WATERTOWN, Mass., May 4 /PRNewswire/ -- V. I. Technologies, Inc.
(Nasdaq: VITX) today announced financial results for the first quarter ended
April 1, 2000.
For the quarter, the Company reported net revenue of $11.4 million,
including a $0.6 million credit under the Red Cross Incentive Program.
Revenue in the comparable quarter of fiscal 1999 was $11.1 million. For the
three months ended April 1, 2000, the Company reported a net loss of
$0.6 million, or $0.03 per share, compared to net income of $0.6 million, or
$0.05 per share in the year ago period. Cost of goods sold in the quarter was
$7.1 million compared to $6.1 million in the first quarter of 1999. This
increase, principally in the PLAS+(R)SD business, was attributable to lower
processing volumes and the added costs of parvovirus B-19 screening, which was
initiated in the second quarter of 1999. Research and development expenses
increased to $2.4 million in the quarter from $2.0 million in the prior year
period. This was in line with company forecasts and included clinical trial
costs for both red blood cell viral inactivation and Universal PLAS+(R)SD.
"This was a very productive quarter for VITEX," said John Barr, President
and CEO. "We continued to make strong progress towards meeting our key goals
for 2000, particularly related to our clinical programs with Universal
PLAS+(R)SD and INACTINE(TM). Both programs are proceeding on plan."
Highlights for the Quarter:
Headquarters and Organization
--Completed construction and opened new state-of-the-art R&D center in
Watertown, Ma., which also serves as the Company's new corporate
headquarters.
--Appointed Dave Dlesk Executive Vice President and Chief Business
Officer, INACTINE(TM). This is the first in a series of expected near-
term strategic hires designed to strengthen the Company's
commercialization capabilities.
Clinical Development
--The INACTINE(TM) red cell viral inactivation program received IRB
approval to begin Phase I trials at a second site. This will help
ensure early completion of the Phase I program and the initiation of
pivotal trials by year-end.
--Universal PLAS+(R)SD entered pivotal clinical trials and the Company's
target is to file a BLA by year-end 2000.
Collaborations
--Signed an agreement with Amersham Pharmacia Biotech to license the
INACTINE(TM) technology for use as a viral inactivation step in the
manufacture of plasma derivatives, biotech and other biopharmaceutical
products. The agreement included a significant up front payment and
will provide additional milestone payments and ongoing royalties from
sales of the technology.
--Signed an agreement with Haemonetics to collaborate on the development
of removal systems for use with the INACTINE(TM) red cell viral
inactivation system.
--Extended the Bayer fractionation processing agreement for three years at
a volume level that effectively covers all of the Company's existing
fractionation manufacturing capacity. The agreement is worth a minimum
of $65.0 million in revenue over the next three years.
Reimbursement
--Medicare has assigned PLAS+(R)SD a dedicated code for outpatient
reimbursement and a reimbursement rate of $169, a premium of more than
$60 over untreated Fresh Frozen Plasma. This new code is a milestone
for viral inactivation and blood safety as it indicates that the
government is willing to reimburse at a higher rate for safer, virally
inactivated blood products.
Mr. Barr concluded, "With our R&D team consolidated in Boston and the
continued formation of major technical collaborations we are increasingly well
positioned to move ahead with the commercialization of our portfolio of
technology platforms. Our operating businesses continue to play a significant
role in funding our ambitious R&D program and we look forward to reporting
continued strong progress in 2000."
VITEX is a leading developer and manufacturer of a broad portfolio of
blood products that utilize its patented viral inactivation technologies
designed to ensure product safety. The technologies are tailored for all
blood component applications and other blood-derived products, including
plasma, plasma derivatives, red blood cells and platelets. The first of
VITEX's virally inactivated products, PLAS+(R)SD, is the only FDA-approved
method for viral inactivation of plasma.
For further information, please visit the VITEX web site at
http://www.vitechnologies.com .
Except for the historical information contained herein, the matters
discussed are forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. These
statements involve risks and uncertainties, such as quarterly fluctuations in
operating results, the timely availability of new products, market acceptance
of the company's products, the impacts of competitive products and pricing,
government regulation of the company's products and other risks and
uncertainties set forth in the company's filings with the Securities and
Exchange Commission. These risks and uncertainties could cause actual results
to differ materially from any forward-looking statements made herein.
To receive additional information on V. I. Technologies, Inc., via fax, at
no charge, dial 1-800-PRO-INFO and enter code VITX.
V. I. Technologies, Inc.
Condensed Statements of Operations
(In thousands, except for per share data)
Quarter Ended
April 1, 2000 April 3, 1999
(unaudited) (unaudited)
Revenue $10,800 $11,142
ANRC Incentive Program 565 --
Net revenue $11,365 $11,142
Costs and expenses:
Cost of goods sold 7,077 6,060
Research and development, net 2,398 2,011
Selling, general and administrative expenses 2,487 2,493
Operating expenses 11,962 10,564
Income (loss) from operations ($597) $578
Interest income, net 29 37
Net income (loss) ($568) $615
Basic and diluted net income (loss) per share ($0.03) $0.05
Weighted average number of shares
Basic earnings per share 19,702 12,406
Diluted earnings per share 19,702 12,913
Condensed Balance Sheet
(In thousands)
April 1, January 1,
2000 2000
(unaudited) (audited)
Cash and cash equivalents $18,972 $26,886
Trade receivables 7,345 4,596
Inventory 3,116 2,744
Other current assets 1,760 1,460
Property, plant & equipment, net 39,240 37,520
Other assets 4,750 4,892
Total assets $75,183 $78,098
Current liabilities $9,165 $10,837
Current portion, long-term debt 4,364 4,175
Long-term debt 6,509 7,701
Stockholders' equity 55,145 55,385
Total liabilities and stockholders' equity $75,183 $78,098
SOURCE V. I. Technologies, Inc.
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Related links:
http://www.vitechnologies.com
CONTACT:
John Barr, President and CEO of V.I.
Technologies, Inc., 617-926-1551, ext. 7256; Alison Ziegler,
Brian Gill, or Deanne Eagle, all of The Financial Relations
Board, 212-661-8030
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