RALEIGH, N.C., July 27 /PRNewswire/ -- CLOSURE Medical Corporation
(Nasdaq: CLSR), a medical tissue cohesive products company, today announced
that total revenues for the second quarter ended June 30, 1998 were $1,342,000
compared to $140,000 for the quarter ended June 30, 1997. The net loss for
the 1998 quarter was $2.3 million, or ($.17) per basic and diluted share,
compared to a net loss of $1.7 million, or ($.13) per basic and diluted share
in the corresponding 1997 period.
Revenues for the six months ended June 30, 1998 were $2,112,000 compared
to $348,000 in the corresponding 1997 period. For the six months ended June
30, 1998, the Company reported a net loss of $4.3 million, or ($.32) per basic
and diluted share, compared to a net loss of $3.2 million, or ($.25) per share
for the same period of 1997.
Cash and cash equivalents and total investments were $18.7 million at June
30, 1998 compared to $24.5 million at December 31, 1997.
According to Robert Toni, Chief Executive Officer, "This was a record
quarter in product revenues, which exceeded $1 million for the first time,
primarily as a result of the DERMABOND* international sales. DERMABOND* was
launched by Ethicon, Inc., the Company's marketing partner for the product, in
23 countries outside the U.S. earlier this year.
CLOSURE Medical Corporation, headquartered in Raleigh, N.C., develops,
manufactures and commercializes medical tissue cohesive products based on its
proprietary cyanoacrylate technology. CLOSURE's nonabsorbable products may be
used to replace sutures and staples for certain topical wound closure
applications, while its absorbable cohesive products can potentially be used
as surgical sealants and tissue cohesives for internal wound closure and
management. Currently marketed nonabsorbable tissue cohesive products include
DERMABOND* topical skin cohesive, which is used to replace sutures and staples
for closure of certain lacerations and incisions; OCTYLDENT* cohesive, which
is used as an adjunct in the treatment of adult periodontal disease; and the
NEXABAND* line of topical tissue cohesives, which are used in veterinary wound
closure and management.
*DERMABOND is a Trademark of Ethicon, Inc.; OCTYLDENT and NEXABAND are
registered trademarks 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; scale-up of manufacturing processes; 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, 1997 and filed with the Securities
and Exchange Commission.
CLOSURE Medical Corporation
Statement of Operations
(Unaudited)
(In thousands, except per share data)
Three Months Six Months
Ended Ended
June 30, June 30, June 30, June 30,
1998 1997 1998 1997
Product Sales $1,342 $140 $2,112 $348
Cost of products sold 850 271 1,384 422
Gross profit 492 (131) 728 (74)
Research, development and
regulatory affairs expenses 1,550 746 2,883 1,496
Selling and administrative expenses 1,450 1,220 2,575 2,282
Total operating expenses 3,000 1,966 5,458 3,778
Loss from operations (2,508) (2,097) (4,730) (3,852)
Interest expense (103) (7) (191) (8)
Investment and interest income 291 405 645 665
Net loss $(2,320) $(1,699) $(4,276) $(3,195)
Shares used in computation of
net loss per share -
basic and diluted 13,263 13,186 13,257 12,701
Net loss per share -
basic and diluted $(0.17) $(0.13) $(0.32) $(0.25)
CLOSURE Medical Corporation
Balance Sheet
(In thousands, except per share data)
June 30, December 31,
1998 1997
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $3,260 $7,277
Short-term investments 10,429 14,417
Accounts receivable 858 1,226
Inventories 595 347
Prepaid expenses 294 367
Total current assets 15,436 23,634
Furniture, fixtures and equipment, net 6,376 3,694
Restricted investments 1,560 1,517
Long-term investments 3,448 1,298
Intangible assets, net 435 276
Total assets $27,255 $30,419
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $826 $478
Accrued expenses 1,368 2,598
Deferred revenue 2,346 2,019
Capital lease obligations 44 155
Current portion of long-term debt 350 350
Total current liabilities 4,934 5,600
Capital lease obligations 1,250 1,250
Long-term debt less current portion 2,600 1,150
Total liabilities 8,784 8,000
Stockholders' Equity:
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
13,271 and 13,242 shares. 133 132
Additional paid-in capital 46,234 46,058
Accumulated deficit (27,351) (23,075)
Deferred compensation on stock options (545) (696)
Total stockholders' equity 18,471 22,419
Total liabilities and stockholders' equity $27,255 $30,419
SOURCE CLOSURE Medical Corporation
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CONTACT:
Robert V. Toni, President & CEO, or J. Blount
Swain, CFO, both of CLOSURE Medical Corporation, 919-876-7800; or
General Info., Paul G. Henning, Analyst Info., Brian Gill, or
Media Info., Deanne Eagle, all of The Financial Relations Board,
212-661-8030
NOTE TO EDITORS: To receive CLOSURE's latest news release and
other corporate documents via FAX -- at no cost -- dial
800-PRO-INFO. Use the Company's ticker-CLSR
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