UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT UNDER
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For Quarterly Period Ended March 31, 2005
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Or
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TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period
from to
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Commission file number 33-90516
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NEOPHARM, INC.
(Exact name of Registrant as specified in its
charter)
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Delaware
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51-0327886
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer Identification Number)
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150 Field Drive
Suite 195
Lake Forest, Illinois 60045
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(Address of principal executive offices) (Zip Code)
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(847) 295-8678
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(Registrant’s telephone number, including area code)
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Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes ý No
o
Indicate by check mark whether the registrant is an accelerated filer
(as defined in Rule 12b-2 of the Exchange Act).
Yes ý No o
As of April 30, 2005 the number of shares outstanding of each of
the issuer’s classes of common stock was as follows:
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Title of each class
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Number of shares outstanding
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Common Stock ($.0002145 par value)
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23,548,855
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PART I - FINANCIAL INFORMATION
Item 1
- - Financial Statements
NEOPHARM, INC.
Consolidated Balance Sheets
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March 31, 2005
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December 31, 2004
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(Unaudited)
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ASSETS
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Current assets:
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Cash and cash equivalents
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$
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54,364,828
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$
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63,106,655
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Trade accounts receivable
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—
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10,888
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Inventories
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7,360
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5,736
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Prepaid expenses
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738,621
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1,108,282
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Other receivables
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334,203
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308,087
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Total current assets
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55,445,012
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64,539,648
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Fixed assets, net of accumulated depreciation
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2,561,505
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2,894,723
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Total assets
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$
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58,006,517
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$
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67,434,371
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LIABILITIES AND STOCKHOLDERS’
EQUITY
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Current liabilities:
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Accounts payable
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$
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208,440
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$
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398,505
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Accrued clinical trial expense
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4,985,107
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4,634,618
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Accrued compensation
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1,312,213
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3,227,230
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Other accrued expenses
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1,059,327
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940,343
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Deferred and unearned revenue
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249,400
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—
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Total current liabilities
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7,814,487
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9,204,096
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Deferred revenue, less current portion
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1,840,495
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—
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Stockholders’ equity:
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Preferred stock, $0.01 par value; 15,000,000
shares authorized: 0 shares issued and outstanding
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—
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—
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Common stock, $0.0002145 par value; 50,000,000
shares authorized: 23,548,855 and 23,372,755 shares issued and outstanding,
respectively
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5,053
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5,013
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Additional paid-in capital
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248,510,783
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247,525,290
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Accumulated deficit
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(200,164,301
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(189,300,028
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Total stockholders’ equity
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48,351,535
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58,230,275
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Total liabilities and stockholders’ equity
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$
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58,006,517
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$
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67,434,371
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The accompanying notes to consolidated
financial statements are an integral part of these financial statements.
3
NEOPHARM, INC.
Consolidated Statements of Operations
Three Month Periods Ended March 31, 2005 and 2004
(Unaudited)
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Three Months Ended
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March 31, 2005
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March 31, 2004
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License fee revenue
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$
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27,500
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$
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—
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Collaboration revenue
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37,500
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—
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Product revenue
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6,300
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12,200
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Total revenue
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71,300
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12,200
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Expenses:
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Cost of product revenue
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290
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244
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Research and development
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8,073,761
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11,249,227
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Selling, general and administrative
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3,233,309
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3,200,069
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Related party expenses
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—
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35,364
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Total expenses
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11,307,360
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14,484,904
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Loss
from operations
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(11,236,060
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(14,472,704
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Interest income
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371,787
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225,514
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Net loss
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$
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(10,864,273
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$
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(14,247,190
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Net loss per share —
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Basic and diluted
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$
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(0.46
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$
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(0.65
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Weighted average shares outstanding —
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Basic and diluted
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23,469,462
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21,911,987
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The accompanying notes to consolidated
financial statements are an integral part of these financial statements.
4