Highlights
* Company achieves 39% revenue growth over comparable 2000 quarter
* Earnings per share hits historical high; exceeds previous guidance of
$0.01
* Two new products are introduced to the market
RALEIGH, N.C., April 24 /PRNewswire Interactive News Release/ -- CLOSURE
Medical Corporation (Nasdaq: CLSR), a medical tissue adhesive products
company, today announced financial and operating results for the period ended
March 31, 2001.
Total revenues for the three months ended March 31, 2001 were $3,917,000,
a 39% increase over revenue of $2,822,000 in the corresponding period of 2000.
Net income for the first quarter of 2001 was $269,000, or $0.02 per basic
and diluted common share, compared to a net loss of $3,118,000, or ($0.23) per
basic and diluted common share in the corresponding 2000 period. As required
by the Securities and Exchange Commission, the Company's adoption of Staff
Accounting Bulletin No. 101 resulted in the amendment of the March 31, 2000
results from the previously filed Form 10-Q and includes a $2,656,000 charge
for the cumulative effect of a change in accounting principle. Earnings
before the cumulative effect of accounting change were a loss of $462,000 in
the comparable quarter of 2000.
Total cash, cash equivalents and investments decreased to $10.3 million
at March 31, 2001 compared to $11.8 million at December 31, 2000. This
decrease resulted primarily from the timing of shipments, specifically a new
DERMABOND(R) adhesive line extension utilizing a "chisel tip" configuration
(see "First Quarter Milestones"), which occurred later in the quarter and the
seasonal payment of accrued liabilities.
Commenting on today's news, Robert V. Toni, President and Chief Executive
Officer of CLOSURE Medical, stated, "Our positive earnings announcement today
is another milestone for the Company and further demonstrates our commitment
to the ultimate goal of maximizing value for our shareholders. Based upon
first quarter 2001 results, we can reaffirm our previously stated full-year
2001 EPS guidance of $0.15 to $0.20 per basic and diluted common share, as
provided in January."
First Quarter Milestones
During the quarter ended March 31, 2001, Closure and its marketing
partners introduced two new products. In February, the first shipment of
SOOTHE-N-SEAL(TM) canker sore relief, an over-the-counter ("OTC") product to
treat oral ulcers and mouth sores, was delivered to the Company's marketing
partner, Colgate Oral Pharmaceuticals, Inc., for launch to both professionals
and consumers. Additionally, in March, a new DERMABOND(R) adhesive line
extension utilizing a "chisel tip" configuration versus the original "dome
tip", was shipped to Ethicon, Inc., a subsidiary of Johnson & Johnson and the
Company's marketing partner for DERMABOND(R) adhesive.
Mr. Toni continued, "Although a majority of Closure's revenue is
generated from the sale of DERMABOND(R) adhesive, the introduction of the
SOOTHE-N-SEAL(TM) product and new DERMABOND(R) adhesive line extension
provides the Company with important expansion of its product portfolio.
It also reflects one of our major focuses which is aggressive new product
development."
Two additional milestones were achieved during the quarter ended March 31,
2001. First, in January 2001 the Company was notified of FDA clearance for
its LIQUIDERM(TM) liquid adhesive bandage, an OTC product which can be used
for the treatment of minor cuts and abrasions. The Company expects to sign a
distribution agreement with a top-tier marketing partner for the LIQUIDERM(TM)
liquid adhesive by mid-year 2001, leading to an initial consumer launch of the
product during the first quarter of 2002.
Also during the quarter, the Company signed a Cooperative Research and
Development Agreement with Walter Reed Army Medical Center and Uniformed
Services University of the Health Sciences for the development of an internal
medical adhesive to be used in the treatment of emphysema. The partnership is
currently conducting additional animal studies to optimize the Endobronchial
Lung Volume Reduction procedure prior to entering human clinical trials.
Products
DERMABOND(R) Topical Skin Adhesive is a topical tissue adhesive used to
close wounds from skin lacerations and incisions, minimally invasive surgery
and plastic surgery. DERMABOND(R) adhesive can be used as a replacement for
topical sutures or staples and is marketed and distributed by Ethicon Inc.,
a subsidiary of Johnson & Johnson and the world leader in wound closure
products.
SOOTHE-N-SEAL(TM) adhesive forms a protective barrier that shields oral
ulcers from irritation due to eating and drinking while providing immediate
and long-term pain relief. Additionally, the product utilizes the same
proprietary technology as the Company's professional product, DERMABOND(R)
adhesive. SOOTHE-N-SEAL(TM) adhesive is in the early stages of the product
launch to the professional and consumer markets by Colgate Oral
Pharmaceuticals, Inc.
LIQUIDERM(TM) adhesive is the first and only cyanoacrylate medical device
approved by the FDA for the OTC adhesive bandage market. LIQUIDERM(TM)
adhesive is painted on the wound, sealing it from dirt and germs, creating a
healing environment which allows natural healing to take place quickly. As
the wound heals, the adhesive sloughs off naturally. CLOSURE's negotiations
with a top-tier marketing partner include rights to its LIQUIDERM(TM) adhesive
and its overall OTC wound care platform, including distribution rights to all
present and future products, except for SOOTHE-N-SEAL(TM) adhesive.
CLOSURE Medical Corporation, headquartered in Raleigh, North Carolina,
develops, manufactures, and commercializes medical tissue adhesive products
based on its proprietary cyanoacrylate technology. CLOSURE's nonabsorbable
tissue adhesive products may be used to replace sutures and staples for
certain topical wound closure applications, while its internal tissue adhesive
products can potentially be used for internal wound closure and management.
Currently marketed nonabsorbable tissue adhesive products include:
DERMABOND(R) Topical Skin Adhesive, which is used to replace sutures and
staples for closure of certain lacerations and incisions; SOOTHE-N-SEAL(TM)
canker sore relief, an over-the-counter product to treat oral ulcers and mouth
sores; and NEXABAND(R) topical adhesives used in veterinary wound closure and
management. The Company's LIQUIDERM(TM) liquid adhesive bandage has been
approved by the FDA for the over-the-counter adhesive bandage market.
DERMABOND(R) adhesive is a registered trademark of Ethicon, Inc.;
SOOTHE-N-SEAL(TM) adhesive is a licensed trademark of Colgate Oral
Pharmaceuticals, Inc.; LIQUIDERM(TM) adhesive is a trademark of CLOSURE
Medical Corporation; and NEXABAND(R) adhesive is a registered trademark of
CLOSURE Medical Corporation.
To receive CLOSURE's latest news release and other corporate documents via
fax, at no cost, call 1-800-PRO-INFO, use the Company's symbol CLSR. Or visit
the Financial Relations Board's website at http://www.frbinc.com .
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 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
MARCH 31,
2001 2000
Product sales $3,738 $2,666
License and product development
revenue 179 156
Total revenues 3,917 2,822
Cost of products sold 1,167 816
Gross profit 2,750 2,006
Research, development and regulatory
affairs expenses 1,280 1,466
General and administrative expenses 1,330 1,124
Total operating expenses 2,610 2,590
Income (loss) from operations 140 (584)
Interest expense (46) (58)
Investment and interest income 175 180
Income (loss) before cumulative
effect of accounting change 269 (462)
Cumulative effect of accounting change* - (2,656)
Net income (loss) $269 $(3,118)
Shares used in computation of net income
(loss) per common share:
Basic 13,441 13,353
Diluted 13,710 13,353
Net income (loss) per common share:
Basic and diluted $0.02 $(0.23)
* 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)
March 31, December 31,
2001 2000
Cash, cash equivalents and investments $10,297 $11,832
Working capital $8,661 $8,462
Total assets $21,222 $22,139
Current portion of long-term debt $1,336 $1,487
Total stockholders' equity $14,358 $13,907
Total shares outstanding 13,446 13,428
SOURCE CLOSURE Medical Corporation
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Related links:
http://www.frbinc.com
CONTACT:
Robert V. Toni, President & CEO, or Benny
Ward, CFO, 919-876-7800, of CLOSURE Medical Corporation; General
Info, Paula Schwartz, Analyst Info, Julie Tu, or Media Info,
Judith Sylk-Siegel, 212-661-8030, of The Financial Relations
Board BSMG Worldwide
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