EVANSTON, Ill., Oct. 19 /PRNewswire/ -- Northfield Laboratories Inc.
(Nasdaq: NFLD), a leading developer of an oxygen-carrying blood substitute for
trauma and elective surgery situations, today reported a loss, as anticipated,
for its first fiscal quarter ended August 31, 1998.
The development-stage company, which is conducting Phase III elective
surgery trials and Phase II trauma trials of its blood substitute,
PolyHeme(R), reported a loss of $1,681,000, or 12 cents per basic share, for
the first quarter, compared with a loss of $1,330,000, or 9 cents per basic
share, in the year-earlier period. Northfield has no revenues.
The majority of the increase in research and development expenses resulted
from increases associated with conducting clinical trials and producing
PolyHeme for use in the company's clinical trials.
At the close of the quarter, the company reported shareholders' equity of
$53.8 million, with $51.3 million in cash and marketable securities.
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.
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 months ended August 31, 1998 and August 31, 1997
(In thousands except per share data)
Three months ended
August 31, August 31,
1998 1997
(unaudited) (unaudited)
Revenues -- license income $-- $--
Costs and expenses:
Research and development 1,806 1,586
General and administrative 591 582
2,397 2,168
Other income and expense:
Interest income 716 838
Interest expense -- --
716 838
Net loss ($1,681) ($1,330)
Net loss per share ($0.12) ($0.09)
Shares used in calculation of
per share data 14,097 14,092
Northfield Laboratories Inc.
(a company in the development stage)
Balance Sheets
August 31, 1998 (unaudited) and May 31, 1998
(In thousands)
August 31, May 31,
Assets 1998 1998
Current assets:
Cash $24,785 $26,474
Short-term marketable
securities 26,502 27,031
Prepaid expenses 300 373
Other current assets 174 17
Total current assets 51,761 53,895
Property, plant and equipment,
net 2,956 2,997
Other assets 27 27
Total assets $54,744 $56,919
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $515 $1,037
Accrued expenses 90 82
Accrued compensation and benefits 271 253
Total current liabilities 876 1,372
Other liabilities 100 99
Total liabilities 976 1,471
Shareholders' equity: 141 141
Capital stock 116,047 116,047
Additional paid-in capital (62,420) (60,740)
Deficit accumulated during the
development stage
Deferred compensation 0 0
Total shareholders' equity 53,768 55,448
Total liabilities and
shareholders' equity $54,744 $56,919
SOURCE Northfield Laboratories, Inc.
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CONTACT:
Richard DeWoskin, Chief Executive Officer of
Northfield Laboratories, 847-864-3500; or General, Leslie
Hunziker, Media, Bess Gallanis, or Analyst/Broker, Kathy Brunson,
312-266-7800, all of The Financial Relations Board
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