QLT Announces Fourth Quarter and Year End 2012 Results

QLT Announces Fourth Quarter and Year End 2012 Results

VANCOUVER, British Columbia, Feb. 21, 2013 (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 fourth quarter
and full year ended December 31, 2012. Unless specified otherwise, all amounts
are in U.S. dollars and in accordance with U.S. GAAP.

2012 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. On December
24, 2012, the Company entered into an exclusive option agreement with Mati
Therapeutics Inc. ("Mati"), a development company led by Robert Butchofsky,
QLT's former President and CEO, pursuant to which the Company granted Mati an
exclusive 90-day option to acquire assets related to our punctal plug delivery
system in exchange for $0.5 million. The option may be extended by Mati for up
to three successive 30-day periods upon payment of an additional $0.1 million
for each extension. 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 $5.0 million in the fourth quarter, down
from $6.3 million in the fourth quarter of 2011. For the full year, R&D
expense was $24.6 million in 2012, compared to $23.0 million in 2011. The
increase was primarily due to a $1.2 million charge related to accelerated
vesting of employee stock options resulting from the election of a new Board
of Directors at the Company's annual meeting of shareholders on June 4, 2012,
plus higher spending on our synthetic retinoid program.

For the fourth quarter, Selling, General and Administrative (SG&A) expense was
$2.4 million, down from $4.5 million in 2011. The decrease from the prior year
was primarily due to savings from our restructurings announced in 2012. For
the full year, SG&A expenditures of $15.1 million were down from the $17.1
million reported in 2011. The decrease from the prior year was primarily due
to savings from our restructurings announced in the second half of 2012,
partially offset by a $1.2 million charge related to accelerated vesting of
employee stock options and directors' deferred stock units resulting from the
election of a new Board of Directors.

For the fourth quarter, Restructuring Charges were $2.6 million, of which $0.1
million was included in discontinued operations. For the full year,
Restructuring Charges were $16.9 million, of which $3.1 million was included
in discontinued operations.

Investment and Other Income was $1.9 million and $8.5 million for the quarter
and year ended December 31, 2012, respectively. For both periods, this
primarily related to a gain of $1.8 million and $8.2 million, respectively,
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
Visudyne, and therefore as each quarter elapses, even if no changes are made
to the underlying Eligard and Visudyne forecasts, 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.

(Loss) / Income from Discontinued Operations, Net of Income Taxes

For the fourth quarter, we incurred a loss from discontinued operations, net
of income taxes, of $1.1 million, compared to income from discontinued
operations of $1.0 million in the fourth quarter of 2011. For the full year,
income from discontinued operations, net of taxes, was $88.0 million up from
$1.0 million reported in 2011. 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 fourth quarter was $10.1 million, compared to a
$11.1 million operating loss in the prior-year fourth quarter, as savings from
restructurings and reduced spending on our synthetic retinoid program offset
the restructuring costs of $2.4 million recorded in continuing operations in
the quarter. The full-year operating loss for 2012 was $54.7 million, compared
to $41.4 million in 2011. The larger loss was primarily due to restructuring
costs of $13.9 million recorded in continuing operations during the year,
offset by lower SG&A expense due to savings from restructurings.

(Loss) / Income Per Share

GAAP loss per share was $0.18 in the fourth quarter of 2012 compared to a
$0.13 loss per share in the fourth quarter of 2011. The loss was higher in
2012 primarily because of restructuring costs, and because the gain from the
Fair Value Change in Contingent Consideration was lower than in the prior
year. These two items were partially offset by restructuring savings and
lower spending on the synthetic retinoid program.For the full year, income
per share in 2012 was $0.91, compared to a loss per share of $0.61 in 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.

Adjusted EBITDA

Adjusted EBITDA from Continuing Operations plus Contingent Consideration
earned was $3.5 million in the fourth quarter and $2.3 million for the full
year 2012, as follows:


(In millions of United States dollars)    Three months ended Year ended
                                          December 31, 2012  December 31, 2012
GAAP operating loss                       $(10.1)          $(54.7)
+ Stock-based compensation                0.1                3.3
+ Depreciation                            0.2                1.2
+ Restructuring                           2.4                13.8
+ Contingent Consideration earned         10.9               38.6
Adjusted EBITDA plus Contingent           $3.5             $2.3
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 and Restricted Cash

The Company's consolidated cash balance at December 31, 2012 consisted of
$307.4 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.In addition, we still have $76.7 million remaining to be collected
related to our Eligard Contingent Consideration.

QLT Developments

QLT091001 Synthetic Retinoid Clinical Update

QLT expects its recently augmented synthetic retinoid program leadership team
to meet with the FDA by the end of Q1 2013 to discuss the most prudent
development path to advance QLT091001.Until the aforementioned U.S. Food and
Drug Administration (FDA) meeting is concluded, the minutes from it are
reviewed, and a subsequent end of phase II meeting is completed with formal
guidance provided by the FDA, we do not expect to provide timelines for
potential pivotal trial initiation(s).

Share Repurchase Program Update

On October 2, 2012, we commenced a normal course issuer bid ("NCIB") to
repurchase up to 3,438,683 of our common shares over a 12-month period, which
is the maximum number of shares permitted to be purchased under the TSX NCIB
rules and represents 10% of the public float as of September 26, 2012.All
common shares repurchased will be cancelled.As of February 18, 2013, total
repurchases under this program were 3,154,843 common shares at an average
price of $7.85 per share, for a total cost of $24.8 million.

Passive Foreign Investment Company

The Company believes that it classified as a Passive Foreign Investment
Company (PFIC) for 2008 – 2012, and that it may qualify as a PFIC in 2013,
which could have adverse tax consequences for U.S. shareholders. Please refer
to our Annual Report on Form 10-K for additional information.

QLT Inc.—Financial Highlights
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In accordance with United States generally accepted accounting principles)
                                Three months ended   Year ended
                                 December 31,          December 31,
(In thousands of United States
dollars, except per share        2012       2011       2012        2011
information)
(Unaudited)                                                     
Expenses                                                        
Research and development         $4,958     $6,258     $24,578     $23,043
Selling, general and             2,434     4,467     15,082     17,059
administrative
Depreciation                     237       354       1,165      1,292
Restructuring charges            2,448     --       13,850     --
                                10,077    11,079    54,675     41,394
                                                               
Operating loss                   (10,077)  (11,079)  (54,675)   (41,394)
                                                               
Investment and other income                                     
Net foreign exchange gains       76        (186)     (8)        (148)
(losses)
Interest income                  97        139       244        673
Fair value change in contingent  1,783     3,214     8,215      10,078
consideration
Other (losses) gains             (43)      610       60         613
                                1,914     3,777     8,511      11,216
                                                               
Loss from continuing operation   (8,163)   (7,302)   (46,164)   (30,178)
before income taxes
                                                               
Recovery of (provision for)      102       (267)     3,900      (1,201)
income taxes
                                                               
Loss from continuing operations  $(8,061) $(7,569) $(42,264) $(31,379)
(Loss) income from discontinued  (1,120)   952       87,962     963
operations, net of income taxes
Net (loss) income              $(9,181) $(6,617) $45,698   $(30,416)
                                                               
Basic and diluted net (loss)                                    
income per common share
Continuing operations            $(0.16)  $(0.15)  $(0.84)   $(0.63)
Discontinued operations          (0.02)    0.02      1.75       0.02
Net (loss) income per common     $(0.18)  $(0.13)  $0.91     $(0.61)
share
                                                               
Weighted average number of
common shares outstanding                                       
(thousands)
Basic                            51,674     49,143     50,112      50,105
Diluted                          51,674     49,143     50,112      50,105



QLT Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In accordance with United States generally accepted accounting principles)
                                                          
(In thousands of United States dollars)  December 31,       December 31,
                                         2012               2011
(Unaudited)                                                
ASSETS                                                     
Current assets                                             
Cash and cash equivalents                $307,384           $205,597
Restricted cash                          7,500              --
Accounts receivable                      3,960              9,985
Current portion of contingent            41,255             34,669
consideration
Income taxes receivable                  554                321
Current portion of deferred income tax   644                1,351
assets
Mortgage receivable                      --                 5,874
Assets held for sale                     300                14,490
Prepaid and other                        1,442              1,405
                                        363,039            273,692
                                                          
Property, plant and equipment            2,655              3,297
Deferred income tax assets               370                1,350
Other assets                             --                 927
Contingent consideration                 35,154             65,278
                                        $401,218           $344,544
                                                          
LIABILITIES                                                
Current liabilities                                        
Accounts payable                         $6,121             $6,099
Income taxes payable                     --                 29
Accrued liabilities                      2,515              7,679
Accrued restructuring charge             1,933              --
Deferred income                          456                --
                                        11,025             13,807
                                                          
Uncertain tax position liabilities       1,875              1,732
                                        12,900             15,539
                                                          
SHAREHOLDERS' EQUITY                                       
Common shares                            471,712           458,118
Additional paid-in capital               296,024           296,003
Accumulated deficit                      (482,387)         (528,085)
Accumulated other comprehensive income   102,969           102,969
                                        388,318            329,005
                                        $401,218         $344,544
                                                          
As at December 31, 2012, there were 51,589,405 issued and outstanding common
shares and 1,416,016 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 Stock Market (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.

Visudyne^® is a registered trademark of Novartis AG

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

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

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 clinical
development programs; statements related to our regulatory pathway and
guidance; statements concerning our PFIC status; our ability to meet our
operational and financial objectives; statements concerning the 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 under the current exclusive option
agreement with Mati 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; 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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