LA JOLLA, Calif., Aug. 7 /PRNewswire/ -- Advanced Tissue Sciences, Inc.
(Nasdaq: ATIS) today announced its financial results for the quarter ended
June 30, 2000. Total revenues were $6.3 million for the three months ended
June 30, 2000 compared to $11.1 million for the three months ended June 30,
1999. Total revenues were $13.7 million for the six months ended June 30,
2000 compared to $22.0 million for the six months ended June 30, 1999. The
Company reported a net loss to common stockholders for the three months ended
June 30, 2000 of $7.4 million or $0.12 per share compared to $5.1 million or
$0.11 per share for the three months ended June 30, 1999. The Company also
reported a net loss to common stockholders for the six months ended June 30,
2000 of $15.8 million or $0.27 per share compared to $10.7 million or
$0.25 per share for the six months ended June 30, 1999.
The decrease in revenues in the three and six-month periods ended June 30,
2000 as compared to the corresponding period in 1999 principally reflects the
recognition in the three and six-month periods ended June 30, 1999 of
$4.4 million and $9.4 million, respectively, of a $15 million milestone
payment received in January 1999 from Smith & Nephew associated with the
expansion of the Dermagraft Joint Venture. These payments were recognized
into revenues in 1999 as the related financial commitments were met. This
decrease was partially offset by the recognition of $0.9 million and
$1.8 million, respectively, in the three and six-month periods ended June 30,
2000 of licensing payments previously received from Inamed Corporation in
1999.
Separately, the Dermagraft Joint Venture reported sales of TransCyte(TM)
and Dermagraft(R) to customers of $996,000 for the three months ended June 30,
2000 compared to $561,000 in the three months ended June 30, 1999. Combined
sales for TransCyte and Dermagraft for the six months ended June 30, 2000
totaled $1.7 million compared to sales of $1.0 million for the six months
ended June 30, 1999. TransCyte sales were $1.6 million of the total sales
reported for the six months ended June 30, 2000 as compared to $0.9 million
for the six months ended June 30, 1999.
"Consistent with our business strategy of developing a broad portfolio of
products to enhance human healing, we continue to advance programs in each of
our four areas of therapeutic focus," said Arthur J. Benvenuto, Chairman and
Chief Executive Officer of Advanced Tissue Sciences. "As recently announced,
enrollment in the clinical trial of Dermagraft for the treatment of diabetic
foot ulcers has been completed and we currently expect to submit a Pre-Market
Approval (PMA) application to the Food and Drug Administration (FDA) by the
end of the summer. In addition, activities related to launching the
multi-partner consortium lead by the University of Washington to grow
functional heart tissue have been initiated. As previously reported, this
project is being funded by a grant from the National Institutes of Health, and
our patented technology will play a key role in the project."
As of June 30, 2000, the Company had cash, cash equivalents and short-term
investments of approximately $23 million.
Advanced Tissue Sciences is a tissue engineering company utilizing its
proprietary core technology to develop and manufacture human-based tissue
products for tissue repair and transplantation. The Company has two joint
ventures with Smith & Nephew. The first covers the application of Advanced
Tissue Sciences' tissue engineering technology for skin wounds and includes
Dermagraft for the treatment of diabetic foot ulcers, TransCyte for the
temporary covering of second and third-degree burns, and future developments
for venous ulcers, pressure ulcers, burns and other non-aesthetic wound care
treatments. The second joint venture is developing tissue-engineered
orthopedic cartilage, initially focusing on the repair of cartilage in knee
joints. The Company also has a strategic alliance with Inamed Corporation for
the development and marketing of several of Advanced Tissue Sciences'
human-based, tissue-engineered products for aesthetic and certain
reconstructive applications. In addition, the Company is developing products
for cardiovascular applications. For more information on Advanced Tissue
Sciences visit our web site at http://www.advancedtissue.com.
Statements in this press release that are not strictly historical may be
"forward-looking" statements which involve risks and uncertainties. No
assurances can be given that the Company will successfully implement its
business strategy, develop its products, complete clinical trials, obtain
regulatory approvals (or that any such approvals will be obtained on a timely
basis), or be able to manufacture or successfully commercialize such products.
In particular, the Company will need to successfully complete an additional
controlled clinical trial for Dermagraft in the treatment of diabetic foot
ulcers and submit a Pre-Market Approval application to the U.S. Food and Drug
Administration. Actual results may differ from those described in this press
release due to risks and uncertainties that exist in the Company's operations,
including, without limitation, uncertainties related to clinical trials, the
ability to obtain the appropriate regulatory approvals, the ability to obtain
additional financing to continue operations when needed, a history of
operating losses and accumulated deficits, market acceptance of products, the
Company's reliance on collaborative relationships, patent protection as well
as other risks detailed from time to time in publicly available filings with
the Securities and Exchange Commission, such as, but without limitation to,
Advanced Tissue Sciences' Quarterly Report on Form 10-Q for the quarter ended
March 31, 2000. Actual results may differ materially from those currently
anticipated as a result of such risks, and results for interim periods are not
necessarily indicative of results to be expected for the full year. The
Company undertakes no obligation to release publicly the results of any
revision to these forward-looking statements to reflect events or
circumstances arising after the date hereof.
Advanced Tissue Sciences, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2000 1999 2000 1999
Revenues:
Product sales to
related parties (1) $2,996 $3,617 $6,618 $6,688
Contracts and fees (2) 3,267 7,505 7,055 15,304
Total revenues 6,263 11,122 13,673 21,992
Costs and expenses:
Research and
development 3,699 3,958 7,600 8,127
Cost of goods sold (1) 2,996 3,617 6,618 6,688
Selling, general and
administrative 2,860 2,791 5,484 6,171
Compensation related
to variable stock
option (3) 704 -- 2,695 --
Total costs and
expenses 10,259 10,366 22,397 20,986
Income (loss) from
operations before
equity in losses of
joint ventures (3,996) 756 (8,724) 1,006
Equity in losses of
joint ventures (3,542) (4,998) (7,255) (10,455)
Loss from operations (7,538) (4,242) (15,979) (9,449)
Other income
(expense), net 110 (684) 252 (783)
Net loss (7,428) (4,926) (15,727) (10,232)
Dividends on
preferred stock -- (176) (48) (431)
Net loss applicable
to common stock $(7,428) $(5,102) $(15,775) $(10,663)
Basic and diluted
loss per common share $(.12) $(.11) $(.27) $(.25)
Weighted average
shares 59,845 45,522 59,014 43,252
Condensed Consolidated Balance Sheets
(In thousands)
June 30, December 31,
2000 1999
(Unaudited)
Assets:
Cash, cash equivalents and short-term
investments $22,870 $26,079
Other current assets 8,293 8,144
Property, net 15,288 16,627
Other assets 3,053 8,536
Total assets $49,504 $59,386
Liabilities and stockholders' equity:
Current liabilities $20,196 $23,572
Long-term liabilities 8,031 9,351
Redeemable preferred stock -- 5,040
Stockholders' equity 21,277 21,423
Total liabilities and stockholders' equity $49,504 $59,386
(1) Product sales to related parties include sales of Dermagraft(R) and
TransCyte(R) to a joint venture between the Company and Smith & Nephew
plc (the "Dermagraft Joint Venture") at cost.
(2) Contracts and fees for the three and six-month periods ended June 30,
2000 includes the recognition of $0.9 million and $1.8 million,
respectively, of revenue related to licensing payments previously
received from Inamed Corporation in 1999. Contracts and fees for the
three and six-month periods ended June 30, 1999 includes the
recognition of $4.4 million and $9.4 million, respectively, of a
$15 million milestone payment received from Smith & Nephew in 1999
related to the expansion of the Dermagraft Joint Venture. These
payments were recognized into revenue in 1999 as the related financial
commitments were met.
(3) Compensation related to variable stock option represents a non-cash
compensation expense related to stock options exercised through the
issuance of a loan being accounted for as a variable stock option. As
a result of the variable option treatment, variability in the market
price of the Company's common stock can result in significant
increases and decreases in compensation expense from period to period.
SOURCE Advanced Tissue Sciences, Inc.
 back to top
Related links:
http://www.advancedtissue.com
Company News On-Call:
http://www.prnewswire.com/comp/532975.html or fax,
800-758-5804, ext. 532975
CONTACT:
Jana Stoudemire, Senior Director, Corporate
Communications of Advanced Tissue Sciences, Inc., 858-713-7802
|
