Women First HealthCare Announces Improved 4th Quarter and Year-End 2000 Results

-- 4th Quarter Continues Improvement Begun in 3rd Quarter -- 4th Quarter Year Over Year Loss Reduced by 83% to $0.08 Per Share -- Full Year Over Year Loss Reduced by 52% to $1.29 Per Share


SAN DIEGO, Feb. 27, 2001 (PRIMEZONE) -- Women First HealthCare, Inc. (Nasdaq:WFHC) today announced the continued improvement in its financial results for the fourth quarter and fiscal year ended December 31, 2000.

The Company reported the fourth quarter 2000 net loss narrowed to $1.4 million or $0.08 per share, continuing the improvement achieved in the third quarter, when the Company lost $2.5 million or $0.15 per share. Per share calculations for both quarters are based on 17.5 million shares outstanding. In the fourth quarter of 1999, the Company's net loss was $8.2 million or $0.48 per share based on 17.3 million shares. The Company also reported a lowered net loss for the fiscal year ended December 31, 2000 of $22.6 million or $1.29 per share based on 17.5 million shares compared with a net loss of $30.1 million in 1999. The 1999 period included a charge for conversion of preferred stock, which increased the loss available to common stockholders to $33.5 million or $2.67 per share based on 12.5 million shares. The Company went public on June 28, 1999.

The Company reported total net revenue of $6.4 million in the fourth quarter of 2000 compared to $7.1 million in the fourth quarter of 1999, a decrease of $0.7 million or 9.7%. The 1999 period included the launch of the Esclim(tm) transdermal patch. For the full year, total net revenue was $27.1 million, an increase of $4.6 million or 20.4% from the prior year. Included in the current year's three-month and full-year figures are $2.6 million and $12.3 million respectively in related party revenue earned as a result of contract revisions with Ortho-McNeil Pharmaceutical, Inc. The 1999 comparable figures for related party revenue were $1.2 million for the quarter and $2.3 million for the year.

Related party revenue grew considerably in the 2000 periods versus the prior year's as a result of contract revisions with Ortho-McNeil Pharmaceutical announced October 17, 2000. The contract revisions modified the compensation the Company received for co-promoting sales of ORTHO-PREFEST(r) Tablets. As a result, the Company recorded related party revenue of $2.6 million in the fourth quarter of 2000 and $12.3 million for the full year 2000. Because the Company's ORTHO-PREFEST(r) contract expired on December 31, 2000, these revenues will be nonrecurring in 2001. The Company expects that in 2001 revenues from its newly acquired asset, ORTHO-EST(r) Tablets, in addition to Esclim(tm), should replace this nonrecurring revenue.

The Company reports results in three segments as follows:

The Pharmaceutical Division's net revenue for the fourth quarter and fiscal year ended December 31, 2000 totaled $3.3 million and $14.2 million respectively as compared to $3.7 million and $12.5 million for the comparable prior year periods. The Pharmaceutical Division accounted for 52.5% of total net revenues in 2000, down from 55.6% in 1999. The Company has notified Bristol-Myers Squibb of its intention to terminate the co-promotion agreement for PRAVACHOL(r) Tablets effective March 31, 2001 consistent with its strategy of pursuing product acquisition and license.

The Consumer Business Division markets and sells the Company's line of self-care products available through its As We Change(r) national mail order catalog and Internet retailer, www.aswechange.com. Consumer net revenue for the fourth quarter and fiscal year ended December 31, 2000 totaled $2.1 million and $8.5 million respectively. This represents an increase of $0.1 million, or 2.1%, and $1.7 million, or 24.8%, respectively over the prior year periods. Consumer Business accounted for 31.5% of total net revenues in 2000, up slightly from 30.4% in 1999. Following two years of double digit revenue growth, the Company is focusing on profitability in the Consumer Business in 2001.

The Trialogue(tm) Division provides strategic marketing programs for sale to major pharmaceutical companies. Trialogue(tm) net revenue for the fourth quarter and fiscal year ended December 31, 2000 totaled $1.0 million and $4.3 million respectively versus $1.4 million and $3.1 million in the comparable 1999 periods.

At December 31, 2000 the Company reported assets totaling $20.0 million, cash of $9.5 million, and stockholders' equity of $15.0 million. Management believes the Company has adequate working capital to sustain its operations at least through the end of fiscal year 2001. The Company has no long-term debt.

The year ended December 31, 2000 was a challenging one for the Company. During the first half of the year, the Company lost $18.6 million or $1.07 per share. Following a change in management and a corporate restructuring in June 2000, the Company dramatically improved its results in the second half of 2000, reporting a $3.9 million loss, or $0.22 per share. The Company announced the following key strategic initiatives in 2000:


 -- Revised agreement with Ortho-McNeil Pharmaceutical, Inc., which
    resulted in the acquisition of ORTHO-EST(r) Tablets effective
    January 1, 2001 (announced in October 2000).
 
 -- Revised agreement with Laboratoires Fournier S. A., which made
    possible the Company's agreement with Novation, the largest supply
    cost management company in health care, for Esclim(tm) (announced
    in December 2000).

Commenting on the results for the year, Edward F. Calesa, chairman, president and CEO, said, "The fourth quarter continues the improvement in results that began in the third quarter 2000, and we are encouraged by the progress we have made since July 2000. We have cut the burn rate from $3.1 million per month in the first half of the year to $0.4 million per month in the fourth quarter, and we anticipate additional reduction in 2001. By aligning costs and revenues we have been able to focus our efforts on building a platform for accelerated and sustainable growth in the future. The improvements made in the second half of 2000 are a testament to our employees' resolve to survive and prosper."

Looking forward, Mr. Calesa stated, "We are reaffirming our goal of profitability by year-end 2001. In the Pharmaceutical Division, we are putting a concerted marketing effort behind both ORTHO-EST(r) Tablets and Esclim(tm) in 2001, as well as pursuing the acquisition and licensing of additional prescription products to grow the business. In the Consumer Business, our focus is on building profitability. With Trialogue(tm), we are offering pharmaceutical companies a unique new marketing program called Integrated Marketing Platform. We are all energized to succeed and to build the value our shareholders deserve."

About Women First HealthCare, Inc.

Founded in 1996, Women First HealthCare, Inc. is a San Diego-based specialty pharmaceutical company. Its mission is to help midlife women make informed choices regarding their health care needs and to provide pharmaceutical and lifestyle product solutions to meet those needs. Women First is specifically targeted to women age 40+ and their clinicians. The Company's Pharmaceutical Division, which includes a nationwide team of experienced sales specialists, contacts primarily OB/GYNs and Nurse Practitioners with estrogen replenishment options-ORTHO-EST(r) Tablets and Esclim(tm) (estradiol transdermal system). The Consumer Business is responsible for Daily Difference(tm) dietary supplements, developed in consultation with Tufts University School of Nutrition Science and Policy, and the Company's line of self-care products available through its As We Change(r) national mail order catalog and Internet retailer, www.aswechange.com. Trialogue(tm), the Corporate Marketing Division, is responsible for providing access to Women First's network of opinion leaders and clinicians through strategic marketing programs for sale to major pharmaceutical companies. The Company's business strategy includes the acquisition and licensing of additional prescription products that support its mission. Further information about Women First can be found online at www.womenfirst.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 significant losses; (ii) there is a limited market awareness of our company and the products and services we offer; (iii) we may need additional financing in 2001 to fund our operations, acquire new products, and make planned capital expenditures, which financing may not be available on acceptable terms, if at all; (iv) 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; (v) we are obligated to find replacement sources of supply of ORTHO-EST(r) Tablets before April 2002, and if we fail to do so we will be required to pay significantly higher prices for product acquired from Ortho-McNeil Pharmaceutical; (vi) we and our products face significant competition; (vii) if we do not successfully manage any growth we experience, we may experience increased expenses without corresponding revenue increases; (viii) we are dependent on single sources of supply for all of the products we offer; and (ix) 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, 1999 and its Quarterly Report on Form 10-Q for the nine-month period ended September 30, 2000.


                 Women First HealthCare, Inc. 
                  Consolidated Balance Sheets
                        (in thousands)
                                                                  
                                                December 31,    
                                            --------------------
                                            2000            1999  
                                         ---------       ---------
 Assets
 Current Assets:                                                  
  Cash and cash equivalents                $ 9,508        $ 32,719 
  Accounts receivable, net                     421           1,916 
  Inventory                                  1,388           1,460 
  Receivable from related party              2,683             683 
  Prepaid expenses and                                             
   other current assets                        544             650 
                                          ---------       ---------
   Total current assets                     14,544          37,428 
 Property and equipment, net                 1,081           1,035 
 Intangible assets, net                      3,267           3,745 
 Other assets                                1,152           1,440 
                                          =========       =========
   Total assets                           $ 20,044        $ 43,648 
                                          =========       =========
                                                                   
 Liabilities and stockholders' equity                             
 Current Liabilities:                                             
  Accounts payable                         $ 1,052         $ 2,482 
  Payable to related party                     993             482 
  Accrued salaries and employee benefits       751           1,973 
  Other accrued liabilities                  2,213           1,991 
                                          ---------       ---------
   Total current liabilities                 5,009           6,928 
                                                                   
 Commitments                                                       
 Stockholders' equity:
  Preferred stock                                -               - 
  Common stock                                  18              17 
  Treasury stock                              (100)           (100)
  Additional paid-in capital                80,795          80,762 
  Deferred compensation                       (232)         (1,080)
  Accumulated deficit                      (65,446)        (42,879)
                                          ---------       ---------
   Total stockholders' equity               15,035          36,720 
                                          =========       =========
   Total liabilities and                                           
    stockholders' equity                  $ 20,044        $ 43,648 
                                          =========       =========
 
 
 
                    Women First HealthCare, Inc. 
                      Statements of Operations  
                (in thousands, except per share data) 
                                                                   
                                                                    
                       Three Months ended          Year ended       
                          December 31,             December 31,     
                        2000        1999         2000        1999   
                     ----------- -----------  ----------- ----------- 
                                                                      
 Net revenue            $ 3,744     $ 5,897     $ 14,748    $ 20,152  
 Net revenue                                                          
  with related party      2,646       1,182       12,337       2,349  
                     ----------- -----------  ----------- ----------- 
                          6,390       7,079       27,085      22,501  
                                                                      
 Costs and expenses:                                                  
  Cost of sales           1,111       2,750       10,528      12,327  
  Marketing and sales     5,293       9,651       31,766      26,827  
  General and                                                         
   administrative         1,722       2,927        7,541      10,793  
  Research and                                                        
   development               64         435          539       1,697  
  Write-down of assets                                                
   and other charges          -           -            -       1,638  
  Restructuring charges       -           -          735           -  
                     ----------- -----------  ----------- ----------- 
   Total costs                                                        
    and expenses          8,190      15,763       51,109      53,282  
                     ----------- -----------  ----------- ----------- 
 Loss from operations    (1,800)     (8,684)     (24,024)    (30,781) 
 Interest income and                                                  
  other income, net         442         483        1,458         646  
                     ----------- -----------  ----------- ----------- 
 Net loss                (1,358)     (8,201)     (22,566)    (30,135) 
 Accretion of                                                         
  beneficial                                                          
  conversion feature                                                  
  related to                                                          
  convertible                                                         
  preferred stock             -           -            -      (3,362) 
                     =========== ===========  =========== =========== 
 Net loss available                                                   
  to common                                                           
  stockholders          $(1,358)    $(8,201)    $(22,566)   $(33,497) 
                     =========== ===========  =========== =========== 
 Net loss per share                                                   
  (basic and diluted)   $ (0.08)    $ (0.48)    $  (1.29)   $  (2.67) 
                     =========== ===========  =========== =========== 
 Weighted average                                                     
  shares used in                                                      
  computing net loss                                                  
  per share                                                           
  (basic and diluted)17,525,549  17,255,284   17,467,517  12,547,154  
                     =========== ===========  =========== =========== 


            

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