Highlights
- Company achieves 37% revenue growth over comparable 2000 quarter
- Distribution partnerships announced with Johnson & Johnson Consumer
Products Company and Abbott Laboratories
RALEIGH, N.C., July 24 /PRNewswire/ -- CLOSURE Medical Corporation
(Nasdaq: CLSR), a medical tissue adhesive products company, today announced
record revenues for the second quarter and six months ended June 30, 2001.
Total revenues for the three months ended June 30, 2001 were $4,408,000 up
37% from $3,228,000 in the corresponding period of 2000, and up 13% from
$3,917,000 in the first quarter of 2001. Net income for the second quarter of
2001 was $441,000, or $0.03 per basic and diluted common share, compared to a
net loss of $488,000, or ($0.04) per basic and diluted common share in the
corresponding 2000 period and net income of $269,000, or $0.02 per basic and
diluted common share in the first quarter of 2001.
Total revenues for the first six months of 2001 were $8,325,000, a 38%
increase, compared to $6,050,000 in the first half of 2000. Previously, the
record revenue for a comparable period was $8,094,000 for the six months
ending June 30, 1999. For the first six months of 2001, net income was
$710,000, or $0.05 per basic and diluted common share, compared to a net loss
of $3,606,000, or ($0.27) per basic and diluted common share for the same
period of 2000.
As of June 30, 2001, cash, cash equivalents and investments totaled
$11,711,000 compared to $10,297,000 at March 31, 2001 and $11,832,000 at
December 31, 2000.
Commenting on today's news, Robert V. Toni, President and Chief Executive
Officer of CLOSURE Medical, stated, "Our business continues to strengthen with
each milestone achieved. We were pleased to announce during the second
quarter that a worldwide supply, distribution and development rights agreement
had been signed with Johnson & Johnson Consumer Products Company for our
second over-the-counter ("OTC") product, LIQUIDERM(TM) liquid adhesive
bandage, which is planned to be launched to the consumer in the first quarter
of 2002. Additionally, last week, we signed our third distribution agreement
within the last seven months with another top tier partner, Abbott
Laboratories ("Abbott"), granting rights to our NEXABAND(R) veterinary product
line."
Mr. Toni continued, "As noted above, both revenue and earnings continue to
improve, which is primarily attributable to increased DERMABOND sales
accompanied by the additional revenue generated from the launch of
SOOTHE-N-SEAL(TM) canker sore relief by our distribution partner Colgate Oral
Pharmaceuticals. As we build on these year-to-date accomplishments, we expect
to reach our full year 2001 EPS target of $0.15 to $0.20 per basic and diluted
common share resulting from revenues of $18 to $20 million."
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, as well as formulations to close or seal
internal wounds. In addition to its products discussed herein, CLOSURE is
also developing internal adhesives for the possible treatment of emphysema, as
well as developing liquid occlusive dressings for the treatment of a variety
of partial thickness wounds, including pressure ulcers and skin tears.
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
division of Johnson & Johnson, the world leader in wound closure products.
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, and creating
a healing environment which allows natural healing to take place quickly. As
the wound heals, the adhesive sloughs off naturally. CLOSURE recently signed
a worldwide supply, distribution and development rights agreement with Johnson
& Johnson Consumer Products Company which includes 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. Distribution of LIQUIDERM(TM) adhesive by Johnson & Johnson
Consumer Products Company is expected to begin in early 2002.
SOOTHE-N-SEAL(TM) 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(TM) adhesive is in the early stages of the product
launch 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 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.
DERMABOND adhesive is a registered trademark of Ethicon, Inc.; SOOTHE-N-
SEAL(TM) is a licensed trademark of Colgate Oral Pharmaceuticals, Inc.;
LIQUIDERM(TM) is a trademark of CLOSURE Medical Corporation; and NEXABAND(R)
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 SIX MONTHS ENDED
JUNE 30, JUNE 30,
2001 2000* 2001 2000*
Product sales $4,227 $3,072 $7,965 $5,738
License and product development
revenue 181 156 360 312
Total revenues 4,408 3,228 8,325 6,050
Cost of products sold 1,166 981 2,334 1,797
Gross profit 3,242 2,247 5,991 4,253
Research, development and regulatory
affairs expenses 1,455 1,600 2,735 3,066
General and administrative expenses 1,444 1,257 2,773 2,381
Total operating expenses 2,899 2,857 5,508 5,447
Income (loss) from operations 343 (610) 483 (1,194)
Interest income, net 108 122 237 244
Income (loss) before taxes 451 (488) 720 (950)
Provision for income taxes (10) - (10) -
Income (loss) before cumulative
effect of accounting change 441 (488) 710 (950)
Cumulative effect of accounting
change* - - - (2,656)
Net income (loss) $441 $(488) $710 $(3,606)
Shares used in computation of net
income (loss) per common share:
Basic 13,450 13,380 13,445 13,309
Diluted 13,722 13,380 13,722 13,309
Net income (loss) per common share:
Basic and diluted $0.03 $(0.04) $0.05 $(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)
JUNE 30, DECEMBER 31,
2001 2000
Cash, cash equivalents and investments $11,711 $11,832
Working capital $9,107 $8,462
Total assets $22,220 $22,139
Current portion of long-term debt $1,236 $1,487
Total stockholders' equity $14,995 $13,907
Total shares outstanding 13,469 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, +1-919-876-7800, both of CLOSURE Medical; General
Info, Paula Schwartz, +1-212-445-8439, or Analyst Info, Julie Tu,
+1-212-445-8456, or Media Info, Judith Sylk-Siegel,
+1-212-445-8431, all of The Financial Relations Board BSMG
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