Exhibit 99.1
FOR IMMEDIATE RELEASE PHIC OMITTED]
CONTACT:
George J. Longo Carl Hymans
Vice President, CFO G.S. Schwartz & Co.
(215) 345-0919 (212) 725-4500
carlh@schwartz.com
THE QUIGLEY CORPORATION REPORTS SECOND QUARTER RESULTS
- INCREASES INVESTMENT IN PHARMACEUTICAL R&D FOR DIABETIC NEUROPATHY -
DOYLESTOWN, PA. - JULY 26, 2007 - THE QUIGLEY CORPORATION (NASDAQ: QGLY) today
reported net sales of $5.0 million, for the second quarter ended June 30, 2007,
compared to $6.2 million reported for the same period in 2006. For the
six-months ended June 30, 2007, net sales were $14.1 million compared to $16.4
million reported for the same period in 2006.
The second quarter and first half of 2007 reflect a net sales increase for the
Company's Cold Remedy segment of $169,000 and $532,000, respectively, as
compared to the same periods of 2006. These increases reflect a return to
previous customer purchase patterns after seasonal purchasing adjustments made
in 2006.
The Company believes in the viability of the COLD-EEZE(R) brand due to the
strong appeal among the growing number of consumers who want Natural Common Cold
remedies that demonstrate proven clinical efficacy and safety. As part of
ongoing initiatives to generate future growth, the Company introduced two new
COLD-EEZE brand extensions, which will be available during the third quarter of
2007. These brand extensions, Organix(TM) Cough and Sore Throat Drops and
COLD-EEZE Immune Support Complex-10 will provide consumers with two new options
to support their health during the upcoming Cold and Flu Season.
Organix Cough and Sore Throat Drops is a proprietary product manufactured in the
Company's certified organic manufacturing facility, the first facility of its
kind to obtain USDA organic certification. COLD-EEZE Immune Support Complex-10
will compete in the growing immune boosting dietary supplement marketplace. The
product features a proprietary blend of 10 important immune supporting
nutrients, minerals and herbs shown to support proper immune system functioning.
Net loss for the second quarter ended June 30, 2007 was $3.5 million, or ($0.28)
per share compared to a net loss of $2.6 million, or ($0.21) per share, for the
same period last year. Net loss for the six-months ended June 30, 2007 was $5.4
million, or ($0.43) per share, compared to a net loss of $4.1 million, or
($0.34) per share, for the same period last year.
The increase in net loss for the second quarter and six-months ended June 30,
2007 is principally attributed to increased research and development costs for
the pharmaceutical segment and a reduction in gross profits from the Health and
Wellness operating segment. These increases to net loss were lessened somewhat
by improvement in Cold Remedy gross profits from related increases in net sales.
The increase in research and development costs were associated with Phase II(b)
clinical studies for QR-333, an investigational new drug for treating conditions
associated with diabetic peripheral neuropathy. Increased research costs
associated with QR-333 were $794,000 for the second quarter and $1.2 million for
the first six-months of 2007, respectively as compared to 2006. Diabetic
peripheral neuropathy conditions include numbness, skin ulcers, constant pain or
extreme sensitivity to stimulus, which according to The World Health
Organization estimates that more than 171 million people have diabetes
worldwide.
Net sales for the Health and Wellness segment declined $1.4 million and $3.1
million, respectively, for the second quarter and first half of 2007 as a
reduction in the number of active independent distributor representatives
reflects the effects of ongoing litigation, which the Company is vigorously
pursuing with the sponsor of the Company's product line in this segment.
Corrective actions continue to be taken to resolve the litigation and increase
the number of active independent distributor representatives as part of
strategic efforts with the goal to increase sales and return to profitability.
No tax provision or benefits, to reduce losses, are provided for the quarter and
six-months ended June 30, 2007 and 2006, except for any requirements imposed by
the federal alternative minimum taxes or for compliance with state tax
regulations, since the Company is in a net operating loss carry-forward
position.
The Company is committed to continuing its research as part of its strategic
initiatives to generate future growth. These initiatives include capitalizing on
the growth potential of Quigley Pharma, a wholly-owned Ethical Pharmaceutical
subsidiary, by continuing to develop natural-source potential prescription
products for Systemic Radiation, Rheumatoid Arthritis, Avian Flu in animals and
particularly, Diabetic Peripheral Neuropathy.
During the second quarter of 2007, a follow-up study for the Cachexia Treatment
Compound ("QR-443") was completed to evaluate the impact of QR-443 on levels of
a pro-inflammatory cytokine Interleukin-6 (IL-6) in a cachexia model. The new
data concluded that responding mice had lower levels of serum IL-6 when
administered QR-443 orally than mice that received placebo. This reduction in
IL-6 suggests a method of action for the delayed onset and reduced severity of
cachexia observed in this study as well as a previously conducted cachexia model
study. A reduction in IL-6 is associated with a reduction in inflammation and
suggests that QR-443 may have a role in a broad range of chronic inflammatory
diseases. These findings are in agreement with several previous studies
demonstrating the increased presence of IL-6 in the etiology of cachexia and
other diseases related to inflammation.
A human study protocol is under development to evaluate the safety and impact of
this compound on specific metabolic processes altered by chronic inflammation
and the presence of IL-6.
QR-443 is a compound for the treatment of Cachexia, a debilitating and life
threatening muscle wasting condition associated with cancer, AIDS, renal
failure, COPD and rheumatoid arthritis, where inflammation has a significant
impact and patients experience loss of weight, muscle atrophy, fatigue, weakness
and decreased appetite.
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.
Darius International markets health and wellness products through its wholly
owned subsidiary, InnerLight Inc. 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
prescription drugs.
FORWARD-LOOKING STATEMENTS
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 per
share data:
Three-Months Three-Months Six-Months Six-Months
Ended Ended Ended Ended
June 30, 2007 June 30, 2006 June 30, 2007 June 30, 2006
($) ($) ($) ($)
------------- ------------- ------------- -------------
Net Sales 4,989 6,182 14,067 16,449
Gross profit 2,102 2,310 7,113 7,622
Sales & marketing expenses 826 1,079 3,559 3,514
Administrative expenses 3,471 3,100 6,683 6,806
Research & development 1,623 858 2,776 1,642
Income taxes (benefit) -- 89 -- 89
Net loss (3,520) (2,618) (5,448) (4,073)
Diluted loss per share:
Net loss ($0.28) ($0.21) ($0.43) ($0.34)
Diluted weighted average
common shares outstanding: 12,684,633 12,388,718 12,684,633 12,051,429
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
The following represents condensed financial data (in thousands) at June 30,
2007 and December 31, 2006:
2007 2006
($) ($)
---------- ----------
Cash & cash equivalents 15,843 17,757
Accounts receivable, net 1,717 6,557
Inventory 5,877 4,262
Total current assets 24,477 29,793
Total assets 29,255 34,845
Total current liabilities 9,105 9,252
Total stockholders' equity 20,082 25,529