SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): May 9, 2003 HALSEY DRUG CO., INC. 695 North Perryville Road, Rockford, Illinois 61107 (815-399-2060) Incorporated under the Commission File Number I.R.S. Employer laws of State of New York 1-10113 Identification Number 11-0853640
Item 7. Financial Statements and Exhibits. (c) Exhibits Exhibit Number Description - ------ ----------- 99.1 Press Release of Halsey Drug Co., Inc. dated May 9, 2003 reporting results for the year ended December 31, 2002. Item 9. Regulation FD Disclosure. The Registrant is furnishing under Item 9 of this Current Report on Form 8-K: (i) Exhibit 99.1 consisting of a copy of the press release issued on May 9, 2003 reporting results for the year ended December 31, 2002. The statements in this Current Report on Form 8-K, including the exhibits, contain forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements involve risk and uncertainties which may affect the Registrant's business prospects, including, economic, competitive, governmental, technological and other factors discussed in filings with the Securities and Exchange Commission.
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. HALSEY DRUG CO., INC. By: /s/ Peter A. Clemens ----------------------------------------- Peter A. Clemens Vice President & Chief Financial Officer Date: May 9, 2003
EXHIBIT INDEX ------------- Exhibit Number Description - ------ ----------- 99.1 Press Release of Halsey Drug Co., Inc. dated May 9, 2003 reporting results for the forth quarter and year ended December 31, 2002.
Exhibit 99.1 Contact: Halsey Pharmaceuticals Investor Relations - Peter A. Clemens, Vice President & CFO (815) 399-2060 FOR IMMEDIATE RELEASE --------------------- HALSEY PHARMACEUTICALS REPORTS RESULTS FOR 2002 ----------------------------------------------- ROCKFORD, IL, MAY 9, 2003: Halsey Pharmaceuticals (OTC.BB-HDGC) today announced that total revenues for the year ended December 31, 2002 decreased by 52% to $8,205,000 as compared to $16,929,000 for 2001. The Company also reported that it had a net loss for the year ended December 31, 2002 of $59,589,000 or $3.90 per share, compared with a net loss of $12,563,000 or $.84 per share for 2001. Revenues for the year ended December 31, 2001 consisted of $8,429,000 in product revenues and $8,500,000 in product development revenues related to the sale of the Company's Abbreviated New Drug Application for Doxycycline Capsules. The product development revenues had a $.57 per share favorable impact on 2001 reported results. Included in the net loss for 2002 were expenses of approximately $46,564,000, comprised of $29,278,000 related to the December, 2002 debt restructuring and financing, $12,558,000 of amortization of debt discount and private offering costs and $4,728,000 of interest costs. Revenues were $2,053,000 and $1,675,000 for the quarters ended December 31, 2002 and 2001, respectively, representing an increase of 22.6%. The net loss for the quarter ended December 31, 2002 was $38,901,000 or $2.46 per share, compared to the net loss of $5,958,000 or $.40 per share for the quarter ended December 31, 2001. Commenting, Michael Reicher, Chairman & CEO said, "in the fourth quarter on an operating level the Company showed progress in terms of increasing product revenues. We expect this trend to continue in 2003 as the regulatory hurdles to product introductions are cleared and the Company expands its generic product line. Further, we expect to begin to see the results of development efforts relating to certain new products to be introduced to treat pain. Much of the loss for 2002 relates to the cost of recent financings and the amortization of these charges. These are largely non-cash in nature and have no impact on the ongoing operations of the Company. The Company continues to receive the financial support of its primary investors and remains committed to our strategy of developing products to serve the $5 billion pain management market."
Halsey Pharmaceuticals, together with its subsidiaries, is an emerging pharmaceutical company specializing in innovative drug development. The statements in this press release are forward looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward looking statements involve risk and uncertainties which may affect Halsey's business prospects, including economic, competitive, governmental, technological and other factors discussed in filings with the Securities and Exchange Commission.
HALSEY DRUG CO., INC. (D/B/A HALSEY PHARMACEUTICALS) FINANCIAL HIGHLIGHTS CONDENSED CONSOLIDATED BALANCE SHEETS AT DECEMBER 31, (IN THOUSANDS) 2002 2001 ---- ---- ASSETS Current Assets $ 12,500 $ 3,776 Property, Plant and Equipment, Net 5,367 5,998 Other Assets 1,497 1,295 -------- --------- $ 19,364 $ 11,069 ======== ======== LIABILITIES & STOCKHOLDERS' EQUITY Current Liabilities 6,567 12,052 Long Term Debt, Net 25,065 64,453 Stockholders' Equity (Deficit) (12,268) (65,436) ------- ------- $ 19,364 $ 11,069 ======== ========
HALSEY DRUG CO., INC. (D/B/A HALSEY PHARMACEUTICALS) FINANCIAL HIGHLIGHTS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE INFORMATION) (UNAUDITED) THREE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, 2002 2001 2002 2001 ---- ---- ---- ---- Net Product Revenues $ 2,053 $ 1,675 $ 8,205 $ 16,929 Operating Costs Cost of Manufacturing 3,163 3,353 12,535 14,857 Research and Development 356 401 1,517 1,327 Selling, General and Administrative Expenses 1,744 1,945 7,216 6,616 Plant Shutdown Costs (6) 68 (126) 68 -------- -------- -------- -------- Loss From Operations (3,204) (4,092) (12,937) (5,939) Other Income (Expense) - ---------------------- Interest Expense (1,320) (959) (4,728) (3,913) Interest Income 5 5 15 69 Amortization of Deferred Debt Discount and Private Offering Costs (4,996) (757) (12,558) (2,591) Loss on Extinguishment of Debt (29,278) -- (29,278) -- Investment in Joint Venture -- (157) -- (202) Other (108) 2 (103) 13 -------- -------- -------- -------- Net Loss $(38,901) $ (5,958) $(59,589) $(12,563) ===================== ===================== Net Loss Per Common Share $ (2.45) $ (0.40) $ (3.90) $ (0.84) ===================== ===================== Weighted Average Number of Outstanding Shares 15,844 15,063 15,262 15,021 ===================== =====================