RALEIGH, N.C., Oct. 21 /PRNewswire/ -- CLOSURE Medical Corporation
(Nasdaq: CLSR), a medical tissue cohesive products company, today announced
that total revenues for the three months ended September 30, 1999 were
$2,732,000 compared to $4,210,000, including product development revenues of
$1,500,000, in the 1998 corresponding period. The net loss for the 1999
quarter was $1,204,000 or ($0.09) per basic and diluted share, compared to net
income of $494,000 or $0.04 per basic and diluted share in the corresponding
1998 period.
Revenues for the nine months ended September 30, 1999 were $10,826,000
compared to $6,322,000 in the corresponding 1998 period. For the nine months
ended September 30, 1999, the Company reported a net loss of $1,754,000 or
($0.13) per basic and diluted share, compared to a net loss of $3,782,000 or
($0.29) per basic and diluted share for the same time period of 1998.
Cash and cash equivalents and total investments were $13.6 million at
September 30, 1999 compared to $16.7 million at December 31, 1998.
"We are pleased with the recent FDA clearance of SOOTHE-N-SEAL(TM) Canker
Sore Relief product and are currently in discussions for a marketing
distribution agreement," said Robert V. Toni, President and Chief Executive
Officer of CLOSURE Medical. "We're also pleased by the initiation of the
DERMABOND(R) Topical Skin Adhesive marketing effort into the operating room
theatre by Ethicon, Inc," said Toni.
CLOSURE Medical Corporation, headquartered in Raleigh, North Carolina,
develops, manufactures and commercializes medical tissue cohesive products
based on its proprietary cyanoacrylate technology. CLOSURE's nonabsorbable
tissue cohesive products may be used to replace sutures and staples for
certain topical wound closure applications, while its absorbable tissue
cohesive products can potentially be used as tissue cohesives for internal
wound closure and management. Currently marketed nonabsorbable tissue
cohesive products include DERMABOND(R) Topical Skin Adhesive, which is used to
replace sutures and staples for closure of certain lacerations and incisions,
OCTYLDENT(R) cohesive, which is used as an adjunct in the treatment of adult
periodontal disease; and NEXABAND(R) topical cohesives, a family of products
used in veterinary wound closure and management.
* DERMABOND is a trademark of Ethicon, Inc.; SOOTHE-N-SEAL, OCTYLDENT and
NEXABAND are all trademarks of CLOSURE Medical Corporation.
To receive CLOSURE's latest news release and other corporate documents via
fax, at no cost, call 1-800-PRO-INFO, use the Company's symbol CLSR. Or visit
the Financial Relations Board's website at http://www.frbinc.com .
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 products; the progress of its research and development programs for
future nonabsorbable and absorbable products; 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, 1998 filed with the Securities and Exchange
Commission.
CLOSURE Medical Corporation
Statement of Operations
(Unaudited)
(In thousands, except per share data)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1999 1998 1999 1998
Product sales $2,732 $2,710 $10,826 $4,822
License and product
development revenues -- 1,500 -- 1,500
Total revenues 2,732 4,210 10,826 6,322
Cost of products sold 1,093 1,063 3,789 2,448
Gross profit and license
and product development
revenues 1,639 3,147 7,037 3,874
Research, development and
regulatory affairs expenses 1,633 1,502 5,083 4,410
General and administrative
expenses 1,341 1,339 4,099 3,889
Total operating expenses 2,974 2,841 9,182 8,299
Income (loss) from operations (1,335) 306 (2,145) (4,425)
Interest expense (84) (100) (270) (291)
Investment and interest income 215 288 661 934
Net income (loss) $(1,204) $ 494 $(1,754) $(3,782)
Shares used in computation
of net income (loss)
per share:
Basic 13,333 13,278 13,317 13,264
Diluted 13,333 13,656 13,317 13,264
Net income (loss) per share:
Basic $(0.09) $0.04 $(0.13) $(0.29)
Diluted $(0.09) $0.04 $(0.13) $(0.29)
CLOSURE Medical Corporation
Balance Sheet
(In thousands, except per share data)
SEPTEMBER 30, DECEMBER 31,
1999 1998
Assets (Unaudited)
Cash and cash equivalents $957 $824
Short-term investments 11,181 14,275
Restricted investments -- 1,603
Accounts receivable 1,143 1,191
Inventories 533 1,008
Prepaid expenses and other assets 430 286
Total current assets 14,244 19,187
Restricted investments 1,492 --
Furniture, fixtures and equipment, net 7,749 7,707
Intangible assets, net 776 526
Total assets $24,261 $27,420
Liabilities and Stockholders' Equity
Accounts payable $1,306 $1,721
Accrued expenses 1,155 1,705
Deferred revenue 620 1,245
Capital lease obligations 270 245
Current portion of long-term debt 600 2,650
Total current liabilities 3,951 7,566
Deferred revenue 670 670
Capital lease obligations 728 934
Long-term debt less current portion 1,650 --
Total liabilities 6,999 9,170
Commitments and Contingencies -- --
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 13,340 and 13,290
shares, respectively. 133 133
Additional paid-in capital 46,896 46,358
Accumulated deficit (29,602) (27,848)
Deferred compensation on stock options (165) (393)
Total stockholders' equity 17,262 18,250
Total liabilities and stockholders' equity $ 24,261 $ 27,420
SOURCE CLOSURE Medical Corporation
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CONTACT:
Robert V. Toni, President & CEO, or J. Blount
Swain, CFO, 919-876-7800, both of CLOSURE Medical; or General
Info, Paul G. Henning, Analyst Info, Brian Gill, or Media Info,
Deanne Eagle, 212-661-8030, all of The Financial Relations Board,
for CLOSURE Medical
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