QLT announces Q1 results for 2007



    Conference Call Scheduled for April 25 at 8:30 a.m. Eastern Time

    VANCOUVER, April 24 /CNW/ - QLT Inc. (NASDAQ:   QLTI; TSX: QLT) today
reported financial results for the first quarter ended March 31, 2007. Unless
specified otherwise, all amounts are in U.S. dollars and in accordance with
U.S. GAAP.

    2007 Q1 Results

    Sales

    Visudyne(R) worldwide sales for the first quarter were $61.2 million, a
decrease of 42.7% over the first quarter of 2006. Visudyne sales in the U.S.
were $8.4 million, down 72.4% over last year, while sales in the rest of the
world were $52.8 million, a decrease of 30.7% over last year. The decline in
Visudyne sales during the first quarter was mainly due to continued pressure
in the U.S. and new competition in the European market.
    Eligard(R) worldwide sales for the first quarter were $41.8 million, up
145.6% from the first quarter of 2006. Eligard sales in the U.S. were
$19.5 million, up 341% over last year, while sales in the rest of the world
were $22.3 million, an increase of 76.9% over last year.

    Earnings Per Share (EPS)/Loss Per Share

    EPS was $0.06 in the first quarter, compared to $0.13 a year ago. The
decline was primarily due to the reduction in Visudyne sales.
    Non-GAAP EPS, which excludes stock option expense and the restructuring
charge, was $0.08 for the first quarter. Exhibit 1 provides the detailed
reconciliation between GAAP and non-GAAP EPS.

    QLT Revenues

    The Company's revenues were $32.7 million in the first quarter, down
35.1% from the same period last year. Revenues from Visudyne were
$20.6 million in the quarter, down 50.5% from the first quarter last year.
QLT's share of profit from Visudyne sales decreased to 24.5% compared to 31.6%
in the same period last year.

    Research and Development (R&D) Expense

    R&D expense in the first quarter was $11.1 million, down $3.3 million
from R&D expense in the first quarter last year primarily due to decreased
spending on Aczone, lemuteporfin and Atrigel projects.

    Selling, General and Administrative (SG&A) Expense

    For the first quarter of 2007, SG&A expense was $6.8 million, down
$1.0 million from prior year first quarter expense, primarily due to decreased
legal expenses associated with the TAP litigation.

    Cash and Short-term Investments

    The company's cash and short-term investments decreased from
$378.1 million to $269.8 million during the first quarter of 2007 primarily
due to QLT USA's $112.5 million portion of the TAP litigation settlement.

    About QLT

    QLT Inc. is a global biopharmaceutical company dedicated to the
discovery, development and commercialization of innovative therapies. Our
research and development efforts are focused on pharmaceutical products in the
fields of ophthalmology and dermatology. In addition, we utilize two unique
technology platforms, photodynamic therapy and Atrigel(R), to create products
such as Visudyne(R) and Eligard(R). For more information, visit our web site
at www.qltinc.com.

    Updated Conference Call Information

    QLT Inc. will hold an investor conference call to discuss first quarter
2007 results on Wednesday, April 25 at 8:30 a.m. ET (5:30 a.m. PT). The call
will be broadcast live via the Internet at www.qltinc.com. To participate on
the call, please dial 1-800-525-6384 (North America) or 780-409-1668
(International) before 8:30 a.m. ET. A replay of the call will be available
via the Internet and also via telephone at 1-800-365-8354 (North America) or
402-220-2881 (International), access code 4498188.


    
    QLT Inc.-Financial Highlights
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    -----------------------------------------------
    (In accordance with United States generally
     accepted accounting principles)

                                                        Three months ended
    (In thousands of United States dollars, except           March 31,
     per share information)                             2007         2006
    -------------------------------------------------------------------------
    (Unaudited)
    Revenues
      Net product revenue                            $   25,116   $   46,805
      Net royalties                                       7,054        2,962
      Contract research and development                     248          401
      Licensing and milestones                              285          244
    -------------------------------------------------------------------------
                                                         32,703       50,412
    -------------------------------------------------------------------------

    Costs and expenses
      Cost of sales                                       8,719       10,181
      Research and development                           11,083       14,373
      Selling, general and administrative                 6,842        7,818
      Depreciation                                        1,584        1,512
      Restructuring charge                                  576           52
    -------------------------------------------------------------------------
                                                         28,804       33,936
    -------------------------------------------------------------------------

    Operating income                                      3,899       16,476

    Investment and other income (expense)
      Net foreign exchange gains (losses)                    25       (1,362)
      Interest income                                     3,904        4,617
      Interest expense                                   (1,582)      (1,594)
      Other gains                                         1,152            -
    -------------------------------------------------------------------------
                                                          3,499        1,661
    -------------------------------------------------------------------------

    Income from continuing operations before
     income taxes                                         7,398       18,137

    Provision for income taxes                           (2,535)      (5,483)

    -------------------------------------------------------------------------
    Income from continuing operations                     4,863       12,654
    -------------------------------------------------------------------------

    Loss from discontinued operations, net of
     income taxes                                             -         (521)

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net income                                       $    4,863   $   12,133
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic net income per common share
      Continuing operations                          $     0.06   $     0.14
      Discontinued operations                                 -        (0.01)
    -------------------------------------------------------------------------
      Net income                                     $     0.06   $     0.13

    Diluted net income per common share
      Continuing operations                          $     0.06   $     0.14
      Discontinued operations                                 -        (0.01)
    -------------------------------------------------------------------------
      Net income                                     $     0.06   $     0.13

    Weighted average number of common shares
     outstanding (in thousands)
      Basic                                              75,283       90,620
      Diluted                                            75,375       90,659
    -------------------------------------------------------------------------



    QLT Inc.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    -------------------------------------
    (In accordance with United States generally
     accepted accounting principles)
                                                       March 31, December 31,
    (In thousands of United States dollars)              2007         2006
    -------------------------------------------------------------------------
    (Unaudited)
    ASSETS
    Current assets
      Cash and cash equivalents                      $  267,586   $  299,053
      Short-term investment securities                        -       75,163
      Restricted cash                                     2,227        3,916
      Accounts receivable                                30,775       38,872
      Income taxes receivable                             3,056        4,049
      Inventories                                        36,966       34,268
      Current portion of deferred income tax assets       8,660        8,657
      Other                                              16,709       14,031
    -------------------------------------------------------------------------
                                                        365,979      478,009
    -------------------------------------------------------------------------

    Property, plant and equipment                        50,318       50,497
    Deferred income tax assets                           10,878        9,838
    Goodwill                                             97,225       98,641
    Other long-term assets                                1,865        2,121
    -------------------------------------------------------------------------
                                                     $  526,265   $  639,106
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES
    Current liabilities
      Accounts payable                               $   14,898   $   15,255
      Accrued liabilities                                 6,815      125,805
      Income taxes payable                                   40           29
      Accrued restructuring charge                        1,325        2,383
      Current portion of deferred revenue                 9,514       11,508
    -------------------------------------------------------------------------
                                                         32,592      154,980

    Deferred income tax liabilities                       5,835        5,483
    Uncertain tax position liability                      1,842            -
    Deferred revenue                                      2,685        2,929
    Long-term debt                                      172,500      172,500
    -------------------------------------------------------------------------
                                                        215,454      335,892
    -------------------------------------------------------------------------

    SHAREHOLDERS' EQUITY
    Common shares                                       710,046      708,206
    Additional paid in capital                          114,704      114,724
    Accumulated deficit                                (599,587)    (603,251)
    Accumulated other comprehensive income               85,648       83,535
    -------------------------------------------------------------------------
                                                        310,811      303,214
    -------------------------------------------------------------------------
                                                     $  526,265   $  639,106
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    As at March 31, 2007, there were 75,314,397 issued and outstanding common
    shares and 5,756,705 outstanding stock options.



    QLT Inc.
    CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
    ----------------------------------------------
    2007 First Quarter Reconciliation of
     GAAP Earnings to Adjusted Non-GAAP
     Earnings                                                       Exhibit 1
    -------------------------------------------------------------------------
                                                                 Three months
                                       Three months                  ended
                                           ended                   March 31,
    (In millions of United States        March 31,                   2007
     dollars, except per share             2007                    Adjusted
     information)                          GAAP      Adjustments  Non-GAAP(1)
    -------------------------------------------------------------------------
    (Unaudited)
    Revenues
      Net product revenue               $     25.1   $        -   $     25.1
      Net royalties                            7.1            -          7.1
      Contract research and development        0.2            -          0.2
      Licensing and milestones                 0.3            -          0.3
    -------------------------------------------------------------------------
                                              32.7            -         32.7
    -------------------------------------------------------------------------
    Cost and expenses
      Cost of sales                           (8.7)         0.0(a)      (8.7)
      Research and development               (11.1)         0.6(a)     (10.5)
      Selling, general and
       administrative                         (6.8)         0.3(a)      (6.5)
      Depreciation                            (1.6)           -         (1.6)
      Restructuring charge                    (0.6)         0.6(b)         -
    -------------------------------------------------------------------------
                                             (28.8)         1.5        (27.3)
    -------------------------------------------------------------------------

    Operating income                           3.9          1.5          5.4

    Investment and other income
     (expense)
      Net foreign exchange gains               0.0            -          0.0
      Interest income                          3.9            -          3.9
      Interest expense                        (1.6)           -         (1.6)
      Other gains                              1.2            -          1.2
    -------------------------------------------------------------------------
                                               3.5            -          3.5

    Income before income taxes                 7.4          1.5          8.9

    Provision for income taxes                (2.5)        (0.2)(c)     (2.7)

    -------------------------------------------------------------------------
    Net income                          $      4.9   $      1.3   $      6.2
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Net income per common share:
      Basic                             $     0.06                $     0.08
      Diluted                                 0.06                      0.08

    Weighted average number of common
     shares outstanding (in millions)
      Basic                                   75.3                      75.3
      Diluted                                 75.4                      75.4

      Adjustments:
      (a)  Remove stock based compensation.
      (b)  Remove restructuring charge.
      (c)  Remove the income tax impact of (b).

      (1)  The adjusted non-GAAP financial measures have no standardized
           meaning under GAAP and are not comparable between companies.
           Management believes that the adjusted non-GAAP financial measures
           are useful for the purpose of financial analysis. Management uses
           these measures internally to evaluate the Company's operating
           performance before items that are considered by management to be
           outside of the Company's core operating results.
    

    Atrigel is a registered trademark of QLT USA, Inc.
    Visudyne is a registered trademark of Novartis AG.
    Eligard is a registered trademark of Sanofi-aventis.

    QLT Inc. is listed on the NASDAQ Stock Market under the trading symbol
"QLTI" and on The Toronto Stock Exchange under the trading symbol "QLT."

    A full explanation of how QLT determines and recognizes revenue resulting
from Visudyne sales is contained in the financial statements contained in the
periodic reports on Forms 10-Q and 10-K, under the heading "Significant
Accounting Policies - Revenue Recognition". Visudyne sales are product sales
by Novartis under its agreement with QLT.

    Certain statements in this press release constitute "forward looking
statements" of QLT within the meaning of the Private Securities Litigation
Reform Act of 1995 and constitute "forward looking information" within the
meaning of the Securities Act (Ontario). Forward looking statements include,
but are not limited to: our expectations regarding the future role of Visudyne
and statements which contain language such as: "assuming," "prospects,"
"future," "projects," "expects" and "outlook". Forward-looking statements are
predictions only which involve known and unknown risks, uncertainties and
other factors that may cause actual results to be materially different from
those expressed in such statements. Factors that could cause actual events or
results to differ materially include, but are not limited to: the Company's
future operating results are uncertain and likely to fluctuate, currency
fluctuations in primary markets might impact financial results, the risk that
future sales of Visudyne and Eligard may be less than expected (including as a
result of the timing and impact of existing competitive products and/or new
products launched by competitors and the level of physician acceptance of
Visudyne in combination with other agents), the Company's reliance on third
parties for the manufacture and marketing of Visudyne and Eligard, we are
still involved in ongoing litigation and the cost of litigation can be
unpredictable and may increase our 2007 SG&A expenses and adversely affect
financial condition beyond what is currently expected; general economic
conditions and other factors described in detail in QLT's Annual Information
Form on Form 10 K, quarterly reports on Form 10 Q and other filings with the
U.S. Securities and Exchange Commission and Canadian securities regulatory
authorities. Forward looking statements are based on the current expectations
of QLT and QLT does not assume any obligation to update such information to
reflect later events or developments except as required by law.





For further information:

For further information: QLT Inc.: Vancouver, Canada, Therese Hayes,
Tamara Hicks, Telephone: (604) 707-7000, or 1-800-663-5486, Fax: (604)
707-7001

Organization Profile

QLT INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890