RALEIGH, N.C., July 15 /PRNewswire/ -- CLOSURE Medical Corporation
(Nasdaq: CLSR), a medical tissue cohesive products company, today announced
that total revenues for the three months ended June 30, 1999 were $4,277,000,
compared to $1,342,000 in the 1998 corresponding period. Net income for the
1999 quarter was $15,000, or $0.00 per basic and diluted share, compared to a
net loss of $2,320,000, or ($0.17) per basic and diluted share, in the
corresponding 1998 period.
Revenues for the six months ended June 30, 1999 were $8,094,000, compared
to $2,112,000 in the corresponding 1998 period. For the six months ended June
30, 1999, the Company reported a net loss of $550,000, or ($0.04) per basic
and diluted share, compared to a net loss of $4,276,000, or ($0.32) per share,
for the same time period of 1998.
Cash and cash equivalents and total investments were $13.0 million at
June 30, 1999, compared to $16.7 million at December 31, 1998.
The Company also announced that it has received notification from Ethicon,
Inc., a unit of Johnson & Johnson (NYSE: JNJ) with exclusive worldwide
distribution rights for DERMABOND Topical Skin Adhesive*, that due to excess
inventory levels, Ethicon has reduced the volume of its orders for the
remainder of 1999. Accordingly, revenue and earnings for the second half of
1999 will be below analysts' expectations.
"Since its introduction, we have been encouraged by the strong and
positive market acceptance of DERMABOND within the professional medical
community," said Robert V. Toni, President and Chief Executive Officer of
CLOSURE Medical. "However, the adoption of an innovative product that
transforms the accepted method of treatment is a dynamic process. This is
especially true with DERMABOND, which is marketed by exclusive arrangement
into multiple venues -- each of which has specific complexities which require
varying degrees of training time and emphasis."
"DERMABOND has demonstrated its unique effectiveness and is well
positioned as a leader in the revolution of wound closure treatment. The
product has had broad acceptance in the emergency room, a trend we expect to
continue, since the summer tends to be the busiest time for lacerations in the
Emergency Department. Ethicon plans to accelerate training programs as the
DERMABOND launch is initiated in the operating room and plastic surgery
centers," said Mr. Toni.
As a result of the expected decrease in revenues and earnings, the Company
said it expects to make certain reductions in operating expenses, but expects
to continue new product development at current levels.
CLOSURE Medical Corporation, headquartered in Raleigh, North Carolina,
develops, manufactures and commercializes medical tissue cohesive products
based on its proprietary cyanoacrylate technology. CLOSURE's nonabsorbable
tissue cohesive products may be used to replace sutures and staples for
certain topical wound closure applications, while its absorbable tissue
cohesive products can potentially be used as tissue cohesives for internal
wound closure and management. Currently marketed nonabsorbable tissue
cohesive products include DERMABOND topical skin adhesive, which is used to
replace sutures and staples for closure of certain lacerations and incisions,
OCTYLDENT(R) cohesive, which is used as an adjunct in the treatment of adult
periodontal disease; and NEXABAND(R) topical cohesives, a family of products
used in veterinary wound closure and management.
* DERMABOND is a trademark of Ethicon, Inc.; SOOTHE-N-SEAL, OCTYLDENT and
NEXABAND are all trademarks 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 nonabsorbable and absorbable products; the need for regulatory approval
and effects of governmental regulation; technological uncertainties;
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, 1998 filed with the Securities and Exchange
Commission.
CLOSURE Medical Corporation
Statement of Operations
(Unaudited)
(In thousands, except per share data)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
1999 1998 1999 1998
Product sales $4,277 $1,342 $8,094 $2,112
Cost of products sold 1,520 850 2,697 1,384
Gross profit 2,757 492 5,397 728
Research, development and
regulatory affairs expenses 1,588 1,550 3,450 2,908
General and administrative expenses 1,270 1,450 2,758 2,550
Total operating expenses 2,858 3,000 6,208 5,458
Loss from operations (101) (2,508) (811) (4,730)
Interest expense (94) (103) (185) (191)
Investment and interest income 210 291 446 645
Net income (loss) $15 $(2,320) $(550) $(4,276)
Shares used in computation of
net income (loss) per share:
Basic 13,315 13,264 13,309 13,258
Diluted 13,884 13,264 13,309 13,258
Net income (loss) per share:
Basic $0.00 $(0.17) $(0.04) $(0.32)
Diluted $0.00 $(0.17) $(0.04) $(0.32)
CLOSURE Medical Corporation
Balance Sheet
(In thousands, except per share data)
JUNE 30, DECEMBER 31,
1999 1998
Assets (Unaudited)
Cash and cash equivalents $7 $824
Short-term investments 11,453 14,275
Restricted investments -- 1,603
Accounts receivable 2,746 1,191
Inventories 712 1,008
Prepaid expenses and other assets 431 286
Total current assets 15,349 19,187
Restricted investments 1,496 --
Furniture, fixtures and equipment, net 8,369 7,707
Intangible assets, net 701 526
Total assets $25,915 $27,420
Liabilities and Stockholders' Equity
Accounts payable $1,583 $1,721
Accrued expenses 1,109 1,705
Deferred revenue 872 1,245
Capital lease obligations 260 245
Current portion of long-term debt 600 2,650
Total current liabilities 4,424 7,566
Deferred revenue 670 670
Capital lease obligations 799 934
Long-term debt less current portion 1,800 --
Total liabilities 7,693 9,170
Commitments and Contingencies -- --
Preferred Stock, $.01 par value.
Authorized 2,000 shares; none issued
or outstanding -- --
Common Stock, $.01 par value.
Authorized 35,000 shares; issued and
outstanding 13,324 and 13,290 shares,
respectively. 133 133
Additional paid-in capital 46,728 46,358
Accumulated deficit (28,398) (27,848)
Deferred compensation on stock options (241) (393)
Total stockholders' equity 18,222 18,250
Total liabilities and stockholders' equity $25,915 $27,420
SOURCE CLOSURE Medical Corporation
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CONTACT:
Robert V. Toni, President & CEO, or J. Blount
Swain, CFO, of CLOSURE Medical Corporation, 919-876-7800; or
general info, Paul G. Henning, analyst info, Brian Gill, of media
info, Deanne Eagle, of the Financial Relations Board,
212-661-8030
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