RALEIGH, N.C., Oct. 24 /PRNewswire/ -- CLOSURE Medical Corporation
(Nasdaq: CLSR), a medical tissue cohesive products company, today announced
that total revenues for the three months ended September 30, 1997 were
$591,000 compared to $106,000 in the 1996 comparable period. The net loss for
the 1997 quarter was $1.6 million, or ($.12) per share, compared to a net loss
of $16.0 million, or ($1.64) per share in the corresponding 1996 period. The
operating loss for the 1996 quarter includes a one time non-cash charge of
$14.2 million or ($1.46) per share. Excluding this charge, the operating loss
was $1.8 million or ($.18) per share.
Revenues for the nine months ended September 30, 1997, were $939,000
compared to $3.8 million in the corresponding 1996 period. The 1996 revenues
reflect the receipt of $3.5 million in license and product development
revenues under the Supply and Distribution Agreement for Dermabond(TM), the
Company's topical cohesive product, entered into with Ethicon, Inc., a
division of Johnson & Johnson (NYSE: JNJ), in March 1996. For the nine months
ended September 30, 1997, the Company reported a net loss of $4.8 million, or
($.37) per share, compared to a net loss of $15.2 million or ($1.52) per share
for the same period of 1996. As noted above, the 1996 nine month operating
loss includes a one time non-cash charge of $14.2 million or ($1.42) per
share. Excluding this charge, the operating loss was $1.0 million or ($.10)
per share for the nine months ending September 30, 1996.
Cash and cash equivalents and total investments were $26,667,000 at
September 30, 1997 compared to $18,060,000 at December 31, 1996.
The Company noted that recent publications by physicians have reported on
Dermabond. Most recently in an article entitled "Evaluation and Management of
Traumatic Lacerations" in the October 16, 1997 edition of The New England
Journal of Medicine, Drs. Adam J. Singer, Judd E. Hollander and James V. Quinn
referenced the ease of use, patient benefits and antimicrobial attributes of
octylcyanocrylate for use on topical lacerations. Dermabond has also been the
subject of recent papers presented in the Journal of the American Medical
Association, Surgery Magazine and at the Academy of Emergency Medicine.
CLOSURE Medical develops, commercializes and manufactures 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 surgical
sealants and tissue cohesives for internal wound closure and management.
Currently marketed tissue cohesive products include Octyldent, used as an
adjunct in the treatment of adult periodontal disease, Nexaband, a line of
topical tissue cohesives used in veterinary wound closure and management and
Dermabond, a nonabsorbable cohesive used for certain topical wound closure
applications.
To receive CLOSURE's latest news release and other corporate
documents via FAX -- at no cost -- dial 1-800-PRO-INFO. Use
Company's ticker-CLSR.
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 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, 1996
filed with the Securities and Exchange Commission.
CLOSURE MEDICAL CORPORATION
Statement of Operations
(Unaudited)
(In thousands, except per share data)
Three Months Nine Months
Ended September 30, Ended September 30,
1997 1996 1997 1996
Product Sales $591 $106 $939 $298
License and Product
development revenues -- -- -- 3,500
Total revenues 591 106 939 3,798
Cost of products sold 461 119 883 292
Gross profit and
license and product
development
revenues 130 (13) 56 3,506
Research, development
and regulatory
affairs expenses 870 817 2,366 2,156
Selling and
administrative
expenses 1,266 965 3,548 1,980
Exchange of rights with
Caratec, L.L.C. -- 14,210 -- 14,210
Payments to Caratec,
L.L.C. -- 5 -- 293
Total operating
expenses 2,136 15,997 5,914 18,639
Loss from
operations (2,006) (16,010) (5,858) (15,133)
Interest expense (18) (1) (26) (141)
Investment and
interest income 397 25 1,062 72
Net loss $(1,627) $(15,986) $(4,822) $(15,202)
Shares used in
computation of
net loss per share 13,212 9,739 12,873 10,012
Net loss per share $(0.12) $(1.64) $(0.37) $(1.52)
CLOSURE MEDICAL CORPORATION
Balance Sheet
(In thousands, except for share data)
September 30, December 31,
1997 1996
Assets
(Unaudited)
Current assets:
Cash and cash equivalents $9,200 $13,024
Short-term investments 14,359 4,627
Accounts receivable 195 67
Inventories 213 112
Prepaid expenses 449 388
Total current assets 24,416 18,218
Furniture, fixtures and
equipment 1,920 851
Less-accumulated depreciation
and amortization (290) (179)
1,630 672
Long-term investments 3,108 409
Intangible assets, net of
accumulated amortization 254 213
Total assets $29,408 $19,512
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $1,452 $566
Accrued expenses 534 396
Deferred revenue 2,037 2,069
Capital lease obligations 170 12
Total current
liabilities 4,193 3,043
Capital lease obligations 871 14
Total liabilities 5,064 3,057
Stockholders' Equity:
Preferred Stock, $.01 par value.
Authorized 2,000,000 shares; none
issued or outstanding. -- --
Common Stock, $.01 par value.
Authorized 35,000,000 shares;
issued and outstanding
13,241,520 shares. 132 122
Additional paid-in capital 46,052 33,579
Accumulated deficit (21,068) (16,246)
Deferred compensation
on stock options (772) (1,000)
Total stockholders'
equity 24,344 16,455
Total liabilities and
stockholders'
equity $29,408 $19,512
SOURCE CLOSURE Medical Corporation
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CONTACT:
Robert V. Toni, President & CEO, or J. Blount
Swain, CFO, of CLOSURE Medical Corporation, 919-876-7800; or Paul
G. Henning, General, Brian Gill, Analyst, or Deanne Eagle, Media,
of The Financial Relations Board, 212-661-8030, for CLOSURE
Medical Corporation
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