QLT Announces Third Quarter 2012 Results

QLT Announces Third Quarter 2012 Results

Provides Guidance Update

VANCOUVER, British Columbia, Nov. 7, 2012 (GLOBE NEWSWIRE) -- QLT Inc.
(Nasdaq:QLTI) (TSX:QLT) ("QLT" or the "Company") is a biotechnology company
dedicated to the development and commercialization of innovative ocular
products that address the unmet medical needs of patients and clinicians
worldwide. The Company today reported financial results for the third quarter
ended September 30, 2012. Unless specified otherwise, all amounts are in U.S.
dollars and in accordance with U.S. GAAP.

2012 THIRD QUARTER FINANCIAL RESULTS

Discontinued Operations Reporting

On September 24, 2012, the Company announced that it completed the sale of its
Visudyne^® business to Valeant Pharmaceuticals International, Inc. We are also
seeking to sell or out-license our punctal plug drug delivery system
technology. In accordance with the accounting standard for discontinued
operations, the results of operations relating to both the Visudyne business
and the punctal plug drug delivery system technology have been excluded from
continuing operations and reported as discontinued operations for the current
and prior periods.

QLT Expenses / Other Income

Research and Development (R&D) expense, which now includes only expenses from
our synthetic retinoid program, was $5.6 million in the third quarter, down
from $6.1 million in the third quarter of 2011.

For the third quarter, Selling, General and Administrative (SG&A) expense was
$2.7 million, down from $3.7 million in 2011. The decrease from the prior year
was primarily due to savings from our restructuring announced on July 9, 2012.

Investment and Other Income of $3.0 million was primarily related to a $2.8
million gain for the Fair Value Change in Contingent Consideration. This gain
occurred primarily because our contingent consideration assets are recorded as
the present value of future expected payments with respect to Eligard^®, and
therefore as each quarter elapses, even if no changes are made to the
underlying Eligard^® forecast, we will book a gain related to the time value
of money as we move one quarter closer to realizing the full face value of the
assets.

Income from Discontinued Operations, Net of Income Taxes

Income from discontinued operations, net of income taxes, was $94.1 million
for the third quarter compared to a loss of $0.4 million in the third quarter
of last year. The increase was driven by a pre-tax gain of $101.4 million on
the divestment of the Visudyne^® business during the third quarter.

Operating Loss

The operating loss for the third quarter was $19.9 million, compared to the
$10.1 million operating loss in the prior-year period. The larger loss was
primarily due to restructuring costs of $11.4 million recorded in continuing
operations in the third quarter of 2012.

Income / (Loss) Per Share

GAAP income per share was $1.61 in the third quarter of 2012 compared to a
$0.18 loss per share in the third quarter of 2011. The improvement was
primarily the result of a gain related to the divestment of Visudyne,
partially offset by restructuring costs in the current year quarter.

Adjusted EBITDA

Adjusted EBITDA from Continuing Operations plus Contingent Consideration
earned was $2.6 million in the third quarter as follows:

                                                           
(In millions of United States dollars)                      Three months ended
                                                            September 30, 2012
GAAP operating loss                                         $ (19.9)
+ Stock-based compensation                                  0.1
+ Depreciation                                              0.2
+ Restructuring                                             11.4
+ Contingent Consideration earned                           10.8
Adjusted EBITDA from Continuing Operations plus Contingent  $2.6
Consideration earned

Adjusted EBITDA from Continuing Operations plus Contingent Consideration
earned is a non-GAAP financial measure that has no standardized meaning under
GAAP and therefore may not be comparable to similar measures presented by
other companies. We believe that this non-GAAP financial measure may be useful
to investors to analyze the results of our business. We use this non-GAAP
measure internally to evaluate our financial results. Certain items are
excluded from non-GAAP financial measures because we consider such items to be
outside of our core operating results or because they represent non-cash
expenses or gains.

Cash and Cash Equivalents

The Company's consolidated cash balance at September 30, 2012 consisted of
$308.2 million of cash and cash equivalents and $7.5 million of restricted
cash, up from the $205.6 million balance at the end of 2011. The increase was
largely due to the cash received from the divestment of the Visudyne business.

Guidance Update

As a result of the sale of our Visudyne business, we are no longer providing
guidance on revenues and cost of sales.In addition, the results of operations
relating to both the Visudyne business and the punctal plug delivery system
technology have been excluded from continuing operations and reported as
discontinued operations.We are now providing updated guidance only relating
to continuing operations as follows:

  oWe are now expecting research and development expenses for the current
    fiscal year to be in the range of $26 million to $29 million.Research and
    development expenses through nine months were $19.6 million.
  oWe are now expecting selling, general and administrative expenses for the
    current fiscal year to be in the range of $16 million to $19
    million.Selling, general and administrative expenses through nine months
    were $12.6 million.
  oWe are now expecting adjusted EBITDA from continuing operations plus
    contingent consideration earned for the sale of QLT USA to be in the range
    of negative $7 million to negative $2 million for the current fiscal
    year.Adjusted EBITDA from continuing operations plus contingent
    consideration earned for the sale of QLT USA through nine months was
    negative $1.3 million.
  oWe are now expecting capital expenditures for the current fiscal year to
    be $1 million to $2 million.Capital expenditures through nine months were
    $0.9 million.

Guidance Ranges

The key guidance ranges for the full year 2012 are as follows:


(In millions of United States dollars)
Research and development expense                                     $26 – $29
Selling, general and administrative expense                          16 – 19
Restructuring charge (continuing and discontinued operations,        15 – 19
combined)
Contingent consideration earned for the sale of QLTUSA              34 – 38
Adjusted EBITDA from continuing operations plus Contingent           (7) – (2)
Consideration earned for the sale of QLT USA
Income tax provision (continuing and discontinued operations,        1 – 2
combined)
Capital expenditures                                                 1 – 2

QLT Developments

QLT091001 Synthetic Retinoid Clinical Update

Our two separate retreatment studies in Leber Congenital Amaurosis (LCA) and
Retinitis Pigmentosa (RP) subjects, respectively, are ongoing to provide
retreatment for these subjects, as needed, in order to examine the safety,
efficacy and tolerability of repeat dosing cycles of QLT091001 administered
over seven days.Pre-clinical and clinical studies are also ongoing to further
evaluate the safety and tolerability of QLT091001. Our clinical team, now
being led by Dr. Sushanta Mallick who succeeds Suzanne Cadden, continues to
further evaluate current study designs, dose ranging and safety of the
drug.Our goal is now to progress development of QLT091001 towards potential
pivotal trials in LCA and thereafter, RP, later in 2013.Final development
decisions on a potential pivotal trial for LCA are expected to be made once
data from the ongoing LCA retreatment study is evaluated and discussed with
the U.S. Food and Drug Administration and the European Medicines Agency.

Return of Capital

The Board of Directors has authorized a return of $100.0 million in capital to
shareholders as soon as practicable. On October 2, 2012 we commenced a normal
course issuer bid to repurchase up to 3,438,683 of our common shares, being
10% of our public float as of September 26, 2012, over a 12-month period.As
of November 1, 2012, total purchases under this program were 881,238 common
shares at an average price of $7.72 per share, for a total cost of $6.8
million. The Board is currently evaluating a number of other options to most
efficiently and effectively implement the return of capital.Relevant to the
options for the return of capital being considered by the Board is the
Company's paid-up capital in respect of our common shares, which we believe is
not less than CAD $9 per share as of September 30, 2012.

Jason M. Aryeh, Chairman of QLT's Board of Directors stated, "The Board
continues to evaluate the options available to most efficiently and
effectively achieve at least, and possibly more than, the previously announced
return of capital, including our ability to potentially return capital
effectively through a reduction in paid-up capital.While our goal is to
return both a significant and appropriate amount of capital to shareholders in
the near term, we continue to take a diligent approach towards considering
governing regulations and tax-efficiency.As a result, we may not be able to
complete all or a significant portion of our return of capital process this
year, and possibly not until the first half of 2013."

Mr. Aryeh added: "Given potential options the Board is considering with
regards to returning capital to shareholders, QLT is disclosing the receipt of
multiple inbound indications of interest from potential strategic partners
regarding our synthetic oral retinoid program. As a public company, the Board
has a fiduciary responsibility to entertain such solicitations, and we will
judiciously evaluate whether they may be in the best interests of our
shareholders and QLT091001. The Board remains confident that QLT can
independently develop this exciting orphan drug program, preserving the full
potential economic interest for our owners. Thus, there is no assurance that,
even if we receive formal offers, such terms would be sufficient for QLT to
accept, and we have established no timetable for determining whether to pursue
or complete such a transaction."

Passive Foreign Investment Company

The Company believes that it qualified as a Passive Foreign Investment Company
(PFIC) for 2008 – 2011, and that it may qualify as a PFIC in 2012, which could
have adverse tax consequences for U.S. shareholders. Please refer to our
Annual Report on Form 10-K and our Quarterly Report on Form 10-Q for the
quarter ended September 30, 2012 for additional information.

QLT Inc.—Financial Highlights
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In accordance with United States generally accepted accounting principles)
                                Three months ended    Nine months ended
                                 September 30,          September 30,
(In thousands of United States
dollars, except per share        2012       2011      2012      2011
information)
(Unaudited)                                                     
                                                               
Expenses                                                        
Research and development         $5,639    $6,113    $19,621   $ 16,785
Selling, general and             2,669      3,693     12,648    12,592
administrative
Depreciation                     238        294       927       937
Restructuring charges            11,402     --        11,402    --
                                19,948     10,100    44,598    30,314
                                                               
Operating loss                   (19,948)   (10,100)  (44,598)  (30,314)
                                                               
Investment and other income                                     
Net foreign exchange             65         (298)     (84)      39
gains(losses)
Interest income                  59         146       147       534
Fair value change in contingent  2,840      1,828     6,432     6,864
consideration
Other gains                     21         9         102       18
                                2,985      1,685     6,597     7,455
                                                               
Loss from continuing operation   (16,963)   (8,415)   (38,001)  (22,859)
before income taxes
                                                               
Recovery of (provision           4,345      (261)     3,798     (719)
for)income taxes
                                                               
Loss from continuing operations $ (12,618) $(8,676) $ (34,203) $ (23,578)
Income (loss) from discontinued  94,078     (430)     89,082    (222)
operations, net of income taxes
Net income (loss)                $81,460   $(9,106)  $54,879   $ (23,800)
                                                               
Basic and diluted net income                                    
(loss) per common share
Continuing operations            $(0.25)   $(0.17)   $(0.69)   $(0.47)
Discontinued operations          1.86       (0.01)    1.80      (0.00)
Net income (loss) per common     $1.61     $(0.18)   $1.11     $(0.47)
share
                                                               
                                                               
Weighted average number of
common shares outstanding                                       
(thousands)
Basic                            50,600     49,732    49,592    50,425
Diluted                          50,600     49,732    49,592    50,425

                                        
                                        
QLT Inc.                                 
CONDENSED CONSOLIDATED BALANCE SHEETS
(In accordance with United States
generally accepted accounting            
principles)
                                        September 30,      December 31,
(In thousands of United States dollars)  2012               2011
(Unaudited)                                                 
ASSETS                                                      
Current assets                                              
Cash and cash equivalents                $ 308,221          $ 205,597
Restricted cash                          7,500              --
Accounts receivable                     11,122             9,985
Current portion of contingent            40,313             34,669
consideration
Income taxes receivable                  588               321
Current portion of deferred income tax   519                1,351
assets
Mortgage receivable                      --                 5,874
Assets held for sale                     300                14,490
Prepaid and other                        1,871              1,405
                                        370,434            273,692
                                                           
Property, plant and equipment            2,892              3,297
Deferred income tax assets               651                1,350
Other assets                             45                 927
Contingent consideration                 45,100             65,278
                                        $ 419,122          $ 344,544
                                                           
LIABILITIES                                                 
Current liabilities                                         
Accounts payable                         $8,530            $6,099
Income taxes payable                     --                 29
Accrued liabilities                      4,882              7,679
Accrued restructuring charge             2,823              --
                                        16,235             13,807
                                                           
Uncertain tax position liabilities       1,868              1,732
                                        18,103             15,539
                                                           
SHAREHOLDERS' EQUITY                                        
Common shares                            473,771            458,118
Additional paid-in capital               297,485            296,003
Accumulated deficit                      (473,206)          (528,085)
Accumulated other comprehensive income   102,969            102,969
                                        401,019            329,005
                                        $ 419,122          $ 344,544

As at September 30, 2012, there were 51,332,281 issued and outstanding common
shares and 3,513,012 outstanding stock options.


About QLT

QLT is a biotechnology company dedicated to the development and
commercialization of innovative ocular products that address the unmet medical
needs of patients and clinicians worldwide. We are focused on developing our
synthetic retinoid program for the treatment of certain inherited retinal
diseases.

QLT's head office is based in Vancouver, Canada and the Company is publicly
traded on NASDAQ (symbol: QLTI) and the Toronto Stock Exchange (symbol: QLT).
For more information about the Company's products and developments, please
visit our web site at www.qltinc.com.

The QLT Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6933

Visudyne^® is a registered trademark of Novartis AG

Eligard^® is a registered trademark of Sanofi S.A.

QLT Inc. is listed on The NASDAQ Stock Market under the trading symbol "QLTI"
and on The Toronto Stock Exchange under the trading symbol "QLT."

Certain statements in this press release constitute "forward-looking
statements" of QLT within the meaning of the Private Securities Litigation
Reform Act of 1995 and constitute "forward-looking information" within the
meaning of applicable Canadian securities laws. Forward-looking statements
include, but are not limited to: statements concerning our QLT091001 synthetic
retinoid clinical development program, including statements related to goals
and timing to progress development of our synthetic retinoid program into
pivotal trials; statements concerning our ability to independently develop the
synthetic retinoid program; statements concerning possible transactions
related to the synthetic retinoid program; statements related to our
regulatory pathway and guidance (including our expectations about our 2012
research and development expenses, selling, general and administrative
expenses, contingent consideration earned for the sale of QLT USA, adjusted
EBITDA from continuing operations plus contingent consideration and capital
expenditures); statements concerning our PFIC status and paid-up capital on
our common shares; our ability to meet our operational and financial
objectives; statements concerning the return of capital and potential
divestment of the punctal plug drug delivery system program (PPDS); and
statements which contain language such as: "assuming," "prospects," "goal,"
"future," "projects," "potential," "believes," "expects"; "hopes" and
"outlook." Forward-looking statements are predictions only which involve known
and unknown risks, uncertainties and other factors that may cause actual
results to be materially different from those expressed in such statements.
Many such risks, uncertainties and other factors are taken into account as
part of our assumptions underlying these forward-looking statements and
include, among others, the following: the Company's future operating results
are uncertain and likely to fluctuate; currency fluctuations; the risk that
sales of Visudyne^® or Eligard^® may be less than expected thereby impacting
our contingent consideration; risks and uncertainties related to the timing
and our ability to divest the PPDS program on terms favorable to us or at all;
risks and uncertainties concerning the impacts that QLT's strategic
initiatives will have on the market price of our securities; risks resulting
from recent changes in personnel; risks and uncertainties relating to our
development plans, timing and results of the clinical development and
commercialization of our products and technologies; assumptions related to
continued enrollment trends, efforts and success, and the associated costs of
these programs; outcomes for our clinical trials (including our synthetic
retinoid program) may not be favorable or may be less favorable than
interim/preliminary results and/or previous trials; there may be varying
interpretations of data produced by one or more of our clinical trials; risks
and uncertainties associated with the safety and effectiveness of our
technology; the timing, expense and uncertainty associated with the regulatory
approval process for products to advance through development stages; risks and
uncertainties related to the scope, validity, and enforceability of our
intellectual property rights and the impact of patents and other intellectual
property of third parties; and general economic conditions and other factors
described in detail in QLT's Annual Report on Form 10-K, Quarterly Reports on
Form 10-Q and other filings with the U.S. Securities and Exchange Commission
and Canadian securities regulatory authorities.Forward-looking statements are
based on the current expectations of QLT and QLT does not assume any
obligation to update such information to reflect later events or developments
except as required by law.

This press release also contains "forward looking information" that
constitutes "financial outlooks" within the meaning of applicable Canadian
securities laws. This information is provided to give investors general
guidance on management's current expectations of certain factors affecting our
business, including our financial results. Given the uncertainties,
assumptions and risk factors associated with this type of information,
including those described above, investors are cautioned that the information
may not be appropriate for other purposes.

CONTACT: QLT Inc. Contacts:
         Investor & Media Relations
         Andrea Rabney or David Pitts
         Argot Partners
         212-600-1902
         andrea@argotpartners.com
         david@argotpartners.com

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