NEW YORK, Dec. 4 /PRNewswire-FirstCall/ -- Inyx, Inc. (OTC:IYXI)
(BULLETIN BOARD: IYXI) , a specialty pharmaceutical company focused
on niche drug delivery technologies and products, reported today
operating results for the third quarter and nine months ended
September 30, 2006. For the third quarter of 2006, Inyx's revenues
reached $18.0 million, up 39.5% from the $12.9 million reported for
the comparable quarter in 2005. The company incurred an increased
net loss in the 2006 quarter of $9.7 million, or $0.19 per share,
compared with a net loss of $4.9 million, or $0.12 a share, in the
year-earlier period. The 2006 net loss includes approximately $2.0
million in non-cash depreciation and amortization charges as well
as $2.3 million in one-time cash expenses related to pending
acquisitions. For the first nine months of 2006, revenues totaled
$59.6 million, more than double the $24 million reported for the
year-ago period. The net loss in the 2006 nine months totaled $22.2
million, or $0.45 per share, compared to a net loss of $16 million,
or $0.41 a share, in the corresponding period last year. The 2006
net loss includes approximately $6.0 million in non-cash
depreciation and amortization charges as well as $5.3 million in
one-time expenses related to pending acquisitions. Detailed
financials are presented in the company's Form 10-Q filed with the
SEC, which can be downloaded from Inyx's website. Inyx's increase
in year-over-year revenues and solid gross margin are the result of
the larger scope of its businesses this year with the addition of
Ashton Pharmaceuticals in the United Kingdom and the company's new
Exaeris marketing subsidiary. The increase in net operating losses
incurred this year is due largely to higher fixed operating
expenses from the Exaeris and Inyx USA operations and a lack of
sufficient growth in revenues at those units to adequately absorb
their overheads. The growth in revenues during the first nine
months was not as strong as the company had expected because
certain business has been delayed due to additional regulatory
documentation and testing procedures that several of its clients
have to complete before commercialization or transfer of their
products to Inyx's sites can commence; this business is now
expected to start up in the fourth quarter and early 2007.
Moreover, two pending acquisitions, which the company originally
expected to complete in the 2006 second half, have been delayed,
Inyx said. Revised Financial Guidance On November 24, 2006, Inyx
reported revised guidance for 2006. The company said it now expects
revenues for the year to total approximately $85 million, up from
$49.6 million in 2005, with net losses for 2006, based on two
pending acquisitions now not being completed this year. Inyx has a
definitive agreement to acquire Pharmapac UK Ltd., one of the
leading contract pharmaceutical production and packaging providers
in the United Kingdom. This acquisition is now expected to be
completed on January 4, 2007. Pharmapac expects revenues to be in
excess of 7.3 million pounds Sterling ($13.9 million) with EBITDA
exceeding 1.5 million pounds ($2.9 million) for 2006. Inyx also has
a pending acquisition of a German pharmaceutical production
business. Inyx is reviewing this acquisition because of a recent
disclosure that significantly reduces the mid-term operating
results for the German site and, consequently, Inyx is uncertain
now if this transaction will be consummated. Going-Private
Consideration As previously reported, on November 20, 2006, Inyx
said that a group comprised of Inyx senior management and strategic
outside investors approached the company's board of directors about
taking the company private. The Inyx board has formed a special
committee comprised of three independent directors, which will
evaluate any specific proposal. The committee will retain an
independent investment-banking firm to review the fairness of any
proposed offer made by the group. The group, which includes Jack
Kachkar, M.D., Chairman & CEO of Inyx, and Steve Handley,
President of Inyx, said that it intends to make an offer that "it
believes will be in the best interests of all Inyx shareholders."
Dr. Kachkar informed the special committee that he will work to
secure new debt financing for Inyx before the group tries to
finalize financing for any going-private offer. As previously
reported, on November 21, 2006, Inyx informed Westernbank Puerto
Rico it intended to pay off the loan amounts owed to Westernbank by
December 31, 2006; this debt now totals approximately $120 million
and Dr. Kachkar has pledged a personal guarantee against a portion
of that amount. About Inyx Inyx, Inc. is a specialty pharmaceutical
company with niche drug delivery technologies and products for the
treatment of respiratory, allergy, dermatological, topical and
cardiovascular conditions. Inyx focuses its expertise on both
prescription and over-the-counter pharmaceutical products and
provides specialty pharmaceutical development and production
consulting services. In addition, Inyx is developing its own
proprietary products. The company's operations are conducted
through several wholly owned subsidiaries: Inyx USA, Ltd., based in
Manati, Puerto Rico; Inyx Pharma Ltd. and Inyx Europe Limited,
which owns and operates Ashton Pharmaceuticals Ltd., all near
Manchester, England; Inyx Canada, Inc. in Toronto; and Exaeris,
Inc., based in Exton, Pennsylvania. Inyx, Inc.'s corporate offices
are in New York City. For more information, please visit:
http://www.inyxgroup.com/. Safe Harbor Statements about Inyx's
future expectations, including future revenues and earnings, and
all other statements in this press release other than historical
facts, are "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, Section 21E of the
Securities Exchange Act of 1934, and as that term is defined in the
Private Securities Litigation Reform Act of 1995. The Company
intends that such forward-looking statements be subject to the safe
harbors created by these regulations. Since these statements
involve risks and uncertainties and are subject to change at any
time, the Company's actual results could differ materially from
expected results. For more information, please contact: Jay M.
Green, Executive VP, 212-838-1111 Bill Kelly, VP, Investor
Relations, 212-838-1111 INYX, INC. Consolidated Statements of
Operations (in thousands, except per share data) For the Three
Months For the Nine Months Ended September 30, Ended September 30,
2006 2005 2006 2005 (Unaudited) (Unaudited) Net revenues $18,006
$12,908 $59,560 $24,086 Cost of sales 10,593 7,837 36,231 16,236
Gross profit 7,413 5,071 23,329 7,850 Operating expenses: Research
and development 667 929 1,834 1,876 General and administrative
10,420 5,813 25,681 12,239 Selling 1,310 181 4,584 355 Depreciation
1,603 903 4,655 1,619 Amortization of intangible assets 448 436
1,327 845 Total operating expenses 14,448 8,262 38,081 16,934 Loss
from operations before interest and financing costs, provision for
income taxes and extraordinary gain (7,035) (3,191) (14,752)
(9,084) Interest and financing costs 2,708 1,750 7,428 7,896 Net
loss before provision for income taxes and extraordinary gain
(9,743) (4,941) (22,180) (16,980) Provision for income taxes - - -
- Net loss before extraordinary gain (9,743) (4,941) (22,180)
(16,980) Extraordinary gain, net of taxes - - - 917 Net loss
$(9,743) $(4,941) $(22,180) $ (16,063) Basic and fully diluted loss
per share before extraordinary gain $(0.19) $(0.12) $(0.45) $(0.43)
Basic and fully diluted income from extraordinary gain - - - 0.02
Basic and fully diluted loss per share $(0.19) $(0.12) $(0.45)
$(0.41) Weighted-average number of shares used in computing basic
and fully diluted loss per share 51,985,114 39,985,613 49,127,327
39,428,431 INYX, INC. Consolidated Balance Sheets (in thousands,
except per share data) September December 30, 2006 31, 2005
(Unaudited) Assets Current assets: Cash and cash equivalents $1,518
$1,023 Accounts receivable, net 22,790 19,782 Inventories, net
12,117 11,331 Prepaid expenses and other current assets 3,262 2,589
Total current assets 39,687 34,725 Property, plant and equipment,
net 41,528 40,781 Deferred financing costs, net 1,363 1,434
Deferred costs and deposits 5,318 431 Advances for investment 5,603
- Deposits for acquisition of office building 2,226 - Intangible
assets, net 18,769 14,782 74,807 57,428 Total assets $114,494
$92,153 Liabilities and Stockholders' Deficiency Current
liabilities: Borrowings under lines of credit $58,778 $30,011 Term
loans - current portion 49,366 9,288 Accounts payable 13,966 11,691
Accrued expenses 12,218 9,557 Deferred tax liability 1,948 1,858
Deferred revenues 5,865 - Seller financing 11,216 14,014 Total
current liabilities 153,357 76,419 Term loans, net of current
portion - 46,134 Total liabilities 153,357 122,553 Commitments and
contingencies Stockholders' deficiency: Preferred stock - $0.001
par value, 10,000,000 shares authorized - none issued and
outstanding - - Common stock - $0.001 par value, 150,000,000 shares
authorized - 52,496,189 shares issued and outstanding at September
30, 2006, net of 610,461 shares of treasury stock; 43,389,922
shares issued and outstanding at December 31, 2005, net of 209,732
shares of treasury stock 52 43 Additional paid-in capital 43,479
33,315 Accumulated deficit (83,523) (61,343) Subscriptions
receivable (293) (293) Accumulated other comprehensive income
(loss) - foreign currency translation adjustment 1,422 (2,122)
Total stockholders' deficiency (38,863) (30,400) Total liabilities
and stockholders' deficiency $114,494 $92,153 DATASOURCE: Inyx,
Inc. CONTACT: Jay M. Green, Executive VP, +1-212-838-1111, , or
Bill Kelly, VP, Investor Relations, +1-212-838-1111, Web site:
http://www.inyxinc.com/
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