EVANSTON, Ill., Aug. 25 /PRNewswire/ -- Northfield Laboratories Inc.
(Nasdaq: NFLD), a leading developer of an oxygen-carrying blood substitute for
trauma and elective surgery applications, reported a loss, as anticipated, for
its fourth quarter and fiscal year ended May 31, 2000. As a development-stage
company, Northfield has no revenues.
Financial Performance
For fiscal 2000, Northfield's net loss was $9.2 million, or $0.64 cents
per basic share, versus $7.4 million, or $0.53 cents per basic share, last
year. The increase in the loss per basic share was the result of the
increased expense of conducting Northfield's clinical trials, increased
expenditures for validation services and the expansion of the company's
manufacturing organization and facilities.
Northfield expects that research and development expenses will continue to
increase significantly in the foreseeable future. These increases are
attributable to anticipated future clinical trials, monitoring and reporting
the results of these trials and continuing process development associated with
improving the company's manufacturing capacity to permit commercial-scale
production of PolyHeme.
For the fourth quarter, Northfield reported a loss of $2.4 million, or
$0.17 cents per basic share, compared with a loss of $2.3 million, or
$0.16 cents per basic share, in the year-earlier period.
Financial Position
On May 31, 2000, the company reported shareholders' equity of
$40.1 million, with $38.3 million in cash and marketable securities.
Management believes Northfield's existing capital resources will be adequate
to satisfy the company's operating capital requirements and maintain its
existing manufacturing plant and office facilities for approximately 24 to
36 months. However, anticipated capital requirements may change materially
dependent on the results of Northfield's clinical testing of PolyHeme, the
establishment of relationships with strategic partners, changes in the scale,
timing or cost of the company's commercial manufacturing facility, competitive
and technological advances, the FDA regulatory process, changes in its
marketing and distribution strategy or other factors.
Annual Meeting Time Changed; Presentation To Be Held Online
As previously announced, Northfield Laboratories' annual meeting will take
place on October 12, 2000. The time has been changed to 9:00 a.m. Central
Time, from 2:00 p.m. This meeting is held strictly for the purpose of voting
on the matters described in Northfield's proxy material, and only questions
relating to those matters will be addressed during that session.
Separately, at 10:00 a.m. the same day, a discussion of the company's
performance and prospects will be held online. Access to this presentation
will only be available electronically or by telephone. Interested parties may
log on to http://www.vcall.com or http://www.northfieldlabs.com at the designated time. The
toll-free conference call dial-in number is 800-982-3654 for those wishing to
listen via telephone. The online conference will allow shareholders to
simultaneously receive an update on the company and access to management's
remarks. Questions for the question-and-answer session should be submitted in
writing or via electronic mail during the period leading up to the annual
meeting. Please email all questions to investor@frb.bsmg.com, or mail
inquiries to Investor Relations at the company's address.
The company believes PolyHeme is the only blood substitute undergoing
clinical trials that has been tested at large enough dosages to be considered
for the treatment of acute blood loss in trauma and surgical settings. As a
result of the process used to manufacture PolyHeme, essentially a solution of
polymerized hemoglobin, PolyHeme has a longer shelf life than blood and
requires no cross matching.
Northfield Laboratories was founded in 1985. The company is headquartered
in Evanston, Illinois, and its stock is traded on the Nasdaq National Market
System under the symbol NFLD.
Statements in this release that are not strictly historical are "forward-
looking" statements that are made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements involve known and unknown risks, which may cause the company's
actual results in the future to differ materially from expected results.
These risks include, among others: competition from other blood substitute
products; the company's ability to obtain regulatory approval to market
PolyHeme commercially; the company's ability to successfully market and sell
PolyHeme; the company's ability to manufacture PolyHeme in sufficient
quantities; the company's ability to obtain an adequate supply of raw
materials; the company's ability to maintain intellectual property protection
for its proprietary product and to defend its existing intellectual property
rights from challenges by third parties; the availability of capital to
finance planned growth; and the extent to which the hospitals and physicians
using PolyHeme are able to obtain third-party reimbursement, as described in
the company's filing with the Securities and Exchange Commission.
For more information on Northfield Laboratories Inc. via facsimile at no
cost, simply dial 1-800-PRO-INFO and enter the company code NFLD.
Visit the Northfield website at: http://www.northfieldlabs.com .
Northfield Laboratories Inc.
(a company in the development stage)
Statements of Operations
Three and twelve months ended May 31, 2000 and May 31, 1999
(In thousands except per share data)
Three months ended Twelve months ended
May 31, May 31, May 31, May 31,
2000 1999 2000 1999
Revenues
- license income $--- $--- $--- $---
Costs and expenses:
Research and
development 2,342 2,278 9,193 7,661
General and
administrative 595 562 2,260 2,311
2,937 2,840 11,453 9,972
Other income and expense:
Interest income 578 561 2,286 2,556
Interest expense -- -- -- --
578 561 2,286 2,556
Net loss $ (2,359) $ (2,279) $ (9,167) $ (7,416)
Net loss per share $ (0.17) $ (0.16) $ (0.64) $ (0.53)
Shares used in
calculation of
per share data 14,242 14,139 14,241 14,115
Northfield Laboratories Inc.
(a company in the development stage)
Balance Sheets
May 31, 2000 and May 31, 1999
(In thousands)
May 31, May 31,
2000 1999
Assets
Current assets:
Cash $15,154 $25,856
Short-term marketable securities 23,129 21,705
Prepaid expenses 409 302
Other current assets 506 269
Total current assets 39,198 48,132
Plant and equipment, net 2,456 2,756
Other assets 74 75
Total assets $41,728 $50,963
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $1,061 $1,325
Accrued expenses 174 121
Accrued compensation and benefits 251 221
Total current liabilities 1,486 1,667
Other liabilities 148 125
Total liabilities 1,634 1,792
Shareholders' equity:
Capital stock 142 142
Additional paid-in capital 117,276 117,186
Deficit accumulated during the (77,324) (68,157)
development stage
Total shareholders' equity 40,094 49,171
Total liabilities and
shareholders' equity $41,728 $50,963
SOURCE Northfield Laboratories Inc.
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Related links:
http://www.northfieldlabs.com
CONTACT:
Richard DeWoskin, Chief Executive Officer of
Northfield Laboratories, 847-864-3500, or General, Leslie
Hunziker of The Financial Relations Board, 312-266-7800
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