SAN DIEGO, Jan. 11, 2002 (PRIMEZONE) -- Women First HealthCare, Inc. (Nasdaq:WFHC), a specialty pharmaceutical company focused on midlife women, has provided guidance for 2002 that anticipates the Company achieving profitability for the first time on increasing revenues from core and acquired niche pharmaceutical products.
Addressing The Fourth Annual Needham & Company Growth Conference in New York City yesterday, Edward F. Calesa, Women First chairman, president and CEO, told attendees, "We have said previously that we expect to break even in the fourth quarter of 2001, and we are reaffirming that guidance today. For the first time since the founding of Women First HealthCare, we expect to be profitable in 2002 and earn between $0.20 and $0.23 per fully diluted share. This is a milestone for us and would not be possible without the efforts of our people and the successful execution of our business plan."
The Company expects revenues to increase substantially to between $43 million and $47 million in 2002. The acquisitions made in 2001 are expected to contribute to the revenue growth in the pharmaceutical division, while the consumer revenues will remain unchanged. Gross margin is expected to be in the 75% to 77% range.
Spending initiatives in 2002 will be focused on building Women First's Esclim(tm) (estradiol transdermal system) business, which is expected to double from 2001 levels. Three areas in particular directly support this effort -- expanding the sales force in late 2001, reconfiguring sales territories to take advantage of the Performance Drug Listing (PDL) with AdvancePCS, and "Test & Treat," a physician educational program involving a new concept in estrogen replenishment therapy that supports the use of transdermal patches. The Company expects that these initiatives, combined with additional amortization, interest and other charges from acquisitions, will result in an expense run rate in the $28 million to $30 million range.
According to Calesa, "We expect to be profitable in 2002 as a result of our ability to execute our business plan in 2001. That plan remains unchanged -- grow promotion-sensitive products, initiate contracts for non-promoted products with both distributors and managed care, and continue to acquire additional products that fit our niche and make economic and financial sense -- and is the basis for our belief that the Company is now positioned for sustainable and accelerating growth in the future."
About Women First HealthCare, Inc.
Women First HealthCare, Inc. (Nasdaq:WFHC) is a San Diego-based specialty pharmaceutical company. Founded in 1996, its mission is to help midlife women make informed choices regarding their health care and to provide pharmaceutical products -- the Company's primary emphasis -- and lifestyle products to meet their needs. Women First HealthCare is specifically targeted to women age 40+ and their clinicians. An internationally recognized Health Advisory Board of experts in women's health guides Women First HealthCare in the development of information and products for women and clinicians as women transition from perimenopause through postmenopause. The Company operates in three segments: Pharmaceuticals, Consumer Business, and Corporate Marketing. Product focus currently includes estrogen replenishment, headache/pain management, antibacterial/urinary tract infection management, dietary supplementation, and self-care/lifestyle. Further information about Women First HealthCare can be found online at www.womenfirst.com, About Us and Investor Relations. Information about the Company's As We Change(r) national mail order catalog and Internet retailer can also be found online at www.aswechange.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to various risks, and Women First HealthCare, Inc. cautions you that any forward-looking information is not a guarantee of future performance. Women First HealthCare, Inc. disclaims any intent or obligation to update these forward-looking statements. Actual results could differ materially due to a number of factors, including (i) we have incurred significant losses since we were founded in November 1996, and if midlife women do not use, and their clinicians do not recommend, the products we offer, we will continue to experience losses; (ii) there is a limited market awareness of our Company and the products and services we offer; (iii) we may not be able to identify appropriate licensing, co-promotion or acquisition candidates in the future or to take advantage of the opportunities we identify; (iv) we and our products face significant competition; (v) if we do not successfully manage any growth we experience, we may experience increased expenses without corresponding revenue increases; (vi) we are dependent on single sources of supply for all of the products we offer; (vii) reduced consumer confidence could adversely affect sales by our Consumer Business Division; and (viii) additional factors set forth in the Company's Securities and Exchange Commission filings including its Annual Report on Form 10-K for the period ended December 31, 2000 and its Form 10-Q for the period ended September 30, 2001.