Shaman Pharmaceuticals Cuts Costs in FY99

Shaman Pharmaceuticals Cuts Costs in FY99

SOUTHSAN FRANCISCO, Calif.--Shaman Pharmaceuticals Inc. (OTCBB:SHPH) released resultsfor its fiscal year ended Dec. 31, 1999. Revenues from its first dietarysupplement product, which was not released until July 1999 and not promoteduntil September 1999, were $.5 million. Sales from collaborative agreementstotaled $.67 million, bringing total revenues to $1.1 million, down from $2.7million sold in 1998 (all from collaborative agreements).

Gross profit for 1999 was $.88 million or 83 percent of sales. Operatingexpenses fell to $15.5 million from $38 million spent the previous year. Thecompany posted a net loss for the year of $16.5 million or $140.7 per share,compared to $36.8 million or $1,916.6 per share lost in 1998.

In its annual report filed on the Securities and Exchange Commission (SEC)Edgar database, the company spent about $2.2 million in restructuring chargesassociated with the February 1999 closing of its pharmaceutical business, whichresulted in the termination of 60 employees. The company re-focused its businesson the development and commercialization of botanical dietary supplements.

As of Dec. 31, 1999, the company had cash, cash equivalents and short-terminvestment balances totaling about $1.2 million. It used $12.6 million in cashfor operating activities primarily because of its $16.4 million net loss. InFeb. 2000, the company managed to raise $3.5 million from bridge financing butreported in its annual report that more capital is needed for continuedoperations.

For more information, contact the company's corporate communications at (650)952-7070 ext. 362.