VANCOUVER, Feb. 21 /PRNewswire-FirstCall/ - QLT Inc. (NASDAQ: QLTI; TSX:QLT) today reported its financial results for the fourth quarter endedDecember 31, 2007 and full year 2007 as well as issued its guidance for 2008.Unless specified otherwise, all amounts are in U.S. dollars and in accordancewith U.S. GAAP.
As previously announced, Visudyne(R) sales for the fourth quarter were$45.5 million, a decrease of 40.5% over sales in the fourth quarter of 2006.Sales in the U.S. were $10.0 million, up 9.2% from the prior-year fourthquarter, while sales outside the U.S. were $35.5 million, down 47.2% from theprior year. For the full year 2007, worldwide Visudyne sales were $214.9million, 39.3% lower than in 2006, as U.S. sales declined 45.1% and non-U.S.sales declined 37.8%. The drop in Visudyne sales was primarily due to theapproval and reimbursement of alternative therapeutics for age-related maculardegeneration.
Worldwide Eligard(R) sales in the fourth quarter were $48.1 million, anincrease of 31.4% over the fourth quarter of 2006. In the period, U.S. salesof $17.4 million were up 16.5% from the fourth quarter of 2006, while salesoutside the U.S. increased 41.7% to $30.7 million. For the full year 2007,Eligard sales were $180.9 million, up almost 50% from the prior year, as U.S.sales of $75.0 million grew 37.5% and non-U.S. sales of $106.0 million were up60.1%.
For the fourth quarter, total revenue of $30.9 million was down 20.1% fromthe fourth quarter of 2006, as the drop in Visudyne revenue was only partiallyoffset by higher Eligard revenue. For the fourth quarter, revenue fromVisudyne of $13.6 million fell 50.1% while revenue related to Eligard (royaltyand product revenue combined) of $16.9 million was up 54.0%. For the full year2007, total revenues of $127.9 million were down 26.9% from the prior year dueprimarily to the decline in Visudyne end-user sales. Revenue from Visudyne forthe full year was $67.7 million, down 47.6% from $129.4 million in the prioryear, while royalty and product revenue related to Eligard was $58.5 million,up 34.1% from the prior year.
QLT's share of profit from Visudyne sales in the fourth quarter decreasedto 12.9% from 23.1% in Q4 2006. However, the 2007 results includedapproximately $6.5 million of expense related to provisions for excessinventory taken in the fourth quarter by both QLT and Novartis. Excluding thisexpense, the profit share in the fourth quarter would have been 20.1%. For theyear, QLT's share of profit from Visudyne sales was 20.7% (22.2% excluding theprovisions for excess inventory), compared to 27.6% in 2006. The decline inprofitability occurred as the reduction in Visudyne expenses has not kept pacewith the decline in sales.
For the fourth quarter of 2007, expenditures for Research and Development(R&D) were $13.6 million compared to $12.7 million in the same period of 2006.For the full year, expenditures for R&D in 2007 were $46.4 million, down from$56.4 million in 2006 primarily due to decreased spending on Aczone(TM) andAtrigel(R) programs.
For the fourth quarter of 2007, Selling General and Administrative (SG&A)expense was $7.9 million, down from $14.6 million in the fourth quarter of2006, primarily due to a reduction in legal fees associated with patentlitigation. For the full year 2007, SG&A expenditures of $27.4 million weredown significantly from $42.2 million in 2006, again primarily due to legalfees associated with patent litigation.
Operating Loss and Earnings Per Share (EPS)/Loss Per Share
Operating loss for the fourth quarter was $51.0 million, compared to aloss of $115.7 million in the prior-year quarter. The 2007 loss was driven bya charge of $42.9 million for the Purchase of In-Process R&D related to theacquisition of ForSight Newco II, Inc. in October 2007. The fourth quarter2006 operating loss o