EVANSTON, Ill., Sept. 2 /PRNewswire/ -- Northfield Laboratories Inc.
(Nasdaq: NFLD), the leading developer of an oxygen-carrying blood substitute
for trauma and elective surgery situations, today reported a loss, as
anticipated, for its fiscal year and fourth quarter ended May 31, 1998.
The company, which is conducting Phase III elective surgery trials and
Phase II trauma trials of its blood substitute, PolyHeme(R), reported a loss
of $5.9 million, or 42 cents per share, for fiscal 1998, compared with a loss
of $4.2 million, or 30 cents per share, a year ago. As a development stage
company, Northfield has no revenues.
For the fiscal 1998 fourth quarter, the company reported a loss of
$1.7 million, or 12 cents per share, versus $1.1 million, or 7 cents per
share, in the similar period last year.
At the close of the year, the company reported shareholders' equity of
$55.4 million, with $53.5 million in cash and marketable securities.
"We made important headway in fiscal 1998 toward our goal of obtaining
commercial marketing clearance for PolyHeme," said Richard DeWoskin,
Northfield's chairman and chief executive officer. "Our Phase III study is
proceeding on course. And, recently, the FDA cleared Northfield to infuse up
to 20 units (10 liters) of PolyHeme, essentially two times the blood volume of
the average adult, in continuing Phase II trials being conducted in trauma
patients. Also, during the year, the industry's competitive landscape changed
in our favor."
PolyHeme is the only blood substitute undergoing clinical trials that has
been tested at large enough dosages to be considered a substitute for acute
blood loss in trauma and surgical settings. As a result of the process
used to manufacture the blood substitute, essentially a solution of
polymerized hemoglobin, PolyHeme has a longer shelf life than blood, requires
no cross matching and does not transmit disease.
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 and/or its representative'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.
Northfield Laboratories Inc.
(a company in the development stage)
Statements of Operations
Three and twelve months ended May 31, 1998 and May 31, 1997
(In thousands except per share data)
Three months ended Twelve months ended
May 31, May 31, May 31, May 31,
1998 1997 1998 1997
Revenues - license income $ -- $ -- $ -- $ --
Costs and expenses:
Research and
development 1,915 1,259 6,675 5,188
General and
administrative 549 660 2,338 2,317
2,464 1,919 9,013 7,505
Other income and expense:
Interest income 733 833 3,130 3,259
Interest expense -- -- -- --
733 833 3,130 3,259
Net loss $(1,731) $(1,086) $(5,883) $(4,246)
Net loss per share $(0.12) $(0.07) $(0.42) $(0.30)
Shares used in calculation
of per share data 14,094 14,060 14,093 13,961
Northfield Laboratories Inc.
(a company in the development stage)
Balance Sheets
May 31, 1998 and May 31, 1997
(In thousands)
May 31, May 31,
Assets 1998 1997
Current assets:
Cash $26,474 $21,367
Short-term marketable securities 27,031 38,927
Prepaid expenses 373 335
Other current assets 17 418
Total current assets 53,895 61,047
Property, plant and equipment, net 2,997 1,263
Other assets 27 33
Total assets $56,919 $62,343
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $1,037 $656
Accrued expenses 82 122
Accrued compensation and benefits 253 176
Total current liabilities 1,372 954
Other liabilities 99 94
Total liabilities 1,471 1,048
Shareholders' equity:
Capital stock 141 141
Additional paid-in capital 116,047 116,012
Deficit accumulated during the
development stage (60,740) (54,857)
Deferred compensation -- (1)
Total shareholders' equity 55,448 61,295
Total liabilities and
shareholders' equity $ 56,919 $ 62,343
SOURCE Northfield Laboratories Inc.
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CONTACT:
Richard DeWoskin, Chief Executive Officer of
Northfield Laboratories, 847-864-3500; or General Information,
Leslie Hunziker, Media, Bess Gallanis, or Analysts-Brokers, Kathy
Brunson, all of The Financial Relations Board, 312-266-7800
NOTE TO EDITORS: For more information on Northfield Laboratories
Inc. via facsimile at no cost, simply dial 1-800-PRO-INFO and
enter the company code NFLD
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