RALEIGH, N.C., Feb. 19 /PRNewswire-FirstCall/ -- CLOSURE Medical
Corporation (Nasdaq: CLSR), a leader in medical tissue adhesives for wound
closure and wound care, announced today that its revenue and profits grew
during the fourth quarter and year ended December 31, 2001, with the year's
strongest revenue growth rate (52 percent) and highest gross profit in the
fourth quarter. The Company reported earnings of $0.08 per share for the
fourth quarter and $0.19 per share ($0.18 fully diluted) for the year, versus
earnings of $0.01 and a loss of $0.27 for the prior year periods,
respectively.
President & CEO Robert V. Toni commented, "The financial landmarks of
2001 -- climbing profits, strong revenue growth rates, steady margins -- were
gratifying, the product of years of hard work. Dermabond Topical Skin
Adhesive accounted for the lion's share of 2001 results supported by the oral
shield and pain reliever, SOOTHE-N-SEAL(R) adhesive, launched during 2001 by
Colgate Oral Pharmaceuticals, Inc. We are looking forward to seeing the
continued success of current products and agreements as well as those that
have not yet had a significant impact on the financial results."
"Of more specific interest is LIQUIDERM(TM) liquid adhesive, which is
being marketed for topical applications by Johnson & Johnson Consumer Products
Company under the BAND-AID(R) Brand Liquid Bandage name. We are not in a
position to reveal details about the marketing launch, but we feel that we
should have visibility of its performance in the marketplace either later in
2002 or early 2003," Toni said.
Total revenues for the fourth quarter ended December 31, 2001 were
$6.0 million with net income of $1.1 million or $0.08 per share, as compared
to revenues of $3.9 million with net income of $125,000 or $0.01 per share for
the comparable prior year period.
Total revenues for the year ended December 31, 2001, were $19.2 million
with net income of $2.5 million or $0.19 per share, up from revenues of
$13.7 million with a net loss of $3.6 million or $0.27 loss per share for the
previous year.
Results for the fourth quarter and year include a charge of $430,000
relating to the replacement of certain lots of DERMABOND adhesive due to
blister packages that may have had compromised seals due to a mechanized
packaging problem. The problem was addressed and corrected, and the Company
does not expect the situation or the charges to recur.
At December 31, 2001, the Company had cash and investments of
$13.0 million, a current ratio of 2.6:1, stockholder's equity of
$17.2 million, and total debt obligations of $1.3 million.
CLOSURE Medical will host a conference call and simultaneous webcast,
available at http://www.closuremed.com or http://www.vcall.com at 4:30 PM on Tuesday,
February 19, 2002. The call will be archived online at the Company's website,
http://www.closuremed.com , shortly after the completion of the live webcast.
About CLOSURE Medical
CLOSURE Medical Corporation, headquartered in Raleigh, North Carolina,
develops, manufactures, and commercializes medical tissue adhesive products
based on its proprietary cyanoacrylate technology. CLOSURE's proprietary
technology has customized the physical and chemical properties of
cyanoacrylates to develop medical adhesive formulations to close and seal
topical skin wounds and incisions. In addition, CLOSURE is currently
developing internal adhesive formulations to close or seal internal wounds and
an adhesive formulation for the possible treatment of emphysema.
DERMABOND Topical Skin Adhesive is a topical tissue adhesive used to close
wounds from skin lacerations and incisions, minimally invasive surgery and
plastic surgery. DERMABOND adhesive can be used as a replacement for topical
sutures or staples and is marketed and distributed by ETHICON, Inc., a Johnson
& Johnson company and the world leader in wound closure products.
BAND-AID(R) Brand Liquid Bandage is the first and only cyanoacrylate
medical device approved by the FDA for the over-the-counter ("OTC") adhesive
bandage market. BAND-AID(R) Brand Liquid Bandage is painted on the wound,
sealing it from dirt and germs and creating a healing environment which allows
natural healing to take place quickly. As the wound heals, the adhesive
sloughs off naturally. CLOSURE has signed a worldwide supply, distribution
and development rights agreement with Johnson & Johnson Consumer Products
Company which includes rights to BAND-AID(R) Brand Liquid Bandage and
distribution rights to all present and future OTC products, except for SOOTHE-
N-SEAL(R) adhesive. Distribution of BAND-AID(R) Brand Liquid Bandage by
Johnson & Johnson Consumer Products Company is underway.
SOOTHE-N-SEAL(R) adhesive is indicated for the treatment of oral ulcers
and mouth sores. It forms a protective barrier that shields oral ulcers from
irritation due to eating and drinking while providing immediate and long-term
pain relief. SOOTHE-N-SEAL(R) adhesive is distributed to the professional and
consumer markets by Colgate Oral Pharmaceuticals, Inc.
The NEXABAND(R) liquid adhesive line consists of two products used in
veterinary wound closure and wound care. The adhesives are used in cat declaw
procedures as well as spay and neuter procedures. In July 2001, the Company
entered into an agreement providing Abbott Laboratories with worldwide supply,
distribution and development rights to the NEXABAND(R) product line. In
accordance with the agreement, Abbott has been granted immediate worldwide
distribution rights of NEXABAND(R) adhesives excluding the United States and
Canada. Upon the expiration of the Company's prior distribution arrangement
in the second quarter of 2002, Abbott can begin the distribution of
NEXABAND(R) products in the United States and Canada.
In November 2001, the Company entered into an agreement providing Johnson
& Johnson Wound Management, a division of ETHICON, Inc., a Johnson & Johnson
company, with worldwide supply, distribution and development rights to the
Company's professional wound management platform, including the novel Liquid
Occlusive Dressing ("LOD") for the treatment of partial thickness wounds. The
agreement is in the form of an amendment to the terms of its existing
licensing and development agreement with ETHICON, Inc.
DERMABOND adhesive is a registered trademark of ETHICON, Inc.; BAND-AID(R)
Brand Liquid Bandage is a registered trademark of Johnson & Johnson;
LIQUIDERM(TM) is a trademark of CLOSURE Medical Corporation; SOOTHE-N-SEAL(R)
is a registered trademark of Colgate Oral Pharmaceuticals, Inc.; and
NEXABAND(R) is a registered trademark of CLOSURE Medical Corporation.
This release contains certain forward-looking statements which involve
known and unknown risks, delays, uncertainties or other factors not under the
Company's control which may cause actual results, performance or achievements
of the Company to be materially different from the results, performance, or
other expectations implied by these forward-looking statements. These factors
include, but are not limited to the early stage of commercialization of the
Company's products; the progress of its research and development programs for
future products; the need for regulatory approval and effects of governmental
regulation; technological uncertainties; the satisfactory conclusion of
negotiations with, and dependence on marketing partners, and dependence on
patents and trade secrets, as well as those detailed in the Company's Annual
Report on Form 10-K for the year ended December 31, 2000 filed with the
Securities and Exchange Commission.
CLOSURE Medical Corporation
Statements of Operations
(In thousands, except per share data)
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
2001 2000* 2001 2000*
Product sales $5,753 $3,774 $18,405 $13,076
License and product
development revenue 222 156 768 625
Total revenues 5,975 3,930 19,173 13,701
Cost of products sold 1,652 1,094 5,450 3,841
Gross profit 4,323 2,836 13,723 9,860
Research, development
and regulatory affairs
expenses 1,444 1,348 5,622 5,853
General and
administrative
expenses 1,418 1,490 5,575 5,415
Special charge -
voluntary packaging
recall 430 - 430 -
Total operating
expenses 3,292 2,838 11,627 11,268
Income (loss) from
operations 1,031 (2) 2,096 (1,408)
Interest income, net 109 127 459 496
Income (loss) before
taxes 1,140 125 2,555 (912)
Provision for income
taxes - - 21 -
Income (loss) before
cumulative effect of
accounting change 1,140 125 2,534 (912)
Cumulative effect of
accounting change* - - - (2,656)
Net income (loss) $1,140 $125 $2,534 $(3,568)
Shares used in
computation of net
income (loss) per
common share:
Basic 13,494 13,418 13,468 13,390
Diluted 13,845 13,787 13,852 13,390
Net income (loss) per
common share:
Basic $0.08 $0.01 $0.19 $(0.27)
Diluted $0.08 $0.01 $0.18 $(0.27)
* See the Company's Annual Report on Form 10-K for the year ended
December 31, 2000.
CLOSURE Medical Corporation
Balance Sheet Data
(In thousands)
DECEMBER 31, DECEMBER 31,
2001 2000
Cash, cash equivalents and investments $12,958 $11,832
Working capital $9,321 $8,462
Total assets $25,340 $22,139
Total debt obligations $1,269 $1,487
Total stockholders' equity $17,247 $13,907
Total shares outstanding 13,508 13,428
SOURCE CLOSURE Medical Corporation
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Related links:
http://www.closuremed.com
CONTACT:
Robert V. Toni, President & CEO, or Benny
Ward, CFO, both of CLOSURE Medical Corporation, +1-919-876-7800;
General Info, Alison Ziegler, Analyst Info, Julie Tu, or Media
Info, Judith Sylk-Siegel, all of FRB Weber Shandwick,
+1-212-445-8400
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