QLT announces first quarter financial results

Fourth Consecutive Quarter of Profitability



Apr 25, 2001, 01:00 ET from QLT Inc.

    VANCOUVER, April 25 /PRNewswire/ - QLT Inc. (NASDAQ:  QLTI; TSE:QLT) today
 reported financial results for the first quarter ended March 31, 2001.
     For the three months ended March 31, 2001, QLT reported net income of
 CDN$12,650,000 / US$8,280,000 or CDN$0.19 / US$0.12 per common share compared
 to a net loss of (CDN$12,522,000) / (US$8,623,000) or (CDN$0.19) / (US$0.13)
 per common share in the same period in 2000.
     "We were able to report our fourth consecutive quarter of profitability
 due to better-than-expected growth in Visudyne(TM) sales, favorable foreign
 currency rates and prudent management of our internal cost structure," said
 Dr. Julia G. Levy, QLT's President and Chief Executive Officer. "In the first
 12 months of launch, physicians treated an estimated 50,000 patients and
 performed more than 120,000 Visudyne treatments resulting in total sales of
 more than CDN$220 million / US$140 million. We believe this represents the
 best first year sales performance for any eyecare pharmaceutical product."
     Visudyne sales for the first quarter of 2001 of CDN$73.5 million / US$48
 million were announced by QLT following the reporting of first quarter sales
 by marketing partner Novartis (NYSE:  NVS) on April 19, 2001.
     Visudyne is now available in more than 35 countries for the treatment of
 predominantly classic subfoveal choroidal neovascularization (CNV) due to age-
 related macular degeneration (AMD), the leading cause of severe vision loss in
 patients over 50. Approximately 65% of first quarter sales for Visudyne were
 in the United States with the remaining 35% in Europe, Canada and other
 markets.
     Dr. Levy added, "With an excellent first quarter behind us, we expect
 Visudyne sales for 2001 to be between CDN$348 million and CDN$387 million /
 US$225 million and US$250 million. The Company expects quarter-to-quarter
 growth in sales will have continued variability due to fluctuations in key
 foreign currency rates and usage patterns. We continue to expect QLT's share
 of net profits from Visudyne will grow to approximately 25% of total Visudyne
 sales for the year."
     QLT's revenue from Visudyne sales consists of reimbursement for
 manufacturing and other costs along with 50% of the Visudyne net profits which
 are calculated as sales less marketing, overhead and manufacturing costs. Due
 to the continued marketing investment required to support product launches
 outside the United States, QLT's share of Visudyne net profits (excluding
 reimbursement for manufacturing and other costs) for the first quarter was
 21.5 % of total Visudyne sales.
     The Company earned contract research and development (R&D) revenue during
 the first quarter of approximately CDN$639,000 / US$418,000, a decrease of 57%
 from the first quarter of 2000 due to Novartis Ophthalmics assuming a greater
 proportion of R&D activity for the joint Visudyne program.
     During the first quarter of 2000, the Company recorded royalties on sales
 of PHOTOFRIN(R) by various distribution partners. The Company sold the rights
 to PHOTOFRIN to Axcan Pharma (NASDAQ:   AXCA; TSE:AXP) in the second quarter of
 2000 and therefore no such royalties have been recorded for the current
 quarter.
     Total operating costs decreased by approximately 2% in the first quarter
 compared to the same period in 2000. The decrease relates mainly to certain
 product development and market development costs incurred in the first quarter
 of 2000, in anticipation of the launch of Visudyne.
     Depreciation and amortization expense for the first quarter decreased by
 26% over the same period in 2000 primarily as a result in changes in
 accounting estimates related to the amortization period of the Company's
 recently completed research and headquarters facility in Vancouver. Interest
 expense relates to long-term debt incurred in 2000 to fund a portion of the
 capital cost of the new facility.
     Investment and other income increased in the first quarter by 103%
 compared to the same period of 2000 due primarily to favorable foreign
 currency fluctuations on the Company's treasury investments and other working
 capital.
     The Company ended the first quarter with approximately CDN$254 million /
 US$161 million in cash resources. In addition, the Company has an investment
 of approximately CDN$18 million / US$11 million in Axcan Pharma as a result of
 the PHOTOFRIN transaction completed in 2000.
 
     QLT Inc. is a world leader in photodynamic therapy, a field of medicine
 utilizing light-activated drugs in the treatment of disease. QLT's innovative
 science has led to the development and commercialization of breakthrough
 treatments utilizing this technology for applications in ophthalmology and
 oncology and is exploring the potential in immune disorders. For more
 information, you are invited to visit QLT's web site at www.qltinc.com.
 
                             - CANADIAN DOLLARS -
 
     QLT Inc.
 
     CONSOLIDATED STATEMENTS OF OPERATIONS
     -------------------------------------
                                                           Three months ended
     (In thousands of Canadian dollars,                             March 31,
      except per share information)                      2001            2000
     -------------------------------------------------------------------------
     Revenues
       Revenue from Visudyne(TM)                    $  22,090       $       -
       Royalties on product sales
        - PHOTOFRIN(R)                                      -             619
       Contract research and development                  639           1,500
     -------------------------------------------------------------------------
                                                       22,729           2,119
     -------------------------------------------------------------------------
 
     Costs and expenses
       Manufacturing                                    4,987               -
       Market and business development costs                -           5,300
       Research and development                         7,644           9,819
       Selling, general and administrative              5,140           2,611
       Amortization                                       995           1,347
     -------------------------------------------------------------------------
                                                       18,766          19,077
     -------------------------------------------------------------------------
 
     Operating Income (Loss)                            3,963         (16,958)
 
     -------------------------------------------------------------------------
       Investment and other income                      8,998           4,436
       Interest expense on long-term debt                (311)              -
     -------------------------------------------------------------------------
 
     Income (Loss) before income taxes                 12,650         (12,522)
 
     -------------------------------------------------------------------------
 
     Provision for income taxes                             -               -
 
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Net Income (Loss)                              $  12,650       $ (12,522)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     Net Income (Loss) per common share
       Basic                                            $0.19         $ (0.19)
       Fully diluted                                    $0.18         $ (0.19)
 
     -------------------------------------------------------------------------
 
     Weighted average number of common
      shares outstanding (in thousands)                67,724          65,134
     -------------------------------------------------------------------------
 
 
                             - CANADIAN DOLLARS -
 
     QLT Inc.
 
     CONDENSED CONSOLIDATED BALANCE SHEETS
     -------------------------------------
                                                    March 31,    December 31,
     (In thousands of Canadian dollars)                  2001            2000
     -------------------------------------------------------------------------
     Current assets
       Cash and cash equivalents                    $  41,766       $ 239,063
       Short-term investment securities               212,604           9,000
       Short-term investments in
        Axcan Pharma Inc.                              12,463          12,369
       Accounts receivable                             28,856          20,014
       Inventories                                     50,689          43,094
       Other                                            1,487           1,746
     -------------------------------------------------------------------------
                                                      347,865         325,286
     -------------------------------------------------------------------------
     Long-term investments and advances                 5,797           5,468
     Property and equipment                            54,869          55,246
     -------------------------------------------------------------------------
                                                     $408,531        $386,000
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     Current liabilities
       Accounts payable                               $14,354         $14,129
       Accrued liabilities                              5,539           6,305
       Current portion of long-term debt                  586             576
       Deferred revenue                                12,342           2,399
     -------------------------------------------------------------------------
                                                       32,821          23,409
     -------------------------------------------------------------------------
 
     Long-term debt                                    12,910          13,069
 
     Shareholders' equity                             362,800         349,522
     -------------------------------------------------------------------------
 
                                                     $408,531        $386,000
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     As at March 31, 2001, there were 67,739,621 issued and outstanding common
     shares and 6,976,444 outstanding options to purchase common shares.
 
     All amounts shown are in Canadian dollars and presented in accordance
     with Canadian GAAP. At March 31, 2001, the exchange rate was
     approximately U.S. $1.00 equals Cdn. $1.5763
 
 
                             - CANADIAN DOLLARS -
 
     QLT Inc.
 
     CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
     -----------------------------------------------
                                                           Three months ended
                                                                    March 31,
                                                    --------------------------
     (In thousands of Canadian Dollars)                  2001            2000
     -------------------------------------------------------------------------
     Cash Provided by (Used In)
      Operating Activities
       Net income (loss) for the period             $  12,650       $ (12,522)
 
       Items not involving a current cash flow
         Amortization                                     995           1,347
         Other                                             59             142
       Changes in non-cash working
        capital components                             (6,870)            692
     -------------------------------------------------------------------------
                                                        6,834         (10,341)
     -------------------------------------------------------------------------
 
     Cash Provided by (Used In)
      Investing Activities
       Purchase of property and equipment              (1,006)         (7,022)
       Short-term investment securities              (203,604)        160,611
 
     -------------------------------------------------------------------------
                                                     (204,610)        153,589
     -------------------------------------------------------------------------
 
     Cash Provided by (Used In)
      Financing Activities
 
       (Decrease)Increase in long-term debt              (149)         13,985
       Issuance of common shares                          628          17,222
 
     -------------------------------------------------------------------------
                                                          479          31,207
     -------------------------------------------------------------------------
 
     (Decrease)Increase in Cash
      and Cash Equivalents                           (197,297)        174,455
 
     Cash and Cash Equivalents,
      Beginning of Period                             239,063          96,722
     -------------------------------------------------------------------------
 
     Cash and Cash Equivalents,
      End of Period                                 $  41,766       $ 271,177
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
 
                               - U.S. DOLLARS -
 
     QLT Inc.
 
     CONSOLIDATED STATEMENTS OF OPERATIONS
     -------------------------------------
                                                           Three months ended
     (In thousands of U.S. dollars,                                  March 31,
      except per share information)                      2001            2000
     -------------------------------------------------------------------------
     Revenues
       Revenue from Visudyne(TM)                    $  14,459       $       -
       Royalties on product sales
        - PHOTOFRIN(R)                                      -             426
       Contract research and development                  418           1,033
     -------------------------------------------------------------------------
                                                       14,877           1,459
     -------------------------------------------------------------------------
 
     Costs and expenses
       Manufacturing                                    3,264               -
       Market and business development costs                -           3,650
       Research and development                         5,003           6,761
       Selling, general and administrative              3,365           1,798
       Amortization                                       651             928
     -------------------------------------------------------------------------
                                                       12,283          13,137
     -------------------------------------------------------------------------
 
     Operating Income (Loss)                            2,594         (11,678)
 
     -------------------------------------------------------------------------
 
       Investment and other income                      5,890           3,055
       Interest expense on long-term debt                (204)              -
     -------------------------------------------------------------------------
 
     Income (Loss) before income taxes                  8,280          (8,623)
 
     -------------------------------------------------------------------------
 
     Provision for income taxes                             -               -
 
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Net Income (Loss)                              $   8,280         $(8,623)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     Net Income (Loss) per common share
       Basic                                            $0.12          $(0.13)
       Fully diluted                                    $0.12          $(0.13)
 
     -------------------------------------------------------------------------
     Weighted average number of common
      shares outstanding (in thousands)                67,724          65,134
     -------------------------------------------------------------------------
 
 
                               - U.S. DOLLARS -
 
     QLT Inc.
 
     CONDENSED CONSOLIDATED BALANCE SHEETS
     -------------------------------------
                                                    March 31,    December 31,
     (In thousands of U.S. dollars)                      2001            2000
     -------------------------------------------------------------------------
     Current assets
       Cash and cash equivalents                      $26,496       $ 159,428
       Short-term investment securities               134,875           6,002
       Short-term investments in
        Axcan Pharma Inc.                               7,906           8,249
       Accounts receivable                             18,306          13,347
       Inventories                                     32,157          28,739
       Other                                              944           1,165
     -------------------------------------------------------------------------
                                                      220,684         216,930
     -------------------------------------------------------------------------
 
     Long-term investments and advances                 3,678           3,647
     Property and equipment                            34,809          36,843
     -------------------------------------------------------------------------
                                                     $259,171       $ 257,420
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     Current liabilities
       Accounts payable                                $9,106          $9,422
       Accrued liabilities                              3,514           4,205
       Current portion of long-term debt                  372             384
       Deferred revenue                                 7,830           1,600
     -------------------------------------------------------------------------
                                                       20,822          15,611
     -------------------------------------------------------------------------
 
     Long-term debt                                     8,190           8,716
 
     Shareholders' equity                             230,159         233,093
     -------------------------------------------------------------------------
                                                     $259,171       $ 257,420
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     All amounts shown are in U.S. dollars translated using the current rate
     method. At March 31, 2001, the exchange rate was approximately U.S. $1.00
     equals Cdn. $1.5763
 
     Visudyne(TM) is a trademark of Novartis AG
     PHOTOFRIN(R) is a registered trademark of Axcan Pharma
 
     QLT Inc. will hold an analyst and institutional investor conference call
 to discuss first quarter results on Wednesday, April 25, at 4:30 p.m. EST
 (1:30 p.m. PST). The call will be broadcast live via the Internet at
 www.qltinc.com. A replay of the call will be available via the Internet and
 also via telephone at (416) 626-4100, access code 18478353.
 
     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, which involve known and unknown risks, uncertainties and
 other factors that may cause our actual results to be materially different
 from any future results, performance or achievements expressed or implied by
 such statements. Forward-looking statements include, but are not limited to,
 those with respect to anticipated levels of sales of Visudyne(TM), estimates
 of our share of Visudyne net profits and net income, and estimates of foreign
 currency exchange rates. These statements are only predictions and actual
 events or results may differ materially. Factors that could cause such actual
 events or results expressed or implied by such forward-looking statements to
 differ materially from any future results express or implied by such
 statements include, but are not limited to: the risk that future sales of
 Visudyne may be less than expected, our future operating results are uncertain
 and likely to fluctuate, currency fluctuations in our primary markets may
 impact our financial results, the outcome of the pending patent and securities
 litigation against us is uncertain and may be unfavorable, we are dependent on
 third-parties to commercialize Visudyne, uncertainty of and timing of pricing
 and reimbursement may limit the future sales of Visudyne and other factors
 described in detail in QLT's Annual Information Form on Form 10-K, forthcoming
 quarterly reports on Form 10-Q and other filings with the U.S. Securities and
 Exchange Commission. Forward-looking statements are based on our current
 expectations and QLT is not obligated to update such information to reflect
 later events or developments.
 
 

SOURCE QLT Inc.
    VANCOUVER, April 25 /PRNewswire/ - QLT Inc. (NASDAQ:  QLTI; TSE:QLT) today
 reported financial results for the first quarter ended March 31, 2001.
     For the three months ended March 31, 2001, QLT reported net income of
 CDN$12,650,000 / US$8,280,000 or CDN$0.19 / US$0.12 per common share compared
 to a net loss of (CDN$12,522,000) / (US$8,623,000) or (CDN$0.19) / (US$0.13)
 per common share in the same period in 2000.
     "We were able to report our fourth consecutive quarter of profitability
 due to better-than-expected growth in Visudyne(TM) sales, favorable foreign
 currency rates and prudent management of our internal cost structure," said
 Dr. Julia G. Levy, QLT's President and Chief Executive Officer. "In the first
 12 months of launch, physicians treated an estimated 50,000 patients and
 performed more than 120,000 Visudyne treatments resulting in total sales of
 more than CDN$220 million / US$140 million. We believe this represents the
 best first year sales performance for any eyecare pharmaceutical product."
     Visudyne sales for the first quarter of 2001 of CDN$73.5 million / US$48
 million were announced by QLT following the reporting of first quarter sales
 by marketing partner Novartis (NYSE:  NVS) on April 19, 2001.
     Visudyne is now available in more than 35 countries for the treatment of
 predominantly classic subfoveal choroidal neovascularization (CNV) due to age-
 related macular degeneration (AMD), the leading cause of severe vision loss in
 patients over 50. Approximately 65% of first quarter sales for Visudyne were
 in the United States with the remaining 35% in Europe, Canada and other
 markets.
     Dr. Levy added, "With an excellent first quarter behind us, we expect
 Visudyne sales for 2001 to be between CDN$348 million and CDN$387 million /
 US$225 million and US$250 million. The Company expects quarter-to-quarter
 growth in sales will have continued variability due to fluctuations in key
 foreign currency rates and usage patterns. We continue to expect QLT's share
 of net profits from Visudyne will grow to approximately 25% of total Visudyne
 sales for the year."
     QLT's revenue from Visudyne sales consists of reimbursement for
 manufacturing and other costs along with 50% of the Visudyne net profits which
 are calculated as sales less marketing, overhead and manufacturing costs. Due
 to the continued marketing investment required to support product launches
 outside the United States, QLT's share of Visudyne net profits (excluding
 reimbursement for manufacturing and other costs) for the first quarter was
 21.5 % of total Visudyne sales.
     The Company earned contract research and development (R&D) revenue during
 the first quarter of approximately CDN$639,000 / US$418,000, a decrease of 57%
 from the first quarter of 2000 due to Novartis Ophthalmics assuming a greater
 proportion of R&D activity for the joint Visudyne program.
     During the first quarter of 2000, the Company recorded royalties on sales
 of PHOTOFRIN(R) by various distribution partners. The Company sold the rights
 to PHOTOFRIN to Axcan Pharma (NASDAQ:   AXCA; TSE:AXP) in the second quarter of
 2000 and therefore no such royalties have been recorded for the current
 quarter.
     Total operating costs decreased by approximately 2% in the first quarter
 compared to the same period in 2000. The decrease relates mainly to certain
 product development and market development costs incurred in the first quarter
 of 2000, in anticipation of the launch of Visudyne.
     Depreciation and amortization expense for the first quarter decreased by
 26% over the same period in 2000 primarily as a result in changes in
 accounting estimates related to the amortization period of the Company's
 recently completed research and headquarters facility in Vancouver. Interest
 expense relates to long-term debt incurred in 2000 to fund a portion of the
 capital cost of the new facility.
     Investment and other income increased in the first quarter by 103%
 compared to the same period of 2000 due primarily to favorable foreign
 currency fluctuations on the Company's treasury investments and other working
 capital.
     The Company ended the first quarter with approximately CDN$254 million /
 US$161 million in cash resources. In addition, the Company has an investment
 of approximately CDN$18 million / US$11 million in Axcan Pharma as a result of
 the PHOTOFRIN transaction completed in 2000.
 
     QLT Inc. is a world leader in photodynamic therapy, a field of medicine
 utilizing light-activated drugs in the treatment of disease. QLT's innovative
 science has led to the development and commercialization of breakthrough
 treatments utilizing this technology for applications in ophthalmology and
 oncology and is exploring the potential in immune disorders. For more
 information, you are invited to visit QLT's web site at www.qltinc.com.
 
                             - CANADIAN DOLLARS -
 
     QLT Inc.
 
     CONSOLIDATED STATEMENTS OF OPERATIONS
     -------------------------------------
                                                           Three months ended
     (In thousands of Canadian dollars,                             March 31,
      except per share information)                      2001            2000
     -------------------------------------------------------------------------
     Revenues
       Revenue from Visudyne(TM)                    $  22,090       $       -
       Royalties on product sales
        - PHOTOFRIN(R)                                      -             619
       Contract research and development                  639           1,500
     -------------------------------------------------------------------------
                                                       22,729           2,119
     -------------------------------------------------------------------------
 
     Costs and expenses
       Manufacturing                                    4,987               -
       Market and business development costs                -           5,300
       Research and development                         7,644           9,819
       Selling, general and administrative              5,140           2,611
       Amortization                                       995           1,347
     -------------------------------------------------------------------------
                                                       18,766          19,077
     -------------------------------------------------------------------------
 
     Operating Income (Loss)                            3,963         (16,958)
 
     -------------------------------------------------------------------------
       Investment and other income                      8,998           4,436
       Interest expense on long-term debt                (311)              -
     -------------------------------------------------------------------------
 
     Income (Loss) before income taxes                 12,650         (12,522)
 
     -------------------------------------------------------------------------
 
     Provision for income taxes                             -               -
 
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Net Income (Loss)                              $  12,650       $ (12,522)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     Net Income (Loss) per common share
       Basic                                            $0.19         $ (0.19)
       Fully diluted                                    $0.18         $ (0.19)
 
     -------------------------------------------------------------------------
 
     Weighted average number of common
      shares outstanding (in thousands)                67,724          65,134
     -------------------------------------------------------------------------
 
 
                             - CANADIAN DOLLARS -
 
     QLT Inc.
 
     CONDENSED CONSOLIDATED BALANCE SHEETS
     -------------------------------------
                                                    March 31,    December 31,
     (In thousands of Canadian dollars)                  2001            2000
     -------------------------------------------------------------------------
     Current assets
       Cash and cash equivalents                    $  41,766       $ 239,063
       Short-term investment securities               212,604           9,000
       Short-term investments in
        Axcan Pharma Inc.                              12,463          12,369
       Accounts receivable                             28,856          20,014
       Inventories                                     50,689          43,094
       Other                                            1,487           1,746
     -------------------------------------------------------------------------
                                                      347,865         325,286
     -------------------------------------------------------------------------
     Long-term investments and advances                 5,797           5,468
     Property and equipment                            54,869          55,246
     -------------------------------------------------------------------------
                                                     $408,531        $386,000
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     Current liabilities
       Accounts payable                               $14,354         $14,129
       Accrued liabilities                              5,539           6,305
       Current portion of long-term debt                  586             576
       Deferred revenue                                12,342           2,399
     -------------------------------------------------------------------------
                                                       32,821          23,409
     -------------------------------------------------------------------------
 
     Long-term debt                                    12,910          13,069
 
     Shareholders' equity                             362,800         349,522
     -------------------------------------------------------------------------
 
                                                     $408,531        $386,000
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     As at March 31, 2001, there were 67,739,621 issued and outstanding common
     shares and 6,976,444 outstanding options to purchase common shares.
 
     All amounts shown are in Canadian dollars and presented in accordance
     with Canadian GAAP. At March 31, 2001, the exchange rate was
     approximately U.S. $1.00 equals Cdn. $1.5763
 
 
                             - CANADIAN DOLLARS -
 
     QLT Inc.
 
     CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
     -----------------------------------------------
                                                           Three months ended
                                                                    March 31,
                                                    --------------------------
     (In thousands of Canadian Dollars)                  2001            2000
     -------------------------------------------------------------------------
     Cash Provided by (Used In)
      Operating Activities
       Net income (loss) for the period             $  12,650       $ (12,522)
 
       Items not involving a current cash flow
         Amortization                                     995           1,347
         Other                                             59             142
       Changes in non-cash working
        capital components                             (6,870)            692
     -------------------------------------------------------------------------
                                                        6,834         (10,341)
     -------------------------------------------------------------------------
 
     Cash Provided by (Used In)
      Investing Activities
       Purchase of property and equipment              (1,006)         (7,022)
       Short-term investment securities              (203,604)        160,611
 
     -------------------------------------------------------------------------
                                                     (204,610)        153,589
     -------------------------------------------------------------------------
 
     Cash Provided by (Used In)
      Financing Activities
 
       (Decrease)Increase in long-term debt              (149)         13,985
       Issuance of common shares                          628          17,222
 
     -------------------------------------------------------------------------
                                                          479          31,207
     -------------------------------------------------------------------------
 
     (Decrease)Increase in Cash
      and Cash Equivalents                           (197,297)        174,455
 
     Cash and Cash Equivalents,
      Beginning of Period                             239,063          96,722
     -------------------------------------------------------------------------
 
     Cash and Cash Equivalents,
      End of Period                                 $  41,766       $ 271,177
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
 
                               - U.S. DOLLARS -
 
     QLT Inc.
 
     CONSOLIDATED STATEMENTS OF OPERATIONS
     -------------------------------------
                                                           Three months ended
     (In thousands of U.S. dollars,                                  March 31,
      except per share information)                      2001            2000
     -------------------------------------------------------------------------
     Revenues
       Revenue from Visudyne(TM)                    $  14,459       $       -
       Royalties on product sales
        - PHOTOFRIN(R)                                      -             426
       Contract research and development                  418           1,033
     -------------------------------------------------------------------------
                                                       14,877           1,459
     -------------------------------------------------------------------------
 
     Costs and expenses
       Manufacturing                                    3,264               -
       Market and business development costs                -           3,650
       Research and development                         5,003           6,761
       Selling, general and administrative              3,365           1,798
       Amortization                                       651             928
     -------------------------------------------------------------------------
                                                       12,283          13,137
     -------------------------------------------------------------------------
 
     Operating Income (Loss)                            2,594         (11,678)
 
     -------------------------------------------------------------------------
 
       Investment and other income                      5,890           3,055
       Interest expense on long-term debt                (204)              -
     -------------------------------------------------------------------------
 
     Income (Loss) before income taxes                  8,280          (8,623)
 
     -------------------------------------------------------------------------
 
     Provision for income taxes                             -               -
 
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Net Income (Loss)                              $   8,280         $(8,623)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     Net Income (Loss) per common share
       Basic                                            $0.12          $(0.13)
       Fully diluted                                    $0.12          $(0.13)
 
     -------------------------------------------------------------------------
     Weighted average number of common
      shares outstanding (in thousands)                67,724          65,134
     -------------------------------------------------------------------------
 
 
                               - U.S. DOLLARS -
 
     QLT Inc.
 
     CONDENSED CONSOLIDATED BALANCE SHEETS
     -------------------------------------
                                                    March 31,    December 31,
     (In thousands of U.S. dollars)                      2001            2000
     -------------------------------------------------------------------------
     Current assets
       Cash and cash equivalents                      $26,496       $ 159,428
       Short-term investment securities               134,875           6,002
       Short-term investments in
        Axcan Pharma Inc.                               7,906           8,249
       Accounts receivable                             18,306          13,347
       Inventories                                     32,157          28,739
       Other                                              944           1,165
     -------------------------------------------------------------------------
                                                      220,684         216,930
     -------------------------------------------------------------------------
 
     Long-term investments and advances                 3,678           3,647
     Property and equipment                            34,809          36,843
     -------------------------------------------------------------------------
                                                     $259,171       $ 257,420
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     Current liabilities
       Accounts payable                                $9,106          $9,422
       Accrued liabilities                              3,514           4,205
       Current portion of long-term debt                  372             384
       Deferred revenue                                 7,830           1,600
     -------------------------------------------------------------------------
                                                       20,822          15,611
     -------------------------------------------------------------------------
 
     Long-term debt                                     8,190           8,716
 
     Shareholders' equity                             230,159         233,093
     -------------------------------------------------------------------------
                                                     $259,171       $ 257,420
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     All amounts shown are in U.S. dollars translated using the current rate
     method. At March 31, 2001, the exchange rate was approximately U.S. $1.00
     equals Cdn. $1.5763
 
     Visudyne(TM) is a trademark of Novartis AG
     PHOTOFRIN(R) is a registered trademark of Axcan Pharma
 
     QLT Inc. will hold an analyst and institutional investor conference call
 to discuss first quarter results on Wednesday, April 25, at 4:30 p.m. EST
 (1:30 p.m. PST). The call will be broadcast live via the Internet at
 www.qltinc.com. A replay of the call will be available via the Internet and
 also via telephone at (416) 626-4100, access code 18478353.
 
     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, which involve known and unknown risks, uncertainties and
 other factors that may cause our actual results to be materially different
 from any future results, performance or achievements expressed or implied by
 such statements. Forward-looking statements include, but are not limited to,
 those with respect to anticipated levels of sales of Visudyne(TM), estimates
 of our share of Visudyne net profits and net income, and estimates of foreign
 currency exchange rates. These statements are only predictions and actual
 events or results may differ materially. Factors that could cause such actual
 events or results expressed or implied by such forward-looking statements to
 differ materially from any future results express or implied by such
 statements include, but are not limited to: the risk that future sales of
 Visudyne may be less than expected, our future operating results are uncertain
 and likely to fluctuate, currency fluctuations in our primary markets may
 impact our financial results, the outcome of the pending patent and securities
 litigation against us is uncertain and may be unfavorable, we are dependent on
 third-parties to commercialize Visudyne, uncertainty of and timing of pricing
 and reimbursement may limit the future sales of Visudyne and other factors
 described in detail in QLT's Annual Information Form on Form 10-K, forthcoming
 quarterly reports on Form 10-Q and other filings with the U.S. Securities and
 Exchange Commission. Forward-looking statements are based on our current
 expectations and QLT is not obligated to update such information to reflect
 later events or developments.
 
 SOURCE QLT Inc.