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CONTACT:
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Gerard
M. Gleeson
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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 Third Quarter 2008 Results
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Continues Investment in Pharmaceutical R&D Future -
DOYLESTOWN, PA. – October 30, 2008 – The Quigley Corporation (Nasdaq:
QGLY), www.quigleyco.com today reported net sales
from continuing operations of $6.4 million, for the third quarter ended
September 30, 2008, compared to $9.1 million reported for the third quarter
ended September 30, 2007. For the nine months ended September 30,
2008, net sales were $13.7 million compared to $17.5 million reported for the
nine months ended September 30, 2007.
The third
quarter and nine month periods of 2008 reflect a net sales decrease as a result
of a slow start to the 2007/2008 cold season and changes to customers’ buying
habits. The 2008 periods’ net sales were favorably offset by sales of
the Kids-EEZE® Chest
Relief product line, which was launched in August 2008 and a price increase
which commenced in the third quarter of 2007. Kids-EEZE® Chest
Relief, http://www.kids-eeze.com is a single-ingredient,
allopathic expectorant with guaifenesin to help children, ages six and up,
suffering from uncomfortable chest congestion. Kids-EEZE® Chest
Relief provides an alternative to the many multi-symptom children’s cold
products that could potentially lead to overmedication. The Company has
initiated an advertising and targeted couponing campaign to promote the
COLD-EEZE® brand
and brand extensions during the forthcoming cold season.
Income
from continuing operations for the third quarter ended September 30, 2008 was
$879,000, or $0.07 per share, compared to $1.4 million, or $0.11 per share for
the third quarter of 2007. Loss from continuing operations for the nine months
ended September 30, 2008, was $4.4 million, or ($0.35) per share compared
to $3.7 million, or ($0.29) per share for the same period in
2007.
Income
from continuing operations for the third quarter of 2008, as compared to the
same period in 2007, reflects a reduction of gross profit from reduced sales as
well as costs associated with the continued investment in Quigley Pharma, a
wholly owned Ethical Pharmaceutical subsidiary developing natural-source
potential prescription and other products. The loss from continuing operations
for the nine months ended September 30, 2008 reflects the aforementioned
reduction in gross profit from reduced sales as well as costs associated with
the continued investment in Quigley Pharma, compared to the like period of
2007.
Net
income for the third quarter ended September 30, 2008 was $879,000, or $0.07 per
share, compared to $1.3 million, or $0.10 per share for the third quarter of
2007. Net loss for the nine months ended September 30, 2008 was $3.6
million, or ($0.28) per share, compared to a net loss of $4.1 million, or
($0.32) per share for the nine months ended September 30, 2007. The
improvement in net loss for the nine months ended September 30, 2008 reflects
gains in the discontinued operations as compared to a loss for the same period
in 2007.
No tax
provision or benefits, to reduce losses, are provided for the quarter and nine
month period ended September 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 nine
months ended September 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 $445,000 for the same period
in 2007.
The
Company continues to invest in the development of natural-source potential
products particularly for Diabetic Peripheral Neuropathy, the protection against
infectious diseases in poultry products, disease states associated with
inflammation, and protection against ionizing Radiation, as well as other health
and wellness conditions.
Summary of major ethical
pharmaceutical events that occurred during the third quarter of
2008:
Ongoing
Quigley Pharma research and development initiatives include investing in its key
pharmaceutical formulations, QR-333, an investigational new drug for treating
conditions associated with Diabetic Peripheral Neuropathy. The
Company is in the midst of a Phase II (b) clinical study for QR-333, which is a
key segment of the Company’s strategic initiatives to generate future
growth.
During
the third quarter of 2008, Quigley Pharma announced positive results of its
study to determine the duration of the anti-viral effect of QR448(a), a
veterinary anti-viral compound against Infectious Bronchitis Virus (IBV) in
commercial broiler chickens, a consumer meat type bird. QR448(a) also
prevented the transmission of IBV from infected to non-infected 2 week old
commercial broiler chickens, a consumer meat type bird.
Veterinary
poultry products industry experts and those familiar with prevention and control
of IBV recognize that abating transmission is perhaps one of the most important
ways to economically prevent, control and manage potential losses due to IBV
outbreaks.
The
Company plans to continue to build on these recent events to improve its
potential commercial and partnering prospects.
The
Quigley Corporation makes no representation that the US Food and Drug
Administration or any other regulatory agency will allow the aforementioned
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.
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