares of Redeemable
Preferred Stock of Suncoast Naturals, Inc. The results of operations of
Caribbean Pacific Natural Products, Inc. are reflected as discontinued
operations of the Company for the periods presented. Net loss for the quarter
ended March 31, 2003 includes $54,000 associated with discontinued operations of
Caribbean Pacific Natural Products, Inc.
The Quigley Corporation (Nasdaq: QGLY, http://www.Quigleyco.com) is a leading
developer and marketer of diversified health products including the COLD-EEZE(R)
family of patented zinc gluconate glycine (ZIGG(TM)) lozenges and sugar free
tablets. COLD-EEZE is the only (ZIGG) lozenge proven in two double-blind studies
to reduce the duration of the common cold from 7.6 to 4.4 days or by 42%. In
addition to Over-The-Counter (OTC) products, the Company has formed Quigley
Pharma Inc. (http://www.QuigleyPharma.com ), a wholly owned ethical
pharmaceutical subsidiary, to introduce a line of naturally-derived patented
prescription drugs. The Quigley Corporation's customers include leading national
wholesalers and distributors, as well as independent and chain food, drug and
mass merchandise stores and pharmacies. The Quigley Corporation makes no
representation that the U.S. Food and Drug Administration or any other
regulatory agency will grant an IND or take any other action to allow the
aforementioned products to be studied or marketed. Furthermore, no claim is made
that the potential medicine discussed here is safe, effective, or approved by
the Food and Drug Administration.
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.
(Tables Follow)
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
The following represents condensed financial data (in thousands) except loss
from continuing operations per share and diluted net loss per share and weighted
average shares outstanding for the periods presented:
Three-Months Three-Months
Ended Ended
March 31, 2004 March 31, 2003
($) ($)
Net Sales 9,606 8,191
Gross profit 4,520 3,694
Sales & marketing expenses 1,623 1,527
Administrative expenses 2,750 2,442
Research & development 947 647
Income taxes (Benefit) -- --
Loss from:
Continuing operations (782) (892)
Discontinued operations -- (55)
Cumulative effect of change
in accounting principle 58 --
Net loss (724) (947)
Diluted loss per share:
Continuing operations ($0.07) ($0.08)
Discontinued operations
Cumulative effect of change in accounting principle $0.01 --
Net loss ($0.06) ($0.08)
Diluted weighted average common shares outstanding: 11,510,687 11,456,617
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
The following represents condensed financial data (in thousands) at March 31,
2004 and December 31, 2003:
2004 2003
($) ($)
------ ------
Cash & cash equivalents 15,587 11,392
Accounts receivable, net 2,078 7,862
Inventory 3,954 3,753
Total current assets 22,083 23,740
Total assets 24,585 26,270
Total current liabilities 4,509 5,483
Total stockholders' equity 20,077 20,787