Exhibit 99.1
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CONTACT:
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George
J. Longo
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Carl
Hymans
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Vice
President, CFO
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G.S.
Schwartz & Co.
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(215)
345-0919
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(212)
725-4500
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carlh@schwartz.com
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The
Quigley Corporation Reports Second Quarter 2008 Results
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Continues Investment in Pharmaceutical R&D Future -
DOYLESTOWN, PA. – July 31, 2008 – The Quigley Corporation (Nasdaq:
QGLY) today reported net sales from continuing operations of $2.1
million, for the second quarter ended June 30, 2008, compared to $2.2 million
reported for the second quarter ended June 30, 2007. For the six
months ended June 30, 2008, net sales were $7.4 million compared to $8.4 million
reported for the six months ended June 30, 2007.
2008 net
sales were influenced by distribution changes and the unusually slow start to
the 2007/2008 cold season and fewer incidences of colds by consumers during much
of the period. The second quarter and first six months of 2008 reflect these
facts in that customer inventories remained higher than they desired, and
although the cold season started to improve later in the season, it was too late
to positively influence the first six months of 2008. Additionally, there was a
favorable offset by a combined price increase and new products not present in
the 2007 comparable periods amounting to approximately $300,000 and $1.0
million, respectively.
Loss from
continuing operations for the second quarter and six months ended June 30, 2008
was $2.9 million, or ($0.22) per share, and $5.3 million, or ($0.42) per share,
respectively as compared to $3.4 million, or ($0.27) per share, and $5.1
million, or ($0.40) per share, respectively for the same period in
2007.
Net loss
for the second quarter and six months ended June 30, 2008 was $2.9 million, or
($0.22) per share, and $4.4 million or ($0.35) per share, respectively, compared
to a net loss for the second quarter and six months ended June 30, 2007 of $3.5
million, or ($0.28) per share, and $5.4 million, or ($0.43) per share,
respectively. The improvement in net loss for the six months ended
June 30, 2008 reflects gains in the discontinued operations as compared to a
loss for the same period in 2007.
The
decrease in loss from continuing operations for the second quarter ended June
30, 2008 primarily reflects savings in operations for legal expenses and costs
associated with the continued investment in Quigley Pharma, a wholly owned
Ethical Pharmaceutical subsidiary developing natural-source potential
prescription and other products. The overall slight increase in loss from
continuing operations for the six months ended June 30, 2008 primarily reflects
the reduction of gross profit from reduced sales as compared to
2007.
The
Quigley Corporation continues to enhance its position to capitalize on the
growth potential of Quigley Pharma by investing in key pharmaceutical research
and development including QR-333, an investigational new drug for treating
conditions associated with diabetic peripheral neuropathy. The
Company is in the midst of Phase II (b) clinical study for QR-333, which is a
key segment of the Company’s strategic initiatives to generate future
growth.
Over 170
million people have diabetes worldwide including an estimated 20 million people
within the United States, comprising approximately 7% of the country’s
population. Nearly 60% of people with diabetes will suffer mild to
severe nerve damage due to diabetic peripheral neuropathy, the treatment of
which may offer a significant opportunity for QR-333. In addition to QR-333, The
Company continues to invest in developing natural-source potential products for
disease states associated with inflammation, the protection against infectious
diseases in poultry products as well as protection against ionizing
radiation.
No tax
provision or benefits, to reduce losses, are provided for the quarter and six
month period ended June 30, 2008 and 2007, since the Company is in a net
operating loss carry-forward position for which a valuation has been
established.
In March
2008, The Quigley Corporation completed the sale of its wholly owned subsidiary,
Darius International Inc. (“Darius”), which constituted the Health and Wellness
segment, to InnerLight Holdings, Inc. Net loss of the Company for the six months
ended June 30, 2008 reflects results from discontinued operations associated
with the sale of Darius that included a gain on disposal of $737,000 and income
from discontinued operations of $139,000, totaling $876,000 as compared to a
loss from discontinued operations of $390,000 for the same period in
2007.
At the
end of the second quarter, The Quigley Corporation was added to the Russell
MicrocapÒ
Index, membership in which remains in place for one year and garners automatic
inclusion in the appropriate growth and value style indexes. Russell
indexes are widely used by investment managers and institutional investors for
index funds and an industry-leading $4.4 trillion in assets are currently
benchmarked to them.
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®
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 wholly owned subsidiaries; Quigley Manufacturing Inc. consists
of two FDA approved facilities to manufacture COLD- EEZE® lozenges as well as
fulfill other contract manufacturing opportunities and 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.
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:
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Three-Months
Ended
June
30, 2008
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Three-Months
Ended
June
30, 2007
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Six-Months
Ended
June
30, 2008
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Six-Months
Ended
June
30, 2007
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Net
Sales
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2,068 |
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2,217 |
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7,373 |
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8,367 |
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Gross
profit
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898 |
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995 |
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4,467 |
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4,934 |
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Sales
& marketing expenses
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566 |
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556 |
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2,799 |
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3,046 |
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Administrative
expenses
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2,030 |
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2,436 |
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4,538 |
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4,582 |
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Research
& development
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1,265 |
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1,622 |
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2,675 |
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2,774 |
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Income
taxes (benefit)
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- |
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- |
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- |
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- |
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Income
(Loss) from: operations
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Continuing
operations
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(2,879 |
) |
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(3,417 |
) |
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(5,324 |
) |
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(5,058 |
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Discontinued
operations
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- |
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(103 |
) |
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876 |
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(390 |
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Net
Income (Loss)
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(2,879 |
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(3,520 |
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(4,448 |
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(5,448 |
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Diluted
income (loss) per share:
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Continuing
operations
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$ |
(0.22 |
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$ |
(0.27 |
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$ |
(0.42 |
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$ |
(0.40 |
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Discontinued
operations
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- |
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(0.01 |
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0.07 |
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(0.03 |
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Net
loss
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$ |
(0.22 |
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$ |
(0.28 |
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$ |
(0.35 |
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$ |
(0.43 |
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Diluted
weighted average common shares outstanding:
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12,861,800 |
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12,684,633 |
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12,860,616 |
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12,684,633 |
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Consolidated Balance Sheets
(Unaudited)
The
following represents condensed financial data (in thousands) at June 30, 2008
and December 31, 2007:
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2008
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2007
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Cash
& cash equivalents
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14,375 |
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15,134 |
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Accounts
receivable, net
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1,613 |
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6,649 |
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Inventory
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4,621 |
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4,136 |
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Total
current assets
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21,486 |
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28,835 |
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Total
assets
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25,557 |
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33,502 |
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Total
current liabilities
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6,749 |
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10,258 |
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Total
stockholders’ equity
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18,808 |
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23,244 |
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